September 10, 2010

Enbridge invests in U.S. Geothermal project in Oregon

CALGARY

Enbridge Inc. is entering the geothermal business by investing up to US$23.8 million in a project being developed by U.S. Geothermal Inc.

The companies said that the investment would go toward U.S. Geothermal’s 35 megawatt Neal Hot Springs geothermal project in eastern Oregon.

In exchange, Enbridge’s U.S. subsidiary will receive a 20 per cent direct ownership interest in the $124.3-million project, which is under a contract to deliver electricity to the Idaho Power grid for 25 years.

“Enbridge is already heavily involved in renewable and alternative energy projects through our interests in 810 megawatts of wind, solar, waste heat recovery and fuel cell projects,” said Enbridge president and CEO Patrick Daniel in a release.

“This investment will be our initial entry into geothermal energy, which we think has an important role to play in North America’s shift toward a greener energy production mix.”

U.S. Geothermal said the investment would fund the remaining equity share of the construction costs, with the rest of the funds coming from the U.S. Department of Energy’s conditional commitment to a loan.

“Our strategic partnership with Enbridge assures full financing for the successful construction and operation of the Neal Hot Springs geothermal project,” said Daniel Kunz, president and chief executive of U.S. Geothermal.

Associated Press

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