Canada: financial players warming to geothermal sector

Alexander Richter 11 Sep 2009

In this week’s Canadian Geothermal Energy Association’s (CanGEA) Financing workshop in Toronto, the increasing interest of the country’s financial sector was clearly visible through the attendance of many banks of the city, as well as a number of equity players.

The conference, which took place at St. Andrews Club in downtown Toronto on Wednesday was accompanied by an investor conference organized by Wellington West Capital. All major geothermal players of the country represented their companies and their ambitous plans for geothermal development, mostly in the western United States, but also South and Central America.

In today’s Globe and Mail, Canada’s major national news paper, the event saw some news coverage prominently placed within the business section.

The article talks about the U.S. stimulus package and its incentives for renewable power development really have helped to boost the profile of the geothermal energy sector. The events of this week were referenced and the two major equity raising events – for the industry – of this summer/ fall with Vancouver/ Canada based Magma Energy Corp raising Can$ 110 million in an IPO and Nevada-based Ram Power Inc raising Can$ 180million in its sale of subscription receipts.

The buzz this has created may be the start of a flurry of equity offerings and consolidations in the market, so Greg Reid of Wellington West.

Source: The Globe and Mail