U.S. Geothermal announces mechanical completion of first power module at Neal Hot Springs

U.S. Geothermal Inc., a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced that its construction contractor has provided a notice of mechanical completion for the first of three 7.3 net megawatt, air cooled power plant modules at the Company’s Neal Hot Springs project, located in Malheur County, Oregon.

The total project is about 90 percent complete with some 65% of the U.S. Dept of Energy project loan already drawn down to fund construction.

Mechanical completion of the first module marks the initiation of commissioning activities on various individual power plant components, controls and the related production and injection wellfield. Once these commissioning activities are complete, the power module will undergo acceptance testing, leading up to full module startup and continuous operation.

The second power plant module is expected to achieve mechanical completion around June 7, 2012 and the third module is slated to achieve mechanical completion by the end of June, 2012. The 22 megawatt net power plant is expected to achieve full commercial operation late in the third quarter of 2012.