Ram Power Corp., Reno, Nev., has signed a letter of intent with SNC-Lavalin Constructors Inc. for the construction of a 26 Mw geothermal power plant at Geysers steam field in northern California.

SNC would engineer, design, and procure parts and equipment for the construction and commissioning of the Geysers project. At the conclusion of the LOI period, scheduled for May 2012, Ram Power plans to execute a definitive contract with SNC for the engineering, procurement, and construction of the Geysers project.

Signing of the letter of intent followed a competitive bid process, Ram Power said. Four wells have been drilled and two more are planned near the plant site in eastern Sonoma County.