Thanks Redux. Interesting, but I'm not sure we're there yet. I'm a fussy ol' bugger and like to find the source of important details before I lay out my money. I think Copahue is perfectly good as a technical geothermal resource. I'm just not so sure about the commercial bits.
Have a look at this August 2010 announcement from the Province of Neuquen, which technically owns the project and the carbon credits and 5 % royalty. (you'll have to google translate). A couple of interesting points:
1) Geothermal One paid $9 mill entry fee. If this AR$ then this is just under US$2 mill, which they presumably get back if EHR buys them out.
2) drilling of at least 5 new production wells and 30 MW plant
3) Funding of the project and marketing of the energy produced will be fully at the risk of Geothermal One (now EHR)
4) Geothermal One/EHR to build 132 KV transmission from Copahue to the grid to enable sale to the Wholesale Electricity Market (what distance?)
5) There is no mention of tariff. Therefore the source of EHR's US$100-120/MWh is not yet resolved in my mind.
6) No mention of the possibility of direct sales to an off-grid customer (e.g. Xstrata). Does the tender contract need to be renegotiated if this happens?
Pity Geothermal One is getting out. Would have been nice to share the risk with someone else.
Gents, I'll have to leave this topic for a little while, or I'll get bogged down. If a solid PPA comes along in the next couple of months I'll be there in a flash...
EHR Price at posting:
1.5¢ Sentiment: None Disclosure: Not Held
