Canada Company Wants to Sell Nevada Geothermal Power

A Canadian company, Continental Ridge Resources Inc, has responded to a tender to sell geothermal power to a large utility in Nevada.

VANCOUVER, British Columbia, CA, 2001-12-27 [] Continental says it tendered to supply power after the Nevada state government passed legislation obligating every utility to derive at least 5 percent of its electricity by 2003 from renewable energy resources. That level will rise 2 percent every two years, to 15 percent by 2013. To meet the requirements, the utility requested proposals for the delivery of renewable energy on the basis of ten-year contracts, starting in 2004, at a firm price of US$0.08 for the first five years. The utility will initially require 504,000 MWh in 2004, rising to 1,162,000 MWh by 2006. That is equivalent to the output of a 147 MW power plant. Continental says its Nevada Blue Mountain geothermal project is backed by the U.S. Department of Energy and has the potential to develop up to 100 MW in capacity, capable of generating 832,000 MWh per year, equal to a fossil fuel plant burning one million barrlels of oil. A 100 MW plant would generate $70 million in annual revenues, based on the contract price. Continental says the RFP is tangible evidence of the mounting demand for renewable energy in the western U.S. It wants to complete a feasibility study next year so the first 30 MW geothermal module could be built in 2003. The western United States has substantial resources of geothermal energy, especially in Nevada where 10 percent of current power is generated from geothermal power plants.

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