Raser, UTC Power in geothermal systems deal

Provo, Utah-based Raser Technologies (NYSE: RZ) announced today that it ordered 110 geothermal power systems from South Windsor, Conn.'s UTC Power, in addition to 90 systems ordered last year.

UTC Power is a subsidiary of United Technologies (NYSE: UTX).

Raser said it would pay $33.4 million for the total order of 200 power systems, according to a filing with the U.S. Securities and Exchange Commission.

"Accelerated development of domestic geothermal resources will produce electricity in an environmentally friendly way and contribute to U.S. energy independence," said Brent Cook, CEO of Raser.

Raser said the 200 PureCycle geothermal power systems would have the capability to generate a total of 40 to 45 megawatts per hour of renewable electricity.

"The existing federal production tax credit for geothermal energy resources created a valuable incentive for the purchase and deployment of these units during this calendar year," said Jan van Dokkum, president of UTC Power.

Raser started taking delivery of units ordered last year in the fourth quarter of 2007, and said all 200 units are expected to be delivered by the end of this year.

The city of Anaheim, Calif., recently approved power purchase agreements for two of Raser's planned geothermal facilities (see Raser to sell geothermal power to Anaheim, Calif.).

The agreements are for a total of up to 22 MW, with each agreement covering up to 11 MW for 20 years, according to Raser.