08-27-10 Reno Gazette Journal

Geothermal company unveils new corporate headquarters today in Reno

Northern Nevada's burgeoning geothermal sector acquired another key player as Gradient Resources held a coming-out party Friday at its new corporate headquarters in Reno.

The company — known formerly as Vulcan Energy — officially moved its headquarters from Bend, Ore., to Reno this month. Prior to its move, the company operated an office in Reno for the last two years.

The move continues to raise Northern Nevada's profile as a hot prospect for geothermal development. It also provides a much needed shot in the arm for an area desperate to diversify its economy as it hemorrhages jobs in its construction and tourism industries.

Sen. Harry Reid, D-Nev., who was on hand for the celebration and name change, welcomed the company's arrival.

"Gradient Resources has been a great American company for almost 20 years," Reid said. "Now it's a great Nevada company. This is really an exciting time in Nevada for renewable energy."

The move to Northern Nevada makes sense given how the majority of Gradient's assets and resources are in the area, said CEO Craig Mataczynski. Mataczynski also cited the strength of the area's geothermal sector, along with quality of life and Nevada's business-friendly environment as "driving factors" for the move. Geothermal giant Ormat, for example, calls Northern Nevada home. Several geothermal outfits such as Magma Energy, Sierra Geothermal Power, and Ram Power Corp. also have operations in the area.

"We came from a place where we were the only company of our kind in the area," Mataczynski said. "Here, there's a nice pod of geothermal businesses ... and that type of environment makes it conducive to attracting talent and supporting the general business needs of (Gradient)."

Gradient currently has six geothermal projects under advanced development in the state. One of those projects — a 60-megawatt development — is expected to be on line by the first quarter of next year. Although accurately identifying geothermal sites can be a challenge, the company has "a pretty good handle on its reserve positions" and is very optimistic that all six sites will pan out, Mataczynski said.

Gradient estimates that its six projects will create 360 full-time jobs and 1,200 construction jobs. Gradient currently has 100 employees between its Reno and Fallon offices. Mataczynski wants to grow that employee base by 40 percent to 50 percent in the next two years.

Some technical positions will likely be filled from out of state but most of the hiring will be done locally, Mataczynski said. The company is also working with local educational institutions to create training programs for drilling operations and other specialized jobs.

Such moves, combined with the arrival of geothermal companies, are necessary to create the infrastructure required to make Northern Nevada the Silicon Valley of geothermal — a goal touted by many in the area's economic development circles. The idea actually doesn't sound far-fetched, according to Mataczynski.

"The geothermal industry is poised for significant growth in the next five to 10 years," Mataczynski said. "I think that a lot of that growth will take place in and around the Reno area ... which is one reason we're happy to be here. We're looking forward to becoming a part of the community and becoming a successful business."