“PSALM said it plans to split the capacities of the Unified Leyte geothermal power contracts due to investor concerns on the market cap for the Visayas.

“I will break (the contracts) into two or three,” said Emmanuel Ledesma, PSALM president. The bidding rules indicate that capacities will be divided 60 – 40, which means the capacities will be bid out at 384 MW and 255 MW, respectively.

At least four investor groups signified interest when government announced the bidding of the contracted capacity of the Unified Leyte geothermal power plants in June last year.

However, PSALM postponed the bidding “to give time for the new administration to review the privatization process and at the same time, address bidders concerns.”

The administrator of the Unified Leyte power plants will manage the contracted annual energy output from the power purchase agreements between National Power Corp. (Napocor) and Energy Development Co. These contracts will expire in 2025 and 2026.

ERC is the owner of the steam plants, which include the 125-MW Upper Mahiyao, 232-MW Malitbog, 180-MW Mahanagdong, and 51-MW optimization plants.

Among the parties that earlier expressed interest to participate in the contract bidding were Aboitiz Power Corp., Pacifica Inc. of the Romero Group and First Gen Corp., the parent firm of ERC.”

Source: PhilStar

Origin is one of the big three electricity retailers whose reactions to the federal government’s carbon pricing regime and clean energy package – whether to invest in new baseload gas plants to substitute for coal, or in renewable energy projects to meet the 20 per cent renewable energy target, or both – will be closely watched, not just by politicians, but also those in the clean energy industry, who are wondering whether the company will develop its own projects or sign purchase agreements with third parties.

In other technologies, Origin says it is continuing to investigate geothermal development options within Australia and internationally. It says it is still assessing the results of the fracture stimulation achieved at its Jolokia 1 well in the Cooper Basin, and the potential for use as an underground heat exchange. Habanero 4, another appraisal well, will be drilled this financial year. Origin announced in February that it would write $206 million off the value of its joint venture with Geodynamics because of delays in development.

It is also evaluating the results from the nearby “shallows” venture, which was targeting geothermal resources in shallower sedimentary aquifers. The partners found plenty of heat, but the “permeability”, which governs how easily that heat can be extracted, was not as good as expected.

However, Origin says the first well in its joint venture in Indonesia are likely to be drilled this year. Origin is partnering India’s Tata Power Co in a project in northern Sumatra which could have a capacity of 300MW, and favourable tariffs offered by the Indonesian government. It said development could begin late in 2012.

It is also pursuing projects in Chile, where it has a 40 per cent interest in Energia Andina, which it describes as the country’s leading geothermal exploration company with a portfolio of eight geothermal exploration projects.”

Source: Climate Specatator

While the draft, according to this article, does not specifically mentions geothermal, it clearly should and might be part of the scheme.

“The drafted bill prepared by the Ethiopian Electric Agency (EEA), has been submitted to the Ministry of Water and Energy (MoWE), which is accountable for the agency, contributing final comments before the draft is presented to the council.

Before sending the draft to MoWE, the agency conducted a discussion with major stakeholders on the draft, including the Addis Abeba Chamber of Commerce and Sectoral Associations (AACCSA), experts from the Addis Abeba Institute of Technology (AAIT), and the Ethiopian Electric Power Corporation (EEPCo) in November, 2010.

The draft law sets the tariff rates for Independent Power Producers (IPP) who can generate electricity from different sources including, hydropower plants, biomass and wind power.

Out of the recommended tariff rates, the minimum tariff rate set for hydropower, stood at 0.08 dollars for generation of 100 kilowatts of electricity, while 0.10 dollars is the maximum tariff rate allotted for the generation of 500 kilowatts (kw) of electricity generated from biomass and wind power.

The tariff rate, however, declines by 0.05 dollars as the amount of power generated increases for hydropower and biomass electricity generation, while the tariff for electricity generated from wind power plants has a one dollar difference.

EEPCo will pay 5.50 dollars to a company which generates electricity ranging from 25,000KW to 40,000KW using hydroelectric sources, while paying 0.80 dollars for a producer which generates power within a range of 100KW and 500KW.

To date, the cooperation tariff at the household level is 0.042 dollars per kilowatt hour, while charging 0.004 dollars for commercial purposes, according to a comparative study of electricity tariffs used in Africa, conducted by Unions of Producers, Transporters and Distributors of Electrical Power in Africa (UPDEA).

To supply electricity, companies are required to sign a power sharing agreement with the buyer, EEPCo, which is also the grid system operator.

Setting a framework to engage private players in a sector where the EEPCo remains the sole player is encouraging, although electrical experts are not enthusiastic with tariff rates set by the drafted proclamation.

“The government should not expect many investors to invest in the sector, which demands heavy investment, because the tariff rates did not provide enough of an incentive,” an expert who is close to the matter.”

All in all this sounds interesting and with a potential of up to 5,000 MW from geothermal, a feed-in-tariff system could spur the necessary private interest.

Source: Addis Fortune

Equipment problems and difficult rock conditions made things difficult, and allowed the company only to drill one single well, instead of the two planned to be drilled this summer.

“Ormat spokesman Paul Thomsen also said the well also didn’t get as deep as they wanted, and that they weren’t impressed with the water temperatures they sampled.

“It doesn’t mean that the resource isn’t there, it just means that our first shot at finding it was not successful,” said Thomsen.

Ormat’s Spurr exploration camp has been demobilized for the summer. Thomsen said the company is now putting together a report, which it plans to present to the Alaska Energy Authority in the next few months.

Thomsen said Ormat expects to review its initial findings with the state before spending any more money on future drilling at Mount Spurr.

The State of Alaska is helping pay for Ormat’s exploration work — lawmakers committed millions of dollars to match the amount of money the company spends on the Spurr leases.”

Source: KTUU/ Alaska

Havilah currently holds about 41.32% of Geothermal’s issued shares and could potentially offer consideration of one Havilah share for every four Geothermal shares.

To ensure the independence of the board members in respect of Havilah’s approach, experienced mining finance executive Martin Janes has been appointed as an independent non?executive director of the company.

An announcement will be made by the board once it has formed a view on the matters raised by Havilah.

Geothermal operates two 100% owned geothermal projects in South Australia that are well located with respect to power grids and potential markets for electricity.

The Frome project, 150 kilometres west of Broken Hill has an estimated Inferred Resource of 84,000 PJ, based on temperature measurements in eight drillholes (two to about 1800 metres deep).

A seismic survey has confirmed the site for proof of concept wells to be drilled into the fractured granitic heat source.

The Penola-Robe project, in the South East of SA adjoining Panax tenements, has similar hot sedimentary aquifer geothermal potential. There are proven high geothermal gradients and hot water bores at Robe within the tenement area.

The company’s share price spiked 300% between 8-14 July following the Federal Government’s carbon pricing and clean energy support initiatives announced on July 10. Geothermal energy, literally energy obtained from hot areas under the earth’s surface, is one of the areas where Australia has a high level of technical skill.

Geothermal energy from South Australia’s Cooper Basin, by some calculations, is capable of providing a significant percentage of the energy requirements of the eastern states.
Geothermal Resources shares rose 41.3% to $0.13 in intraday trading.”

Source: Proactive Investors

So while most companies have reached a 52 week low, there is hope. The announcement of the Australian government for a carbon tax, had the geothermal stocks gaining some lost value. A recent interview with John McIlveen of Jacob Securities in Toronto, Canada, actually sheds some lights on the position of an investment bank on the current position.

He refers to the short term positions people had taken right after the events in Japan this spring, saying that this only created a short-term effect, while the industry needs investors taking “long-term positions”. He then also refers to the need of success stories among the more junior renewables, such as geothermal. He said, “We have had too many dropped balls on execution, projects over budget or past their timelines or not delivering the amount of power as advertised. And we need more consistent government policy. Policy keeps changing and money hates uncertainty. Rather than these expiry dates or constantly changing tariff rates, we need a policy that can stay consistent for a long period.”

It is also clearly good to see him make the case for geothermal, that he still sees as his “farourite source of energy from an investor point of view”. Regarding the relevance of oil prices for renewable development, John refers to countries that are depending on oil-fired power, mentioning countries in the Caribbean or Latin America. These countries are looking to replace expensive oil-fueled power generation, considering any renewable power source below $200/ MWh.

John also touches upon the need for diversification, quoting that one would want to “be diversified by geography as opposed to technology”. Particularly weather can have a large impact, e.g. on wind, run-of-river and solar projects, something we raised here before when it comes to the quality of resources vs. the political climate.

