Ormat Technologies, of Reno, Nev.
, built the test plant at the Teapot Dome oil field to prove the technical feasibility of using hot water associated with oil production to generate electricity.
The plant was designed to produce 250 kilowatts of electricity. It has been operating for over a year, providing electricity to operate the oil wells.
Officials say while the plant proves the technology's viability, more study is needed to see if it would work at other oil fields in the country.
The federal government plans to continue testing for another two years and collect more data related to long-term durability of the plant.