Tuesday, December 1, 2015

USA, Oregon: Bankrupt Geothermal Energy Company Blames Cheap Natural Gas

Klamath Basin Geopower cites energy crash as bankruptcy cause (Herald and News)

A local geothermal company has credited a drop in energy prices as its reason for filing Chapter 7 bankruptcy last week.

GRC member Bill Honjas, president and CEO of Klamath Basin Geopower (KBG), said Monday the availability of cheap fossil fuels such as natural gas, hindered his company's ability to gather financing. The firm filed for bankruptcy Nov. 24 in federal court in Reno, Nev.

“Events just weren't in our favor,” said Honjas. “Mostly it was the crash in energy prices.”

Honjas said he remains optimistic about the future of geothermal electricity in the Klamath Basin and said, if the energy market should pick up again, he envisions investors supporting projects similar to KBG's.

“The Basin has a fantastic geothermal resource, and we've shown that,” he said. “We believe that, at some point, this resource will be developed after energy prices rebound.”

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