In a look-back at October 2008, Renewable Energy World’s Stephen Lacey interviewed me at the Reno Geothermal Expo this past October.

While it is awkward for me to refer to an article mentioning myself and our experiences at Glitnir and now Islandsbanki, it is a good article with some positive vibe for the industry. Definitely good to have people writing about the positives of geothermal energy. In the article Stephen also talks to Frank Monastero of Magma Energy and refers to players such as Pratt&Whitney, Ram Power, Fuji Electric and others.

“In order to ensure that the industry stays strong through the ongoing economic downturn, the U.S. government has begun throwing hundreds of millions of dollars into the geothermal space in recent months. The impact of the stimulus funds are still unknown: Many companies may not qualify for certain pieces of the program because of how long it takes to build out projects. But recently announced funds are signaling investors like Islandsbanki that the U.S. is intent on continuing to build the geothermal industry.

Geothermal can be a risky space to be in. It takes many years and many millions of dollars — sometimes three fifths of a project’s cost — just to explore a resource and drill a test well. That makes the industry particularly vulnerable to the conservative mindset in the financial markets.

Given that many of the projects underway in the U.S. and around the rest of the world today are relatively new, financing needs for the exploration and project feasibility stages are high. Therefore, many developers are in the tough position of asking venture capital and private equity firms for millions of dollars to determine the viability of a project.

“That’s where the risk is in this business, on the front end. You need investors who understand that risk and are willing to take it — and right now, not many are,” says Frank Monastero, President of Magma Energy, a rapidly-growing Canada-based geothermal developer.

To read the article see link below.

Source: Renewable Energy World