and future events could differ materially from those anticipated in such statements. Such information contained

Transcription

1 US U.S. Geothermal linc.

2 Forward Looking Statements This presentation includes certain Forward Looking Statements. All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances thatt such statements t t will prove accurate and actual results and future events could differ materially from those anticipated in such statements. Such information contained herein represents management s best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement. All financial information presented in US dollars unless otherwise indicated 2

3 Pacific Northwest s First Geothermal Power Plant - Online

4 HTM Overview Investment Highlights Project Sites Geothermal is clean, secure, cost-effective energy source Premier site locations, located in some of the world s top geothermal resource locations Raft River, ID Two operating geothermal plants with long term PPAs, totaling 16.6 MW of nameplate operating capacity: Raft River Unit 1 and San Emidio Quality project pipeline: 79 MW under exploration and development with 66 MW projected to be operational by 2011 Proven management team with relevant development and operational experience San Emidio, NV Neal Hot Springs, OR 4

5 Clean and renewable generating g source Why Geothermal? Versus Traditional Power Generation Cost competitive with traditional sources in many geographic areas No commodity risk and/or price volatility from fuel inputs No emissions = easier permitting process in power hungry Western US Incentives enhance attractive project returns High availability versus all technologies Versus Other Renewable Power Generation Base load power Wyoming Coal Plant Not dependent on variables such as the time of day, cloud cover, etc. 90% utilization versus 30-35% for wind and solar Can constitute larger portion of a utility s generating portfolio Results in lower production costs per megawatt produced More attractive project returns Smaller footprint and reduced visual impact versus wind and solar Natural Geyser Longer development lead times and higher exploration risk/cost 5

6 Geothermal Overview Large existing installed base in the United States US Electric Geothermal Resource Survey 2,285 MW (2) in production as of year end 2005 Comparatively, wind and solar have an installed operating capacity of 8,706 MW (2) and 411 MW (2), respectively Geothermal production output in the U.S. is larger than wind and solar combined Globally, there is 8,400 MW in production United States is the largest producer The first geothermal power plants in the U.S. were built in 1962 at The Geysers dry steam field in Northern California The Geysers are the largest producing geothermal field in the world Geothermal power has incredible potential as an energy source The international market for geothermal power development could exceed $25 billion within the next 10 to 15 years (1) Limited technology risk Source: US DOE NREL Estimated US Geothermal Potential Shallow Identified.30,000 MW Shallow Unidentified..120,000 MW Co-production & Geo-pressure >100,000 MW Enhanced Geothermal Systems.. 13,000,000 MW (1) Sandia National Laboratories, US DOE (2) Source: EIA Data for 2005 Source: NREL 6

7 Our Strategy Goal: To Become a Leading Independent Developer of Renewable Power from Geothermal Sources Leverage Management Team Capabilities and Experience Develop Our Pipeline of Quality Projects Utilize Production Tax Credits and Other Incentives to Maximize Project Returns Pursue Acquisition Strategy Evaluate Other Potential Revenue Streams from Geothermal Resources 7

8 Experienced Management Team Daniel Kunz BSc, MBA, President, CEO & Director 32 years in natural resource development, former President of NYSE listed Ivanhoe Mines, NASDAQ listed MK Gold, and VP and Controller of of Morrison Knudsen Corporation (URS Corp). Doug Glaspey BSc, COO & Director 30 years in natural resource development, mine operations. Former President of TSX Venture listed U.S. Cobalt Inc. Kerry Hawkley Bba, CFO & Secretary 30 years experience in accounting, finance and administration. Formerly an Internal Auditor with Union Pacific Corporation, Controller for Triumph Gold Corp. and Controller, Treasurer and Director of LB Industries Inc. Kevin Kitz BSc, PE, VP Project Development 19 years geothermal design, construction and operations. 17 years with UNOCAL geothermal group at the Geysers, Salton Sea and Philippines. Dr. Leland Roy Mink Director is the former Program Director for the Geothermal Technologies Program, U.S. Department of Energy (DOE). Prior to working for the DOE Dr. Mink was the Vice President of Exploration for U.S. Geothermal Inc. He has also worked for Morrison- Kundson, Idaho Bureau of Mines and Geology and Idaho Water Resources Research Institute. Bill Teplow BA Geology, PG, Chief Geologist 28 years geothermal exploration and development, former Chief Geologist of Ormat, VP Exploration Trans-Pacific Geothermal. 8

