Geothermal stumbles in Nevada
Investors are unlikely to get their money back
In November 2009, Nevada Geothermal Power Inc. received $57.9 million from the federal government to expand its Faulker 1 power plant near Winnemucca, Nev.
At the time, the plant was putting out 27 megawatts of power and the federal cash was supposed to pay for new drilling to bring the plant closer to 50 megawatts. Industry boosters hailed the deal as a sign of geothermal's resurgence.
But recently, stock analysts downgraded the company's stock to a "sell" rating after Nevada Geothermal Power announced its plant is stuck at 35 megawatts and investors are unlikely to get their money back.
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