The equipment was part of an order for six power plant units by another geothermal developer, but only three were installed. The components for the three units being purchased are all new and unused, and have been held in storage.
The equipment is from the same manufacturers, and is of a similar size and design, to that installed at the company’s Neal Hot Springs and San Emidio power plants.
The design output of the acquired units totals approximately 35 MW. Actual output of each unit will be determined by resource conditions found at the sites at which the equipment is ultimately installed.
“Since we already operate this same equipment at two of our projects, it will fit in perfectly with our existing operations” said Dennis Gilles, CEO of US Geothermal. “We paid $1.5 million, which is approximately 5 percent of the equipment’s original cost, a saving of roughly $28 million.
"This equipment gives us the ability to expand our megawatt output at our existing portfolio of advanced stage development projects at significantly lower cost, and in much shorter construction timeframes,” Gilles added.
The three equipment packages which represent approximately 70% of the components needed for the complete plants, will meet the major and long lead equipment requirements for the company’s proposed Crescent Valley I power plant (25 MW) and San Emidio II power plant (10 MW).
The company plans to grow its portfolio by developing an additional 95 MW over the next 3 years, through a combination of expanding existing operations and constructing new projects.
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