Geothermal Heat Pump Stock a Deep Bargain

Tom Konrad CFA Uncertainty surrounding the damage caused by a sulfur fire at LSB Industries‘ (NYSE:LXU) chemical facility Tuesday has brought the stock down $5 from Monday’s close, although the company was already well-valued and had just beaten analyst’s expectations for its first quarter results. This is extremely short-sighted of investors, who are no doubt spooked by the lack of information about the extent of the damage.  However, we have enough information to make a reasonable estimate as to the damage to LSB’s profits.  As I outlined Tuesday night, we know: The facility is insured for both damages and work stoppage....

World Energy Solutions (XWES) and Ram Power (RPG.TO) Appear Promising

From Small Fries to Big Shots? Part 1 of 2 by Bill Paul Feel like rolling the dice on some small alternative energy stocks that appear to have big-time potential? Just remember: sometimes you roll snake eyes. First up: World Energy Solutions Inc. (Symbol: XWES), which currently trades on NASDAQ for $3 and change per share. Worcester, MA-based World Energy Solutions operates online exchanges for energy and green commodities, including the one administered by Regional Greenhouse Gas Initiative Inc. (RGGI), the regulatory scheme under which 10 Northeastern and Middle Atlantic states "cap" their power plants' emissions by requiring...

Ormat Technologies Secures $25 Million Contract for Geothermal Power Plant in the Azores Islands

Ormat Technologies (ORA) announced that two of its subsidiaries have entered into Supply and Engineering Procurement contracts for a new geothermal power plant to be constructed on Sao Miguel Island in the Azores. The contracts are for a total of 19,151,422 Euro (approximately $25 million), with construction on the power plant expected to be completed within 19 months from the contract date.

Geothermal in South America: Major Prospects for Development

Meg Cichon Geothermal well photo via Bigstock With climate threats and increased energy demand, South American countries are set to develop their vast geothermal potential. Will developers be able to acquire investment and favorable policy? If any part of the world should be concerned about the effects of climate change, it is South America. Despite contributing some of the lowest emissions globally, many of the countries in the region are As South America’s population is expected to rise 72% by 2035, the impact of climate...

Outlook for Geothermal Energy Stocks in 2011

Tom Konrad CFA My take-aways from the GEA Finance Forum After a long time lost in the proverbial desert of high capital costs and few financiers willing to step up, a number of geothermal companies made breakthroughs last fall.  The Department of Energy (DOE) loan guarantees for geothermal power development began to come through, and financiers were beginning to step up.  Nevada Geothermal Power (NGLPF.OB) announced a deal with Ormat (ORA) in which Ormat will earn a share of Nevada Geothermal's Crump Geyser property by paying for and financing most of the development costs,...

Ormat Technologies Receives the End Customer Final Approval for $16.9 Million Purchase Order for...

Ormat Technologies (ORA) announced that the customer rendered final approval of the Purchase Order valued at approximately $16.9 million, for the supply of 102 remote power units for Communications and Cathodic Protection along a pipeline on the Sakhalin Island in the Russian Federation, as described in the press release dated December 9, 2004, and the Purchase Order became a definitive agreement.

Raser Technologies (RZ): A Bargain, or Just Cheap?

Tom Konrad, Ph.D., CFA Raser Technologies (NYSE:RZ) stock has fallen almost 50% since the company announce an offering of shares on June 30.  Although the round quickly filled, the stock continued falling, and it seems like a screaming deal.  Is it? On July 7, Raser Technologies sold $25.5M of stock and warrants in a secondary offering.  According to press reports, this amounted to 13% of Raser's stock, thereby valuing the company at (very approximately) $200M, or $175M pre-money.   The units, each consisting of 1 share and 1/2 a warrant exercisable at $4.62 was offered at $2.98. ...

Pumpernickel Valley Geothermal Project: Inovision to Spend $5,000,000 to Earn 50% Joint Venture Interest

Nevada Geothermal Power Inc. (NGLPF) announced that Inovision Solutions Inc. (ISI), a TSX-V listed company, will fund up to C$5,000,000 in exploration and development expenditures for the Pumpernickel Geothermal Project under an option agreement to earn a 50% joint venture interest. In order to earn its interest, ISI must complete C$5,000,000 in project expenditures, make C$120,000 in cash payments and issue 600,000 shares to NGP over a five year period. In the first year, ISI must fund a C$400,000 work program, issue 100,000 shares and make a C$10,000 cash payment to maintain its option. NGP will be project...

