BrightSource expands Nevada solar thermal project

* BrightSource expands deal with Coyote Springs Land Co

* To boost project's expected power to 960 MW from 600 MW

LOS ANGELES, Sept 22 (Reuters) - Solar thermal power company BrightSource Energy Inc said on Tuesday that it is expanding a land deal in Nevada that could boost the project's power potential to 960 megawatts.

The deal with Coyote Springs Land Co expands a previous agreement that called for sites that could accommodate up to 600 MW of solar thermal power.

Privately held BrightSource last week dropped plans to locate a 500-MW solar thermal project in the Mojave Desert after opposition from environmentalists and a U.S. senator who sought to preserve the surrounding area.

Solar thermal plants use solar heat to create steam that powers a turbine. They are typically much larger than those made up of photovoltaic solar panels, which turn sunlight directly into electricity.

BrightSource, based in Oakland, California, has picked up big contracts to deliver solar thermal power to California utilities Edison International Inc (EIX.N) and PG&E Corp (PCG.N).

The power generated from the Coyote Springs project, which is on private property near transmission lines, could meet demand in the immediate residential and commercial development of Coyote Springs, southern Nevada and deliver power to California.

BrightSource is also working on a major project in Ivanpah, California, which is expected to begin construction in 2010. (Reporting by Laura Isensee; Editing by Tim Dobbyn)