Nevada Geothermal Power Inc. (NGP) (TSX-V: NGP; OTC Bulletin Board: NGLPF) has given the go-ahead to begin work on phase one of its planned geothermal power development at Blue Mountain, Nevada.
NGP issued a $20 million Limited Notice to Proceed (LNTP) under a fixed-price, date-certain engineering, procurement and construction (EPC) contract to be signed with Ormat Nevada Inc. to supply and construct the Phase one.
Ormat Nevada Inc. is a subsidiary of Ormat Technologies, Inc. (NYSE: ORA).
Ormat will commence detailed engineering design, manufacturing and purchasing of certain long lead items for Blue Mountain’s, Faulkner 1 geothermal power plant in order to meet the guaranteed substantial completion date of December 31, 2009, according to a release.
Full release of the contact is subject to finalizing of the financing for the project and is expected to occur before June 30, 2008.
NGP said the plant design incorporates Ormat’s proprietary power generation technology with water-cooling for maximum efficiency. The output of the plant will meet the power delivery requirements of the 20-year Power Purchase agreement between NGP and the Nevada Power Company, NGP said.
Blue Mountain, located 30 kilometers (20 miles) west of the town of Winnemucca, Nevada. The proposed Faulkner I geothermal plant will require a 20-mile long transmission line over relatively flat, undeveloped desert land to a connection point located on the Utility’s 120kV-transmission line north of Mill City, Nevada, NGP said.
The electric power will be sold to Nevada Power Company under a 20-year Power Purchase Agreement for up to 35 megawatts (MW) gross of geothermal power. Phase I at Blue Mountain is expected to commence power generation in late 2009.
About Nevada Geothermal Power Inc.
Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, renewable and sustainable. NGP currently owns a 100% leasehold interest in four properties: Blue Mountain that is expected to commence power generation late 2009 for up to 35 MW gross of geothermal power, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon.
About Ormat Technologies
Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, builds, owns and operates geothermal and recovered energy-based power plants. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services.
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