Raser Technologies, Inc. (NYSE Arca: RZ) has completed the previously announced purchase of geothermal rights for the Lightning Dock resource in southwestern New Mexico from GeoLectric Power Company NM, LLC.
The resource has been well studied over the years, leading engineers to believe the site has potential to produce in excess of 20 megawatts (MW) of clean, renewable electric power, enough to power approximately 20,000 homes.
The Lightning Dock resource is one of the nation’s first Bureau of Land Management leases for geothermal production. It has an existing direct-use production history of over 20 years at temperatures and flow rates Raser believes are well suited for power generation using its plant designs and the PureCycle® equipment.
According to Raser, the resource has more than 40 existing wells that have shown temperatures in excess of 300 degrees F with substantial flows at depths of 1,500 to 2,500 feet. Some of these wells may be used for production purposes, Raser says, while other wells will be used for observation, flow test and gradient uses.
“The acquisition of an existing geothermal resource with the production capabilities of Lightning Dock will substantially shorten our power plant development timeline,” said Brent Cook, Raser’s CEO. “Since this project is in a more advanced stage of development than our other sites, including a partially developed well field, it carries a much higher value to us.”
Raser is acquiring the GeoLectric assets for $4.1 million, with an additional $0.5 million incentive due upon the attainment of certain development milestones.
“This transaction is an exciting event for Raser and its shareholders,” continued Mr. Cook. “The acquisition diversifies our resource base into New Mexico, a new state for Raser, and gives us entry into new power markets and other geothermal-friendly political environments. We plan to initially build a 15 megawatt modular power plant and then further develop the site to maximize the resource’s full potential. We believe the purchase of the more developed project will reduce our overall project portfolio risk and help us achieve our stated goal of initiating the development of approximately 100 megawatts of geothermal power generation capacity per year for the first three years and 150 megawatts per year thereafter. This will bring our total of initiated projects under development to 55 megawatts in the first seven months towards our goal of initiating the development of 100 megawatts this year.”
About Raser Technologies
Raser is an environmentally focused geothermal development and technology licensing company operating in two business segments. Raser’s Transportation and Industrial Technology segment focuses on using Raser’s Symetron” technology to improve the efficiency of electric motors and other applications. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron” technology.
Loading...