EnergySource halts Hudson Ranch extension for the moment
Developer EnergySource has halted the development of its Hudson Ranch II geothermal power project in the Salton Sea, California, following insufficient drilling results. It now explores options on how to proceed forward.
Following insufficient well output of drilled wells for its Hudson Ranch II project, U.S. based developer Energy Source has halted the development of the project in the Salton Sea, California.
Having developed the Hudson Ranch I geothermal power plant with a capacity of 49.9 MW, the Hudson Ranch II plant was supposed to add another 49.9 MW in capacity.
The developer has drilled several production wells for the planned project, but following tests results showed unsatisfactory results.
Exploration risk, essentially the risk to find sufficient output of a resource to economically run a planned geothermal power plant is always an issue. So far the company has had rather successful experience in drilling wells for its first plant.
The company has now scaled back its operations while it will assess its options. There are various players involved and effected, last but not least the lenders, the investors and off-takers for the energy.
The company has currently though no plans to plug the wells and doesn´t plant to plug them in the near term.
EnergySource has signed a PPA with Salt River Project (SRP) for both of its Hudson Ranch projects. The current halt of the second project, does not automatically suspends the PPA.
Source: Imperial Valley Press