Nevada Geothermal Power Inc.
Nevada Geothermal Power Inc.
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Blue Mountain, Nevada Pumpernickel, Nevada Black Warrior, Nevada Crump Geyser, Oregon

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Nevada Geothermal Power Inc.'s (NGP) Pumpernickel property is located in north-central Nevada, 30 km (20 mi) east of Winnemucca, in Humboldt County. The Pumpernickel geothermal site is 100% leasehold covering 10.34 square miles (26.79 square km) of geothermal lands. The site is accessible by highway and county road and has access to three interconnect points to the local transmission grid. The Pumpernickel site is estimated to contain a 20-30 megawatt geothermal resource, enough electricity to power up to 24,000 homes.

Since 2003, gravity and seismic surveys have been completed along with initial thermal gradient drilling and third party testing. The next step at Pumpernickel is an initial development test well. Further plans for this project will be announced in 2009.

Pumpernickel geothermal project highlights are:
  • The Pumpernickel project has produced reservoir temperature estimates from 302°F (150°C) to 424°F (218°C)
  • Maximum well temperature recorded has been 275°F (135°C) with temperatures increasing at bottom
  • Pumpernickel's geothermal potential is shown with a number of active near-boiling geothermal hot springs along the western edge of the Valley
  • Significant gold mining and processing operations within a 75-mile radius of NGP's Pumpernickel geothermal site which could use up to 400 MW
  • Water samples collected from thermal gradient holes and geothermal springs have confirmed Pumpernickel as a commercial reservoir by a third party

NGP has entered into an agreement which grants ORMAT a right of first refusal to construct the power plant at Pumpernickel, at a "most favoured customer" price. This would be subject to exploration and confirmation activity success in confirming a geothermal resource and securing a Power Purchase Agreement.

Through the Pumpernickel Valley project, NGP has the opportunity to develop a strategic business relationship with a major mining company. Significant gold mining and processing operations are within a 75-mile radius of NGP's Pumpernickel geothermal site, using up to 400 MW of power. Mining companies are paying higher charges to utilities and hence are seeking alternative sources of power.

Nevada's geothermal output is expected to increase significantly in the next decade to meet burgeoning demand for cheaper power and to comply with renewable portfolio legislation requiring the percentage of renewable electricity produced in the State to increase to 20% (2015) - currently at 8%.


 
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