Ontario advised to consider geothermal energy investments

It's time we started warming to geothermal

From TheStar.com - Geothermal Energy Business

by Tyler Hamilton

Industry and government in Canada's western parts are poised to spend billions of dollars over the coming decade trying to capture carbon dioxide from oil-sands operations and coal plants. They'll then compress and inject that CO2 underground for what we hope, but don't know for certain, is permanent storage.

The idea is that Canada – to be specific, western Canadian oil companies and power plant operators – will over time become experts in carbon capture and sequestration and a new industry will be born, creating exports to overseas markets like China.

This doesn't do much for Ontario and its struggling economy. We don't have oil-sands projects. Our coal plants are targeted to shut down. And even if we did keep the coal plants, the province's geology limits where huge volumes of liquefied CO2 could be stored.

But what if Ontario could develop the expertise, skills and technologies to develop a form of emission-free power generation that would displace the need for coal, and help move the world away from petroleum and toward grid-supplied electric transportation?

Why doesn't Ontario try to get into the geothermal power game? Not the kind of geothermal that uses heat pumps and provides heating and cooling in our homes; rather, the kind of geothermal where high heat found kilometres under the earth's surface can be used to generate electricity.

Done laughing?

Susan Petty, president of Altarock Energy Inc. in Seattle, says it's not as crazy as some people might think. As a comprehensive study out of the Massachusetts Institute of Technology concluded last year, there is useable heat everywhere we walk on this planet and more of it should be tapped. It's all a matter of how deep you drill, and how you go about bringing that heat to the surface using so-called enhanced geothermal systems, or EGS technologies.

Petty was part of the panel that conducted the study. After its release, she formed Altarock to practice what the study preached. "It's serious," says the 25-year veteran of the geothermal industry. "Our goal is to get to where we can do it anywhere, but that's going to require that we bring the cost down."

She looks at a map of Ontario and singles out a few potential spots. "In southern Ontario, near Lake Erie, they show some higher temperatures at depth." There are also locations just west of Ottawa and north of Peterborough, she adds.

In Landau, Germany, the world's first commercial EGS plant began operation last October. It's tapping temperatures of 155 degrees C about 4.5 kilometres below ground. Petty says the Landau project is dealing with depths and temperatures very similar to those found in parts of Ontario.

If that's the case, why aren't we giving this a shot? Lack of awareness, and the general belief it can't be done in Ontario, is one reason.

Policy is another. Germany, for example, has a renewable energy act that pays a fixed, long-term premium for all kinds of clean energy and encourages industry to experiment.

Another barrier is lack of data. "We can't know these things unless we get the data, and the only way to get the data is to drill deep holes," explains Petty. "We've got to get more holes in the ground."

Some data must exist somewhere. Talisman Energy, for example, does lots of natural gas drilling in Lake Erie. Union Gas is building underground natural gas storage in southwestern Ontario. Sarnia and neighbouring Petrolia, the birthplace of North America's commercial oil industry, would also have data on well temperatures. Likewise, anywhere there's deep mining in Ontario there would also be depth and temperature data.

All that should be aggregated by the government and analyzed, and new test holes need to be drilled where gaps in data exist. At the same time, the Ontario Power Authority could easily add geothermal power to its standard offer contract, offering a premium price for the power to anyone who can make it work.

"To do geothermal in Ontario the utility would need to pay something like 17 or 18 cents per kilowatt hour," says Petty. Others with their eye on the market estimate up to 30 cents would do the trick.

It's not outlandish. We're already paying 42 cents per kilowatt-hour for solar electricity, and that's for power that only flows when the sun is shining. Surely, the province could cough up 30 cents under long-term contract to help stimulate a handful of geothermal pilot projects. What's the harm in putting it out there and letting the market decide?





ENHANCED GEOTHERMAL

Conventional geothermal plants, widely found in jurisdictions including Iceland, California, Italy and Indonesia, are low-hanging fruit. They are located in areas where one need not drill more than three kilometres, and where cracks and pores in the rock occur naturally.

