US Geothermal acquires major equipment for three binary plants
US Geothermal has been able to source major and long lead equipment for its binary power plant projects at Crescent Valley and San Emidio at a great discount.
In a release today, geothermal developer and operator U.S. Geothermal Inc. announces that it has entered into an agreement to acquire all of the major and long lead equipment for the construction of three binary geothermal power plants at a significant discount. The equipment was part of an order for six power plant units by another geothermal developer, but only three were installed. The components for the three units being purchased are all new and unused, and have been held in storage. Upon closing of the transaction, they will be moved to a Company owned site.
The equipment is from the same manufacturers, and is of a similar size and design, to that installed at the Company’s Neal Hot Springs and San Emidio power plants. The design output of the acquired units totals approximately 35 megawatts (MW). Actual output of each unit will be determined by resource conditions found at the sites at which the equipment is ultimately installed.
“Since we already operate this same equipment at two of our projects, it will fit in perfectly with our existing operations” said Dennis Gilles, CEO of US Geothermal. “We paid $1.5 million, which is approximately 5% of the equipment’s original cost, a saving of roughly $28 million. This equipment gives us the ability to expand our megawatt output at our existing portfolio of advanced stage development projects at significantly lower cost, and in much shorter construction timeframes.”
The three equipment packages which represent approximately 70% of the components needed for the complete plants, will meet the major and long lead equipment requirements for the Company’s proposed Crescent Valley I power plant (25 MW) and San Emidio II power plant (10 MW).
The company plans to grow its portfolio by developing an additional 95 MW over the next 3 years, through a combination of expanding existing operations and constructing new projects. This will positively impact our cash flow and strengthen our commitment to becoming the North American leader in geothermal energy.
Source: Press Release via MarketWired