Raser Technologies Mines the Power of Geothermal

TSC: Who are your major competitors?

Cook: I'd say that our main competitor is time. Some people say that Ormat (ORA Quote) is our major competitor. We do compete with Ormat in the sense that we compete over geothermal resources. However, our business models are different. Ormat manufactures equipment and develops resources. Our only focus is developing resources.

Other competitors in the geothermal space are major integrated energy firms like Chevron (CVX Quote). Generally, we focus on lower-temperature projects than the big players.

TSC: Can you describe Raser's future build-out schedule?

Cook: We estimate that we will build 100 megawatts of power generation each year over the next three years, and then 150 megawatts of power generation each year after that. In the beginning, we don't think we will finish 100 megawatts each year, but we will announce 100 megawatts each year.

TSC: Can you break down your development costs into dollars per megawatt?

Cook: We think that our plants will cost about $32 million for every 10 megawatts of power generation. This figure includes grid-interconnection costs and well-development costs.

TSC: How much of your geothermal backlog is funded?

Cook: We recently entered into a new financing agreement with Merrill Lynch whereby Merrill agreed to fund the next 155 megawatts of our geothermal development projects.

TSC:When do you anticipate generating a positive income stream?

Cook: We think we will start making money once three plants that are slated to come online in 2008 are connected to the power grid.