Why Raser Made an Alt-Energy Land Grab in Utah

The company quickly redrew its business plan, bumping up its planned development of 10 megawatts of power to 230 megawatts. That is in line with the field's power potential according to calculations by GeothermEX Inc., a consulting firm.

By comparison, the largest group of geothermal plants in the world are The Geysers, about 60 miles northeast of San Francisco. The Geysers geothermal basin produces about 900 megawatts of energy, enough to power the city, said Ann Robertson-Tait, a senior geologist and vice president of business development for GeothermEX.

Geothermal technology creates energy using heat that is stored in the earth. But geothermal still generates less than 1 percent of the world's energy, according to the Paris-based International Energy Agency.

"The outlook for geothermal is great," said Brian Yerger, an energy analyst for New York-based Jesup & Lamont.

Geothermal companies are relatively small players in the energy market and have had to scramble to lock up financing, particularly during a recession.

Merrill Lynch & Co. (MER Quote) has pledged to fund Raser's first 100 megawatts of projects and says it is staying in the game.

"We've done a lot with Raser," said Merrill Lynch spokeswoman Danielle Robinson. "We're very committed to the company."

Cook said his company can raise additional money from joint ventures and stock sales. "This is where the money flows, to alternative energy projects that pencil out," he said. The company made its first major stock sale Nov. 14 to Fletcher Asset Management of New York.