June 8, 2009 (FinancialWire) — U.S. Geothermal Inc. (AMEX: HTM) has been selected by the U.S. Department of Energy to enter into due diligence review on an $85 million project loan for its Neal Hot Springs project in eastern Oregon. Geothermal initiatives have also been announced by Ormat Technologies, Inc. (NYSE: ORA), WaterFurnace Renewable Energy, Inc. (TSX: WFI) and Chevron (NYSE: CVX) the largest producer of geothermal energy in the world.

President Obama recently announced $320 million from the American Reinvestment and Recovery Act to expand and accelerate the development, deployment, and use of geothermal energy throughout the United States. The funding will help the geothermal industries overcome technical barriers, demonstrate new technologies.

Geothermal energy is a clean source of renewable energy that harnesses heat from the Earth for heating applications and electricity generation; geothermal plants can operate around the clock to provide significant uninterrupted “base load” electricity, or the minimum amount a power utility must provide to its customers.  The capability of geothermal to provide a significant supply of uninterrupted base load electricity is beginning to be understood as metrics that are larger than the potential for wind or solar.  For more information, see the U.S. Geothermal Power Production and Development Update (http://www.geo-energy.org/publications/reports/Industry_Update_March_Final.pdf for a comprehensive introduction to geothermal).

According to the Geothermal Energy Association March 2009 Industry Update, there were 126 new geothermal projects under development with the potential to put 5,500 MW of new geothermal power on line, equivalent to 15,000 MW — 20,000 MW from wind turbines or enough power for 5.5 million California homes, according to GEA.  New geothermal power projects were identified in Alaska, Arizona, California, Colorado, Florida, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah, and Washington.  GEA estimates that bringing these projects on line will help economic recovery by spurring as many as 100,000 new jobs.

The Recovery Act makes a $350 million new investment in this technology, dwarfing previous government commitments. Recovery Act funding will support projects in four crucial areas: geothermal demonstration projects; Enhanced Geothermal Systems research and development; innovative exploration techniques; and a National Geothermal Data System, Resource Assessment and Classification System.

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