After Solar and Wind,Canadian Energy Behemoth Enbridge Dips its Feet into Geothermal Energy as well

Enbridge the Canadian Energy Company which is mainly into the business of Gas and Oil Distribution has been aggressively expanding into Renewable Energy in the past 2 years.The Company has built up a large number of Wind Power Assets and has taken ownership of a Solar Plant in Sarnia,Ontario which would be scaled to 80 MW from 20 MW currently.The Company is building a 250 MW Wind Farm in Colorado using Vestas Turbines and the Ontario Solar Farm using Thin Film Solar Panels from First Solar.Enbridge has now dipped its feet into Geothermal Energy taking a small 20% stake in US Geothermal’s Neal Springs,Oregon Project.Note this investment is chicken feed and probably is a  market for bigger future investments into Geothermal Energy.The company has interests in waste heat recovery and fuel cells as well.This $23 million investment seems a big win for US Geothermal a small under $20 million market cap company  which has invested $13 million into the project.The 35 MW project will get a further $100 million from DOE Loan Guarantee to build the plant by 2012.The investment does not seem too expensive either for Enbridge as it gets a 20% stake and 24% of the Investment Tax Credits in a Project that is already half way built with most of the permitting and financing closed.

Enbridge Enters Geothermal Power Business – Enbridge

Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has entered into an agreement with U.S. Geothermal Inc. of Boise, Idaho to partner in the 35-megawatt (MW) Neal Hot Springs geothermal project. Enbridge will invest up to US$23.8 million for a 20 per cent interest in the plant. U.S. Geothermal will own the remaining 80 per cent.

The Neal Hot Springs geothermal project, developed by U.S. Geothermal Inc., is located in Malheur County, Oregon. U.S. Geothermal is constructing and will operate the facility. Construction of the project is underway and an in-service date of Q2 2012 is expected. The project will deliver electricity to the Idaho Power grid under a 25-year power purchase agreement.

Neal Hot Springs Geothermal Project at a glance:

Capacity peak: about 35 MW gross, 23 MW net

Annual yield: approximately 191,400 MWh (corresponding to the annual consumption of around 17,500 households)