Geothermal Energy Stocks on Boil in Canada
Source: Reuters (11/8/10)
"Shares of Canada-listed geothermal energy companies leaped on Monday."
US Geothermal Inc. rose as much as 35%, Nevada Geothermal Power (TSX.V:NG) gained 11% and Magma Energy Corp. was up nearly 14% at one point on the Toronto Stock Exchange on recent news of money starting to flow again into this cash-hungry industry.
"There has been a string of good news out of the sector," said Jacobs Securities analyst John McIlveen.
"They were all down almost 50% since the start of year. Much of the rest of the (clean energy) sector has already made its move back up," he said.
Earlier on Monday, Ram Power Corp. (TSX:RPG) announced it had closed a $160 million debt financing for its San Jacinto-Tizate geothermal project in Central America.
That follows news of Enbridge's investment of up to $23 million in U.S. Geothermal's Neal Hot Springs project.
"There is no specific news for Magma however there has been a lot of good industry news lately," said Magma spokeswoman Alison Thompson. "I suspect that this is helping all of us," she said in an email.
In geothermal power production, hot water and steam from deep underground are piped up and used to drive turbines in plants that generate electricity.
The industry has experienced a rash of mergers and acquisitions as small companies have struggled to capital to develop their projects.