The interview then goes into the question of what makes geothermal companies attractive for investors. While primarily it is the question on what kind of return is offered, they are looking at the generation of cash flow. If there is a lack, then how can the company compensate. Another issue – and this is clearly sensitive – for geothermal companies do they have “enough cash flow that it can absorb the drilling of a dry hole without having to raise equity.”

John then also refers to companies he has an eye on, namely Ormat Technologies listed on the NY stock exchange, Ram Power and as well U.S. Geothermal both listed on the TSX. He also comments on the status of Alterra Power Corp.

To read the full interview, see link below.

Source: Oakshire Financial

A local paper covered the event that took place August 18, 2011.  ” If successful, Calpine believes the “Enhanced Geothermal System Demonstration Project” will both increase energy production and provide a model for other areas, although it has raised concerns for some community members about the potential for increased earthquake activity.

In a public update at the Cartwright Geothermal Visitors Center in Middletown on Thursday, Aug. 18, geophysicist Craig Hartline and principal investigator Mark Walters presented a slide show and discussed the technology that will be tested in the northwest portion of The Geysers.

The project is a collaborative effort between scientists and engineers from Calpine Corp., Lawrence Berkeley National Laboratory and the Department of Energy, which is co-funding it.

The work involves the creation of an engineered reservoir and injection of cold, treated wastewater into deep rock where temperatures reach 500 to 750 degrees Fahrenheit.

Calpine’s goal is to demonstrate the ability to stimulate hot rocks by monitoring their response to water injection.

The desired result: increased fluid flow for producing electrical energy. That is, enough power from a single well to serve 6,000 more homes.

Calpine’s demonstration area is 6.5 miles from Cobb and nine miles from Anderson Springs. According to Hartline, the project is situated in the northwest section of The Geysers because the southeast field lacks sufficient temperature contrast.

The company also considered the distance from Cobb and Anderson Springs, where residents have protested expansion of plant operations due to concern about earthquakes.

“One reason this area was picked was due to its location relative to communities,” Hartline said.

A 4,800-foot injection pipeline for the project was completed last December. Next month, the first water injection “step tests” will begin, according to the presentation.

There are two ways to move rock: through heat or pressure. In this case, tiny fractures created in rock will come from thermal effects – heat– rather than pressure.

According to Hartline, the tests will be “well below fracture pressure” and are designed to avoid potentially damaging hydraulic fracturing.

“We want a cloud of fractures,” Walters said – not a single fracture. And that means low pressure. “High pressure would not create a cloud of fractures.”

Walters said they are searching for “the sweet spot,” or optimal rate of injection that will generate the most steam at the surface. They now believe it’s about 500 gallons of water per minute, but the plan is to start small and gradually increase the amount to find the most efficient rate.

“We want 500 gallons per day, per well,” Walters said.

No new water will be added for the project, according to Walters.

Hartline said a major goal, vital to sustain operations, is to put water back to recharge the reservoir. Calpine hopes to “approach 100 percent fluid replacement for sustainable electrical production,” according to the slideshow.

At the end of the talk, Hartline and Walters took questions from the audience.

One attendee asked that if testing is successful, will it include the entire field?

“No,” Walters replied. “We’re trying to prove the concept.”

Another attendee asked about naturally occurring earthquakes versus those triggered by plant operations.

Hartline said that the region is naturally seismic, but since The Geysers began operation in 1960, the number of earthquakes has been increasing and is attributed to the injection of fluids.

“We know the bulk of seismicity at The Geysers is induced,” Hartline said.

He stressed that they are mostly microquakes, however and that there are no known large faults in the work area.

“Anything below 3.0 is considered a microearthquake,” Hartline said.

In regard to earthquakes induced by injection, “the important thing is that they’re not all the same magnitude,” he added.

But the promise of geothermal has also sparked concerns about earthquakes as new drilling technology develops.

In 2009, AltaRock Energy had undertaken an “engineered” geothermal system drilling project in an old Northern California Power Agency geothermal well above Anderson Springs The goal was to fracture bedrock in order to inject water.

That project later was suspended after scrutiny from the national press and the company’s announcement that it had “encountered a number of physical difficulties” in drilling the well, as Lake County News has reported.

Calpine told Lake County News in late 2009 that its project – which is “enhanced,” not “engineered” – would not be the same.

Currently, Lawrence Berkeley National Laboratory is conducting studies to understand how injection triggers seismicity.

There are 31 seismic monitoring stations at Lawrence Berkeley National Lab, with several added in advance of injection at The Geysers.

“No potential damage” is expected to occur from the injection in either Cobb or Anderson Springs, but in both locations, strong motion stations are installed, according to the presentation.

Hartline told the audience about a public voice mail hotline for reporting earthquakes (877-4-GEYSER).

In response to calls they’ve received on the hotline, they are doing “some investigation,” he said.

They also are working on improved 3D modeling that will help detect fault and fracture surfaces.

The Geysers steamfield supplies about 25 percent of the state’s renewable energy and 40 percent of U.S. geothermal power, according to Calpine.

“This field is an incredible resource,” Hartline said. “We’re trying to make sure it’s managed into the future.”

Source: Sheila Pell, Lake County News

A local article describes what potential economic impact the project could have for the region.

The company says that “250 Nevada companies are expected to play some role in the development of the Patua Plant during the next 16 months.

At the peak of construction, about 170 people are expected to be employed on the project. Once construction is complete, 32 people will work in operations and maintenance positions, and the plant’s total payroll is estimated at $2.5 million.

Benham Constructors LLC, a design-build subsidiary of Science Applications International Corp. of McLean, Va., will provide engineering, procurement and construction services at the plant. Northern Nevada Excavating Inc. of Sparks began dirt work at the site about two weeks ago.  TAS Energy Inc. of Houston will provide technology support.

For executives of Gradient, last week’s groundbreaking marked the culmination of a two-decade effort to identify promising geothermal resources and assemble the financing to bring a geothermal generation project to reality.

The 60-megawatt Patua plant will generate roughly enough power to supply roughly 36,000 homes. The plant’s energy production will be sold to Sacramento Municipal Utility District. It’s expected to come on line in late 2012.

Craig Mataczynski, chief executive officer of Gradient Resources, said the deal to sell the plant’s power to customers in California spotlights one of the most critical needs facing the geothermal industry today — development of improved transmission lines between Nevada’s resources and power-hungry California cities.

The industry’s second big need, he said, is consistent legislation so that geothermal companies know what incentives will be available over the long-term for development of renewable-energy projects.

The Patua plant is located on a combination of private and federal lands. Formerly known as Vulcan Power, Gradient moves its corporate headquarters to Reno’s South Meadows from Bend, Ore., last August.”

Source: Northern Nevada Business Weekly

The company expects to make an announcement on or before the commencement of trading on Wednesday 24th August, 2011. Havilah has a 58% strategic interest in Geothermal Resources.

Havilah Resources aims to become a significant producer of copper, gold, cobalt and molybdenum from its 100% owned Kalkaroo, Mutooroo and Benagerie projects, which are at advanced feasibility stage.

Kalkaroo is a medium size copper-gold deposit containing over 320,000 tonnes of copper and almost 1 million ounces of gold in a measured resource of 62 million tonnes of 0.55% copper and 0.44 g/t gold.

The deposit is amenable to a bulk mining operation at the rate of 4.5 million tonnes per annum for a period of twelve years.

At projected long term copper price of US$6,600 per tonne and gold price of US$1,000 per ounce, the project is projected to produce a cash surplus of A$605 million.”

Source: Proactive Investors

“In a request for proposal issued early this month, the corporation is asking experts on geothermal energy to check the feasibility of geothermal energy development on the island. It seeks qualified and experienced firms to explore for and develop geothermal energy for the purpose of generating electricity.

CUC executive director Abe Utu Malae disclosed to Saipan Tribune that the Department of the Interior’s Office of Insular Affairs is paying up to $1.2 million of the cost of the geothermal investigation.

CUC believes that Saipan’s proximity to the active Mariana volcanic arc, extensional faulting, and the occurrence of shallow water wells with anomalous temperature suggest that sufficient geothermal resources may exist beneath Saipan to support generation of electricity using binary plant technology.

If it turns out from the experts’ investigation that it is feasible, then CUC will invite companies to bid on the actual development and commissioning of a geothermal energy power plant, Malae said. If the results are negative, then CUC will have to continue with other renewable energy sources.

“We are hoping for good results. If not, then we go back to diesel or LNG and renewables other than geothermal,” said Malae.

