Geothermal, Project Development

Sierra Geothermal Acquires Majority in Cayley Geothermal

Sierra Geothermal Power Corp. announced the closing to acquire the majority interest in Cayley Geothermal Corp., thereby giving Sierra an interest in 15 geothermal projects in Nevada and California.

Concurrently, Sierra Geothermal completed a $5.06 million private placement to satisfy property payments and fund the exploration of several advanced projects once permits have been issued. Sierra Geothermal’s projects are categorized as Tier I, II and III. Tier I projects are at the pre-feasibility and production assessment drilling stage. Sierra has four Tier I projects having a total resource potential estimate of 90 to 180 MW. The four most advanced (Tier I) projects include the Reese River Project, the Pumpernickel Project, the Alum Project and Silver Peak Project. Sierra has four Tier II projects having a total estimated potential of 30 to 65 MW and seven projects in the Tier III stage of development. The net electricity of 90 megawatts (MW) is enough power to run 72,000 homes. A study recently prepared for the Western Governors’ Association, projects geothermal energy in the U.S. to have the near-term potential of producing 13,000 MW of capacity, which could offset considerable commodity risk and pollution associated with conventional power plants. California currently produces 5% of its power from geothermal sources, which is more than double reportedly derived from wind power.