New Partnership Will Develop Geothermal Power Plants In Oregon
Ormat (NYSE:ORA) and Nevada Geothermal Power Inc. (OTC BB: NGLPF) have announced an agreement to a joint venture, which would see the companies develop geothermal power plants in Oregon.
In order to qualify for government grants the companies plan to begin construction and drilling on at least one well this year at the Crump Geyser Project in Lake Country, Oregon. Ormat, operating under its subsidiary Ormat Nevada Inc., will provide US$15 million for the initial development; Nevada Geothermal Power (NGP) will supply existing permits and technical and engineering data.
According to the press release, once the project is complete the two companies will split the costs in this 50/50 venture, though Ormat has agreed to finance NGP up to an additional US$15.
"The Crump Geyser project increases Ormat's portfolio of projects that are eligible for the ITC/Treasury Cash Grant program, and gives us access to a strong geothermal resource. We look forward to working with NGP as our partner to bring this project on-line as quickly as possible," said Yoram Bronicki, President and Chief Operating Officer of Ormat Technologies, Inc.
Image Credit: furtureatlas.com via Flickr
Learn more about Geothermal Power on eBoom's Geothermal Energy Learning Page.
Joseph Baker is a freelance writer living in Vancouver BC. His areas of focus include renewable energy, sustainability and climate change.
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