RPT-BAY STREET-Why geothermal remains buried treasure-Reuters

(Repeat Sunday column)

* Clean, reliable and cheap sources of renewable energy

* Geothermal stocks down 20-50 pct in the previous year

* Development is slow, risky and expensive initially

* Google, Buffett investors in geothermal sector

Nicole mordant dyeing

VANCOUVER, 13. March Reuters)-As renewable sources of energy, geothermal energy has a lot on his side.

It may be naturally occurring heat trapped deep in the country soared to the surface to produce electricity, which is clean, it is always available without the fickleness of wind and solar energy, and according to some studies, it is still cheaper than coal-fired power.

So why is industry, whose North America financial base is now Bay Street, trying so hard to gain respect?

At a time when oil prices recovering and the Governments and people more on alternative energy shares continue to slide, geothermal on Toronto Stock Exchange and few, if any, signs of recovery.

In the past year, shares of Magma Energy Corp. (-in), Ram power Corp. (RPG.In the US (GTH) and geothermal power.K) lost between 20% and 50% of their value and company bosses say will remain hard to obtain finance through easier credit terms.

"It's not that we bear on geothermal as draft or technology, but we think it's more a niche technology," said John Segrich, portfolio manager for Gabelli SRI Green Fund, New York-based fund investing in sustainable businesses.

The problem for the geothermal Developer's extension, or "Add megawatts", is a slow, technically complex and costly process.

"We bear geothermal stocks. All geothermal developers are truly independent power producers. If you are not adding any megawatts as IPP, and there is no profit growth, then they are not an attractive investment, "said Segrich.

HIGHLY RISKY AND RETURN HIM-HUM

The development of geothermal resources is a lot like mining project. Go to find the resource, then go to the firm and its size.

Posted in green technologies

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