The idea of using geothermal heat to generate electricity is becoming a hot investment opportunity, and Sierra Geothermal Power Corp is leading the race.
Written by James Buchanan and produced Melissa Abbott
The process of producing electricity is fundamentally the process of making steam.
So then, if we know that fossil fuels — the primary means to generate heat to create steam — are expensive, dirty and largely found in areas of the world with political turmoil and other issues, it would seem to make sense to look to alternative heat sources to create steam.
Further, if the heat to generate steam could be found in abundance, say for example, underground, it would further seem to make for a rather enticing investment opportunity.
Sierra Geothermal Power Corp. thinks so, and is in the process of establishing power plants on geothermal hot spots and seeking the financing to develop this resource into a fully functioning, clean and renewable electric generating resource.
According to Gary Thompson (pictured), president and CEO of Sierra Geothermal, the company is well poised to become a leader in the geothermal market, which is itself poised to become a significant growth market. He adds that geothermal electric generation would provide stable base load power, long-term cash flows and a clean and renewable source of electric power generation.
Further, the debt on geothermal power plants, he says, is generally amortized on a 15 year basis.
“But these plants can operate almost indefinitely depending on the life of the equipment, which can simply be rebuilt after 20 to 30 years and then run for another 20-30 years, it’s a pretty sweet way of making power,” he notes.
Thompson goes on to say, “We have a very positive outlook. We’ve a fairly aggressive plan to develop our resources. We are a small company now, with big company goals. Once we get some of our projects up and running we...
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