According to him, a geothermal energy plant can be used as a base load, just like the diesel power plants currently in use on all three islands.

“A geothermal energy plant is base load because power is usually reliable, constant, and is able to supply at least 50 percent of the total load of a grid. Wind and solar are intermittent in nature and are therefore not considered base load,” he explained.

Malae described the current setup for the island’s power system as “critical” because of the limited lifespan of the Lower Base power plant.

“We in the CNMI are at a critical point in time for power system planning because the base load diesel plant at Lower Base has about seven years of life remaining. That means we have to start planning very soon to replace that plant. The parallel path of development with diesel is geothermal,” he said.

Malae disclosed that the oldest engines at the power plant are vintage 1979.

At a recent annual general meeting in Guam of the Pacific Power Association, member companies of trade associations described the work in geothermal energy they had already performed in places such as New Zealand, Vanuatu, and Papua New Guinea.”

The Marianas Islands group is located in the Pacific, south of Japan, East of the Philippines and North of Papua New Guinea

Source: Saipan Tribune

“PLN president director Dahlan Iskan reported that his company had scheduled for the agreements to be finalized in July, but Supreme Energy declined to sign them because it was waiting for assurance from the government of PLN’s ability to pay for the power and fund the projects in the future.

“[Supreme Energy] is still waiting for clarification of the government’s guarantee for their projects. We actually planned to sign it coinciding with the launch of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development [MP3EI] recently,” he told reporters on Thursday.

The 2011 ministerial decree on the guarantee of PLN’s businesses stipulated that the government would ensure that PLN was financially able to fulfill all the obligations of all the power purchase agreements, Dahlan explained.

Supreme Energy demanded that the government not only guarantee that PLN would not fall into bankruptcy, but also pay its financial obligations when the company failed to fulfill them, he added.

PLN’s new and renewable energy division head, Muhammad Sofyan, said that besides pursuing
certainty of PLN’s ability to meet financial obligations, the geothermal producer also requested that the government provide compensation if the geothermal projects were stopped due to future political or legal changes.

The geothermal power plants at the Gunung Rajabasa and Muara Laboh fields are expected to have a total capacity of 220 megawatts each.

PLN also had not signed its power purchase agreement with the Bakrie Group, the operator of the Sukoria geothermal field in East Nusa Tenggara, Dahlan reported. He added that the price offered by the company was Rp 1,200 (about 14 US cents) per kilowatt-hour, far above the ceiling price set by the 2011 ministerial decree on prices.

The Sukoria geothermal power plant is expected to have a total capacity of 30 megawatts.

The decree orders PLN to purchase electricity from geothermal producers at a ceiling price of 9.7 cents per kilowatt-hour.

Dahlan also promised that his company would reactivate the stalled project in Ulumbu, East Nusa Tenggara. He said that the 15-megawatt power plant would start generating electricity before Christmas.

Source: The Jakarta Post

“The geothermal industry has the ability to provide a significant portion of home grown energy to U.S. households but we need three things: certainty from policy makers, permit streamlining, and constructive partnerships between business and policy leaders to expedite the process,” said GEA Executive Director Karl Gawell. “Megawatt for megawatt, geothermal employs four times as many Americans as natural gas, and the industry is creating thousands of jobs, even as other industries suffer. This means taking communities out of crisis and providing substantial revenue to local government.”

The GEA National Geothermal Summit discussed the outlook for Washington D.C. and the western states, building new transmission projects in the west, new renewable energy policy developments in California, and moving geothermal forward on public lands. Panelists included John Wellinghoff, Commissioner, Federal Energy Regulatory Committee (FERC); Karen Edson, Vice President, Policy and Client Services, CAISO; Kathleen Benedetto, Legislative Staff, House Subcommittee on Energy & Mineral Resources; and V. John White, Executive Director, Center for Energy Efficiency and Renewable Technologies (CEERT).

Paul Thomsen, GEA Board President and Director for Ormat Technologies, Inc., headquartered in Reno, Nev., said, “This summit created the foundation for state and national dialogues that will continue to educate agencies, utilities, developers and others as to the important role this industry will play as the industry continues to move forward. We expect there will be follow up on almost every critical issue that was raised. We see real dialogue between state officials to get the job done.”

“The first National Geothermal Summit in Reno was a tremendous success and very valuable for the industry,” said John McKinsey, Partner, Stoel Rives, LLP. “Stakeholders from all aspects of the renewable energy industry met and truly advanced the agenda of how important baseload, sustainable geothermal power is in helping the United States find balance in its electricity supply while achieving energy independence.”

Source: release by GEA

The new solar integration is expected to generate an additional 24 MW of peak energy from the Stillwater solar facility. The combination of the two renewable generation technologies at the same site not only improves the electrical production profile but also allows making use of the same infrastructures, such as the interconnection power lines and operation facilities, thus reducing the environmental impact.

More than 81,000 polycrystalline photovoltaic (PV) panels will be installed adjacent to EGP’s existing Stillwater geothermal plant (commissioned in 2009). The solar field will be constructed on a 240-acre parcel owned by EGP adjacent to the renewable energy leader’s geothermal plant. Construction of the solar installation will employ approximately 150 workers from Nevada throughout the whole construction period.

Stillwater and its sister plant, Salt Wells also located in Churchill County, are the only geothermal plants in the world that employ large scale electric submersible pumps for the extraction of geothermal fluid. With the plants’ binary process, there are no losses or consumption of water as well as no air emissions during normal operations making them environmentally friendly.”

This is indeed an interesting project as there are several efforts made to make plants more sufficient and utilize infrastructure to increase revenue streams. Examples are solar heat applications that are aimed at increasing the temperature of geothermal fluids in binary systems, wind installations in conjunction with plants (Nevada Geothermal Power has mentioned plans) and last but not least combining oil/ gas development with geothermal power utilization.

Source: BCSE

The P1.39-billion (US$32 million) Southern Negros Geothermal production field produces the steam powering the 192.5-megawatt (MW) Palinpinon power plants owned and operated by Green Core Geothermal, Inc., an EDC subsidiary. The project is expected to employ 288 workers.

The Negros Oriental steamfield lies north of the dormant Cuernos de Negros volcano.

Palinpinon 1 has 25 production wells, 11 injection wells, and a 14-kilometer (km) pipe network, while Palinpinon 2 has 16 production wells, six injection wells and a 7-km pipe network.

On the other hand, the P2.52-billion (US$59 million) Bacon-Manito Geothermal Production Field (BacMan) straddling the Albay-Sorsogon border has two steamfield projects, BacMan 1 and 2, which supply steam to the 110-MW and 40-MW nearby power plants of the National Power Corp., respectively.

The project is said to employ 261 workers.

The first steamfield has 14 production wells, seven injection wells, and a 15-km pipe network, while the second steamfield has nine production wells, five injection wells and a 5-km pipe network.

Under the 2008 Renewable Energy Act, such projects are qualified for incentive such as income tax holidays and duty-free importation of equipment to eligible ventures.”

Source: Business World Online

The Tender number: KGN-OLK-104-2011

Site visit: August 30, 2011 at 10am

Closing date: September 19, 2011, 2pm

Interested firms may  obtain further information from the office of the Supply Chain Manager, Tel (254) (020) 3666000), Fax: (254) (020) 36662000 Email:  pkimemia@kengen.co.ke c.c|:ckiara@kengen.co.ke on normal working days beginning date of advert.

Where the tender documents may be collected upon payment of a non refundable fee of Kshs. 3, 000 paid in cash or bankers cheque at any KenGen finance office.  The document can also be viewed and downloaded from the website www.kengen.oc.ke and the payment evidence MUST be submitted with the tender documents.  Bidders who download the tender document from the website must forward their particulars immediately for records and any further tender clarification and  and will be required to pay a reduced fee of Kshs. 2, 000. 00

Tenders accompanied by a security bond in the form and amount specified must be delivered in plain sealed envelop before the closing date to the following address:

Company Secretary, Legal & Corporate Affairs Director
Kenya Electricity Generating Company Limited
7th floor, Stima Plaza Phase III, Kolobot Road, Parklands, P. O.Box 47936, 00100
NAIROBI, Kenya

Tenders will be opened soon after the closing time in the presence of the candidates representatives who choose to attend at Stima Plaza III, Executive Committee Room , 7th floor.”

Source: Tenders Unlimited Kenya

The official release by CanGRC: “Geothermal technologies are clean and reliable energy sources that take advantage of the thermal properties of the Earth’s subsurface for
direct use heating and cooling applications and electricity generation.

