BLM raises $19.6M through geothermal lease option sale
Updated August 15th with corrections.
Today, forty-nine land parcels with geothermal leases were auctioned at the Reno, Nevada Bureau of Land Management office. We estimate some 50 people were in attendance at the auction today representing companies including Ormat, Calpine, US Renewables note: replaced with Binkley Geo Resources (though Tom King from US Renewables was the bidder), and Raser Technologies.
Note regarding accuracy: we recorded winning bidder numbers on each parcel and are fairly certain about the identity of the named bidders in this entry, but, this information could be wrong. When the BLM posts the results on their web site, we will revisit our parcel number to bidder number analysis and correct anything that we’ve gotten wrong.
The auction started off with excitement as the first parcel of 470 acres at the Geysers generated spirited bidding between Calpine and US Renewables note: replaced with Binkley Geo Resources, the winning bid was $14,000/acre and a walk-off price of $6.5M. That was the high price per acre paid and the highest price paid for any individual parcel. In total, the 6 California parcels totaling 2,711 acres located in the Geysers area, sold for $8M and went to 4 different bidders, Calpine won two parcels, US Renewables note: replaced with Binkley Geo Resources two parcels, and two unidentified bidders secured the remaining parcels.
The forty-three Nevada parcels had a much greater distribution of prices and bidders, with the low price paid at $3 and the high price paid at $510 per acre. In total, 122,850 acres were sold for $11.6M and were distributed among 10 bidders. The story in Nevada was Ormat who we believe successfully won the bid on 22 of the 43 parcels accounting for nearly $8.2M of the proceeds.
The remaining twenty-one parcels were distributed among nine different bidders. Six individual bidders were able to secure single properties (disclosure: MeV was one of those companies) accounting for $2.3M. Three bidders won the remaining 15 parcels. We believe we can only identify one of those bidders, Raser Technologies, who won 4 parcels accounting for just over $0.6M. One other unidentified bidder secured 8 parcels accounting for $0.4M and the other secured 2 parcels accounting for $0.1M.
If nothing else, this shows the renewable energy space is hot (please forgive the pun.) It was a highly educational day and a good day for Uncle Sam who put this land to work for the people while raising some cash. We’ll look forward to attending the next BLM auction. And, the auctioneer, Lynn England, was great as were the very helpful (if not a little stressed out) BLM employees.
[…] based on the way the land parcels are arrayed, but they successfully won 22 individual parcels. We know, we watched them bid and win. The total $ spent does match our record of the event so it must simply be a point of view that […]
why was the U.S. Renewables name changed on your website?
The BLM press release identified the winning party as Binkley GeoResources. We were confused about this as Tom King from US Renewables was the actual bidder. Apparently Mr. King was acting on behalf of the Binkley organization in this auction.
Since we originally identified the bidder as US Renewables, we put a strikethough there rather than dropping it entirely and entered the new, correct information.
Understand, the bidding was done by number and unless you knew the players in the room, you weren’t sure which company was associated with which number. Even so, people change companies and represent different entities, so it’s not 100% accurate unless you have the BLM list that associates entity to bid number.
[…] writing about the BLM land auction last week we said we’d correct any information that wasn’t right once the results were posted. […]
Do you have a list of lease serial numbers with their legal descriptions for this BLM Geothermal Lease Auction? I would appreciate any help,
John
John,
This information can be found at the local Reno BLM website. Good luck.
Mike