February 7 (Renewables Now) - Utah-based geothermal energy company Cyrq Energy plans to develop 219 MW of projects in the near term to grow its footprint in a sector, which, CEO Nick Goodman believes, needs consolidation.
Cyrq is reviewing a number of different development and acquisition options within the US geothermal sector and is interested in the combination of solar and geothermal energy, Goodman told Renewables Now. The company is mostly operating in the US, but not exclusively.
“We are largely focused on the US West, but also scan opportunities abroad such as Kenya’s Great Rift Valley,” he said.
At present, Cyrq is holding talks with investment grade counterparties regarding the signing of power purchase agreements (PPAs) for five projects with a total gross generating capacity of 219 MW. All five have land rights secured and Cyrq has confirmed that there is a significant geothermal resource at each site. Transmission and pre-well drilling studies have already been concluded, and temperature gradient (TG) and slim wells have been drilled to confirm the development plan.
Cyrq hopes to agree contracts for the delivery of power to off-takers in each project’s region.
Goodman sees state mandates, such as the one California set in relation to renewable energy, as the principle opportunity for US geothermal. “There’s plenty of competition but in fact the market is fragmented and should be consolidated and optimised,” he noted, adding that Cyrq is well positioned to capitalise on that because of the size of its portfolio and the fact that it is the largest remaining private independent pureplay geothermal company in the country.
According to Goodman, Cyrq has the fourth largest operating geothermal energy portfolio in the US, including:
|Thermo No. 1||13 MW||Beaver County, Utah|
|Soda Lake||24 MW||Fallon, Nevada|
|Patua||40 MW||Hazen, Nevada|
|Blue Mountain||40 MW||Winnemucca, Nevada|
|Lightning Dock||14 MW||Animas, New Mexico|