Canada has already begun to utilize these technologies for heating and cooling purposes; however, it remains one of the only countries on the Pacific Rim to not produce electricity from geothermal resources. Studies released by the Geological Survey of Canada show these untapped subterranean resources to be vast, and new reservoir technologies may make geothermal electricity generation feasible nation-wide. Needless to say, geothermal research in Canada is a pertinent and stimulating field of
study.

The Canadian Geothermal Research Council (CanGRC) is a voluntarily-run organization dedicated to serving Canada’s geothermal research community. It does not exist as a government lobby group, nor is it intended to represent a unified voice of the research community. Rather, CanGRC exists to raise awareness about geothermal research in Canada, to showcase Canadian geothermal research and to elevate communication within the research community.

CanGRC is a recent initiative by 3 graduate students from across the country – Ryan Libbey (McGill University), Yuliana Proenza (University of British Columbia) and Lena Patsa (University of British Columbia).

CanGRC operations are guided by an esteemed Board of Directors, which includes geothermal scientists from academic, government and industry positions. Currently serving on this Board is Dr. Grant Ferguson (St. Francis Xavier University), Dr. Catherine Hickson (Alterra Power Corp.), Mr. Craig Dunn (Borealis Geopower) and Dr. Steve Grasby (Geological Survey of Canada/Natural Resources Canada/University of Calgary).”

“The Canadian Geothermal Energy Association, the collective voice of the Canadian geothermal energy industry, supports the efforts of CanGRC and congratulates the Canadian geothermal research community to the foundation of this geothermal research focused sister organization. We are glad to join forces in promoting geothermal energy research and development in Canada and gladly signed a Memorandum of Understanding highlighting the close relationship with CanGRC. We are looking forward working in close collaboration to bring geothermal power development to Canada”, so Alexander Richter, Director of the Canadian Geothermal Energy Association (CanGEA).

In an effort to connect and inform Canada’s geothermal research community, CanGRC utilizes several media outlets:

1. A bi-annual newsletter, the CanGRC Review, which accepts contributions from professional and student sources related to Canadian geothermal research (www.cangrc.ca/publications.html).
2. An interactive website (www.cangrc.ca) that includes news updates, an online forum, internship/job postings, useful resources for geothermal research and more.
3. Social media platforms such as LinkedIn and Twitter.

Membership to CanGRC is completely free and includes a subscription to the bi-annual newsletter. CanGRC encourages everyone interested in geothermal research to join – simply follow this link (www.cangrc.ca/members.html) and fill out the form. Feedback via info@cangrc.ca.

Be sure to visit our booth at the Canadian Geothermal Energy Association’s 4th Annual Conference and Investment Forum in Toronto
(Sept 14-15, 2011, www.cangeaevents.ca/toronto/). Hope to see you there.

The recent poor share performance of North American listed geothermal energy companies broadly reflects the general state of the sector. Low natural gas prices in the United States have affected power prices and squeezed the price at which utilities are willing to buy power. Operational difficulties with individual projects have resulted in negative news flow which, coupled with high perceived project risk, has made it difficult for companies to obtain financing, especially for early stage development. These challenges, made worse by weak share prices, have raised serious concerns about the capability of companies to bring additional MWs online in the near future.

So the question where the industry goes from here is tried to be answered by the bank in the report.

In key highlights the bank refers to the slowing pace of development with the value of publicly trade companies having declined sharply.

The bank also refers to the the “misperception of development risk and misunderstanding of where projects lay in the development cycle, which are likely to blaime for the industry’s ability to persuade investors to value geothermal energy reserves.”

Furthermore the report also asks the question if the industry might have to “rethink its business model”, referring to the ambitions of small cap publicly traded companies maybe having to give up their public status or IPP ambitions.”

The full report is available for download at www.islandsbanki.is/energy

For the six months ended June 30, 2011, the Company reported a net loss of approximately $13.1 million ($0.07 per share). On a cash basis, for the same period, the Company had a negative cash flow of about $8.9 million from operating activities and spent approximately $103.3 million on additions to geothermal properties and capital assets, including approximately $81.6 million on the Phase I and II San Jacinto-Tizate expansions and approximately $19 million on the Orita Project. At June 30, 2011, the Company had free cash of approximately $32.7 million.

Concurrent with the release, Walt Higgins, Interim President and CEO of Ram Power, stated, “The second quarter and subsequent events leading to full access to the Phase II credit facility for the San Jacinto project represent a significant achievement for the management, employees and consultants of the Company. The resulting changes to our control procedures, organization and reporting structure combined with the use of outside experts to assist the Company through this period have been the catalyst to proving the resource and closing the Phase II credit facility. I am very happy with the results, and look forward to the future of the Company.”

In the official release the company als provides updates on its projects in Nicaragua, California and its recent credit facility for its San Jacinto-Tizate project.

For the full release see link below.

Source: Company release via Marketwatch

In the release the company reports: “The offering consists of up to 7,500,000 common Class “A” voting shares in the capital of the Corporation (each a “Common Share”) priced at $0.20 per share, for total proceeds of up to $1,500,000.

The Corporation plans to use the net proceeds of the Offering to engage a consulting firm for geothermal project management, for land acquisitions and additional exploration, and for general working capital purposes.

The Offering is expected to close on or around September 22, 2011.

Recent major milestones have enabled DEEP to move ahead with project planning and its goal of power production by 2013. The completion of a Lease of Space agreement with the Saskatchewan Ministry of Energy and Resources has provided an initial exclusive location for geothermal power development. The Company was also successful in being accepted into SaskPower’s Green Options Partners Program.

Additional information and presentation of the company’s recent Annual General Meeting see: www.deepcorp.ca

Why is geothermal energy important to the UK?

• It is a source of both heat and power…..
• It could provide at least 10% of UK electricity demand (Source: DECC).
• It is emissions free and available 24×7 all year round.

So, geothermal energy should play a major role in meeting the UK’s climate change and renewable energy targets, but……

Government support is needed to ramp up to assist in the exploitation of the opportunity to get the initial projects into the ground – through ROCs and RHI and a commitment to geothermal licensing.

Why should you attend?

• The world’s top geothermal industry experts are presenting on a single afternoon.
• You will hear UK industry representatives’ feedback on current reviews and projects, including EGS Energy’s geothermal plant at The Eden Project.

Where is it taking place?

The Institute of Directors, 116 Pall Mall, London SW1, on Tuesday 27 September 2011, 3.00pm -7.45pm followed by Networking, Drinks and Canapés

For more information and to secure your place, get in touch as soon as possible since places are limited:

08456 435 208 / assistant@egs-energy.com

Event Details: www.egs-energy.com

“The debt agreement, which is focused on cuts only and not revenue increases, makes it more likely that this infant sector gets strangled before it matures,” Daniel J. Weiss, a senior fellow at the Center for American Progress, a Washington policy group that advises Democrats, said in an interview with Bloomberg Government.

“The debt agreement, which is focused on cuts only and not revenue increases, makes it more likely that this infant sector gets strangled before it matures,” Daniel J. Weiss, a senior fellow at the Center for American Progress, a Washington policy group that advises Democrats, said in an interview with Bloomberg Government.

“The potential lapse of key subsidies at the end of 2011 puts the pressure all the more directly on the clean-energy sector to drive down costs and become more competitive between now and then,” according to a Dec. 13 report by Bloomberg New Energy Finance.

The Treasury Department has paid out $7.78 billion in grants to developers of wind, solar, biomass and geothermal energy under an incentive that was created in the stimulus bill and lapses at the end of the year. Tax credits for wind, solar and geothermal projects end in 2012 and 2016.”

All together not a good outlook for projects in the U.S.

Source: Bloomberg

“We are trying to cooperate with them (Iceland) in a big way because there are number of areas in our country where geothermal energy can be made use of,” New and Renewable Energy Minister Farooq Abdullah said while delivering 10th Darbari Seth Memorial Lecture organised by The Energy and Resources Institute (TERI).

He said India with the cooperation of Iceland hopes to start soon exploring the possibilities of geothermal energy in some of the areas like Ladakh in Jammu and Kashmir and some places in Chhattisgarh.

“There are number of areas in our country, which we are now trying to look into with Iceland and see that how best we can use this energy,” the minister said.

Abdullah said his vision is to see that every Indian has access to clean, reliable and affordable energy.

“Today, technology provide us this opportunity,” he added.

