Another Look at Geothermal Energy

Source: Seeking Alpha, Michael Brisky (5/3/09)

". . .most feel energy prices are going to rise again soon."

The key to growth in the geothermal, or any alternative energy for that matter, relies on a couple of key factors:

Political will. This means commitment of enticements (tax credits) or legislation requiring a switch (such as renewable portfolio standards).
Private capital

#1 is happening. The Obama administration had shown that they are not going to let the financial situation stop them from plowing through their agenda. This can be both good and bad, but politics aside, it's good for alternative energy.

#2 is also happening: One of the main concerns about this is that lower traditional energy prices (oil and gas specifically) will cause private capital to lose focus on alternative energy because of higher costs. This hasn't totally happened, which is good. The reflation trade is starting to gain traction, too, and most feel energy prices are going to rise again soon.

I found an interview with U.S. Geothermal CEO Daniel Kunz for some more insight on this. Kunz mentions a couple of the key factors:

Geothermal is base-load power. This means that it can provide a continuous amount of power that utilities need to provide to its customers. Wind and solar are intermittent depending on conditions and, thus, can't provide this.
With geothermal, you are basically paying for your power up-front. The infrastructure to build a plant is very expensive, but cheap once it's going. That's why it's difficult to secure private capital for geothermal (the payback can be many years, which can be forever on Wall Street).

Here are the expected costs of geothermal vs. other energy types (in 2030, which is an expected date for these technologies to mature):

Geothermal energy is expected to cost about 7.3 cents per kilowatt hour by 2030 compared to 8.1 cents per kilowatt for wind, 12.5 cents per kilowatt hour for concentrating solar thermal and about 22.9 cents per kilowatt hour for solar photovoltaic, according to the Energy Department.

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Source: Streetwise Reports (07/13/2020)

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"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."