AltaRock, Weyerhaeuser in geothermal exploration deal

Sausalito, Calif.-based enhanced geothermal developer AltaRock Energy announced today that it finalized agreements with South Federal Way, Wash.'s Weyerhaeuser (NYSE: WY), a forest products company, allowing it to explore the potential for geothermal projects on Weyerhaeuser land in California, Oregon and Washington.

The geothermal rights total nearly 667,000 acres, including approximately 25,400 acres in Northern California, 378,500 acres in south-central and western Oregon, and 263,000 acres in western Washington.

AltaRock will get an exclusive option from Weyerhaeuser to look at the geothermal potential and can convert up to 40 percent of the acreage rights to geothermal development leases within two years.

"AltaRock is confident in its ability to put this land to an environmentally friendly use that benefits both companies and the region," said Don O'Shei, CEO of AltaRock.

"These geothermal rights will provide us with a pipeline of development projects to showcase our innovative technology, and generate jobs and clean, renewable energy."

Weyerhaeuser said the agreements support its strategy of finding ways to use the full potential of its land holdings.

The deal comes two weeks after AltaRock raised $26.25 million in a second round of financing, including $6.25 million from Google.org, the philanthropic arm of Mountain View, Calif.-based Google (Nasdaq: GOOG) (see Google pushes for enhanced geothermal).

The Google.org investment was part of the latest round of funding under the group's Renewable Energy Cheaper than Coal initiative, launched last year (see Google creates renewable R&D group). Redwood City, Calif.'s Potter Drilling, and the Southern Methodist University Geothermal Lab in Texas also received cash from Google.org.

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