He said India has an installed base of 20,000 MW of renewable energy which it aims to increase to 70,000 MW in the next 10 years and “if we do not seize the opportunity now, future generations will have every reason to identify us as a selfish, shortsighted and an irresponsible generation”.

The minister also said that the government was aware that “any delayed action” in creating an ambitious renewable energy future for country could “imperil our security of energy supply.”

Source: DNA India

The drilling plan conducted by West Indies Power (Dominica) Ltd. calls for the drilling of 2-3 “slim holes” to a depth of 1000m. Slim holes are 2-6 inch wells that are drilled to test for temperature, pressure, and solution chemistry. The results of these tests will allow WIP to determine the size and composition of the geothermal reservoir and to begin
designing the geothermal power plant to use those geothermal solutions.

Construction of the drill sites will begin in 4th quarter of 2011 and drilling is planned for 2nd quarter of 2012. It will employ both foreign contractors and Dominican workers.

Kerry McDonald, CEO of WIP, stated “ WIP is pleased to have been granted the right be able to begin drilling in Soufriere. For years people have suspected that there is a geothermal reservoir in this area and now we will be able to finally prove it’s existence.”

Source: Company release via e-mail

The company said it has met all conditions precedent to borrow under this credit facility and submitted an initial draw request for $104m with about $35m of such amount being distributed to it as a reimbursement of a portion of its equity investment.

The remainder is being used for future project costs for the next four months and required contingency reserves.

Ram Power has now met the required injection capacity for both Phase I and Phase II of the geothermal project.

The company said that combining the recently completed injection well SJ 11-1 with the conversion of well SJ 12-1 to an injection well, allows it to satisfy the injection requirement of the San Jacinto project.

Phase I construction is now 85% complete and mechanical completion of this phase is expected to occur in October 2011.

Ram Power has also amended the $77m credit facility for the 36MW Phase I San Jacinto-Tizate project expansion.”

Source: Company release via EBR

Geothermal energy as a source of power for attracting energy intensive industries and companies, such as data centers clearly is interesting.

So in a recent article that I came across it is interesting to hear that New Zealand as well is looking into luring data centers to the country.

In this article it is spoken with Mark Rushworth, the CEO of Pacific Fibre that promotes New Zealand as “having a great future as the datacentre hub of the South Pacific”.

Definitely interesting read as it also touches upon the point of geothermal energy being a base-load power source that not only can fuel electricity demand, but also attracting businesses to utilize the power offered. At the same time attracting power buying companies to the geothermal sites, the option of exporting electricity through cables is also increasingly a topic. Icelandic national power company Landsvirkjun is looking into the option of selling electricity into the spot market in Europe utilizing a cable to be put up.

For the full article on the idea of “New Zealand to seal datacenters from Australia” see link below.

Source: ZD Net

The banks hired are: Bank of Tokyo-Mitsubishi UFJ Ltd., ING Groep NV (INGA), Mizuho Corporate Bank Ltd., National Australia Bank Ltd. (NAB), Societe Generale (GLE) SA and Sumitomo Mitsui Banking Corp. These banks will market the 20-year project finance facility to other lenders.

Without much further details available, Bloomberg reports a margin of 200 basis points (2% interest rate) on top of the London Interbank offered rate.

“The Sarulla power project will require total financing of $1.26 billion, and it is expected that a further $600 million will come from the Japan Bank for International Cooperation while another $250 million will be lent by the Asian Development Bank.

The project is developed by a consortium of PT Medco Energi Internasional, Ormat Industries (ORMT) Ltd. and Japan’s Itochu Corp. (8001), that together won a contract in 2006 to construct and operate the 340-megawatt geothermal power plant, which will be located in Sumatra, an island in the Southeast Asian nation’s north.

In 2007, Kyushu Electric Power Co. signed an agreement to join the group.

Upon completion, the plant will be the largest single- contract geothermal power project, according to information about the project located on the ADB’s website.

PT Perusahaan Listrik Negara, Indonesia’s state-owned electricity company, signed an agreement with Medco Energi to buy electricity from the plant under a 30-year contract, Listrik Negara President Director Dahlan Iskan said in April last year.”

Source: Bloomberg

The development of this portfolio is one of the main objectives, that the company has outlined for its activities in Chile for the next five years.

“Chile has a very interesting combination of geothermal power, solar energy and wind energy, a huge hydro potential, a growing demand for electricity and a reliable regulatory framework. There are not many places in the world that combine all these elements, so we see in this country a great opportunity to invest in interesting projects and class, ” said Francesco Starace, Director and CEO of Enel Green Power, a company active in Chile since 2001, that two months ago moved its headquarters to the Southern Cone to Chile to manage the entire region, except Brazil.

Among the initiatives promoted by the company is the exploration and evaluation of geothermal energy in northern Chile, which could have a potential capacity exceeding 100 MW. The project is in its stage of processing environment for your next start and could make way for the construction of the first plant of its kind in South America.

The investments by Enel Green Power have increased by over 300% between 2010 and 2011 worldwide. In this context, the coming years the company plans to invest around US$ 9 billion, of which US$2.1 billion will be invested only in Latin America.

“We were able to continue to invest in projects without suffering the impact of volatile markets. So in the coming years we will continue and if we see new business opportunities and development of good projects are ready to increase our resources, especially in Chile, Brazil and Mexico, “forward Starace.”

Source: EV Wind

“The sales process is open to every investor that can be defined following the Icelandic Act on the Securities Transactions No. 108/ 2007, as well as investors with sufficient knowledge and experience with an investment capacity exceeding ISK 500 million. The seller reserves the right to limit the access to the sales process, e.g. when legal limitations prevent the investor from owning a controlling stake in the company due to competition rules.

Interested investors can contact Islandsbanki’s Corporate Finance team by phone or email under id2011@islandsbanki.is.

Interested investors will need to sign a non-disclosure agreement and provide information that confirms the fulfilment of the above conditions. Investors will subsequently receive further information regarding the sales process, timeline and operations of the company.”

Iceland Drilling announced earlier this summer the signing of 2 year contract with Mighty River Power in New Zealand and has shipped one of its flagship drilling rigs from Iceland to New Zealand. The company is also active in Germany through its subsidiary Hekla Energy, has signed drilling contracts in Dominica and more is expected in the near future.

Source: Islandsbanki announcement by e-mail.

The assessment was undertaken within the company and has been reviewed independently by Dr Subir Sanyal of GeothermEx, an international expert in geothermal resource and reserve estimation.

The resource follows the completion of geological, geochemical and geophysical studies at the project located 100 kilometres south-east of Santiago, and is sufficient to meet the needs of more than 250,000 Chilean households.

The Resource area remains open with strong indications for a significant extension and a drill program is planned for early 2012.

Dr Mark Elliott, Hot Rock’s executive chairman, said “this is a very significant milestone, positioning the Calerias project as our most advanced in the burgeoning, Chilean geothermal sector.

“Chile is one of the best regions in which to advance geothermal projects today. The country has some of the best volcanic geology suited for geothermal energy in the world, yet the sector is still in its infancy. Chile also has a very stable, pro-development government providing excellent incentives to new geothermal companies.”

Chile, the world’s largest copper producer, has the highest power costs in South America. Due to increasing energy demand and drought, the country has suffered power shortages for several years. As a result there is potential to establish geothermal power in the country.

Hot Rock has had an on-the-ground presence in Chile since 2009 and its early mover advantage has allowed the company to cherry pick several prime tenements, well before the recent pegging rush by the other major geothermal companies. Hot Rock now holds the largest geothermal land package in Chile.

“Calerias is very prospective, being located near a volcanic centre providing heat. The project is also strategically located close to existing transmission grid inter-connection points with direct access to the large urban electricity market in Santiago and private customers such as the nearby El Teniente mine, the largest underground copper mine in the world,” Elliott added.

With a maiden resource now defined, Hot Rock will now fast track activities at Calerias with a view to start drilling by early 2012, upgrading the reservoir to a Measured Geothermal Resource suitable to commence a Bankable Feasibility Study.

A maiden resource assessment is nearing completion at Hot Rock’s next most advanced project, Longavi (100%-owned). Longavi is located 300 kilometres south of Santiago, close to transmission grid and markets.”

Source: Company release via ProActive Investors

Paul Morgan, senior geothermal geologist with the Department of Natural Resources, said thermal gradient measurements show how rapidly temperature increases with depth.

The first hole at Poncha Hot Springs was drilled to a relatively shallow depth of 255 feet to determine if the thermal gradient is sufficient to warrant a deeper hole.

