U.S. Geothermal signs 25 year PPA for 20MW with NV Energy
U.S. Geothermal announces that its subsidiary USG Nevada has signed a PPA for its 19.9 MW San Emidio geothermal power plant project in Washoe County, Nevada with NV Energy.
Announced by the company yesterday, “U.S. Geothermal (AMEX:HTM) (TSE:GTH) reports the signing of a power purchase agreement (PPA) between its wholly owned subsidiary, USG Nevada, and NV Energy, for an undisclosed amount.
The 25-year PPA allows for NV Energy to purchase an annual average of up to 19.9 net megawatts of clean, renewable energy from the San Emidio Geothermal project in Washoe County, Nevada, owned by U.S. Geothermal.
The PPA anticipates the development of two electric power generation units at San Emidio. The first unit is scheduled to achieve commercial operation during the fourth quarter, while the second is scheduled to be on line during the second quarter of 2013.
Two additional units are also planned for San Emidio after drilling to define additional reservoir production capacities has been completed.
“We are pleased to extend for another 25 years the already long and successful relationship this geothermal power project has with NV Energy,” said U.S. Geothermal president and CEO, Daniel Kunz.
“With Unit 1 funded and under construction, this PPA is an important milestone that allows for completion of the remaining field activities required to develop additional reservoir production capacity.”
News of the contract extension caused U.S. Geothermal’s stock on the Toronto Stock Exchange to increase 4.94% on Wednesday, trading at $0.85 per share near market close.
U.S. Geothermal is a renewable energy development company that operates geothermal power projects at Raft River, Idaho and San Emidio, Nevada.”
Source: Company release via Proactive Investors