Israeli media reported on Friday that Israeli geothermal developer Ornat Technologies has won the rights to explore the geothermal energy potential of a large active volcano in Alaska.

Ornat will pay $3.5 million to acquire 15 out of 16 tracts of land around the base of Mount Spurr, which lies just 75 miles west of Anchorage, Alaska.

Exploration is set to begin next summer, with the company's long-term goal being the construction of a large power plant at the site fed entirely by geothermal energy.

Ornat began probing the idea of geothermal exploration at Mount Spurr two years ago in talks with the administration of Alaska Governor and US vice presidential hopeful Sarah Palin.

Palin is a strong advocate of developing the state's potential as a major energy provider, including oil, wind, natural gas and geothermal energy.