Nevada Geothermal Power Inc. and Ormat Nevada Inc. to Develop the Crump Geyser Geothermal Area, Lake County Oregon
01 Novembro 2010 - 11:01AM
Business Wire
Nevada Geothermal Power Inc. (TSX.V: NGP, OTCBB: NGLPF) and
Ormat Nevada Inc., a wholly-owned subsidiary of Ormat
Technologies Inc. (–NYSE-ORA) are pleased to announce that they
have signed a letter agreement under which they have agreed to
jointly develop, construct, own and operate one or more geothermal
power plants at the Crump Geyser Project Area located in Lake
County, Oregon. The parties will form a limited liability company,
Crump Geothermal Company LLC ("CGC"), for such purpose that will be
owned by Nevada Geothermal Power Company, a wholly-owned subsidiary
of Nevada Geothermal Power Inc. ("NGP"), and Ormat Nevada Inc., on
a 50:50 basis.
The parties plan to start construction and drill at least one
development well for the first power plant with an expected
generation capacity of up to 30 MW in 2010 and to place the plant
in service before the end of 2013 so as to qualify for the Treasury
Cash Grant under Section 1603 of the American Recovery and
Reinvestment Act (“ARRA”). The parties also intend to apply for a
Department of Energy loan guarantee under Section 1705 of the
ARRA.
Under the Agreement between NGP and Ormat, NGP will contribute
its title and interest in Crump Geyser Project geothermal leases,
technical and engineering data, existing permits and the benefit
from the on-going Department of Energy (DOE) cost-share grant for
exploration in relation to the Crump Geyser area. Ormat will fund
100% of the initial development activities of CGC in the amount of
US$15 million and pay NGP US$2.5 million in installments over a
three year period.
After the initial development expenses funded by Ormat are
expended, the parties will each be responsible for funding their
50% share of costs; however, NGP has the option to borrow under a
bridge financing facility from Ormat for all or part of NGP’s share
of costs up to US$15 million. Any bridge loans extended to NGP by
Ormat will mature on the earlier of CGC obtaining third party
non-recourse financing or upon achieving commercial operations,
with an additional 90- day extension for any portion of bridge debt
to be repaid from proceeds of the Treasury Cash Grant.
If either party to the agreement fails to make its pro-rata
payment of an approved budget, the non-contributing party will be
subject to customary dilution of its equity interest. If NGP is
diluted, it will have an option to reinstate its 50% ownership
position up to the date of commercial operation of the power plant.
In no event will the NGP’s ownership interest be diluted below
20%.
If the parties elect to construct an expansion project, each
party shall be entitled to participate with a 50% interest and
dilution provisions will also apply except that NGP will not enjoy
dilution protection with respect to expansions.
Ormat will be the EPC contractor for the power plant which will
utilize Ormat's proprietary generating and other balance of plant
equipment. Ormat will be responsible for all development activities
and will provide plant operations and management services to CGC.
The parties will establish a management committee, comprising two
representatives from each party, that will have general oversight
responsibility and will approve the EPC contract, power purchase
agreements, long term project financing, and development plans for
any expansion.
“We are excited to develop the Crump Geyser Project with Ormat
as our partner. Mobilization of NGP’s and Ormat’s combined
resources offers the opportunity for expeditious development in
order to have CGC qualify for the current ITC/Grant program and to
have the plant constructed and operational before the 2013
deadline”, stated Brian Fairbank, CEO of NGP.
"We are happy to join forces again with Nevada Geothermal Power,
building on the strong relationship the two companies established
when Ormat provided the EPC for NGP’s Blue Mountain Project," said
Yoram Bronicki, President and Chief Operating Officer of Ormat
Technologies, Inc. "The CGC project increases Ormat's portfolio of
projects that are eligible for the ITC/Treasury Cash Grant program,
and gives us access to a strong geothermal resource. We look
forward to working with NGP as our partner to bring this project
on-line as quickly as possible."
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated
company primarily engaged in the geothermal and recovered energy
power business. The Company designs, develops, owns and operates
geothermal and recovered energy-based power plants around the
world. Additionally, the Company designs, manufactures and sells
geothermal and recovered energy power units and other
power-generating equipment, and provides related services. The
Company has more than four decades of experience in the development
of environmentally-sound power, primarily in geothermal and
recovered-energy generation. Ormat products and systems are covered
by 75 U.S. patents. Ormat has engineered and built power plants,
that it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1300 MW of gross capacity.
Ormat’s current generating portfolio includes the following
geothermal and recovered energy-based power plants: in the United
States - Brady, Brawley, Heber, Mammoth, Ormesa, Puna, Steamboat,
OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala - Zunil and
Amatitlan; in Kenya – Olkaria III; and, in Nicaragua -
Momotombo.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1
geothermal power plant in Nevada. It is a growing, renewable energy
developer focused on producing clean, efficient and sustainable
geothermal electric power from high temperature geothermal
resources in the United States. NGP currently owns a 100% leasehold
interest in five properties: Blue Mountain, Pumpernickel
Valley, Edna Mountain and Black
Warrior in Nevada, and Crump Geyser, in Oregon. These properties
are at different levels of exploration and development. NGP
estimates a potential of between 150 MW and 300 MW from its current
leaseholds.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
http://www.nevadageothermal.com
Information provided in this press release may contain
statements relating to current expectations, estimates, forecasts
and projections about future events that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally relate to
each Company’s plans, objectives and expectations for future
operations and are based upon its management's current estimates
and projections of future results or trends. Actual future results
may differ materially from those projected as a result of certain
risks and uncertainties. For a discussion of such risks and
uncertainties see "Risk Factors" as described in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 8, 2010 and by Nevada
Geothermal Power Inc.’s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on September 28, 2010.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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