Makushin geothermal project approaching FID

Alan Bailey

for Petroleum News

According to the latest update from Ounalaska Chena Power LLC on the planned construction of a 36-megawatt geothermal power plant on the flank of the Makushin volcano on Unalaska Island in the Aleutians, the project is approaching a final investment decision.

The company says that the construction and logistics plan is complete and that it has signed a contract for engineering procurement and construction with Ormat Technologies. Ormat is a geothermal company based in Reno, Nevada, with international experience in building geothermal power systems. OCCP also says it has developed the rigorous design criteria and specifications that are needed for the selection and awarding of all remaining contracts needed for the project, with nearly all the contracts ready and waiting for the right time for execution.

The company is now focusing on securing total project financing. Because this is taking longer than anticipated, a decision has been made to extend the project timeline by one year. As a consequence it will be necessary to amend a power purchase agreement with the City of Unalaska electricity utility.

The project involves the placement of the power plant on a plateau on the flank of the volcano facing the city. There is a known major source of hot geothermal water underground at the site. Two or three production wells will deliver hot water into the power plant. Cooled geothermal water that has passed through the plant will be pumped back underground through injection wells for reheating. A 14-mile transmission line will connect the power plant to the city's power grid.

In addition to supplying power to the city, OCCP anticipates supplying power to fish processing plants on the island, thus replacing the use of diesel generators. Other potential benefits include the implementation of electrically powered heat pumps for heating buildings and the possibility of using some of the electrical power to generate green hydrogen.

--ALAN BAILEY