The transaction included the entire geothermal portfolio of Enel’s subsidiary EGPNA along with various small solar power plants
Ormat Technologies acquires a 150MW geothermal and solar portfolio in the US from Enel. (Credit: Ormat)
Enel has closed the previously announced $271m sale of a 150MW contracted geothermal and solar portfolio in the US to Ormat Technologies.
The deal was executed by Enel’s fully-owned subsidiary Enel Green Power North America (EGPNA).
Announced in October 2023, the transaction included the entire geothermal portfolio of EGPNA along with various small solar power plants.
The sold portfolio comprises two operational geothermal power plants under contract and one triple hybrid geothermal, solar PV, and a solar thermal power plant.
The collective geothermal capacity amounts to approximately 40MW, complemented by a 20MW Solar PV capacity. Additionally, the portfolio includes two solar assets with a combined nameplate capacity of 40MW, along with two greenfield development assets.
The geothermal power plants under contract include Cove Fort in Beaver County, Utah, and Salt Wells in Churchill County, Nevada. Additionally, the solar photovoltaic (PV) facilities encompass Stillwater Solar PV II situated in Churchill County, Nevada, and Woods Hill Solar PV Park located in Windham County, Connecticut.
Ormat Technologies said that the entire transaction was financed using existing cash resources, along with $200m in newly issued long-term corporate debt. The acquisition is anticipated to have an immediate positive impact on both revenues and EBITDA.
The company plans to enhance the performance of the acquired asset portfolio through a series of operational improvements and optimisation initiatives.
Ormat Technologies CEO Doron Blachar said: “The acquired assets will be immediately accretive to Ormat’s profitability, and we expect to improve the generation, revenues and EBITDA performance through a series of value-enhancement initiatives, including the integration of Ormat’s own state-of-the-art equipment.
“We look forward to integrating these attractive geothermal and solar assets into our existing portfolio and translating our results into enhanced shareholder value creation in both the near-and long-term.”
Enel stated that the sale is projected to have a positive impact of approximately €250m on the group’s consolidated net debt. Simultaneously, it is anticipated to result in a negative impact of around €30m on the group’s reported net income, with no effect on its ordinary economic results.
The transaction does not impact the Enel Group’s renewable consolidated capacity in the US, which remains over 8GW.