Gradient Moves Forward With 60MW Nevada Geothermal Power Plant

Geothermal power developer Gradient Resources has signed an engineering, procurement and construction (EPC) contract with Science Applications International Corporation’s (SAIC) (NYSE: SAI) for the delivery of a new 60 megawatt (MW) power plant in Northern Nevada.

SAIC’s subsidiary, Benham Constructors LLC, will build the Patua project with modular binary cycle technology provided by TAS Energy Inc. (TAS), of Houston, Texas.

Gradient’s Patua site, near Fernley NV, is the company’s first geothermal power plant. Drilling at Patua recommenced in February 2010. Physical construction of the first 60 MW phase of the power plant is expected to begin 2Q11; and the anticipated date for commercial operations is 3Q12.

Gradient Resources, formerly called Vulcan Power Company, is a geothermal developer founded in 1991. The company holds a property portfolio of geothermal leases and applications covering more than 170,000 acres in Nevada, California, Oregon, Washington, and Arizona.

Gradient has signed a long-term Power Purchase Agreements ("PPA") with Sacramento Municipal Utility District, and is currently negotiating additional PPAs with other utilities.

Gradient’s investors include an affiliate of Denham Capital and a principal investing division of Bank of America Merrill Lynch (NYSE: BAC).