This post brings you new coverage from the February 24 GEA State of the Geothermal Energy Industry Briefing, new member announcements from GEA and updates from our members, a DOE budget webinar on March 5, dates to look out for in California geothermal policy, and more.
The global market is at about 12.8 GW of operating capacity as of January 2015, spread across 24 countries. In the chart above, “Nearterm Goals” includes government and private sector development goals. Overall if all countries follow through on their geothermal power development goals and targets the global market could reach 27-30 GW by the early 2030s. This year the global geothermal market was developing about 11.5-12.3 GW of planned capacity spread across 80 countries.
The countries listed in the second chart above are among those developing 50 MW or more. Based on current data the global geothermal industry is expected to reach between 14.5 GW and 17.6 GW by 2020. Read more in the GEA’s 2015 Annual U.S. & Global Geothermal Power Production Report and view the International Developing Geothermal Power Project List: geo-energy.org/reports
Click below to read this week’s leading geothermal news.
*GEA Event: News Coverage
*U.S. Department of Energy to Hold Budget Roll-Out Webinar on March 5
*Ormat Technologies: Canadian Firm Invests in Puna, Campbell Plants
*U.S. Geothermal Inc. to Discuss 2014 Year End Earnings Results on March 17
*GEA Welcomes New Member Companies Barbour Well, Inc., Burisma Holdings Limited, Reykjavik Geothermal, C. Steinweg (Houston, TX) Inc., and Fuji Electric Corp. of America
*California Webinar to Look at Electricity Production Cost Model
*Comments on Salton Sea California Due March 11, Public Workshop March 18
“Senators’ New GEO Act Addresses Geothermal Exploration Catch-22,” Leslie Blodgett (GEA) on RenewableEnergyWorld.com
“Geothermal and the Development Dilemma,” Ethan Goffman, Sustainability: Science, Practice, & Policy
Takeaways, U.S. National Energy Education Development Project blog
“How Volcanoes Could Help Power the Planet—But Barely Do,” Wendy Koch, National Geographic
To review last week’s coverage of the event, visit https://geoenergist.wordpress.com/2015/02/27/leading-news-geothermal-industry-growing-u-s-market-at-crucial-crossroads/.
U.S. Department of Energy to Hold Budget Roll-Out Webinar on March 5
The U.S. Department of Energy will hold a webinar regarding its FY 2016 budget roll-out next week on Thursday, March 5, 2015, from 2:30 to 3:30 pm. The presentation will cover the scope of the DOE’s renewable programs and specifically the GTO in FY 2016. Participants include Doug Hollett, Deputy Assistant Secretary for Renewable Power and Jay Nathwani, Acting Director, Geothermal Technologies Office. Visit https://www1.gotomeeting.com/register/113611809. Please contact Sharon Cosgrove for any further questions or details.
Ormat Technologies: Canadian Firm Invests in Puna, Campbell Plants
Press Release (RENO, Nev.) February 5 — Ormat Technologies, Inc. (NYSE: ORA) today announced that its wholly-owned subsidiary Ormat Nevada Inc. has entered into a binding agreement with infrastructure funds managed by Northleaf Capital Partners under which Ormat will contribute certain geothermal and recovered energy generation power plants into a newly established holding company subsidiary (JV), and Northleaf will acquire an approximately 40% equity interest in the JV. The Company will raise approximately $175 million from the transaction. The transaction is expected to close in the first quarter of 2015, subject to customary closing conditions.
The power plants that will be contributed to the JV as part of the transaction include Ormat’s Puna geothermal power plant in Hawaii, the Don A. Campbell geothermal power plant in Nevada, and nine power plant units across three recovered energy generation assets known as OREG 1, OREG 2, and OREG 3. Ormat will continue to consolidate the JV and its assets, and will continue to provide day-to-day management control, operations and maintenance control over the projects.
Northleaf is a leading independent global private equity and infrastructure manager, with offices in Toronto, Canada, London, UK and Menlo Park, USA and more than $6 billion in commitments under management. Northleaf’s infrastructure program is focused on long-term investments in core assets in OECD member countries.
As part of the transaction the parties agreed that any future development of the assets will be undertaken within the JV.
“This milestone transaction represents a significant opportunity for Ormat to strengthen its balance sheet by monetizing operational assets at an attractive valuation,” commented Isaac Angel, Ormat’s CEO. “Our transaction process initially identified a number of global institutional and private equity infrastructure investors seeking long term stable investment opportunities. We are delighted to join forces with Northleaf, based on the strength of their substantial and meaningful interest in our geothermal and recovered energy plants. The valuation, which represents a premium to our current trading valuation, reinforces the value of our operational assets and underscores our experience and proven track record. By partnering with a proven and strong capital partner we are highlighting the potential for future transactions and additional growth opportunities together.”
“During this period of volatility in global energy markets and commodities pricing, we worked closely with our new investor to structure an arrangement related to our Puna geothermal power plant that provides Northleaf a stable energy rate,” added Mr. Angel. “This arrangement mitigates Northleaf’s exposure to fluctuations in energy prices, while Ormat stands to benefit from the upside when prices improve.”
