Ormat closes buy of 20-MW energy storage plant in California

Pomona Energy Storage facility, California. Image by AltaGas.

July 22 (Renewables Now) - An affiliate of US geothermal company Ormat Technologies Inc (NYSE:ORA) has completed the acquisition of a 20-MW/80-MWh energy storage facility in California.

More specifically, Ormat Nevada Inc has bought the Pomona energy storage facility from Canadian utility Altagas Ltd (TSE:ALA) for USD 47 million (EUR 40.6m), net of working capital adjustment and other adjustments totalling some USD 3.1 million.

The purchase expands Ormat’s energy storage portfolio to 73 MW/136 MWh as the company already has battery storage assets in New Jersey, New England and Texas. Pomona has been in commercial operation since end-2016 and has a 10-year energy storage resource adequacy deal with Southern California Edison Company.

“The facility [Pomona] should improve our storage segment profitability and assist us in meeting our overall goals in this segment,” said Doron Blachar, CEO of Ormat.

At the start of July, Ormat said it would use a portion of the proceeds from an ILS 1 billion (USD 292m/EUR 252m) bond issuance to cover the purchase price of this transaction.

(USD 1.0 = EUR 0.863)

(ILS 10 = USD 0.292/EUR 0.252)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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