Drilling Begins for Crump Geyser Geothermal Power Station in Oregon

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Researched by Industrial Info Resources (Sugar Land, Texas)--Nevada Geothermal Power Incorporated (OTC:NGLPF) (Reno, Nevada) and Ormat Nevada Incorporated (Reno), a wholly owned subsidiary of Ormat Technologies Incorporated (NYSE:ORA) (Sparks, Nevada), have agreed to become joint venture partners to develop, construct, own and operate one or more geothermal power plants at the Crump Geyser Project Area in Lake County, Oregon. Both parties formed a limited liability company, Crump Geothermal Company LLC (CGC), on a 50:50 basis in Vancouver, British Columbia.

There are three possible geothermal wells, and drilling on one at the Crump Geyser, for the first power station, is under way. It is expected to have a generating capacity of up to 30 megawatts (MW). Ormat will install two Turbo Expander units utilizing its state-of-the-art Ormat Energy Converter (OEC) technology, which has been perfected throughout the past 30 years under the toughest conditions.

The facility will be capable of generating enough electricity to meet the rising demand for about 30,000 homes in the Lake County area. The power station is expected to be commissioned and fully operational by the fourth quarter of 2013. This will qualify the joint venture partners for the Treasury Cash Grant under Section 1603 of the American Recovery and Reinvestment Act (ARRA), since the offer expires in 2013. The parties also propose to apply for a Department of Energy loan guarantee under Section 1705 of the ARRA.

The $120 million project's engineering, procurement and construction (EPC) will be performed by Ormat, will be responsible for all development activities, and will provide plant operations and management services to CGC. The joint venture partners will create the necessary representation from each party that is needed in regards to the EPC contract, power purchase agreements, financing and any future plans for expansions.

Nevada Geothermal Power Incorporated is a renewable energy developer focused on producing clean, renewable geothermal electric power in Nevada and Oregon. Geothermal electricity is generated by turbines, driven by hot, high-pressure water and steam from underground geothermal reservoirs. Nevada Geothermal Power was founded in 1995 and is based in Vancouver.

Ormat Nevada Incorporated operates as a geothermal developer in the United States and internationally. The company designs, develops, builds, owns, operates and supplies geothermal power plants. Ormat also designs, develops and builds recovered energy-based power plants. In addition, it designs, manufactures and sells power generating equipment, and provides related services.

Industrial Info will continue to monitor this project as it goes through its various stages of construction and development.

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