Chena Power — one half of the joint venture behind the Makushin geothermal project — is suing the other partner, Unalaska’s Native village corporation.
The Fairbanks-based energy company joined forces with the Ounalashka Corp. in 2019 to develop geothermal energy from the natural heat of Makushin Volcano, which sits about 14 miles across the bay from Unalaska. Chena Power was started by entrepreneur Bernie Karl, who developed the geothermal-powered Chena Hot Springs Resort.
Since at least the 1980s, several groups have tried to tap the volcano’s geothermal potential in hopes of cutting dependence on expensive diesel while generating local renewable power. But after years of delays and financing hurdles, the latest attempt fizzled out in February of 2024.
Now Chena Power is suing Ounalashka, saying the Native corporation pushed them out of the joint venture through bad faith maneuvering.
Chena Power filed a complaint in July claiming Ounalashka worked with Unalaska City Manager Bil Homka to cancel a power purchase agreement that the city agreed to in 2020. Chena Power says that decision wiped out $25 million of the company’s value. Homka declined to comment.
The company is suing for breach of contract, breach of fiduciary responsibility and unfair trade practices.
Ounalashka has not filed a response. CEO Natalie Cale said by email Friday the corporation denies the allegations and does not wish to comment further.
