U.S. Geothermal Provides Update on San Emidio Project; Shares Marginally Higher

By MidnightTrader.com Staff,

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Shares of U.S. Geothermal Inc. ( HTM ) are inching higher after the company provided an update on its 100% owned San Emidio Project near Reno, Nevada. The new power plant output rating has now been increased from 8.6 to 9.0 net annual average megawatts based upon results of final capacity testing.

Since achieving commercial operation in May, the plant has been producing and the project has been selling electrical power. The plant has averaged an output of 9.47 net (12.47 gross) megawatts per hour during November month-to-date. Including the completion of performance testing, the plant has been operating continuously for the past 31 days. The company's wholly owned subsidiary, USG Nevada LLC, accepted operational custody of the plant on November 10. The EPC contractor is nearing final EPC contract completion.

Electrical energy from the new power plant is being sold for $89.75 per megawatt hour (MWH), subject to a 1% annual escalator, under the terms of a 25-year power purchase agreement with Sierra Pacific Power Company. Using the existing production and injection wells, the new San Emidio plant is projected to generate an average of approximately 75,000 MWHs of electrical power each year and replaces an existing facility that, prior to being removed from service, generated approximately 23,000 MWHs annually for some 20 years.

HTM is trading at $0.32 in a 52-week range of $0.26 - $0.71. Shares have fallen 32% in the last 12 months.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: HTM

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