US Geothermal starts drilling at San Emidio project in Nevada

Sep 4, 2013 - US Geothermal Inc (TSE:GTH) said today it had initiated drilling works for the second phase of its San Emidio geothermal expansion project in Nevada.

The first stage of the project, which was wrapped up in May 2012, included the construction of a 9-MW plant that substituted an old 3.6-MW facility. The new geothermal system uses existing geothermal fluid flow at the site.

In the second phase of the project, US Geothermal will drill for new production and injection wells and improve transmission. It will aim to add production capacity of 11 MW, with the plant expected to be put on stream in 2015.

Drilling of the first well in the second phase of the project will be conducted at a depth of up to 3,000 ft (914m). The company has permission to drill seven wells at the target area.

US Geothermal is entitled to a USD-991,000 (EUR 752,400) grant from the US Department of Energy (DOE) for the second phase of the San Emidio project, it noted. By initiating work now, the project will qualify fur financial support under the Investment Tax Credit.

The company has a power purchase agreement for 19.9 MW for the San Emidio plant.

(USD 1.0 = EUR 0.759)

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