Ann: GENERAL: MRP: Key Milestone Achieved in Inte

• Release Date: 06/03/12 10:59
• Summary: GENERAL: MRP: Key Milestone Achieved in International Geothermal Project
• Price Sensitive: No
• Download Document  5.34KB

					

MRP
06/03/2012 08:59
GENERAL

REL: 0859 HRS Mighty River Power Limited

GENERAL: MRP: Key Milestone Achieved in International Geothermal Project

Mighty River Power today announced the first full power to grid of the
EnergySource-owned, 49.9MW Hudson Ranch Power I geothermal project on the
Salton Sea reservoir in Southern California's Imperial Valley.

Mighty River Power's General Manager Development, Mark Trigg, said achieving
grid synchronisation and running at full capacity just 21 months after
construction commencement was a significant milestone for all parties
involved.

Hudson Ranch Power I is the first new geothermal plant constructed in the
large Salton Sea geothermal field in over 20 years and the largest geothermal
development in the US in recent years.

Following a further month of field tests, the project would be the first of
Mighty River Power's international geothermal developments to move into
commercial operation. Hudson Ranch Power I will supply renewable energy under
a long term contract to Salt River Project (SRP), an Arizona utility
providing electricity to over 900,000 customers, and uses similar technology
to Mighty River Power's Kawerau and Nga Awa Purua geothermal stations in New
Zealand.

Mighty River Power is one of the world's 10 largest geothermal developers and
operators and currently has development interests in geothermal reservoirs
across the United States, Chile and Germany.   The Company's investment
interest in the Hudson Ranch Power I project is through the GeoGlobal
Partners I Fund (the GGE Fund), which has a minority stake in EnergySource.
Through the GGE Fund, Mighty River Power invested US$92 million into the
US$400 million project in May 2010, providing the largest equity interest in
Hudson Ranch Power I, and facilitating commencement of construction.

Mr Trigg said the Company has taken a measured and prudent approach to
international development opportunities and the initial stages of building a
platform for international geothermal growth that leverages Mighty River
Power's experience and competencies in this global niche.  This approach has
focused on investing equity capital in early-stage geothermal exploration and
development in Chile and Germany, complemented in the USA by the investment
in EnergySource involving the well known, large-scale Salton Sea geothermal
resource and the later stage investment in the Hudson Ranch Power I project
just prior to commencement of its construction.

Testing of the geothermal wells supplying the Hudson Ranch I project has
demonstrated capacity well in excess of requirements, providing EnergySource
with confidence to confirm interest in further investment in the Salton Sea
geothermal field.  In late 2011, SRP announced a second Power Production
Agreement to purchase all of the output of EnergySource's next project,
Hudson Ranch II, also a 49.9MW plant.

ENDS

Note to Editors:
Mighty River Power currently has a 29% stake in Maryland-based GeoGlobal
Energy LLC (GGE), which acts as manager to the international geothermal
investment fund, the GGE Fund. Mighty River Power is the cornerstone investor
in the GGE Fund, through which offshore geothermal investments are currently
developed.

In May 2010, the GGE Fund invested in Hudson Ranch Power I in an equity flip
structure that gives GGE a preferred return until the flip point.  In
addition, GGE made a minority investment in EnergySource, a geothermal
development company with access to the significant Salton Sea geothermal
resources in Southern California's Imperial Valley - one of the largest and
hottest geothermal resources in the United States.

During construction, the Hudson Ranch Power I plant was awarded the
Environmental Stewardship Award at the inaugural Geothermal Energy
Association (GEA) National Geothermal Summit in 2011 and the 2010 Project
Finance Magazine North American Geothermal Deal of the Year Award.

About Mighty River Power:
Mighty River Power is a New Zealand electricity company, with a flexible
portfolio of electricity generation assets, a strong national retail presence
and a focus on domestic generation and international geothermal development
opportunities, with geothermal interests in more than 10 reservoirs across
the US, Chile and Germany.

More than 90% of our generation is from renewable sources. We supply both
electricity and thermal energy to major commercial users and have about 20%
of New Zealand's retail market with our brands, Mercury Energy, Bosco Connect
and Tiny Mighty Power.

Mighty River Power won the 2010 Deloitte Energy Excellence Awards for Overall
Energy Company and Project of the Year (Nga Awa Purua).  It was also a
finalist for Overall Energy Company at the 2011 Awards. Retail brand, Mercury
Energy, currently holds the 2011 Deloitte Energy Excellence Award for
Retailer of the Year.

About GeoGlobal Energy LLC (GGE):
GGE is a privately-owned geothermal company focused on the worldwide
acquisition, exploration, development and operation of geothermal resources
to generate base load, renewable, low-carbon electricity to meet the growing
need for global renewable electricity. GGE has established a broad portfolio
of geothermal concessions and assets in various stages of development in the
US, Chile and Germany.

For further information please contact:
Katherine Litten
Media Relations Manager - Mighty River Power
Tel: 0272 105 337
End CA:00220379 For:MRP    Type:GENERAL    Time:2012-03-06 08:59:56