Mighty River Power scales back geothermal investment plans
New Zealand's Mighty River Power announces that it will scale back on new investments due to cost containment and a more patient approach to international geothermal development.
As part of its reports on its result for the first half year of the financial year, New Zealand’s MightyRiverPower announced that it has cut back the forecast for new capital expenditure.
This reflects “lower domestic investment due to cost containment and a more patient approach to international geothermal,” the company said.
The forecast for new investments for the full year was initially planned to b3e NZ$127.5 million and is now expected to be between NZ$23.4 million and NZ$48.4 million.
Mighty River Power has early stage prospects in Chile and is involved in the joint venture with a geothermal plant and development in the Salton Sea, California. That project, developed by company and JV partner EnergySource announced yesterday having halted development of its Hudson Ranch II project, where MRP is one of the stake holders. That joint venture was “impacted by a $4.4 million loss reflecting unsuccessful exploratory drilling by EnergySource planned to extend the proven resource boundary.”