Geothermal Picks

A recent article from TheStockAdvisors.com shows the contributing editors from Stephen Leeb’s The Complete Investor focus on three Geothermal energy picks:  Chevron (CVX), Calpine (CPN), and Ormat Technologies(ORA).

"Throughout the globe, heat is continually produced in a layer far below the earth’s crust. Large power plants can capture and use this steam to provide electricity on a fairly large scale. In Iceland, by some estimates, 50% of all energy needs are met through an alternative energy source that has been known for a long time, Geothermal is used in many other places as well. The largest system in operation is in California just north of San Francisco, in an area known as the Geysers."

"While oil, of course, is its main focus, Chevron is the world’s largest geothermal energy producer, with facilities that include two plants in Indonesia and two in the Philippines. The company’s huge capital base gives it the wherewithal to fund continued research and installations."  Here is more about Chevron’s Geothermal business.

"A riskier play is Calpine Corp., the primary producer of geothermal energy in North America. It’s the operator of the huge geothermal facilities at the Geysers, which meet nearly 70% of the average electrical demand for California’s North Coast region."

"Finally, the pure-play geothermal company with the best-defined growth prospects is Ormat Technologies. It’s the second-largest producer of geothermal electricity in the U.S., which accounts for around 75% of the company’s revenues. Its 11 geothermal power plants produce an average of 32 MW per year per plant, and it has a further 270 MW of capacity in various stages of development. Ormat is a leader not only in geothermal energy but also in ‘recovered energy power generation’, which refers to the capturing of waste heat generated from industrial processes and converting it into electricity."

For more information on Geothermal here are some good links:

Geothermal Resources Council

Geothermal Energy Association

Geothermal Education Office

International Geothermal Association

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