Ormat buys geothermal rights in Alaska

Reno, Nev.-based Ormat Technologies (NYSE: ORA) has paid $3.3 million for geothermal exploration rights on about 35,000 acres of land in Alaska in an active volcanic region.

Ormat won 15 of the 16 tracts offered for lease by the state on Mount Spurr, a snowcapped 11,070-foot volcano, 75 miles west of Anchorage.

The company said exploring in an active volcanic region increases the likelihood of finding a large geothermal field, compared to the more mature geological structures of Nevada and California.

"Alaska is a new frontier in the geothermal arena with many technological and logistical challenges," said Lucien Bronicki, chairman and chief technology officer of Ormat.

"Our global experience, particularly in Hawaii, and the support of the local government along with the collaboration of other local stakeholders, will turn this challenge into an opportunity."

Bronicki said the company has a long history with Alaska, including the first geothermal unit developed by Ormat, which was for the University of Fairbanks for 130 degree Fahrenheit water at the Manley Hot Spring.

"We have been a friend to Alaska for many years now and we are up to the challenge of creating the state's first large-scale geothermal power plant."

Earlier this week, Ormat's Orfuel subsidiary joined with Israel's Leviev Group and Evogene, also based in Israel, in a biodiesel venture (see Leviev, Evogene, Ormat in Namibia biodiesel deal).

The companies plan to focus on the growth of specialized castor plants for use as a feedstock for biodiesel. The new company will be headquartered in Namibia, and could have operations in other parts of Africa.

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