U.S. Geothermal is primarily engaged in the development, acquisition, and
utilization of geothermal resources for the generation of electrical power and
for sustainable direct use applications. The company strives to enhance
shareholder value by addressing energy needs both domestically in America and
abroad, while also promoting a clean environment.
Geothermal energy is energy that results from the temperature gradient
between the surface of the crust of the Earth to that closer to the Earth’s
interior. The geothermal gradient, which is the difference in temperature
between the core of the planet and its surface, drives a continuous conduction
of thermal energy in the form of heat from the core to the surface. About 20%
of the higher temperatures within the Earth are the result of heat that became
trapped during the formation of the Earth, and the bulk of the heat, 80%, comes
from the decay of radioactive elements within the Earth.
At depths of 80 kilometers (49.7 miles) to 100 kilometers (62.1 miles),
temperatures can be as hot as 4,200 degrees Celsius (7,592 degrees Fahrenheit).
The deepest we drilled into the surface of the Earth was in 2011, offshore the
Russian island of Sakhalin, at over 12 kilometers (around 7.5 miles). The heat
source is primarily magmatic systems deep within the Earth’s crust and there is
a constant movement of thermal energy that travels outward through highly
permeable fracture zones to the surface. Geothermal power is cost effective,
reliable, and sustainable, but typically is limited to areas near tectonic
plate boundaries. Geothermal energy production does release some greenhouse
gases from the Earth, but a mere five percent of the greenhouse gas emissions
emitted from fossil fuels, so it is very environmentally friendly.
Two main systems of geothermal electricity production are in use. One
that is rarely used is a vapor-dominated system taking advantage of heated
ground water that is already present in the earth, such as hot springs, and
piping that into a turbine for electricity production. The vapor-dominated
system operates in temperature ranges that are above 235 degrees Celsius (455
degrees Fahrenheit). The other pipes in hot water to be heated by the hot
source in the ground, and again the water is converted into steam which pushes
a turbine that spins a generator, and this more common system operates with
water temperatures in the range of 100 degrees Celsius (212 degrees Fahrenheit)
to 300 degrees Celsius (700 degrees Fahrenheit).
Currently, U.S. Geothermal Inc. is operating geothermal power projects at
Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho. In addition
to this newly acquired Geysers development project, the company is currently
developing a second phase project at San Emidio Nevada, as well as developing
the El Ceibillo geothermal prospect located within a 24,710 acre (100sq km)
energy rights concession area in Guatemala, located 8.5 miles (14 km) from
Guatemala City, the largest city in Central America.
U.S. Geothermal, Inc. also recently acquired the Geyser’s project of Ram
Power Corporation located in the Mayacamas Mountains of Sonoma County,
California, approximately 12 miles north of the City of Healdsburg for $6.4
million in cash. The acquisition of the Geyser’s project gives U.S. Geothermal
five completed enhanced geothermal production/injection wells which have enough
steam production for about 30 Megawatts of power. Enhanced geothermal
production/injection (EGP) geothermal wells are drilled to about 10,000 feet
deep, and have cooled water injected deeply into the ground via a process
called hydro-shearing, the water then travels in fractures in the deep rock,
the water then gets heated and is forced out a separate borehole where it has
become steam and is used once again to push a turbine, after which the water is
cooled and sent back into the ground. The advantage of enhanced geothermal
systems is that it does not require naturally occurring hydro-convective
resources. MIT’s Institute of Technology estimated that enhanced geothermal technology
can provide up to 100 Gig Watts of geothermal power.
US Geothermal reported a net profit of $1.9 million on $28.8 million in
total sales in the twelve months ending March 2014. At the end of March 2014,
US Geothermal reported a total of $204.5 million in tangible assets or $1.97
per share of which $0.38 is in the forms of cash and financial assets. At
around $0.65 per share, the company is trading at about 33% of tangible book
value. U.S. Geothermal, Inc. appears to be a tiny gem that is both overlooked
and undervalued.
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