This "porosity" is important, because you access the heat by pumping water into deep boreholes. The water spreads through the pores and cracks in the rock, absorbing as much of the heat as possible. It's then pumped back to the surface to create steam that turns a turbine that generates clean electricity 24 hours a day.

Conventional geothermal power is already competitive with the cost of grid electricity in most places, particularly in Europe where prices are generally higher than in North America.

What Altarock hopes to do is improve the economics of what's called "enhanced geothermal system," or EGS — basically geothermal power plants that get heat from greater depths and from non-porous rock. It's more expensive because the further down you drill the costlier it becomes. You also have to artificially fracture the rock under a carefully controlled process to achieve ideal porosity, another added expense and a tricky procedure using current technologies and methods.

"Right now it's probably not economic to drill for geothermal using today's technology any deeper than 4.5 to five kilometres," says Petty, adding that temperatures of 225 C to 250 degrees C are needed. "You can do that in the west. But if you want to go east, you're looking at having to drill 6.5 to seven kilometres to get those temperatures."

These depths are quite common when it comes to oil and gas exploration. Altarock (Altarock Energy Inc., a company formed to develop “enhanced geothermal” generating stations using new technology primarily coming from the oil drilling industry), aims to apply the same skills to geothermal, and come up with a reliable and economical way of fracturing rock so geothermal power could be explored where it was once thought impossible, or too expensive.


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Energy Bill, Oil Prices Spike Drive Up 'Clean Energy' ETFs


article from: http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-21922625.htm

Dec. 28, 2007 (Investor's Business Daily via CNN)

Keeping it clean recently has translated to keeping the profits rolling in for many investors.

Those who put their money behind "clean" energy companies, which focus on renewable resources, saw the happy results all week.

Several factors were behind the rise. Last week, President Bush signed the Energy Independence and Security Act of 2007 into law. The bill mandates lowered fossil fuel use and quadrupled alternative biofuel use over the next 15 years.

Exchange traded funds that track clean energy (NASDAQ:CLNE) began to rise immediately after the bill became law. The largest and oldest, PowerShares WilderHill Clean Energy PBW, jumped nearly 10% during that time. Almost half the fund, which has an IBD Relative Strength Rating of 94, is invested in alternative energy sources.

Some of the WilderHill fund's largest holdings include Sunpower SPWR, Suntech Power Holdings STP and Yingli Green Energy YGE, all of which hold a 99 RS.

Other ETFs

Similar funds, such as First Trust (NYSE:FGB) (NYSE:FMY) (NYSE:FAM) (NYSE:FEO) (TSX:FHT.UN) Nasdaq Clean Edge US Liquid Series Index Fund QCLN, Market Vectors Alternative Energy GEX and PowerShares Clean Tech PZD also rose nicely after the bill was signed.

The uptick for all the funds continued Wednesday after a Chinese government report announced that the country plans to increase renewable energy consumption to 10% of total energy consumption by 2010 and 15% by 2020. The 44-page report said China will promote development of hydropower, solar, methane, wind and other renewable energy sources and increase their market shares.

Article continues at: Green Exchange Traded Funds Rise on News, Legislation

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Interview with NOAH BLACKSTEIN, Stock picks for 2008

Manager of Dynamic Power Global Growth Class (global equity)

Mr. Blackstein is upbeat on global stock markets for 2008 despite expectations of slower growth. "There is a risk of a recession [in the U.S.], but I think that the actions of the central banks will stave it off," said the manager with Dynamic Mutual Funds Ltd.

Co-ordination among central banks to cut interest rates and take measures to increase liquidity "will buoy the stock markets next year," he said.

Mr. Blackstein is also upbeat because his growth investing style - out of favour since the Internet bubble popped seven years ago - has come back into vogue. In an economic slowdown, investors will pay up for growth, he said.

"I think this is the beginning of a multiyear cycle for growth," said Mr. Blackstein, who buys companies that can deliver above-average revenue and earnings growth.

He likes U.S. technology stocks and alternative energy companies in Europe. "The shift to alternative energy is a big, long-term secular growth trend," and will continue to play out next year, he said.

