U.S. Geothermal Inc. (OTCBB: UGTH, TSX: GTH), a renewable energy company focused on the production of electricity from geothermal energy, announced that it will acquire a 3.6-megawatt (MW) geothermal power plant in Nevada that has been operating since 1987.
The plant, currently owned by Michael B. Stewart individually and Empire Geothermal Power LLC, will be U.S. Geothermal’s second plant. In addition, the company is purchasing approximately 28,358 acres (44.3 square miles) of geothermal energy leases and certain ground water rights all located north of Reno, Nevada.
“Based on our experience at Raft River, we believe that a new plant would utilize the existing well production more efficiently and could produce up to 10 megawatts,” said Daniel Kunz, President and CEO of U.S. Geothermal Inc. “These 44.3 square miles of geothermal leases are located along thermal geologic structures and are close to the California electricity market,” Kunz added.
The total purchase price was reported as US$16.62 million, to be split into to rounds of payments expected to be completed before January 1, 2009.
About U.S. Geothermal
U.S. Geothermal is a renewable energy development company that is operating a geothermal power project at Raft River, Idaho and is exploring the Neal Hot Springs project in eastern Oregon.
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