Nevada Geothermal Increases Faulkner 1 Production to 26 MW

Nevada Geothermal Power Inc. (NGP) announced that power production from the Faulkner 1 geothermal plant has been increased from 13 megawatts (MW) to 26 MW with permanent cables installed to Turbine Generator Units One and Three.

In January, NGP announced that the 49.5-MW plant automatically shut down on January 17, due to a “ground fault” problem in the electrical control system. The initial inspection by the EPC contractor has determined that the plant automatically shut down due to a failure in the buried power cable system.

Power cables leading outward from the control building were improperly configured, causing excessive heat to build up, leading to eventual cable failure in an isolated portion of the power cable runs.

Cable repairs are expected to be fully completed to Unit Two and other electrical equipment on or before March 10, 2010 allowing the plant to be fully operational and are covered by a warranty provided under the EPC contract.

Newly drilled and tested, deep injection wells, 55-15 and 58-11, will allow production levels to be increased to between 36-40 MW shortly after the Faulkner 1 plant is returned to full service. New production Well 91-15, drilled to 8359 feet, is currently undergoing flow tests. Production pipeline and electrical service connections will take approximately two and a half months to complete.

John Hancock and the U.S. Department of Energy (DOE) are continuing with their due diligence process to support a 20-year term senior debt financing and a related DOE Loan Guarantee.

The results from the three new completed wells are to be incorporated into a resource update report by GeothermEx Inc. which is a necessary component of the due diligence review. Permanent financing is now expected to be completed by the end of March, 2010.

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