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NGP Nevada Geothermal Power (NGP.V) Closing in on Power

There are always hurdles when a company is working to construct a large project. Permits need to be granted, materials need to be sourced and delivered, and construction needs to managed well to meet time restrictions. This process is difficult at best, especially if environmental conditions present additional challenges, but if a company can be found that seems to be on the track in each of these construction requirements, profit could be at hand.

NGP Nevada Geothermal Power, a geothermal development stage power generator, is working toward a fourth quarter 2009 completion date, power turn on, and revenue generation. As one might suspect, certain dates for material delivery and drilling need to be met if the company’s Blue Mountain Faulkner 1 49.5 MW operation date is to be met. Working to meet these dates has found challenges in some areas but has been strikingly solid on most. Presently, Q4 2009 appears likely. Currently, there are three time points that need to be met for the completion schedule to be met. The switch yard structure needs to move toward completion, the first set of generators need to be in place on the completed foundations by the end of March and the 21 mile transmission line to Mill City needs to be completed within the scheduled time-line of the beginning of June.

There are two highly positive timing points that the company has recently met. The company has completed drilling for the binary cycle Blue Mountain Faulkner site. More injector wells have been drilled with positive results expected. The company has also signed contracts with Composite Technologies Inc. for delivery of high temperature composite core lines. These high efficiency lines will enable the company to send more power at lower transmission cost, enabling it to reap a higher margin on the transmission. This is important, in that the company has signed contracts for all power generated be bought by one customer.

NGP Nevada Geothermal Power is well along the process of turning on the power and generating revue in the fourth quarter of 2009. As revenue begins to flow, a solid player in the alternative energy market will begin to profit.

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