US Geothermal to restart drilling at Guatemala project

US Geothermal Inc (NYSEMKT:HTM) said on Thursday that Guatemala’s Minister of Energy and Mines has approved the modified schedule for the El Ceibillo project, as part of which the company may build a 25-MW geothermal power plant.

US Geothermal is now getting ready to restart its drilling programme. It noted that the first activity planned will be the drilling of well EC-2. According to the modified schedule, which was initially requested in late 2013, the first phase of the project will become operational during the second quarter of 2018.

US Geothermal Guatemala SA received geothermal energy rights to the concession in April 2010. The company says it plans an initial development of a 25-MW flash steam power plant at the site, but will determine the exact size of the facility following advancement of drilling and resource delineation.

The company has already signed a binding memorandum of understanding (MoU) with a local power broker that establishes the framework for a 15-year contract to purchase the output of a plant with a capacity of between 25 MW and 50 MW.

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