Reno-based geothermal developer OrmatTechnologies Inc. (NYSE: ORA) won the rights explore for geothermal energy under a volcano located near Alaska’s biggest city, according to a Reuters report.
The company bid $3.5 million dollars to acuqire the rights to 15 of the 16 tracts offered for lease on Mount Spurr, an active volcano 75 miles west of Anchorage.
Ormat bid $1.5 millon for a single lease and $1.4 million for a separate lease, according to preliminary results from the sale, which was conducted by the Alaska Division of Oil and Gas.
The lease site is close to power lines serving Anchorage, which is the state’s largest consumer market. As a result, relatively little infrastructures would be needed to bring power to the market, should the site prove feasible for geothermal power.
Mount Spurr last erupted in 1992 and is one of the state’s most active volcanoes. Ormat intends to begin exploration at the site next summer.
According to the report, the Division of Oil and Gas is considering offering exploration rights at Augustine Volcano, which is located 171 miles southwest of anchorage.
The single tract not acquired by Ormat appears to have been secured by an individual investor.
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