Vulcan Power receives $145 million funding from Denham Capital

By: CaraTan   Date: 29 July 2008

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CaraTan

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Cara Tan, editor

 

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July 29 - Bend, Oregon-based Vulcan Power Company announced on July 28 that Boston-based private equity firm Denham Capital had invested $145 million through its newly issued preferred equity securities. Vulcan, which owns one of the largest geothermal property portfolios in the US, has indicated that it will use the Denham investment to continue to develop its prime geothermal sites to produce renewable energy. Vulcan’s yet-to-be-developed geothermal sites have the potential to produce between 900 and 2,000 megawatts (MW) of natural steam fuel, which is sufficient to provide clean power to up to 2 million people.

Vulcan has already signed several power purchase agreements with utilities in Western United States, such as Southern California Edison, PG&&E and Nevada Power Company for a total of 300 MW geothermal power contracts. The company is working towards signing contracts for another 300 MW with utilities.

Vulcan president and CEO Steve Munson said, “This investment by Denham allows the company to move forward aggressively with our business plan of developing steam resources and power projects, and supporting existing long term power purchase agreements.” Vulcan, which has geothermal projects located across more than 160,000 acres of private and federal lands, has been planning a large funding since last year, when it had raised $45 million from Merrill Lynch Commodity Partners.

 

The production of geothermal energy involves a process that includes drilling to reach for heated water reservoirs and then converting the steam produced at the reservoirs to generate clean power. The power generated this way does not involve emissions, such as carbon-dioxide, that produce green house effects. However, the geothermal energy has received limited attention and funding till now, as compared to solar and wind energy, since this technology can be used only on limited geothermal sites.

 


Alternatio Cirqui, EconomyWatch.com Energy Correspondent

 

 


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