News

Raser Technologies revamping its geothermal strategy

Alexander Richter 11 Sep 2009

Raser Technologies, Inc. provides an update to its geothermal power generation strategy, assumptions and anticipated timelines.

In a release by the company “Raser Technologies, Inc. (NYSE: RZ), an energy technology company provided an update to its geothermal power generation strategy, assumptions and anticipated timelines.

Based on the evaluation of its existing construction, and advances in technology, Raser has adjusted its rollout expectations. Raser now plans to add 40 megawatts of electricity available for sale in each of 2010, 2011 and 2012, bringing the total megawatts available for sale by the end of 2012 to 130. These projects are dependent on the availability of funding. If Raser does not secure adequate funding for well field development within the next few months, it will have to adjust this plan. Raser has updated its approach to now use larger binary cycle generators, along with the smaller units currently in operation at Raser’s first power plant, the Thermo No. 1 Plant (Hatch Plant). Raser expects to use anywhere from two to eight of the larger generators per plant, in some cases coupled with smaller units as Raser deems appropriate. Raser’s current geothermal power plant uses 50 smaller generators. Raser projects each power plant will provide up to 20 megawatts of electricity available for sale to the utilities compared to 10 megawatts of electricity, which will be the total for sale from Raser’s first power plant, once at full capacity.

“These changes should improve the overall economics of our power plants moving forward,” said Richard Clayton, Principal Executive Officer. “Throughout Raser’s development planning, we had intended to utilize larger generating units as they became available. Our current supplier has made significant advances in making larger units available. We are also reviewing similar equipment from other manufacturers.”

The updated business plan is anticipated to improve the projected average plant economics.”

Source: Company release