U.S. Geothermal Inc. Signs Deal to Buy Geothermal Equipment

U.S. Geothermal Inc. has signed an agreement to acquire all of the major and long lead equipment for the construction of three binary geothermal power plants at what it called “a significant discount.”

The equipment was part of an order for six power plant units by another geothermal developer, but only three were installed. The components for the three units being purchased are all new and unused, and have been held in storage. Upon closing of the transaction, they will be moved to a company owned site.

The equipment is from the same manufacturers, and is of a similar size and design, to that installed at the company’s Neal Hot Springs and San Emidio power plants. The design output of the acquired units totals approximately 35 megawatts. Actual output of each unit will be determined by resource conditions found at the sites at which the equipment is ultimately installed.

The three equipment packages which represent approximately 70% of the components needed for the complete plants, will meet the major and long lead equipment requirements for the company’s proposed Crescent Valley I power plant (25MW) and San Emidio II power plant (10MW).

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