New Zealand's Mighty River Power has made a $154 million investment in a California geothermal power plant. The investment will help the Company expand its services in the United States and also help- the Company's growth. The Company pointed out this is a good investment and may reap rewards in the coming times.

The Company had earlier commissioned a $26 million geothermal operation in Chile. It is looking to utilize its geothermal expertise in various plants.

The Californian deal is routed through Mighty River's international partner, GeoGlobal Energy which will also invest US$107 million in the project worth US$400 million.

The first part of the project, Hudson Ranch Power 1, is scheduled to be commissioned in two years time. Doug Heffernan, Mighty River Chief Executive pointed out that the current project will give the Company to expand its operations in US. He also maintained that the deal was done after consultations with the regulators who were briefed about the project.

He admitted that though these projects were subject to various risks, it was important to diversify and try to expand business to new markets.

It has also lead to support form various rating agencies who feel that the Company's diversification plans are welcome. It is also being felt that the Company will invest more money than previously anticipated in these upcoming projects.