For those investors new to Geothermal Energy, this microcap HTM is a prime example of the struggles encountered in this fledgling Green Energy production, using and recycling the naturally occuring heat from the Earths core. You will be surprised to learn the real story of this minimally tapped energy source. This company HTM is a fine example of the dedication and hard work it takes to develope an energy source like this. Take a look, you will find year over year progression since they started back in 2003 there have been many struggles to properly develope the Binary geothermal systems employed. Now if you like what you see from 2012 to 2013, you will be blown away by what happens in 2014.
Things that changed and now will remain the same going forward all plants are now finished with the shakedown and are running as to be expected. The injection wells are working great pushing the fluids back down to the source for re-heating and the production wells bringing the reheated fluids back to the plants for use again in spinning the turbines. Now the turbines used took multiple tries of the manufacturer working with HTM for the most efficient, most productive turbines for this use, that in itself is quite a story. from 2012 to 2013 was hard corp. development and refining efficiencies, shutting plants down reworking the turbines, refining the drilling process, enlarging the well diameters, and properly fraking the geothermal sources allowing the most efficient production possible.
From the business standpoint, the PPA's all increased in January will reflect in Q1 and forward. Year over year comps going forward a poor quarter will drop off and a much improved quarter will be picked up through the end of the year. Then in 2015 HTM will have new production coming on line, this will more than like be their new endeavors into flash steam in either Guatemala, of the newly purchased Geysers property in California. Beyond that there is solid growth in the pipeline. Currently there are three fully operational binary facilities running and all are profitable. There are two Flash Steam facilities and another Binary facility under construction and much more in the pipeline. There is much in this field as yet undiscovered, and what is in play is continuously being refined.
To this date Flash Steam has been the preferred method, however with leaders like Ormat and US Geothermal things are changing. Binary systems are now becoming profitable. Currently a Geothermal company can match Flash Steam and Binary systems, getting the most efficiencies out of their properties and increasing production for the consumer of clean green energy. Years ago when I first started with geothermal I picked three cutting edge stocks, RZ, NGLPF, and HTM. HTM is the lone survivor they had better methodology in the drilling practices which is key in these Binary systems. They had to do some risky financing like the others to get started, and HTM survived. HTM is now on their own with a bright future in the alternative energy field. RZ and NGLPF both made mistakes in these two most critical areas missing the hot field and having to re develop a site, and missing with their financials and defaulting. HTM did not miss and have a solid management team to thank for this, keeping her slow and steady through development.
This is just a few basics, I wanted to give everyone a short easy to read intro. I have been with this stock and geothermal energy for many years and she is finally ready for prime time. Follow up articles will be more detailed I wanted to warm everyone up to the idea there actually is a profitable alternative energy source and a sense of its development.
Disclosure: I am long HTM.