BOISE, IDAHO--(Marketwired - Aug. 1, 2013) - U.S. Geothermal Inc., (NYSE MKT:HTM) (News - Market indicators) a leading renewable energy company focused on the development, production, and sale of electricity from geothermal energy, announced today that Final Completion of the 22 megawatt (net) Neal Hot Springs Project has been achieved. Yesterday, the project also received the final advance under the DOE loan guarantee.
The Neal Hot Springs Project was the first geothermal project to obtain a loan guarantee under the DOE's Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005 to support the deployment of innovative clean energy technologies. The DOE loan guarantee, guarantees a loan from the U.S. Treasury's Federal Financing Bank. The project was authorized for a loan guarantee of up to $96.8 million.
The Neal Hot Springs project deployed a first of its kind binary cycle process, utilizing a supercritical cycle that uses R134a refrigerant as the working fluid, as well as pre-fabricated modular construction of major plant components.
The Neal Hot Springs project created high-quality American manufacturing and construction jobs through the construction of the power plant, which was supplied by Houston-based TAS Energy Inc., a provider of high efficiency modular energy systems. U.S. Geothermal estimates that about 95 percent of the power plant's infrastructure and parts were supplied by U.S. based manufacturers. In addition, approximately 150 construction jobs and over a dozen permanent jobs were created during the project's 20-month construction phase.
The project is selling electricity to Idaho's largest utility, Idaho Power Company, under a previously signed 25-year power purchase agreement for up to 25 megawatts of power per year. Beginning in 2012, the base energy price is $96 per MW Hour and escalates annually. The calculated 25-year levelized price is $117.65 per MW hour.
"The success of this new first of its kind project at Neal Hot Springs is a major milestone for both our company, and the entire geothermal industry", said Mr. Dennis Gilles, Chief Executive Officer of U.S. Geothermal Inc.. "The Neal Hot Springs project reflects the true success of the collaborative effort among U.S. Geothermal and our equity partner Enbridge, the Department of Energy who provided the low cost financing under their innovative technology program, and TAS Energy Inc. who provided the innovative plant equipment. We truly appreciate the formidable efforts on behalf of all those involved in this project."
"Enbridge is excited to be part of the Neal Hot Springs project, which represents our first investment in geothermal energy. We are very pleased with the outcome, and look forward to additional opportunities in the future", said Chuck Szmurlo, Vice President of Alternative & Emerging Technology of Enbridge Inc.
"The successful result of the Neal Hot Springs project has further strengthened our ability to confidently offer this advanced technology to the broader geothermal industry and implement in other countries," said J.T. Grumski, Chief Executive Officer of TAS Energy Inc. "We expect that the global deployment of this reliable, clean and economic technology will only continue to grow."
Please visit our Website at: http://www.usgeothermal.com.
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is developing El Ceibillo, an advanced stage, steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
About Enbridge Inc.:
Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in more than 1,600 megawatts of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy and geothermal. Enbridge employs approximately 10,000 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
About TAS Energy Inc.:
TAS Energy Inc. is a global technology company providing clean, economic, modular energy solutions for the power generation industry; district, commercial and industrial process cooling; data center/mission critical markets; and the renewable energy sector. A holder of multiple U.S. patents for technology advancements, TAS Energy leads the industries we serve by delivering turbine inlet chilling with energy storage solutions such as Generation Storage®, Organic Rankine Cycle technology for geothermal and waste heat applications, modular central plants and data centers; all designed for high life cycle financial performance. For more information on TAS Energy, please visit www.tas.com.
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, the results from the exploration, production and injection well drilling at El Ceibillo. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.
