Nevada Geothermal in startup mode for 49.5 MW Blue Mountain plant

Vancouver, Canada-based Nevada Geothermal Power (TSXV:NGP) said revenue is within reach now that it has begun the commissioning of a 49.5-megawatt geothermal power plant in Humboldt County, Northern Nevada.

NGP plans to complete the startup phase by the end of September, with 28 to 30 MW of output capacity fed to the grid starting in October. NGP said project developer Ormat Technologies is three months ahead of schedule on the first phase of Blue Mountain Faulkner 1.

NGP then plans to replace two shallow injectors with two widely spaced make-up wells, increasing output to 40 MW, although the company didn't give a timeline. In 2010, the company plans to further investigate the nearly 11,000-acre site to expand the project to 49.5 MW.

NGP tapped Wilson Utility to build a 21-mile, 120-kilovolt transmission line to connect the project with the grid of utility NV Energy, which has already completed the switchyard station north of Mill City, Nev.

In 2007, NGP signed a 20-year power-purchase agreement with NV Energy, formerly known as Nevada Power Company, for up to 49.5 MW of electrical power (see Nevada Geothermal power purchase agreement approved). Nevada's Renewable Portfolio Standard calls for 20 percent of renewable energy to supply their customers by 2015.

Later that year, NGP secured $100 million in financing from Morgan Stanley and $20 million in bridge financing with Glitnir Bank (see Nevada Geothermal gets project financing and Solar and biofuel deals lead the day).

NGP says it has the potential to generate more than 200 MW of power from the four geothermal sites for which it holds exclusive development rights. In addition to the Blue Mountain Faulkner 1 project, NGP plans to develop the 20-to-30 MW Pumpernickel and 37-MW Black Warrior projects in Nevada, and the 40-to-60 MW Crump Geyser project in Oregon.

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