In its latest quarterly financial report, Nevada Geothermal Power (CVX:NGP) states its revenue has increased more than 100%, while its net loss has been reduced by more than 75% compared to the same quarter last year.
Currently, Nevada Geothermal Power’s entire revenue stream comes from its Blue Mountain geothermal power plant in Nevada. For the quarter ended March 31, 2011 power production from Blue Mountain was 47-megawatts (gross) and 37-megawatts (net). This production generated US$6.3 million in revenue, which represents a 9% increase from the previous quarter, and a 110% increase from the $3 million generated in the same quarter of 2010.
Brian Fairbank, the company’s President and CEO, attributes the increased revenue to record power production from Blue Mountain. Over the past quarter the geothermal facility operated at 95% of its capacity, the highest total since it began operations in October 2009. Blue Mountain has a max power generation capacity of 49.5 MW.
Although Blue Mountain is NGP’s only revenue source at the moment, the company is hoping that will not be the case for long. As Mr. Fairbank said upon release of the quarterly results, “We are continuing to develop our pipeline of geothermal properties, as well as Blue Mountain, focusing on the joint venture at Crump Geyser with Ormat and on finalizing the acquisition of two new advanced stage exploration projects in the Imperial Valley, Southern California.”
In February NGP signed an agreement with Iceland America Energy, Inc. to have the exclusive right to purchase all of its geothermal assets in the Imperial Valley of Southern California. When complete, the purchase will be made for US$4.5 million. The Imperial Valley is considered one of North America’s largest geothermal hotbeds.
The projects purchased from Iceland America Energy are all in their advanced stages and NGP believes it can be producing 30-35 MW of energy from them by 2013.
Additionally, the company continues to development work on the Crump Geyser geothermal project in Oregon. Crump Geyser is a joint venture that was crafted between NGP and Ormat in 2010. According to NGP field studies the area has between 40 and 80 megawatts of power potential. Through their joint venture, NGP and Ormat plan to place a 30 MW geothermal facility in the area by 2013. Currently, the project is undergoing resource confirmation drilling.