Mr. Blackstein owns stocks of alternative energy companies like Q-Cells AG; SolarWorld AG, Vestas Wind Systems AS and First Solar Inc., a big driver for his fund this year.

He is less sanguine about the emerging markets coming off a strong year. But he owns a few names in the wireless telecom sector, including China Mobile Ltd. and India's GTL Infrastructure Ltd.

Research In Motion Ltd. is his only Canadian stock. "The smart phone revolution, of which RIM and Apple are at the forefront, has a very long way to go," he said.

Full article and interviews with managers of PETER HODSON, manager of Sprott Growth Fund F series (Canadian small/mid cap), MARK MOBIUS, from Templeton BRIC Fund F series (emerging markets), CHRIS BEER, fund manager for RBC Global Resources Fund (natural resources), and NANDU NARAYANAN, CI Global Opportunities and CI Trident Global Opportunities (alternative strategies), who each provide their 2008 investment outlook, best stock opportunities

Current CPNLQ shareholders to be offered warrants for 10% of re-org

SAN JOSE, Calif. and HOUSTON, Dec. 21, 2007 (Canada NewsWire) - Calpine Corporation (OTC: CPNLQ) announced today that as part of its Sixth Amended Joint Plan of Reorganization (the "Plan"), it will issue warrants to purchase approximately 50 million shares of its new common stock, or about 10 percent of the common stock to be issued pursuant to the Plan, to holders of its currently outstanding common stock. Each warrant will represent the right to purchase a single share of Calpine's new common stock. The exercise price per share has not yet been determined, but it is expected to be based on a stipulated reorganized equity value of $11.942 billion. For illustrative purposes, assuming the issuance of 500 million shares on the effective date, the exercise price would be $23.88 per share. The expiration date of the warrants will be Aug. 25, 2008 or the date that is six months after the effective date of the Plan, which ever is later. No fractional warrants will be issued and no cash in lieu of fractional warrants will be distributed. The warrants will be transferable, but they will not be listed on any exchange.

The specific number of warrants to be issued, the exercise price and expiration date have not yet been determined. In addition, the exercise price, when issued, is intended to be "out-of-the-money," although the extent to which it is or is not "out-of-the-money" will depend on the market price of the new Calpine common stock, which can not be known at this time. There can be no assurance that the warrants will be "in-the-money" at any time prior to their expiration date.

The currently outstanding shares of common stock will be cancelled on the effective date of the Plan and will no longer represent an interest in Calpine Corporation.

About Calpine

Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity. Founded in 1984, Calpine is a major U.S. power company, currently capable of delivering nearly 24,000 megawatts of clean, cost-effective, reliable, and fuel-efficient electricity to customers and communities in 18 states in the U.S. The company owns, leases, and operates low-carbon, natural gas-fired, and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit http://www.calpine.com for more information.

Forward Looking Statement>>

In addition to historical information, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. We use words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will" and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: (i) the risks and uncertainties associated with our Chapter 11 cases and Companies' Creditors Arrangement Act (CCAA) proceedings of certain of Calpine's Canadian affiliates, including our ability to successfully reorganize and emerge from Chapter 11; (ii) our ability to implement our business plan; (iii) financial results that may be volatile and may not reflect historical trends; (iv) seasonal fluctuations of our results; (v) potential volatility in earnings associated with fluctuations in prices for commodities such as natural gas and power; (vi) our ability to manage liquidity needs and comply with covenants related to our existing financing obligations and anticipated exit financing; (vii) the direct or indirect effects on our business of our impaired credit including increased cash collateral requirements in connection with the use of commodity contracts; (viii) transportation of natural gas and transmission of electricity; (ix) the expiration or termination of our power purchase agreements and the related results on revenues; * risks associated with the operation of power plants including unscheduled outages; (xi) factors that impact the output of our geothermal resources and generation facilities, including unusual or unexpected steam field well and pipeline maintenance and variables associated with the waste water injection projects that supply added water to the steam reservoir; (xii) risks associated with power project development and construction activities; (xiii) our ability to attract, retain and motivate key employees; (xiv) our ability to attract and retain customers and contract counterparties; (xv) competition; (xvi) risks associated with marketing and selling power from plants in the evolving energy markets; (xvii) present and possible future claims, litigation and enforcement actions; (xviii) effects of the application of laws or regulations, including changes in laws or regulations or the interpretation thereof; and (xix) other risks identified from time-to-time in Calpine's reports and registration statements filed with the SEC, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2006 and Quarterly Reports on Form 10-Q. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements and Calpine undertakes no obligation to update any such statements. Unless specified otherwise, all information set forth in this release is as of today's date and Calpine undertakes no duty to update this information. For additional information about Calpine's chapter 11 reorganization or general business operations, please refer to Calpine's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, Calpine's Quarterly Reports on Form 10-Q, and any other recent Calpine report to the Securities and Exchange Commission. These filings are available by visiting the Securities and Exchange Commission's website at http://www.sec.gov or Calpine's website at http://www.calpine.com.

