Magma Energy Corp.

Canadian geothermal power producer and developer Magma Energy Corp. (TSX: MXY.TO) said today it will sell a 25% share of its 98.5%-owned Icelandic geothermal power company HS Orka hf to a group of Icelandic pension funds for approximately C$71.5 million, approximately equal to Magma’s original cost of the acquisition.

Shares of wind and run-of-river power developer Plutonic Power Corporation (TSX: PCC.TO) are up 8% (market cap $171 milion) at mid-day after the company announced before the opening this morning it had agreed to merge with geothermal power developer Magma Energy Corp. (TSX. MXY.TO) (market cap $380 million) to form a new renewable energy company called Alterra Power Corp. Magma shares are down 2%. Both companies are based in Vancouver, British Columbia.

If geothermal power achieves its potential to become a significant contributor to the economy’s transition from fossil fuels to cleaner power, the best performers among these pure-play publicly traded companies will make their shareholders a lot of money: Ormat Technologies, Inc. (NYSE:ORA), Ram Power Corp. (TSE: RPG), Magma Energy Corp. (CVE:MXY), Nevada Geothermal Power Inc. (OTC:NGLP), and U.S. Geothermal Inc. (AMEX: HTM). 

Iceland is a country in a highly visible state of evolution, a vast volcanic island where the landscape is obviously alive. With shifting glaciers, spouting geysers, simmering hot springs, rushing rivers, and a number of active volcanoes, it's a place bursting with a bounty of natural power.

Watch out, after a quiet start to 2009, the geothermal industry is heating up.  This week saw a large merger of four geothermal companies, as well as the announcement that Caldera Geothermal plans to go public by next year.