Mighty River Powers activities update for US, Germany and Chile activities
Mighty River Power continues its international development activities through GeoGlobal Energy, in the Imperial Valley in California/ U.S., Tolhuaca in Chile and Weilheim in Germany.
In a recent geothermal activities update, New Zealand power company Mighty River Power also provided an update to its international development activities.
The company is involved through GeoGlobal Energy in the United States, Chile and Germany.
Hudson Ranch, California, United States: The 49.9MW John L Featherstone plant (previously known as Hudson Ranch I) on the Salton Sea reservoir in California was formally opened in May 2012 and is the first of Mighty River Power’s international geothermal developments to move into commercial operation.
Through the GeoGlobal Partners I Fund (GGE Fund) Mighty River Power has invested US$92 million for a majority share in the US$400 million project, which is owned by EnergySource. Post-construction project refinancing is underway.
GGE’s investment not only provided equity to develop the power station, but also secured a 20% shareholding in EnergySource, which will allow Mighty River Power, through GGE, to participate in other nearby developments.
EnergySource has recently announced a second 49.9MW development – named Hudson Ranch II – on an adjacent site. A power purchase arrangement has been signed with Salt River Project in respect of this future development. Salt River Project – an AA1/AA (Moody/S&P) rated Arizona utility with 900,000 customers in the region – is the purchaser of output from the John L Featherstone plant. Drilling on Hudson Ranch II is planned to start in July this year, and construction in late 2013.
Tolhuaca, Chile: Positive progress has been made on the Tolhuaca geothermal project in southern Chile, with drilling on two production-scale wells now completed. The second well was completed on schedule and under budget, following delays in drilling the first well in winter 2011. The next step in the project is to test wells for temperature and flow, which the company expects to be completed before summer.
Weilheim, Germany: Surface testing on the Weilheim prospect is largely complete, and the company is now awaiting permits to enable drilling. Surface testing and planning are also underway on four concessions acquired in 2011.
Source: Mighty River Power activities update