U.S. Geothermal Looks to Oil Investments for its Oregon Hot Springs Project

U.S. Geothermal, Inc. has confirmed a strategic investment partnership with Enbridge Inc. (NYSE:ENB) for its Neal Springs Geothermal Project in the Malheur County of Oregon. 

The partnership includes a US$23.8 million investment [pdf] by Enbridge, which will fully fund the remaining construction costs. 

Yes, this is the same Enbridge currently embroiled in oil spill clean up along the Kalamazoo river in Michigan. But it shouldn't come as a surprise.

Much like Shell's investment in biofuel development and BP's purchase of biofuel business, Enbridge wants to be involved in all potentially lucrative energy developments. 

“Enbridge is already heavily involved in renewable and alternative energy projects through our interests in 810 megawatts of wind, solar, waste heat recovery and fuel cell projects,” said Patrick D. Daniel, Enbridge President and CEO.

“This investment will be our initial entry into geothermal energy, which we think has an important role to play in North America’s shift toward a greener energy production mix.”

The Neal Springs Geothermal Project is the first of its kind to be offered a conditional commitment for a loan guarantee under the U.S. Department of Energy's (DOE) loan guarantee program.

With a capacity of 35 MW, but a predicted production of around 23 MW, its energy output is sold through 2032 via a power purchase agreement with Idaho Power Company. 

Learn more about Geothermal Power on eBoom's Geothermal Energy Learning Page.