Ormat sells Nevada geothermal plant stake to Northleaf for USD 44.2m
Geothermal power station. Featured Image: N.Minton/Shutterstock.com
US geothermal company Ormat Technologies Inc (NYSE:ORA) has completed a planned sale of a 36.75% stake in the 20.5-MW second phase of the Don A Campbell geothermal power plant in Nevada to Northleaf Capital Partners.
The private equity firm bought the stake in the facility, which started operations in September 2015, for USD 44.2 million (EUR 41.6m), Ormat said today. The Don A Campbell second phase sells its electricity to Southern California Public Power Authority under a 20-year power purchase agreement (PPA).
With the closing of this follow-on equity transaction, the plant was added to the ORPD joint venture between Ormat and Northleaf that was created last year.
"The successful monetization of the second phase of Don A. Campbell power plant validates the excellent relationship we have established with Northleaf, and demonstrates that Northleaf continues to see value in acquiring equity interests in our plants," said Ormat's chief executive Isaac Angel. He added the proceeds will strengthen the company's balance sheet and support its expansion plans and future strategic opportunities.