Raser, Arizona's Salt River Project in geothermal deal

Provo, Utah-based Raser Technologies (NYSE: RZ) signed an agreement to deliver geothermal power to the Salt River Project Agricultural Improvement and Power District, a utility district of the state of Arizona serving the Phoenix area.

Raser said the 20 year power purchase agreement is for 10 megawatts of power, which it said is enough electricity to power approximately 5,500 homes in the area.

"Our geothermal power plants are designed to provide baseload renewable energy with virtually no harmful emissions," said Brent Cook, CEO of Raser.

"This additional PPA is yet another milestone for Raser Technologies in meeting our goal of continuing to initiate the development of approximately 100 MW per year for the next two years and 150 MW of geothermal energy each year thereafter."

The power for the Salt River deal will come from Raser's planned Lightning Dock geothermal plant in New Mexico. Raser said it plans to begin delivering electricity to Salt River by Dec. 15 of this year.

Raser said the the Lightning Dock project is one of the oldest known geothermal resource areas in New Mexico, with 41 wells exhibiting temperatures from 250 degrees Fahrenheit to more than 300 degrees.

The company said it intends to initially build a 10 MW power plant, and then expand the facility to maximize the resource at a later date.