Nevada Geothermal Power Announces Approval of Environmental Assessment for Blue Mountain

January 10, 2008

Nevada Geothermal Power Inc. (NGP) (TSX VENTURE: NGP)(OTCBB: NGLPF) announced today that NGP has received approval from United States Department of the Interior, Bureau of Land Management (BLM) for its Operations Plan and Utilization Plan for the Blue Mountain Geothermal Project. Approval is for lands located within the Blue Mountain Geothermal Unit Agreement area (which includes federal and private leases) and the rights-of-way for the electrical transmission line and power switching station. Based on the environmental analysis and Finding of No Significant Impact (FONSI), NGP is allowed to proceed with geothermal development operations. Work includes the construction of new well pads, access roads and temporary water wells for the purpose of drilling geothermal production wells and installation of production, re-injection, and fresh water pipelines in support of development facilities to operate a geothermal power plant.

“The ‘FONSI’ for our planned operations in the development of the Blue Mountain Power Project represents the culmination of 18 months of collaborative work with the BLM. Extensive environmental and cultural studies were completed and public input was obtained. The EA approval represents a major step towards the completion of the Faulkner 1 geothermal power plant, clearing the way to obtain the balance of permits required for construction,” stated Brian Fairbank, President & CEO.

Blue Mountain, located 30 kilometers (20 miles) west of the town of Winnemucca, Nevada, is ideally situated for development. The proposed Faulkner I geothermal plant will require a 20-mile long transmission line over relatively flat, undeveloped desert land to a connection point located on the Utility’s (Sierra Pacific) 120kV-transmission line north of Mill City, Nevada. The electric power is to be sold under a 20-year Power Purchase Agreement to the Nevada Power Company for up to 35MW of geothermal power. Phase I at Blue Mountain is expected to commence power generation in late 2009.

About Nevada Geothermal Power Inc.:

Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of approximately 150 MW to over 200 MW from the current leaseholds.

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