News

Raser Technology providing update on activities

Alexander Richter 7 Oct 2009

In a presentation at the Geothermal Expo in Reno, Raser Technology provided an update on its activities.

In a presentation at the Geothermal Expo in Reno, Raser Technology provided an update on its activities.

According to the release of the company, “Raser recently received final approval of a key permit from the New Mexico Oil Conservation Division (OCD) for injection of geothermal fluids for the Lightning Dock No. 1 project. Raser’s in-house geology and reservoir management team is conducting its final review of the Lightning Dock resource in anticipation of commencing drilling on site, pending the completion of funding for the project.

Raser is also in the process of negotiating a revision to its power purchase agreement (PPA) with the Salt River Project Agricultural Improvement and Power District. The revision is expected to include an increase in the expected output from the Lightning Dock project as well as an increase in the price of energy under the PPA.

Raser is now in the final stages of testing the fifth production well needed for the completion of Thermo No. 1 as part of its plan to bring the plant to full capacity by the end of the year. Raser is also preparing to re-work existing wells and is taking other steps to optimize the operations of the plant, including working with Pratt & Whitney Power Systems to make certain modifications to the PureCycle units on site.

As recently announced, Raser is in the process of amending its agreements with Merrill Lynch, the tax-equity partner in the Thermo No. 1 plant, and Prudential, the debt holder. These amendments will allow the Thermo No. 1 project to take full advantage of the 30 percent federal grant for renewable energy projects under the American Recovery and Reinvestment Act of 2009.

Raser is also actively planning future phases of development utilizing the Thermo resource which is estimated to contain over 200 MW of potential power. These efforts include moving forward with permitting, environmental compliance, engineering, transmission and interconnection, and negotiation of a pre-paid power purchase agreement with the Southern California Public Power Authority (SCPPA).

Raser is in discussion with several equipment manufactures which provide larger, high-efficiency binary-cycle turbines and generators. Among these is Pratt & Whitney Power Systems (PWPS) which recently acquired Italian turbine manufacturer Turboden and is planning on introducing a new, larger geothermal unit to the market soon. Raser anticipates that these larger units, from PWPS and others, will significantly improve the economics of future projects. Raser is encouraged that these new equipment options may improve Raser’s returns on future projects, while still meeting Raser’s strategy of rapid deployment.”

For the full release use link below.

Source: Company release via Business Wire