GeoGlobal Energy will invest $90m for the construction of the $400m Hudson Ranch geothermal energy plant in Imperial Valley, California.
The project will have a generating capacity of 49MW of baseload power after its expected completion in two years. The plant holds a 30-year power purchase agreement with the Salt River Project, a municipal utility in the Phoenix area.
As part of the deal, GeoGlobal Energy also becomes a 20% investor in EnergySource, a renewable energy company founded by Catalyst Renewables and Hannon Armstrong.
GeoGlobal Energy is focused on the worldwide development and acquisition of geothermal resources to generate base load, renewable and low-carbon electricity.
According to the company, its goal is to develop, own and operate 1000MW of geothermal energy production worldwide over the next ten years through greenfield development, partnerships and acquisitions.