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Nevada Geothermal Power Inc. (TSX.V:NGP, OTCBB: NGLPF) ("NGP") is a renewable energy development company, based in Vancouver, British Columbia, Canada. NGP is developing geothermal energy projects in Nevada and Oregon. NGP currently holds 100% leashold interest in three projects in Nevada - Blue Mountain, Pumpernickel, and Black Warrior, and one in Oregon, Crump Geyser with a production potential of up to 200 MW.
NGP holds a 100% interest of geothermal leases just 32 KM west of Winnemucca in north central Nevada. The Blue Mountain geothermal field has advantages over many other geothermal projects; the geothermal resource is close to the surface (shallow) with easy road access and is situated within 20 miles/32 km of the electrical transmission grid.
Blue Mountain was first discovered in the 1980's while searching for gold. Recognizing that the potential for generating electrical power out-weighed the property's bullion prospects, company president Brian Fairbank moved to tie up the ground. With over 30 years of geothermal power industry expertise, he had no problem attracting an international team of industry experts.
NGP is gathering steam with its flagship project Blue Mountain's "Faulkner I" power plant with a 20-year Power Purchase Agreement with Nevada Power Company (Utility) to deliver up to 35 MW (gross) of electricity, enough power to supply ~24,000 homes.
In 2004, GeothermEx, Inc., a world-renowned geothermal consulting group that completed a review of the project stated:
"Given the attractive temperature level for the drilling depth, the existence of an extensive geothermal anomaly, and the relatively flat and accessible terrain of the project site, the Blue Mountain project is as attractive as any being explored or developed in Nevada today".
In addition to Blue Mountain geothermal project, NGP has geothermal rights in Pumpernickel from Newmont and initiated an exploratory drilling program in spring 2005 with partners, including the U.S. Department of Energy ("DOE"). Sierra Geothermal Power Inc. may earn a 50% joint venture interest by funding up to C$5,000,000 in exploration and development expenditures by the end of 2008 with NGP as the operator.
Located in the prolific power producing area dubbed the "Corridor of Heat", the Black Warrior geothermal site has the potential for the discovery of a geothermal reservoir suitable for electric power generation. Temperature gradients greater than 200 degrees c/km are indicated throughout the leased area in ten wide-spaced drill holes by Phillips Petroleum in the early 1980's.
Crump Geyser, Oregon. GeothermEx, Inc. (May 2006) estimates a minimum of 40 MW potential and most likely 60 MW potential at Crump; NGP intends to advance the Crump Geyser project through reservoir drilling, testing and confirmation, project feasibility studies and ultimately electrical power production. NGP is looking for similar acquisitions to build its inventory of geothermal reservoirs.
A Leading Geothermal Producing State:
Geothermal energy is nothing new to Nevada:
- With 16 geothermal plants totaling 308 MW of power capacity on an annual basis.
- Nevada has implemented legislation requiring power producers to increase their percentage output of renewable power from 8% in 2007 to 20% in 2015.
- Geothermal capacity is expected to increase in the state of Nevada from 200 MW to 500 MW.
- By 2015 the Utility is expected to spend US$2.0 billon on increasing renewable supplies.
- Senator Harry Reid, Democrat — Nevada — "I have been saying for years that Nevada is the Saudi Arabia of geothermal energy and I am pleased that the Interior and Energy Departments have reinforced that claim."
Geothermal is Natural, Clean, Sustainable Power
Geothermal power is a renewable and cost effective alternative to coal, oil and natural gas fired power plants. Geothermal energy, which is literally defined as "heat from the earth", is natural, clean, renewable, reliable, efficient and inexpensive to operate.
Geothermal reservoirs of heated water occur in regions of high heat flow and fractured, permeable rock formations. Fractures in the earth's crust allow hot groundwater to rise towards the surface where it may become sealed by impermeable rock. Surface manifestations of geothermal reservoirs include hot springs and geysers.
To access the hot water resource, production wells are typically drilled 4000 to 8000 feet below the surface. The heated water is brought to surface where it is flashed to steam; the steam is used to drive the turbines to generate electricity, the residual water is cooled and re-injected underground to recharge the reservoir. There are no surface discharges and very little or no emissions.
Geothermal the Alternative Energy of Choice
Geothermal power plants offer outstanding operational efficiency, low cost, base load energy (24/7, 365 days a year), 95% + capacity for geothermal compared to 65% for hydro, coal, nuclear and 30% for wind. Unlike gas, coal or oil power plants, geothermal plants require no fuel to operate and thus are unaffected by fluctuations in fuel prices.
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