Morgan said shallow holes cost about $10,000 each, while the cost of a borehole deep enough to facilitate geothermal electricity production is around $1 million.

The project budget, $50,000, came from a state grant.

Frederick Henderson of Hendco Services said because of limited finances, they started shallow to try to determine the potential for geothermal electricity production at the site.

Morgan said after 70 feet of drilling in the second hole, concerns about collapse and safety prevented the team from drilling further. He said it would have to be cased, which is expensive.

He said they may return to that hole but for now, it is held open with PVC pipe.

The plan is to drill four holes, which will hopefully provide enough information to learn about geothermal potential at the site, Henderson said.

He said temperature readings gathered from the first hole were “really very good.” But he clarified that the number is preliminary and the hole will need to be retested when the temperature has stabilized.

He said drilling machines sometimes makes a difference in air temperature in the hole and the next test may be higher or lower.

Henderson said geothermal testing near Mount Princeton returned thermal gradient measurements eight times greater than normal, making it the most significant thermal gradient in the state.

Morgan said as a rule drillers try to cause as little surface damage as possible but said it helped that this site was essentially abandoned and vandalized.

Morgan said, when testing is completed this week, he and Henderson will offer a recommendation to pursue deeper holes or stop drilling.”

Source: The Mountain Mail

The Companies were each competitively assessed and selected through a rigorous technical and financial merit assessment. Projects span a range of geological environments and represent some of the highest quality potential geothermal development projects in Australia. Regrettably current economic conditions over the past year combined with the agreed construct of the GDP grant has limited project recipients’ ability to attract project funding and thus fulfil all the requirements of their GDP grants in the timeframes stipulated.

In July 2011 the Australian government announced its Clean Energy Future package which includes a carbon price of $23/tonne of CO2 and $13.2 billion in clean energy funding initiatives. The package which includes the $10 billion Clean Energy Finance Corporation and the 3.2 billion Australian Renewable Energy Agency (ARENA) will cut pollution and drive investment in new clean energy sources, such as geothermal.

Geothermal remains the Country’s only potential large scale zero-emission renewable base- load 24/7 energy source, and this has been recognised with the announcement today by the Minister for Resources and Energy, Martin Ferguson AM MP within the Australian government’s Emerging Renewables program.

The Emerging Renewables program aims to reduce the costs of new technologies, improve skills across the renewable energy industry, and leverage finance from the private sector as well as state and territory governments.

The Emerging Renewables program will have funding of $126 million with geothermal companies well placed to benefit from the new program design with at least one third of the total program funding expected to be available to support the development of geothermal energy in Australia.”

The announcement was signed by: John Canaris (Managing Director, Torrens Energy), Richard Beresford (Managing Director, Green Rock Energy), Mark Miller (Managing Director, Greenearth Energy), Mark Elliott (Executive Chairman, Hot Rock Limited).

Source: Joint release via Noodls

Molten will contribute the first $10 million in exploration and development funds and receive a 50 per cent stake in the Panax subsidiary that holds Panax’s share in the projects in return. Further exploration and development costs will be shared between the two parties on a 50-50 basis.

Panax managing director Kerry Parker said the proposed partnership would allow Panax to aggressively pursue the development of its highly prospective assets in Indonesia. It has four projects with a combined targeted capacity of 300MW, of which Panax’ share is 165MW. Indonesia has been offering generous tariffs for geothermal projects to help support industrial development and replace highly expensive diesel generation.

“This transaction is a market-based endorsement of the unrecognised value of Panax’s assets as it implies a value for the Indonesian portfolio, which is twice the company’s current market capitalisation,” Parker said in a statement. “It’s a significant portion of funding that can be applied directly to our projects in Indonesia, and provides funding certainty for Panax as we grow into an international geothermal development and production company.” Molten will also make a direct $1 million investment in Panax, buying shares at 2c each, the same price as a recent rights issue.”

Source: ClimateSpectator

A total of four grants allocated under the Geothermal Drilling Program were not taken up because the companies, small listed entities on the ASX, were not able to secure matching funding under the terms set down by the government. These companies are believed to be Greenearth Energy, Torrens Energy, Hot Rocks Ltd, and Green Rock. The new program will allow for a more flexible funding mechanism to be administered by the Australian Centre for Renewable Energy, and there will be no deadline for the allocation or the spending of funds. Ferguson said the flexible approach responded to industry feedback.

The new mechanisms were recommended by ACRE chair Mary O’Kane in her Strategic Directions document delivered to the minister earlier this year, which sought to address some of the problems in the grants-based model favoured by the government, where many allocations have not been accessed. However, a spokesperson for the minister said funding for geothermal, ocean and solar projects will still be made on a “merits-based” grants approach, but will not necessarily be made on a 1:1 or 1:2 basis.

The Emerging Renewables fund was first announced in last year’s election campaign, with $40 million originally allocated, and was to have been allocated by the end of the 2010/11 financial year. It was delayed, but then boosted to $100 million in the May budget, receiving previously unallocated ACRE funds. ACRE will manage the program while the new Australian Renewable Energy Agency, which will manage $3.2 billion in funds, is established. This process is expected to take up to 12 months, but Ferguson said it was important to open the program now to “keep up momentum” in the industry.”

Source: ClimateSpectator

The meetings will be held at the Calpine Geothermal Visitors Center, 15500 Central Park Road, Middletown.

The first will be held at 6 p.m. Thursday, Aug. 18, while the second will take place at 2 p.m. Friday, Nov. 4.

Contact the visitors center for more information, 707-987-4270, CGVC@calpine.com, www.geysers.com.

Visit the Geothermal Technologies Program Web site at www.geothermal.energy.gov for more information on the program, EGS and existing EGS sites.”

Source: Lake County News

Revenue rose to $104.6 million for the second quarter from $96.3 million for the corresponding quarter of 2010. Electricity revenue rose 18% to $81.2 million from $68.8 million, but product revenue fell to $23.4 million from $27.5 million. Electricity generation rose 11.2%, and the average rate rose to $83 per megawatt/hour in the second quarter from $78 in the corresponding quarter.

Net profit was $8.2 million ($0.18 per share) for the second quarter compared with a net loss of $1.5 million for the corresponding quarter.

Ormat Technologies CEO Yehudit Bronicki reiterated the company’s full year guidance of $315-325 million electricity segment revenue and $90-100 million product segment revenue.
Bronicki said that the company’s new $130 million contract to build and operate a geothermal power station in New Zealand was the company’s largest product order in its 46-year history, and boosted the product backlog to $225 million.”

Source: Globes (Israel)

The artist and widow of John Lennon is in Japan for the first time since the March 11 quake and tsunami sparked a nuclear crisis, and as the country remembers the atomic bombings of Hiroshima and Nagasaki.

With her new exhibition, “The Road of Hope”, she says she wants to stress that Japan, having rebuilt itself after World War II and the atomic bombings, can also emerge stronger from the quake and Fukushima radiation disaster.

Like a growing number of Japanese, Ono favours a shift toward renewable energy such as wind, solar and geothermal power, which she said she became familiar with in another tectonically unstable country, Iceland.

One of Ono’s projects is the Imagine Peace Tower near Iceland’s capital Reykjavik, a memorial to Lennon, who was gunned down outside their New York apartment in 1980.
The stone monument — which has the words “Imagine Peace” carved into it in 24 languages — sends a column of light far into the sky using electricity from Iceland’s geothermal energy grid.

Iceland produces over 80 percent of its energy from geothermal and hydro-power, and it uses the hot steam from the earth for 90 percent of indoor and water heating. The country aims to be fossil-fuel free by 2050. ”I’ve been all for geothermal for a long time,” said Ono, 78.

Japan, Ono pointed out, is dotted with “onsen”, or hot spring baths, where steam billows out of the ground. She said that although geothermal energy would be only part of the solution, it would be a clean, safe and obvious option.

“Geothermal — you can just do it, it’s there,” she said. “I think it’s the safest. Japan has so many spas, it’s just made for it.”

“In Iceland in the 1930s they were using coal and the whole place was dirty… They started to not have the money to buy coal because of the depression, so then they discovered geothermal. In the 1930s!

“When I went there I realised the place is not only beautiful, but it’s also very much independent from the oil people, which is very good. I think all of us can do that really.”

Source: AFP via Google

So in a recent interview, “Surya Darma from the Indonesian Geothermal Association’s board of counselors said the government was struggling to attract investment from newly tendered geothermal projects. “It will be hard if the business hasn’t been improved,” he said.

