When a solid product concept is ready for market, there is little that can be done to keep it from generating solid returns. The concept is bottled up and ready to burst under the pressure of profit potential. When the concept reaches critical mass, all that one can do is channel the pressurized potential in the right direction. In most instances, the profit potential is understood and all involved want to participate in the process – which makes the concept succeed more easily. An investor that can recognize this event in the making is one that will see long-term and steady profits.
Nevada Geothermal Power Inc., a development-stage geothermal power company, is currently in the development and construction phase of leasehold geothermal power properties located in Nevada. It currently owns 100% lease hold interest in 4 properties; 3 in Nevada and one in Oregon.
At the present time, the company has been having solid successes in every aspect of the geothermal power development process. Its geothermal wells have been showing increased temperatures, its credit facilities have been upgraded from $140 million to $145 million (for power plant construction) and its Phase 1 construction of a 49.5 megawatt power plant has begun. Further, a 20 year – 35 megawatt power agreement has been signed with Nevada Power. Generally speaking, the entire process could not be going smoother as its tie-in to the Northern Nevada power system – some twenty miles away – has been upgraded and approved to 75 megawatts. Revenue generation from the now under-construction power plant – contracted at a fixed price/fixed online date– is scheduled for the end of 2009.
For the most part, everything that could go right has gone right for the company – an occurrence that rarely occurs in such projects. Given that this portion of the company’s build-out program is the first of several, future expansion at the company’s other locations is likely to add additional revenue at beneficial financing rates. Future beneficial financing terms are likely as the company will have a history in a relatively new power generation field and a steady revenue base of over 200,000 households in the region. In the sustainable power generation arena solar and wind power often get the bulk of attention. Geothermal is often viewed as an afterthought owing to its specific regional requirements. Nevada Geothermal, however, has found a niche that appears ready to offer cheap sustainable power for the long term and is ready to profit quite handsomely by it.
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