Geothermal

The Geothermal Energy Association (GEA) reports that the world market reached upwards of 12.7 GW of operational geothermal power in 24 countries, reflecting about 700 MW of combined added growth.

The World Bank is aiding in global growth through its focus on early risk mitigation. In tandem to this work, governments continue to develop and adopt policies to meet electricity demand. GEA forecasts the forward-moving trajectory will continue for at least another decade and globally, geothermal energy production should reach at least 20 GW by 2024.

In addition to our site’s geothermal and advantageous solar potential, powerful market and political forces are also driving the geothermal base-load market such as the Renewable Portfolio Standards, as well as requirements for environmentally friendly energy sources, volatility of fossil-fuel prices, state and federal driven mandatory clean energy use policies for replacement of fossil based energy development, and the overall US energy demand increase. According to the IEA/OECD, Population OECD/World Bank “the US energy use has increased by 20% over the last 20 years”.

GFES believes that as a result of these resource characteristics and market drivers, combined geothermal and solar energy sites will become highly coveted renewable energy sources.

GFES understands the importance of a premium heat source for harvesting geothermal heat. The company’s lead project is located in one of the largest geothermal anomalies in the Western US, which has an estimated total capacity of over 274 mega-watts. (Table 12, P-128 UREZTF Phase 1 Report).

The company is prepared to increase its holdings, and is negotiating to acquire additional sites, which are located in or close to areas defined as Known Geothermal Resource Areas (KGRA). Other sites are in advantageous solar radiation zones and are also close to existing transmission corridors or in proximity to electrical substations.

Some of the portfolio sites lend to “hybrid” power development for both geothermal and other sustainable power resources. Independent reports estimate potential capacity between 80 MW and 370 MW +/- at select sites. Since geothermal resources provide true “base-load” power, demand continues to increase. GFES’ geothermal property is located in the State of Utah, one of the top 3 geothermal states.

GFES has attracted an excellent team of business and development professionals, each one with a history of success in his respective area of specialty and all committed to providing an unparalleled, successful corporate culture and environment. Team members bring valuable industry specific knowledge and experience in the geothermal and other renewable energy markets from both public and private companies, utilities and resource developers. GFES’ team of seasoned professionals provides key competitive strength with a broad range of national and international experience, and an understanding of the economies of scale.

Geothermal energy is a proven, over 100 years old, technology, is on the grid producing over 10,000 megawatts (“MW”) in 24 countries worldwide, and meets the current needs of 60 million people. The United States Geothermal Industry had about 3.5 gigawatts (“GW”) of installed nameplate capacity and 2.71 GW of net capacity at the end of 2014. In total, the US market had about 1,250 MW of geothermal power under development. In a 2015 report from the University of Michigan Center for Sustainable Systems, it was noted that electricity generated from geothermal power plants is projected to increase from 16.6 billion kilowatt hours (“kWh”) in 2014 to 69.6 billion kWh in 2040. Recently, the US President proposed a Federal Clean Energy Standard to obtain 80 percent of American electricity from these and other clean sources by 2035. There are presently 3,525 MW of geothermal power plants in operation in the United States—the most of any country—and more than 1,250 MW in 83 projects are in development. GFES has developed strategic alliances and partnerships to meet both current and future demand for energy.

The GFES executive management and project teams will continue to increase the Company’s geothermal capacity and resource base in order to provide clean and renewable energy to top retail utility providers. This will further reduce the carbon footprint of fossil fuel based power production and conserve and protect valuable clean water resources.