“Direct investments in contracted geothermal assets in partnership with a world-leading company such as Ormat are consistent with Northleaf’s strategy and offer significant potential for stable, long-term returns,” said Northleaf Managing Director, Jamie Storrow. “The partnership with Ormat is very appealing to us, given the company’s reputation as a leading geothermal manufacturer, operator and developer. We look forward to maintaining a productive and long-term relationship with Ormat.”
U.S. Geothermal Inc. to Discuss 2014 Year End Earnings Results on March 17
Press Release (BOISE, IDAHO) – U.S. Geothermal Inc. (NYSE MKT: HTM, TSX: GTH) plans to release its 2014 Year End financial results on Monday March 16th after the market close. Management will present the results during a telephone conference call for investors and analysts on Tuesday March 17th at 11:00 a.m. ET (9:00 a.m. MT). At the same time, the company will provide guidance for 2015 financial performance. The conference call may be accessed by dialing (877) 407-8133 in the United States and Canada, or (201) 689-8040 internationally. A simultaneous webcast of the conference call will be provided through: http://www.investorcalendar.com/IC/CEPage.asp?ID=173709. Please visit our Website at: http://www.usgeothermal.com
GEA Welcomes New Member Companies Barbour Well, Inc., Burisma Holdings Limited, Reykjavik Geothermal, C. Steinweg (Houston, TX) Inc., and Fuji Electric Corp. of America
Yasmin Romitti, GEA staff – The Geothermal Energy Association extends a warm welcome to our new members. GEA is dedicated to providing our members with the valuable information, resources, and networking opportunities companies need to grow and thrive. Membership dues provide the bulk of financial support for GEA and directly facilitate our efforts to engage policy makers on key industry issues, organize events, and produce industry data, reports, and publications. We would like to thank all of our members for their support.
Our newest GEA members are:
Barbour Well, Inc. and Affiliates is a company specializing in drilling oil, gas, and geothermal wells under both day-rate and turn-key contracts, and providing drilling, wireline, trucking, and site construction services throughout the Western U.S. Visit barbourwell.com.
Burisma Holdings Limited is an independent oil and gas company operating in
Ukraine. Visit burisma.com/en.
Reykjavik Geothermal is a geothermal development company focused on the development of high enthalpy geothermal resources for utility scale power production through identification and targeting of locations where quality geothermal resources can be efficiently harnessed to meet the local demand for power and clean dependable energy. Visit www.rg.is.
C. Steinweg (Houston, TX) Inc. specializes in providing Strategic Guidance and Tactical
Implementation Management Services to the Capital Project Logistics industry. Visit usa.steinweg.com/en/project-logistics.
Fuji Electric Corp. of America aims to become a leading-edge company in “energy and
the environment” by building upon their core platform of five technology fields which
unlock the potential of electricity—energy, industrial systems, social systems, power
electronics, and electronic devices. Visit www.americas.fujielectric.com.
If you are not currently a member, we would like to invite you to take part in the benefits of joining our community of 100+ members. GEA’s members are listed in our online database and have access to presentations from previous GEA events as well as additional information resources. They also receive discounts for all employees to attend GEA events, and are eligible to win major GEA Honors Awards, participate on GEA committees, and be speakers or panelists at GEA events. More information about membership options visit geo-energy.org/become_member.
California Webinar to Look at Electricity Production Cost Model
California Energy Commission staff will conduct a webinar on Tuesday, March 10, 2015 at 10:00 am on the key assumptions used for the Integrated Energy Policy Report (IEPR) modeling of electricity production costs. These assumptions and inputs will be used to prepare the 2016 – 2026 California Energy Demand Forecast, the Natural Gas Outlook Report, the Transportation Energy Demand Forecast, and electricity supply dispatch models. Where: California Energy Commission, 1516 Ninth Street, Charles Imbrecht Room. Staff will accept oral comments during the webinar. Public comments may be limited to three minutes per speaker. Any comments will become part of the public record in this proceeding. Written comments should be submitted by March 23, 2015. Written comments will also be accepted at the webinar; however, the Energy Commission may not have time to review them before the conclusion of the workshop. All written comments will become part of the public record of this proceeding.
Comments on Salton Sea California Due March 11, Public Workshop March 18
The State Water Resources Control Board (State Water Board) will hold its public workshop on Wednesday, March 18, 2015 – 9:00 a.m.,to receive information and solicit public input regarding the provisions of the State Water Resources Control Board’s (State Water Board or Board) decision relating to the Salton Sea and whether the State Water Board should take further actions to address the Salton Sea’s future. Comment letters should be submitted by 12 noon, Wednesday, March 11, 2015. Where: Joe Serna, Jr. – Cal/EPA Headquarters Building, Coastal Hearing Room, 1001 I Street, Second Floor, Sacramento, CA.