VANCOUVER, April 26, 2016 /PRNewswire/ - Alterra Power Corp.'s Icelandic subsidiary HS Orka today announced details of a 5,000 meter deep drilling program at its 100 megawatt Reykjanes geothermal power plant. The US$11.5 million project will be funded by a consortium including Norway's national energy company Statoil, a grant from the European Union of €6.2 million, two other Icelandic power companies including the state-owned Landsvirkjun and several other European entities. HS Orka's share of the project budget is approximately US$2.3 million.
The deep drilling project is designed to test for very high energy geothermal resources below HS Orka's existing Reykjanes geothermal power plant. The hole is expected to be one of the deepest geothermal holes drilled to date in Iceland, with expected temperatures in excess of 500°C and exceptional power production potential. If the well is successful, the resulting power will be harnessed and owned by HS Orka. HS Orka will operate the project in cooperation with its consortium partners. Drilling is expected to begin in late summer 2016.
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating six power plants totaling 757 MW of generation capacity including the Shannon wind project in Texas, British Columbia's largest run-of-river hydro facility and largest wind farm, and two geothermal facilities in Iceland. Alterra owns a 349 MW share of this capacity, generating over 1,600 GWh of clean power annually.
Alterra is also constructing the 62 MW Jimmie Creek run-of-river hydroelectric project in British Columbia, which is expected to be in operation by Q3 2016 (51% owned by Alterra). Upon completion of Jimmie Creek, Alterra will operate seven power plants totaling 819 MW of capacity and will own a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of Canadian securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include the start date for the deep drilling operations, the depth and temperature expectations of the drill hole as well as its power producing potential and the feasibility of harnessing such power by HS Orka and the date the Jimmie Creek project will achieve commercial operations. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include the depth and temperature estimations for the deep drilling program, whether the program will result in additional generation potential at the Reykjanes plant, as well as those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2015. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE Alterra Power Corp.