9 Projects In Fast Growing Pacific Northwest 9

10 Raft River Construction Summer 2007

11 Completed Power Plant October 2007

12 San Emidio Power Plant

13 US Geothermal Potential in 2011 Selected Metrics Expected Capacity 16.6MW Currently 66MW MWh 549,252 MWh Approx Gross PP&E $190 million Target Debt / Equity 70 / 30 13

14 2009 Stimulus Bill to Aid Development PTCs Extended d to 2013 Election for 30% ITC in lieu of PTC For Construction starting in 2009 and 2010 ITC-Related Grant Available for 10% of Costs.

15 Growth Potential in the Pacific NW Combined capacity potential of 13,000MW of which 5,600MW could be developed within the next 10 years Could create about 10,000 jobs Would generate approximately 36,000 person-years of construction and manufacturing business This is a commercially achievable new capacity of new generation and does not include the much larger potential of unknown, undiscovered resources An economic multiplier effect would increase these numbers further. (Geothermal Industry Employment: Survey Results & Analysis, Cedric Nathanael Hance, September 2005)

16 Pacific Northwest Renewable Portfolio Standards Washington 15% by 2020 Oregon 25% by 2025 Montana 15% by 2015 Nevada 20% by 2015 Idaho & Wyoming have not set any RPS California has the most aggressive with 20% by 2010 Utah Voluntary Renewable Portfolio goal of 20% by The bill requires utilities pursue renewable energy to the extent that it is cost effective.

17 Current Project Overview Projects in Operation Generating Contract Project Location Ownership Capacity (MW) Power Purchaser Expiration Raft River (Unit I) Southern Idaho JV (1) 13.0 Idaho Power Company 2032 San Emidio (Existing) Nevada 100% 3.6 Sierra Pacific 2017 Power Projects under Exploration and Development Target Projected Development Commercial Anticipated Project Location Ownership (MW) Operation Date Power Purchaser San Emidio (Replacement) Nevada 100% th Quarter 2010 TBD Neal Hot Springs Eastern Oregon 100% rd Quarter 2011 Idaho Power (IPCO) Raft River (Unit II) Southern Idaho JV (2) 13.0 TBD Eugene Water and Electric Board Raft River (Unit III) Southern Idaho 100% 13.0 TBD N/A Resource Details Resource Property Size Temperature Potential Property (square Km) ( C) (MW) Depth (meters Technology Raft River (3) ,371 1,829 Binary San Emidio (3) Binary Neal Hot Springs (3) N/A Binary (1) Per JV with Goldman Sachs (2) Goldman Sachs has the option to participate in unit II (3) Per Independent Resource Reports 17

18 Neal Hot Spring Drill Rig May 2008

19 Project Timeline 6 RR #3 (13 MW) 92 Number of Projects 5 4 Neal Hot Springs (26 MW) Raft River Unit II (13 MW) Empire Replacement 3 40 (27 MW) Total Productio on Capacity (MWs) 2 Empire 3.6 MW 17 1 Raft River Unit I (13 MW) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

20 Market Profile (in thousands, except per share amounts) Company Information Trading Data (as of 01/16/09) Company Name U.S. Geothermal Inc. Current Share Price $0.93 Exchange Ticker AMEX: HTM LTM High / LTM Low $3.04 / $0.33 TSX: GTH (Discount) to LTM High (69%) Premium to LTM Low 182% State of Incorporation Delaware Avg Daily Trading Volume (000s) (1) 397 One Year Stock Performance Capitalization Basic Shares Outstanding (2) 62,012 Fully Diluted Shares Outstanding (3) 69,844 Fully diluted Equity Value $64,954 Less Cash (2) (6,342) Plus: Debt (2) 0 Fully Diluted Enterprise Value $58,612 (1) Three month average (2) Data per Oct Q (3) Fully Diluted Shares per Treasury Stock Method 20

21 Investment Highlights Summary Geothermal is clean, secure, cost-effective energy source Premier site locations, located in some of the world s top geothermal resource locations Two operating geothermal plants with long term PPAs, totaling 16.6 MW of total operating capacity: Raft River Unit 1 and Empire 1 Quality project pipeline: 79 MW under exploration and development with 66 MW projected to be operational by 2011 Proven management team with relevant development and operational experience 21

22 February 2009