U.S. Geothermal Inc. (HTM) Achieves Milestone Completion at San Emidio and Balance of $11.75M Cash Grant

U.S. Geothermal, a pioneer on the cutting-edge of what is arguably the most attractive source of renewable energy on earth, reported that the company’s wholly-owned subsidiary, USG Nevada LLC, has received the final $1.05M allotment from their Specified Energy Property in Lieu of Tax/Credits cash grant ($11.75M total) from the U.S. Department of Treasury.

This is the final payment to be made to the company in relation to their San Emidio project in Nevada as part of the previously announced award under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. Since the facility achieved commercial operation with their new, more efficient power plant during May of last year, San Emidio has quickly become a real star in the company’s portfolio of geothermal properties. Properties which include the company’s operations in Raft River (Idaho), Neal Hot Springs (Oregon), and a massive (24.71k acres), advanced-stage steam geothermal project being developed outside Central America’s largest metropolis, Guatemala City, known as the El Ceibillo project.

With well over 6k megawatt hours generated thus far during each of the first two months of 2013 (February output was up from January by around 262MWh to 6,373MWh), HTM has another solid implementation on their hands here and looks to be well on-track for pumping out 75k MWh per year. Electrical off take is being sold under terms of a nice little deal with the Sierra Pacific Power Company, in the form of a 25-year power purchase agreement and with a zone of high permeability on the site down at 1,830 feet in the South Resource Area (measured static temperature of 294°F), in combination with further potential in the North Resource Area, HTM clearly has yet-untapped commercial potential at San Emidio.

Also reported was the arrival at a final commercial settlement with the EPC contractor (engineering, procurement, and construction) for San Emidio, and HTM made it clear that momentous, highly-efficient completion progress has been achieved under the umbrella of a fixed-price EPC contract. There is still some pending work for the EPC contractor to handle during the upcoming scheduled down-time in April and the company is hard at work arranging a long-term project loan for San Emidio.

Solid vectors coming out of HTM here and the company was able to deliver close to 50MWs of infrastructure last year alone. The company will be looking to close long term financing for a takeout construction loan on San Emidio sometime in Q2 of this year and with several major milestones set to drop at their massive El Ceibillo project outside the energy-hungry Guatemala City, investors should be paying close attention to HTM for breaking news.

For more information on U.S. Geothermal, visit www.USGeothermal.com

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