Ram Power CEO sees further consolidation of geothermal power sector
(ADPnews) - Sep 16, 2010 - High upfront development costs will continue to pressure the geothermal companies prompting further consolidation in the sector, Hezy Ram, CEO of US sector player Ram Power Corp (TSE:RPG) forecast.
Yesterday, at the Imperial Capital Global Opportunities Conference, Ram said currently there are five or six listed companies from the field, most of them coming from Canada, Ram said, and in 2011 the number will probably be even smaller.
At the beginning of this month, a Nevada-based geothermal power firm acquired Sierra Geothermal Power in a share-swap deal valued at some USD 27 million (EUR 20.8m). US Geothermal Inc and Nevada Geothermal Power Inc are to follow suit, Ram said.
Ram Power itself merged last year with Polaris Geothermal, Western GeoPower Corp and GTO Resources. According to its head, the company may pursue other sector acquisitions in future that would add to its shareholders' value.