Friday, March 11, 2016

USA, Idaho: US Geothermal Reveals Possible Plans for Bargain Power Plants

US Geothermal's CEO Dennis Gilles on Q4 2015 Results - Earnings Call Transcript (Seeking Alpha)

US Geothermal announced in November that it had acquired three unconstructed binary power plants for a 5% of their original cost. In a conference call discussing US Geothermal 2015 Year End Results more information was given on a possible use for the three power plants.

Question: Great that you acquired the three binary power plants at a bargain. But how and when will you put this acquisition to work? Where will they most likely be deployed? Is there any near term use for these assets?

Doug Glaspey: We are in the geothermal power business. We are going to be developing projects. Acquiring these three power plants just gives us a tremendous advantage. In our current development portfolio, one of these units can go to San Emidio Phase 2. It's just the right size for it. And the remaining two units could go directly to our Crescent Valley Phase 1 which is a 25 megawatt net design project. We have incorporated these savings in our capital costs and adjusted those costs which are on Page 13 of our 10-K. Having these plants in hand essentially also provides us short term opportunities. There are development projects out there that are almost in need of a power plant and having the ability to come in with a low cost power plant and either earning on the project or acquire the project becomes a great benefit for us. So we look at this thing long term. There are potential short term uses of course but planning for the future is part of what we do. And saving all this money on CapEx was a really good decision in our view.

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