August 22 (Renewables Now) - A subsidiary of Ormat Technologies Inc (NYSE:ORA) will receive up to USD 68.3 million (EUR 61.6m) from selling membership interests in a 48-MW geothermal plant in Nevada.
Under the partnership agreement, the interests will be sold to an unnamed private investor for an initial amount of USD 59.3 million, while additional annual installments of around USD 9 million will be distributed at a later point. The deal covers the McGinness Hills Phase 3 geothermal station, Ormat said on Wednesday.
Located in Nevada's Lander County, the power plant became operational in December last year and sells its output under a 26-year power purchase agreement (PPA) with Southern California Public Power Authority (SCPPA).
Following the sale, Ormat will continue to operate and maintain the plant and will get “ substantially all” of the distributable cash flow it generates. The private tax investor, on the other hand, will receive “substantially all” of the tax attributes.
“This transaction allows us to efficiently utilize tax incentives available to geothermal projects and create value for our shareholders,” said Isaac Angel, CEO of Ormat.
(USD 1.0 = EUR 0.902)