Raser Receives Third Party Analysis on Well Field
August 6, 2008
PROVO, Utah, -- Raser Technologies, Inc. (NYSE Arca: RZ) today announced that GeothermEx Inc., an independent third party geothermal consultant, has completed and delivered its analysis of the well field for Raser's Thermo geothermal power project near Beaver, Utah.
GeothermEx is the largest, most comprehensive geothermal consulting and services firm in the Western Hemisphere. GeothermEx reported that well #24-34 indicated 3.6 megawatts (MW) net at the well depth level Raser plans to produce, with temperatures in excess of 280 degrees F.
GeothermEx's analysis of the resource concludes that ample resources are available in the immediate vicinity of the announced Thermo project to support a 10 MW net plant using the closed loop binary systems planned for this plant. The report also concludes that the larger area of Raser's Thermo resource field is most likely to sustain 238 MW gross with a 90% probability of sustaining 138 MW of geothermal energy or enough power to supply over 100,000 homes.
Raser recently announced the leasing of an additional 6,000 acres of geothermal rights on lands in the same area bringing its total interests in the area to nearly 30,000 acres. Raser previously announced the delivery of all 50 geothermal power generating units ordered for its Thermo project, the first commercial geothermal power plant to be built in the state of Utah in over 20 years, in an update by Raser reporting its progress and strategic initiatives for its geothermal power projects.
UTC Power, a United Technologies company, will assist Raser in commissioning the 50 generating modular units that will generate electricity at the Thermo project. The Thermo geothermal plant is planned to have a gross generation capacity of 14 MW when configured under Raser's proprietary geothermal power plant design. The project is expected to sell to the purchasing utility net power generation of 10 MW to 11 MW, or enough electricity to power approximately 9,000 homes.
Net generation takes into account the station usage or parasitic load needed to pump the geothermal fluids throughout the plant. It is expected that generation during the cool months will exceed generation during the warmer months. Raser previously announced entering into a power purchase agreement with the city of Anaheim, California, to deliver up to 11 MW of clean renewable energy from its Thermo plant in Beaver County, Utah.
Raser anticipates that it will have all 50 generating units placed in service in the Fall of 2008 and delivering geothermal energy to Anaheim at that time. The generation units are scheduled to begin being connected starting in August and will be test operated until the final units are connected.
"The resource analysis report concluded that the resource is much larger than anticipated and we expect that as the wells continue to heat up, it will actually provide temperatures in excess of the 280 degrees F experienced during testing," stated Brent M. Cook, CEO of Raser Technologies. "We believe the issuance of the report puts us in a position to finalize and close in a timely manner on the funding for the Thermo project pursuant to the financing commitment previously announced. We are excited about the progress to date on our first wave of projects and have a number of projects being prepared for additional waves. We expect to start setting the generating units for operational purposes at the Thermo site in the August to September time frame so that the plant will be operational later this year. We expect to be active in this resource field well into the future as we plan the development of additional projects in the same area."
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