Western GeoPower in $520M California supply deal

Vancouver, British Columbia-based Western GeoPower (TSX: WGP) signed a power purchase agreement to deliver 265,000 megawatts per year of geothermal power to the Northern California Power Agency of Roseville, Calif.

The electricity will come from Western GeoPower's 35 MW Unit 1 geothermal power plant scheduled to come online in early 2010 at the Geysers Geothermal Field in Northern California.

"The PPA represents approximately $26 million per year in revenue to Western GeoPower, and $520 million over the 20-year term of the contract," said Kenneth MacLeod, president and CEO of Western GeoPower.

The company said the power purchase agreement is not subject to any further approvals.

"By securing the geothermal power from the Western GeoPower Unit 1, our member communities in Northern and Central California will continue to benefit from what we consider to be the prime source of reliable, sustainable energy compared to the cleanest natural gas-fired sources," said Jim Pope, general manager of the Northern California Power Agency.

"The addition of this unit to our resources now expands our geothermal production from four to five plants at the Geysers."

The Northern California Power Agency operates four geothermal power plants of 55 MW each at the Geysers, located approximately six miles southeast of the Western GeoPower Unit 1 project site.

Western GeoPower said the Geysers geothermal field in Northern California is the largest producer of geothermal electricity in the world.

Cleantech developments making news in the past 24 hours

• India aims for $4B in cleantech cash by 2015
• Tata Motors moves Indian Nano plant
• Something's fishy with China algae plant
• Saudi Arabia adds to desal strategy
• Beijing hikes fuel prices to pay for cleaner blend
• Solyndra reveals thin-film solar tubes
• Solar takes stock after tax-credit battle

View the last week of cleantech developments here | Subscribe to full feed