SOURCE: Calpine Corporation

Media Relations, Mel Scott, +1-713-570-4553, scottm@calpine.com, or Investor
Relations, Norma Dunn, +1-713-830-8883, ndunn@calpine.com, both of Calpine
Corporation

Calpine Corporation Web Site

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Calpine Corp CPNLQ

Calpine is poised to exit bankruptcy
JUDGE APPROVES PLAN TO PAY OFF CREDITORS WITH NEW STOCK
By Christopher Scinta
Bloomberg News
Article Launched: 12/20/2007 05:35:43 AM PST

Calpine, which filed the largest U.S. bankruptcy of 2005, won approval Wednesday for its plan to pay off creditors with new stock and emerge from federal court protection.

Unsecured creditors will receive stock worth about 97 percent of what they are owed by Calpine, a San Jose-based power producer that generates enough electricity for about 19.2 million homes.

The ruling by U.S. Bankruptcy Judge Burton Lifland leaves Calpine poised to emerge from bankruptcy before Feb. 7. The company reached a deal with creditors and shareholders to set the value of the new Calpine at $18.95 billion and give shareholders warrants to buy stock.

"I do find justification for the settlement that's come along," Lifland said, adding the $18.95 billion figure was close to what he had determined the company was worth.

The company earlier this week cut a deal with the committees representing its unsecured creditors and shareholders to fix a value for the company and give the shareholders a recovery in the case.

Full article at Calpine stock news: Emerging from bankruptcy

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Green Rock Energy ASX: GRK

Green Rock Energy Limited is engaged in the pursuit of geothermal energy resources and the development of low-emission, base load, renewable energy. In South Australia, the Company has seven geothermal exploration licences (GELs) totalling 2,897 square kilometres and two GEL applications surrounding Olympic Dam Mine and the Roxby Downs township.

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Nevada Geothermal Power Inc NGLPF

Nevada Geothermal Power Inc. (NGP) is engaged in the business of developing renewable geothermal energy projects in Nevada and Oregon. The Company and its wholly owned subsidiary Nevada Geothermal Power Company (NGPC) hold leases on four projects: Blue Mountain, Pumpernickel and Black Warrior, all located in Nevada and Crump Geyser located in Oregon. As of January 16, 2007, the Company had not commenced commercial operations.

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Ormat Technologies Inc ORA

Ormat Technologies company info, profile on Reuters

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Polaris Geothermal TSX: GEO

CORPORATE PROFILE

Polaris is a renewable resource company currently focused on the development of renewable energy in Latin America. Polaris is currently developing a 66 MW geothermal project on its San Jacinto Tizate concession in Nicaragua.

The San Jacinto Tizate concession contains two resource sectors, known as the eastern and western sectors. Preliminary reports from Polaris engineering consultants Sinclair Knight Merz indicate that the entire resource area, the mean capacity is estimated to be 277 MWe, with a 90% probability that the resource capacity will be greater than 203 MWe. Within that total, the eastern resource is estimated to have a mean capacity of 86 MWe and a 90% probability of being greater than 67 MWe. Polaris has rights to develop additional concessions.

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