A Great Resource

GREG REID, Wellington West Capital Markets (04/16/2009)
"There’s been favorable government policies towards private power operators in Nicaragua and specifically for geothermal and we think they have a great resource there, which, when you put it all together, we think the economics of the projects look good. . .One of the interesting things about Polaris is the mixture of water and steam that comes out of the ground there is so hot that after it goes through the plant and gets converted to electricity and then goes back to get reinjected into the ground, I believe it’s still getting reinjected into the ground at 170° C. So that is hot enough to be able to run it through a binary plant again to create more power. We think the 340 megawatts could increase by up to 20% at a very low incremental capital cost. . .They are also involved in bidding in Chile as well, so for people that have concern about political risk in Nicaragua, they are attempting to diversify and are involved in bidding in Chile. They haven’t named the company, but I believe they’re either in partnership or in discussions with a much larger renewable energy company to help them finance and fund that opportunity there."

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