This year, four geothermal project areas are up for bidding, namely Simbolon Samosir, (North Sumatra) and Way Ratai (South Lampung), each with a reserve potential of 150 megawatts. There is also Candi Umbul Telomoyo (Central Java) and Bora Pulu in Sigi, with a potential of 120 and 152 megawatts respectively.

The government could only confirm the electricity price to the developers but there is no certainty regarding contracts with state-run electricity company PT PLN. Several work areas have not signed contracts with PLN. Developers have requested a payment guarantee for the electricity bought.”

Source: TempInteractive

Several country leaders attended the event including the president of Costa Rica, H.E. Laura Chinchilla Miranda. Also on hand was the former Minister of Energy, Teofilo de la Torre who was recently nominated as the Executive President of ICE, the country’s national power utility. Dr. Nick Rischbieth, president of BCIE, along with other members of the government and distinguished dignitaries rounded out the attendees.

“We are very pleased to continue our collaboration with ICE which started with the 18 MW Miravalles Unit 5 in 2004. The Las Pailas plant demonstrates the trust that ICE and BCIE have in Ormat and its Binary Technology,” said Ormat’s Chairman, Lucien Y. Bronicki.”

Source: Domestic Fuel

All these programs have their pros and cons, but are necessary to move the industry forward – particularly in the current economic environment.

In the end it comes down to the point on how to finance geothermal drilling, that is supposed to confirm geothermal resources and power available for the building of a geothermal power plant. Without going into too much detail the issue comes to the point on how much risk an investor is willing to take investing into geothermal development. In the current financial environment, the willingness to take risk has dramatically decreased making it very difficult for developers to finance the most crucial element in the development of their projects.

Until you can actually build a geothermal power plant you have to prove that you have the necessary resource to run a plant with a certain capacity. In the past, it was sufficient to prove around 50-60% of the capacity for a certain size plant and turbine. Now this number is at more than 70%.  This might not seem much, but is in most cases a decision over the life and death of a project. If drilling can be up to 30-40% of the overal project cost, additional wells to be drilled need additional “early stage” financing that is currently hard to get.

Now German re-insurance firm MunichRE announced within a few weeks, that they have insured private geothermal power projects in Germany. Bloomberg just picked it up last week and talks to one of the projects that the company has insured. (article link)

The concept is essentially simple. The company insures three elements that are crucial in the geothermal drilling process. Number one is you find the necessary temperature, secondly you have water available and thirdly the water flow is sufficient for your planned power project. So in the case of an insurance  you pay an insurance premium that allows the investor, that is willing to invest in this phase of your project’s development, to secure his investment. How much of the actual investment would be insured and if it the actual threshold of the insured elements is enough to run an economical project is I guess a question of the individual policy.

But an insurance is pricy and cuts right into the return for both the overall project, but also for the investor. In the past Icelandic bank Glitnir (now Islandsbanki) provided a particular financial product that was tailored to directly finance part of the drilling.

So while primarily the industry is looking at governments to take over the exploration risk for geothermal development and thereby making geothermal projects more attractive for investors, in the U.S. and other countries this support has not arrived. Therefore private tools, like an insurance or a special financial product might provide the necessary hope to move the industry forward. This applies particularly to North America, where most of the development currently seems to be stuck ahead of the drilling phase. Low drilling rig counts show that there is currently not enough drilling going on.

So one can only hope that developers are able to tap into funds, or get help in doing so through either some insurance program, financial product or government support. The industry is in dire need.

MunichRE and Icelandic Islandsbanki will present and speak about these topics at the upcoming CanGEA Annual Conference & Investment Forum in Toronto, September 14-15, 2011.

Disclaimer: I worked in the past for Glitnir/ Islandsbanki and currently for the Canadian Geothermal Energy Association (CanGEA)

“Yopie Hidayat, the spokesperson of vice president office said that Indonesian government would gladly welcome and provide maximum assistance for Australian investors who are willing to run geothermal power plant in the country.

The Indonesia’s assistance commitments and official invitation to Australian investors was conveyed by Boediono to Australian Energy Resource and Tourism Minister Martin Ferguson during their meeting at the VP’s office, Yopie said.

Yopie said that Indonesia and Australia governments put great interests in developing the environment-friendly energy as geothermal energy requires brand new technologies and techniques. Both ministers agreed to share knowledge and expertise in developing geothermal energy.

Geothermal power plant would significantly contribute to the country’s second phase mega power plant project with total capacity of 10,000 MW.

Indonesia has the world’s largest geothermal deposit that may generate power up to 29,038 Megawatt, but as of now it only produces 1,189 Megawatt of electricity.”

Source: PhilStar

A new credit facility on identical terms has been entered into allowing Alterra Power to borrow up to C$20 million at any time during the next 12 months for working capital or other purposes. At present, no borrowing against this facility is planned as the Company has adequate capital for all its planned 2011 activities.”

Source: Company release via PR Newswire

The country’s  ”Mineral Resources Department is yet to establish if Fiji has the appropriate amount of geothermal energy to begin mining”, according to Mineral Resource Mining Manager Venasio Nasar.

Nasara says exploration work is continuing at various sites and there are other feasibility studies are on-going.

He says from the results obtained so far, things are looking promising and if the drilling program is successful, mining will start soon.

Nasara says exploration work is expensive but once mining starts it can rake in a lot of money.

The geothermal program is part of government’s efforts to increase renewable resources that will help in reducing the amount of money spent on diesel fuel.

Fiji is one of the hottest geothermal sites in the world because of its location on the Pacific Rim.”

Source: Radio Fiji

“This is great news as yet another geothermal company in Canada moves on the development of geothermal power projects, and we congratulate our member company Deep Earth Energy Production Corp. on this milestone step for the company.”, says Alexander Richter, Director of the Canadian Geothermal Energy Association.

This follows great news from the Geological Survey of Canada’s recently release report on the “enourmous geothermal potential of Canada” and the record geothermal permit sale in the province of British Columbia in July of this year. To hear more about development in Canada from two of the companies developing projects in the country by Tim Thompson of Borealis GeoPower and Kirsten Marcia of Deep Earth Energy Production Corp.

The property is secured in a Lease of Space Agreement where The Minister has leased to DEEP all rights and interests in the spaces, which may be found to exist from the top of the Winnipeg Formation to the base of the Deadwood Formation. The project area is located in Southeast Saskatchewan, west of Estevan, and totals 5,920 acres (~9.5 sections). Total rental fees for this project area are less than $10,000/year.

The lease is a 15 year term, renewable for another 15 years if the geothermal project continues to produce electricity for commercial sale and is in compliance will all acts and regulations.
An initial estimate from an independent technical report prepared by Borealis Geopower suggests the potential for ~ 5MW of electrical generation at this site.

In addition to this initial site, DEEP is partnering with several Calgary-based oil and gas companies to gain exclusive rights to all non-oil bearing hot aquifers. Based on the size of the land that DEEP will have exclusive access to, it is estimated that 100s of MWs are potentially available for geothermal power development in this region.”

This follows great news from the Geological Survey of Canada’s recently release report on the “enourmous geothermal potential of Canada” and the record geothermal permit sale in the province of British Columbia in July of this year. To hear more about development in Canada from two of the companies developing projects in the country by Tim Thompson of Borealis GeoPower and Kirsten Marcia of Deep Earth Energy Production Corp. at CanGEA’s Annual Conference and Investment Forum in Toronto, September 14-15, 1022

Source:

The management of the plant is now inviting to its forthcoming Soultz Geothermal Conference on the 5th & 6th of October 2011.

This first Soultz Geothermal Conference will give an overview of the geothermalactivity in the Upper Rhine Valley by focusing on various technical and scientificchallenges faced by running or planned geothermal projects.

During the two-day conference, status of those geothermal projects will be presentedin terms of design, concept, exploration, drilling, exploitation, monitoring, field testing,laboratory experiments and various modelling.

Scope of the conference and all the details are presented on our website www.geothermie-soultz.fr

This and more will be topics at CanGEA’s 4th Annual Conference and Investment Forum in Toronto, September 14-15, 2011.

While in the past Canadian companies have predominantly been active outside of Canada, representing a large share in U.S. geothermal development, development in Canada is happening and could be increasing over the next few years.

To present the industry and showcase activities by its members and the industry, CanGEA is proud to invite you to CanGEA’s 4th Annual Conference and Investment Forum to take place at the One King West Hotel & Residence in Toronto, Ontario, September 14-15, 2011. We have been able to attract high-level speakers from Canada, the United States, Iceland, Switzerland, Indonesia, Argentina to present their companies and activities. The event also features two workshops on geothermal energy and the Canadian Geothermal Code for Public Reporting on September 13, 2011.

