Geothermal expert Ormat completes USD-442m JV with Northleaf

Geothermal power plant. Author: Idaho National Laboratory. License: Creative Commons, Attribution 2.0 Generic

May 1 (SeeNews) - US firm Ormat Technologies Inc (NYSE:ORA) said on Thursday it has closed the sale to Northleaf Capital Partners of a 36.75% stake in a 106-MW power plant portfolio that includes 54 MW of geothermal capacity.

As part of the agreement signed in February, Ormat has formed a new unit to hold the 38-MW Puna geothermal plant in Hawaii and the 16-MW Don A Campbell geothermal power station in Nevada. The subsidiary also holds the nine units that make up the OREG 1, OREG 2 and OREG 3 recovered energy generation assets.

Northleaf has bought a 36.75% stake in the said holding company for USD 162.3 million (EUR 143.9m). The agreed consideration values the entire joint venture at some USD 442 million, Ormat said.

“This transaction will strengthen our balance sheet and will enable us to leverage our financial capabilities to support future strategic opportunities,” said Isaac Angel, Ormat's CEO.

(USD 1.0 = EUR 0.887)

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