U.S. Geothermal announced the mechanical completion for the first of three 7.3 net MW power plant modules at its Neal Hot Springs project located in the state of Oregon.

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The completion of the first air cooled power plant module will see the commencement of commissioning activities on other individual power plant components, controls and the related production and injection wellfield.

The power module will undergo acceptance testing once the commissioning activities are done.

The company will also see the full module startup and continuous operation.

U.S. Geothermal’s construction contractor is anticipated achieve the mechanical completion of second power plant module around 7 June 2012.

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The third module is slated to achieve mechanical completion by the end of June, 2012.

Construction began on the 23MW net binary cycle power plant in April 2011; a 25 year power purchase agreement has been signed with Idaho Power Company to purchase the full output from the power plant.

The project has secured a loan from the US Dept of Energy to finance the construction of the project which is expected to be complete in the third quarter of 2012.

U.S. Geothermal is a renewable energy development company operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada.