Gradient Resources’s $20.5 million financier; Ormat Technologies secures a new PPA; U.S. Geothermal hosts FERC Chairman at Neal Hot Springs opening

Gradient Resources has gained investments from Denham Capital that total $20.5 million. Ormat Technologies secures a new PPA for its Heber, California plant, enabling IID to hit its 2016 RPS target. U.S. Geothermal hosts the Neal Hot Springs Geothermal Power Plant Ribbon Cutting Ceremony.


Gradient Resources: Investments from Denham Capital Total $20.5M
Ormat Technologies: New Geothermal PPA in California Enables IID to Hit 2016 RPS Target
U.S. Geothermal: FERC Chairman, DOE Loan Program Officer, Participate in Neal Hot Springs Ribbon Cutting Ceremony

Gradient Resources: Investments from Denham Capital Total $20.5M
Reno-based GEA member Gradient Resources, which develops, constructs, owns, and operates geothermal resources, had its equity funding sale on 29 August. All funding, totaling about $20.5 million came from Denham Capital. Altassets.net

Ormat Technologies: New Geothermal PPA in California Enables IID to Hit 2016 RPS Target
A new 10-year power purchase agreement (PPA) with Southern California Public Power Authority calls for 46 MW from the Heber-1 geothermal power plant. Imperial Irrigation District (IID) will receive an average of 12 MW of geothermal energy while Los Angeles Department of Water and Power will receive 34 MW. The new PPA brings IID’s renewable resource mix up to 25% from its current 20.4%, thus meeting the California mandated RPS goal for 2016. The mandate then requires 33% by 2020. Iid.com; Ormat.com

According to Ormat’s press release (Ormat.com), the company will sell the power to SCPPA at an average price of approximately $85.62 per megawatt hour over the lifetime of the contract, and as a result, the new pricing will increase Heber 1 revenues in 2016 by more than $7 million.

“In our effort to replace all coal generation by 2025, LADWP sees the value in geothermal as an ideal coal replacer as a renewable, baseload solution with no integration costs,” explained Aram Benyamin, senior assistant general manager – power at LADWP. “As we continue to incorporate more renewable assets into our portfolio, we will benefit from contracts like the Heber 1 PPA because it’s a risk-free project with a credible owner-operator at an attractive price.”

For IID, “The district is able to continue integrating renewable energy into its portfolio while at the same time supporting sustainability in the Imperial Valley by integrating our indigenous resources and the valuable jobs that are sustained by them into the mix,” said Carl Stills, energy department manager. “We are thrilled to have contracted our first long-term geothermal project enabling the supply of electricity from a local resource.”

Ormat is also enhancing the Heber 1 geothermal power plant, with plans to refurbish the main steam turbine and replace the existing main generator in 2014.

“This new PPA marks our second contract with LADWP as well as IID. We are delighted to strengthen our relationship with these two large publicly owned utilities and to help them meet their RPS goals with clean, reliable and cost-effective geothermal resources,” Dita Bronicki, chief executive officer of Ormat told press.

U.S. Geothermal: FERC Chairman, DOE Loan Program Officer, Participate in Neal Hot Springs Ribbon Cutting Ceremony
On September 6, U.S. Geothermal Inc. (NYSE MKT:HTM)(TSX:GTH) and Enbridge Inc. (NYSE:ENB)(TSX:ENB) hosted a ribbon-cutting ceremony for the completion of the Neal Hot Springs Geothermal Plant in Vale, which is the first commercial geothermal power plant to be completed in the State of Oregon. FERC Chairman Jon Wellinghoff, previously a member of U.S. Geothermal’s Board of Directors, participated in the event. Douglas Schultz, director of origination for the U.S. Department of Energy’s Loan Programs Office, also participated; Neal Hot Springs was the first geothermal project to obtain a loan guarantee under the DOE’s Title XVII program. Chief Executive Officer of U.S. Geothermal, Dennis Gilles, stated: “The completion of this historic renewable energy plant marks an important step in expanding the contribution of geothermal energy in the United States to help meet our country’s effort to become more energy independent.” Argusobserver.com; Renewablesbiz.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s