Idaho Power will submit the PPA to the Idaho Public Utilities Commission for approval, which is expected within the next 60 to 90 days. This PPA is the second geothermal energy supply agreement US Geothermal has signed with Idaho Power.
Daniel Kunz, president and CEO of US Geothermal, said: “A key milestone in the development of Neal Hot Springs has been achieved and we are pleased to expand our relationship with Idaho Power. With this PPA, we will deliver them a total of 35MW of renewable geothermal power from two of our projects.”
Neal Hot Springs is currently being developed using an air-cooled power plant with an annual average net output of 22MW. The project has been selected by the US Department of Energy to participate in direct loan negotiations for up to 80% of the estimated $106m in total project costs.
In addition, the project qualifies for new investment tax credit of 30% of total project costs which can be converted into a cash grant from the US Treasury upon completion. US Geothermal has drilled two production wells that have a combined projected power plant output rating of nearly 15MW subject to drilling the required injection wells.
Currently, a temperature gradient well drilling programme is underway at Neal Hot Springs and is about 75% complete, the results of which will be used to determine location of the large scale production and injection wells that remain to be drilled. Idaho Power is under contract to design and construct a 10.3 mile transmission line and substation from the Neal Hot Springs project site to its nearby transmission grid. The project has already obtained a conditional use permit from the Malheur County Planning Commission for construction of the project.
