CONTENTS
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
GEOTHERMAL IS AN ATTRACTIVE TECHNOLOGY WELL-SUITED TO THE SOUTH-WEST U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
BOTH SUPPLY AND DEMAND FACTORS POINT TO A BRIGHT OUTLOOK FOR GEOTHERMAL POWER IN THE SOUTH-WEST U.S. . . . . . . . . . . . . . . . . . . . .5
GEOTHERMAL’S HISTORICAL BACKGROUND – WHY THE TIME IS NOW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
EXAMINING VALUE CREATION AS A GEOTHERMAL PROJECT ADVANCES THROUGH THE STAGES OF DEVELOPMENT . . . . . . .6
TOOLS USED IN IDENTIFICATION & EXPLORATION PHASE INCREASE IN COST AS THEIR RELIABILITY INCREASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
ADVANCED EXPLORATION KNOWLEDGE YIELDS LOWER LAND ACQUISITION COSTS, HIGHER PROJECT RETURNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
THE PRELIMINARY “RESOURCE REPORT” IS OFTEN DONE FOLLOWING INITIAL EXPLORATION ACTIVITIES TO RAISE CAPITAL . . . . . . . . . . . . . . . . . . . . . . .8
“RESERVE REPORT” IS AKIN TO A BANKABLE FEASIBILITY REPORT AND IS THE ULTIMATE GOAL OF THE EXPLORATION STAGE . . . . . . . . . . . . . . . . . . . . .9
PLANT CONSTRUCTION AND WELL DEVELOPMENT THE MOST COSTLY PHASE – SELLING PROJECTS TO UTILITIES MAY BECOME COMMONPLACE . . 11
OWNING EARLY-STAGE GEOTHERMAL PROJECTS OFFERS THE MOST “BANG FOR YOUR BUCK” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
DEMAND DRIVERS FOR GEOTHERMAL POWER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
RENEWABLE PORTFOLIO STANDARDS (RPS) – MANDATING THE PROVISION OF CLEAN POWER IN THE U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
ALTHOUGH CLEAN ENERGY SUPPLY WILL BE COMING ONLINE TO THE GRID, MORE DEVELOPMENT IS REQUIRED TO SATISFY RPS MANDATES . . . 14
OTHER RENEWABLE ENERGY LEGISLATION IS PROVIDING STIMULUS TO GEOTHERMAL COMPANIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SUPPLY: QUALITY RESOURCE AVAILABILITY CRITICAL FOR ECONOMIC GEOTHERMAL DEVELOPMENT AND PRODUCTION 17
RESOURCE LOCATION GREATEST ALONG WESTERN EDGE OF NORTH AMERICA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
A FOCUS AREA WITHIN THE WESTERN UNITED STATES: THE GREAT BASIN REGION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
KEY INDUSTRY PLAYERS – WHO ARE THE MAIN GEOTHERMAL DEVELOPERS AND WHO IS FOCUSING ON THE GREAT BASIN . . . . . . . . . . . . . . . . . . . 19
GEOLOGY IN THE GREAT BASIN – WHY DEVELOPMENT HAS EXPANDED BEYOND THE GEYSERS IN CALIFORNIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
OUTSIDE OF GREAT BASIN, WHERE ARE THE DIFFERENT REGIONS AND WHAT ARE THEIR CHARACTERISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
TECHNOLOGY ADVANCEMENT HAS ALSO BEEN A CATALYST FOR INCREASED GEOTHERMAL DEVELOPMENT . . . . . . . . . . . . 28
INVESTMENT CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
APPENDIX 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32