Details & registration: www.cangeaevents.ca/toronto

Printable Overview: Conference Information Package (pdf)

Among the high-level speakers of the conference are:

• Ross Beaty, Chairman and CEO of Alterra Power Corp.,
• John McIlveen, Research Director at Jacob Securities,
• James Slutz, President North America of Indonesian Star Energy,
• Warren Levy, Chairman and CEO of Estrella International Energy Services,
• Tyler Hamilton, Clean Energy & Technology Reporter, Toronto Star
• Charles J. Arrigo, Advisor, Glacier Securities,
• Michael Ronzello, Geothermal Business Development Manager, Pratt & Whitney,
• Stephan Jacob, Underwriter at MunichRE,
• Tim Thompson of Borealis GeoPower,
• Alexander Richter, Director, CanGEA
• Dan Fleischmann, Project Initiator Manager, Ormat Technologies,
• Hrefna Bachmann, Director, Íslandsbanki,
• Jörg Uhde, Head of Geothermal Business Unit at Swiss utility Axpo AG,
• Kirsten Marcia, President & CEO, DEEP Earth Energy Production.

The event will feature Canadian development, activities by developers internationally, drilling and drilling services, geothermal direct use applications, policy needs, power plant options and our annual investment forums looking at financing geothermal projects and the potential insurance of exploration risk.

We thank Islandsbanki for its support of the conference. There are some great sponsorship opportunities still available, including various price ranges and an exhibition opportunity. Details: www.cangeaevents.ca/toronto/sponsorship

Read more on the conference website

BC helds successful geothermal permit sale

The Ministry of Energy and Mines in the province of British Columbia has released the results of the Crown Geothermal Rights Public Tender held July 26, 2011. It accepted the offers for the three permits sold in this tender process. This is a record price having been paid for geothermal permit so far.

The 3 permits generated an income of $229,108.10 for a total of 8,056 hectares close to Lilloet, British Columbia. Two of the permits were purchased by Salal Geothermal Inc. and the other by 214979 Ontario Inc.. Further details on those companies is not available at this point in time.

(currency is in Canadian dollars)

Click here to read more …

With an initial letter of intent signed in May this year, the companies now have signed a binding agreement outlining the key steps towards first power production and the rights and obligations of Green Rock and Pacific Hydro.

Both companies are to cooperate on the development of power projects based on geothermal exploration permits and licences held by the companies in the North Perth Basin (“NPB”) and the Great Artesian Basin (“GAB”) in Australia.

Green Rock and Pacific Hydro will jointly develop an Information Memorandum (IM) on the two projects directed at potential upstream ‘farm-in’ partners to substantially fund drilling of the wells required to prove up the conventional geothermal resource. The IM will be marketed globally through our and our advisers’ networks. Potential upstream partners may choose to fund one or both of the projects.

On executing an initial joint venture agreement with an upstream partner Green Rock (for a project in Pacific Hydro’s licences in the GAB) or Pacific Hydro (for a project in the NPB or Green Rock’s licences in the GAB) will have the right to pay $100,000 for a 5% free carried interest in the project up to financial close of a power project. The upstream partner will then fund a substantial part of the drilling program to prove up sufficient geothermal resource to underpin the initial power project of at least 25MW in the NPB or 50MW in the GAB.
Green Rock and Pacific Hydro will have similar rights to further projects up to a total of 250MW in each Basin, but with the free carry no longer applying.

Key terms in the initial joint venture agreement with the upstream partner and in the shareholders’ agreement for the future power project companies are included in the MoU. Pacific Hydro will have the right to at least 51% interest in each power project company, with the buy-out of Green Rock’s and the upstream partner’s interests set according to a valuation formula to be agreed in the initial joint venture agreement.

Green Rock’s Managing Director Richard Beresford said “We believe that working together in this way to provide full capability and experience from geothermal exploration through to power plant operation on extensive and highly prospective conventional geothermal basins should be very attractive to potential upstream investors. We anticipate drilling the first well in one or both basins next year.”

Lane Crockett, Pacific Hydro’s General Manager, Australia, said “We believe there is a compelling opportunity for conventional geothermal to supply Australia with nationally significant renewable baseload generation. Pacific Hydro is delighted to partner with Green Rock and to combine the strong, complementary capabilities of our two companies towards the realisation of this goal.”

Source: Company release and Invitation for Expression of Interest (pdf)

“The steam rising from the Pacaya volcano and the hills and rivers surrounding it on the outskirts of Guatemala’s captial city hints at a power source that could give the country the energy security it craves.

Geothermal steam and water some 2,000 meters below the surface of the green hills and mountains is being tapped by the global alternative energy company Ormat, converted into electricity, and fed into the city’s main power grid.

There are currently only two geothermal power plants in Guatemala, both owned by Ormat, but the government says there are many more opportunities under the country’s soil.

It hopes to use this power source to meet up to two-thirds of the country’s annual energy demands by 2022. Guatemala wants to wean itself off the $2 billion it spends on oil imports every year.

Accordingly, the Guatemala government is offering tax breaks on equipment brought in to build geothermal plants. It says Ormat is only tapping 20 megawatts of a potential 1000-megawatt potential lying in wait around the county. Traditional electricity plants or hydropower facilities today generate most of Guatemala’s energy.

Some consider geothermal to be one of the cleanest forms of alternative energy out there.

Yossi Shilon, Ormat’s representative in Guatemala, says; “When you use this kind of technology, as you can see, there’s no smell being dissipated, the noise is very much controlled because after those walls you won’t hear any noise outside. Whatever we take out from the production well is also re-injected into the same reservoir, so we maintain the reservoir at its very basic parameters and it is not affected by our operation.”

But there are some barriers to entry for other companies hoping to join Guatemala’s geothermal race. The development of the geothermal fields is costly and risky – the plants themselves are also expensive to build and drilling doesn’t always turn up what’s expected.

Despite those risks, Ormat plans to expand its operations in Guatemala.

And as for the government, it’s a double-bonus: tapping more geothermal power will help wean it off of foreign oil, and help it to go green at the same time.”

Source: GlobalPost

Using water of around 80 centigrades, he produces geothermal power at around 5 US cents per kW/ hour. Using diesel that would cost him 30 US cents per kW/ hour. Having not only a hot spring pool, greenhouses but also an “ice structure”, he is fore sure inventive.

Link: YouTube

Therefore I have encouraged the industry and people I have worked with to share pictures that people could use for their presentations, websites, articles etc. You will see that I source a lot of pictures on the ThinkGeoEnergy website via Flickr and other sites, but only if they are “creative commons”. While there are several levels of that licensing, in essence they allow you to use pictures if you reference them.

I just added pictures sets from three geothermal power plants in the North of Iceland, Húsavík Kalina geothermal plant, the Krafla and Bjarnarflag geothermal power plants. I think I have to spare my family the “geothermal detours” on our vacations in the near future.

So in order to provide pictures that I have taken, both at plants and events, I created a Flickr account two years ago. All the pictures there can be used freely and are available in high resolution. The only thing I would like to ask you is reference where you get the pictures (e.g. picture courtesy of ThinkGeoEnergy.com).

Be fair and don’t start selling those pictures. Let me know in the comments if you use the pictures and for what, would be interesting.

The pictures can be found in separate sets at: www.flickr.com/thinkgeoenergy

If you want to share pictures you can add pictures to the Group Pool at Flickr at: www.flickr.com/groups/1352221@N22/

So while the pictures available are somewhat Iceland focused for now, we might be able to increase the good pictures available to help all of us selling geothermal in all its forms.

Looking very much forward to see more good geothermal pictures, but for now use the ones I share freely.

In the announcement, MunichRE reports that “in early September, a 60-metre-high drilling rig will be erected and initial drilling operations will commence later that same month. Following investments to the tune of EUR60m (US$85 million), the plant will in future supply up to 5 MW of electrical and 12 MW of thermal, district-heating power from two wells approximately 5,000 metres deep. Munich Re is once again assuming the significant exploration risk that thermal heat drilling entails.

Deep geothermal exploitation involves pumping hot water to the surface from strata at depths of up to five kilometres and using it to generate heat and electricity. However, the substantial costs of drilling and development associated with this technology often constitute a major investment barrier because there is a substantial risk of not making a productive find, in which case the investment is lost. In the past, there have been cases where exceptionally deep geothermal projects have been abandoned because funding was not available on the capital market.