UTC Power and Raser Tap Geothermal Resources

The agreements contemplate a long-term relationship in tapping geothermal resources to provide renewable power and in continuing to improve organic Rankine cycle power generation technology. Delivery of the first 45 units begins in the fourth quarter of 2007 to the first of Raser's three initial geothermal sites. UTC Power has also signed a service agreement with Raser for maintenance of these units.

Raser expects the geothermal resources for its first three smaller, 10 MW power plants to be low-grade reliable heat sources of approximately 265 degrees F. All three geothermal plants are expected to be built on the company's leased properties. Heat sources may vary among locations, but plant designs are expected to be similar.

The plants should qualify for Renewable Energy Credits (RECs) and are also anticipated to be placed in service in time to qualify for Production Tax Credits (PTCs) and other tax benefits provided under the Internal Revenue Code.

The PureCycle geothermal system results from more than six years of research and development work involving UTC Power, United Technologies Research Center and the U.S. Department of Energy. The organic Rankine cycle- based power system is an advanced binary cycle system that is driven by a simple evaporation process and is entirely enclosed, which means it produces no emissions. PureCycle geothermal systems have been in operation since 2006 at Chena Hot Springs Resort in Alaska, as a U.S. Department of Energy Geothermal Technologies demonstration project. It is the first geothermal project in Alaska and the lowest temperature geothermal resource (165degrees F) ever used for commercial power generation.

"United Technologies is a great company that stands behind their products with significant capabilities both in personnel and in manufacturing resources," continued Cook. "We anticipate working with UTC Power for many years in the future."