Geothermal Should Ride The Duck Curve

Meg Cichon As the geothermal industry limps along year after year, a utility insider strongly suggests that it changes its tactics. For years the geothermal industry has relentlessly boasted that it is a baseload resource, meaning it provides stable power similar to a coal or natural gas plant, except without all of those pesky carbon emissions. While upfront costs to develop a plant are higher than other renewable sources, geothermal leaders say that this baseload aspect makes it a more attractive resource in the long run since the grid needs more stable power as increasing amounts of...

Western states take lead in the drive for renewable energy

The political climate for many of the western states are slowly starting to change to see the need for conversion to renewable energy sources. These test installations for Solar, Geothermal, and Wind energy are now producing real power for these areas. The key for us is to find the vendors that supply these installations. As the funding increases in these test beds, our growth will increase. Here is a good article from the sfgate.com about the various western states initiatives. "California's goal is to produce 20 percent of its electricity from renewable sources by 2017. New Mexico...

Tax Credit to be Extended to Geothermal Energy

The Production Tax Credit (PTC) a critical factor in stimulating the growth of the US wind industry is very likely to be expanded to include geothermal energy as part of the JOBS tax package (H.R. 4520, the "American Jobs Creation Act of 2004") just approved by a Congressional Conference Committee.

Must Renewable Energy Be Diversified?

Dana Blankenhorn Most renewable energy companies specialize. Solar companies do solar. Wind companies do wind. Geothermal companies do geothermal. Biomass companies do biomass. But a small Canadian merger challenges that assumption. Magma Energy (MGMXF.PK), a geothermal company, said it will spend about $100 million in stock to buy Plutonic Power (PUOPF.PK), which has wind and hydropower projects, and ambitions to get into solar. The combined companies will go by the name Alterra Power. Both companies are based in Vancouver. Size really does matter, crowed Magma CEO Ross Beatty on a conference call announcing...

Nevada Geothermal Power Inc. Commences Blue Mountain Development Drilling

Nevada Geothermal Power Inc. (NGLPF) announced that it has initiated development drilling at Blue Mountain Nevada. Production test data from the wells will be used to complete a feasibility study for an initial 30 MW geothermal power plant. In the initial program, four 13-inch diameter production wells will be drilled to 4000 feet (1200 metres) into the moderate temperature (300-330 degrees C) geothermal resource intersected in previous test holes. Permits have been obtained and drill pads are under construction. A water well rig will be used to drill the top 800 feet of each well and to...

Drill for Geothermal Power in Developing Countries and on King Street

Tom Konrad CFA Hezy Ram Geothermal industry veteran Hezy Ram has worked in the industry for over three decades.  His career began with 28 years of experience at Ormat (ORA), where he was Executive Vice President of Business Development, after which he founded Ram Power Corp. (RPG.TO/RAMPF.PK) in 2009.  In February, he resigned as CEO of Ram Power shortly after the company warned of significant delays and cost overruns at a key Nicaraguan project, a move he says was motivated by irreconcilable differences with other board members and major shareholders regarding the company's strategy.  Today,...

Nevada Geothermal Power Inc. Acquires Third Nevada Geothermal Project In Prolific ‘Corridor Of Heat’

Nevada Geothermal Power Inc. (NGLPF) announced today that it has acquired 7 square miles of private land and has applied for a one section federal geothermal lease for a total land area of 8 square miles (22 square kilometers) south and east of Black Warrior Peak, Washoe County, Nevada. The leases are on private land and are subject to a 3.5% royalty on gross revenue from electricity sales, however, NGP can purchase the royalty for US$1,000,000. Leases include surface and water rights.

Nevada Geothermal Begins Mapping of Deep Geothermal Source Waters at Pumpernickel Site

Nevada Geothermal Power Inc. (NGLPF) reported that exploration work at the Pumpernickel Geothermal Project (5710 acres/8.92 square miles) is underway. In Phase I - 3D "E-SCAN", resistivity survey methods will be utilized to map the deep geothermal source waters feeding surface hot springs. Results are expected in four weeks. Subsequently a series of six 250-meter (820 foot) gradient wells will be drilled to test the interpretation of the E-SCAN survey.