Ormat buys 40MW geothermal project in NE Nevada

Geothermal technology company Ormat Technologies, Inc., has bought a 40MW geothermal power project in northeast Nevada.

The Reno-based firm has acquired 100% of the membership interests in HSS II, LLC from its private equity fund owners, Energy Investors Funds.

HSSII includes the Hot Sulphur Springs geothermal project in the northern Independence Valley, which its new owners said was in an “advanced stage of development”, on around 9,800 acres of Elko County, Nevada.

It has one successful well, and should be operational in 2012, developed in stages, with the first stage comprising 16MW of generation capacity.

A 20-year power purchase agreement was signed this month to sell power to NV Energy subsidiary Nevada Power Company, although this is subject to approval by the Public Utilities Commission of Nevada.

Ormat said the deal should be closed in the first quarter of 2010.

Dita Bronicki, CEO of Ormat Technologies, said: “Upon closing, this acquisition will increase the number of projects that we expect will commence construction by 2010 and will therefore be eligible to benefit from the stimulus provisions targeted for renewable energy projects under the American Recovery and Reinvestment Act (ARRA).”

North Brawley

Meanwhile, Ormat said last week that it has started up a 17MW phase at its North Brawley power plant in California.

The company believes the project’s reservoir could ultimately support a 50MW output, but the amount of undissolved solids in its geothermal fluid has made re-injection into the reservoir difficult.

Temporary measures have been installed while the company awaits the arrival of permanent solids-handling equipment.

Even so, some of the wells at the site have proved “disappointing”, and Ormat is looking into how to increase their injection capacity.