The initial funds will be used to drill exploratory test wells to explore potential geothermal resource areas for underground geologic features that have the right combination of heat and water to produce steam.
The project, located on the western flank of the Newberry volcano, 25 miles southeast of Bend, Oregon, is anticipated to ultimately produce renewable electrical energy to satisfy a 20-year, 120MW contract with California-based Pacific Gas & Electric Company.
Doug Perry, president of Davenport Power, said, We are very pleased in the confidence expressed by this investment from US Renewables and Riverstone, who we know to be two of the most sophisticated energy investors in the nation. If exploration is successful and a viable commercial resource is found during the exploratory drilling, Davenport will prepare and submit specific plans to develop a state-of-the-art geothermal energy facility that will provide clean, renewable energy.
