Private investor buys into Ormat’s 26 MW Tungsten Mountain geothermal operation
Ormat enters partnership agreement with private investor, who will acquire a stake in the 26 MW Tungsten Mountain Geothermal Power Plant in Churchill County, Nevada.
Announced yesterday, Ormat Technologies Inc. announced that one of its wholly-owned subsidiaries that indirectly owns the 26 MW Tungsten Mountain Geothermal power plant entered into a partnership agreement with a private investor.
Under the transaction documents, the private investor acquired membership interests in the project for an initial purchase price of approximately $33.4 million and for which it will pay additional installments that are expected to amount to approximately $13 million. Ormat will continue to operate and maintain the power plant and will receive substantially all the distributable cash flow generated by the power plant.
“We are excited to close another partnership transaction that enable us to better benefit from tax incentives available to geothermal projects,” commented Isaac Angel, Ormat’s CEO. “Since 2011 we achieved the flip date under two of these partnerships, on or before the target date, evidencing our strong performance capabilities and commitment to our investors. We have in our development pipeline a few more projects that are expected to be entitled to production tax credits and we will continue to explore tax monetization opportunities for those projects to increase our profitability and obtain low cost funding to support our future growth.”
The Tungsten Mountain geothermal power plant, located in Churchill County, Nevada, began commercial operation on December 1, 2017. Tungsten Mountain is the first power plant to sell its power under the 26-year Ormat Northern Nevada Geothermal Portfolio Power Purchase Agreement with Southern California Public Power Authority (SCPPA), which was announced in June 2017.
Source: Company release via Nasdaq