Nevada Geothermal Power updates on Blue Mountain, financing and other projects

Nevada Geothermal Power updates on Blue Mountain, financing and other projects Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 10 May 2010

Nevada Geothermal Power reports Blue Mountain Faulkner 1 plant record output exceeding 53 MW gross, continuation of debt financing work with John Hancock and DOE, as well as drilling preparation for Pumpernickel and Crump Geyser projects.

In a release, “Nevada Geothermal Power Inc. provides the following update on its activities:

Blue Mountain, Faulkner 1 Geothermal Plant Output: The Faulkner 1 geothermal plant has been operating continuously since its restart on March 5th. For the period of April 1st to 30th, with cable repairs completed, output averaged approximately 37 MW (net) and plant availability was greater than 98%. Gross revenue generated for the month was approximately US$2.0 million.

The plant has achieved record electric power production over the past week, with peak outputs exceeding 53MW (gross) and with 41MW (net),, enough power to supply 40,000 homes, being delivered to the grid. The increased production was enabled by operational adjustments at the plant.

Construction work (pump installation, pipeline construction, and power line) is underway to connect production well 44-14 which is expected to raise potential plant output by a further 5-7 MW.

Following completion of the wellfield work in mid-June, NGP will be in a position to apply for a further ITC/cash grant to recover approximately $7M in costs.

Debt Financing Update: Work continues in earnest by the Company, its lender John Hancock, and the Department of Energy (DOE) on a senior debt financing of up to US$98M under the DOE’s Commercial Technology Loan Guarantee Program.

Other Development Projects: The Company is preparing for production drilling in 2010, final feasibility studies in 2011, and for plant completion by the end of 2013 for the Pumpernickel and Crump Geyser Development Projects to position them for ITC/Cash Grants. At Pumpernickel, prerequisite technical surveys have been completed and three production/injection wells are sited and fully permitted. At Crump Geyser, an aeromagnetic survey has recently been flown to define target structures. Permit applications have been filed for temperature gradient, reservoir confirmation and production wells. Initial well permits are expected shortly.”

Source: company release via MarketWatch