First Phase of Geothermal Power Production Underway

The first phase of what could eventually be a full 90 MW of geothermal power production is now underway in Idaho. The project developer, US Geothermal, secured a partnership for initial construction of the first 10 MW which could be generating power by 2006.

US Geothermal secured an agreement with Lockwood Greene E&C, a subsidiary of CH2M Hill, a global engineering, construction, technology and operations firm, to provide project construction management services for the phase one construction of a 10 MW geothermal power project at Raft River Idaho. “We have now assembled the right team to construct and start up a geothermal power plant at Raft River and meet our on-line electricity generation date,” said Daniel Kunz, the company’s President and CEO. US Geothermal owns 660 acres and further holds the geothermal rights to approximately 3,500 acres of private lands, which comprise the 6.5 square mile Raft River project development in Southeastern Idaho, a geothermal reservoir that was the site of a former US Department of Energy geothermal research facility The Company possesses three Power Purchase Agreements with the Idaho Power Company for the production of 30 MW of electricity at Raft River. Construction of the Phase One power plant is planned in 2005 and power production is planned for 2006. Lockwood will provide project construction management services, direct construction work, and will assist US Geothermal in the selection of the power plant technology; a choice between conventional organic rankine cycle and ammonia absorption cycle technology. In addition, US Geothermal can request that Lockwood convert their services from a fee based construction management arrangement to a fixed price, turnkey engineering, procurement, and construction contract. On the basis of a report prepared by the company’s independent consultant, GeothermEx of Richmond California, the US Geothermal believes that Raft River’s energy reservoir is scalable to produce an estimated 90 MW of power from 6.5 square miles of lands owned or leased by them. “Adjacent to the existing electrical transmission grid and surrounded by modern infrastructure, Raft River is ideally located to make an important contribution to the power needs of the rapidly growing Pacific Northwest for decades to come,” said US Geothermal in a statement.
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