JPM Capital has paid about $35.7m to Ormat Technologies for an interest in eight geothermal power plants in California and Nevada.

The two firms have entered into a tax equity partnership transaction for the geothermal plants. JPM intends to pay an additional $8.7m for 25% of the value of production tax credits generated by the plants through the end of 2016.

Ormat Nevada, a wholly-owned subsidiary of Ormat Technologies, will continue to operate and maintain the power plants.

Ormat Technologies chief executive officer Dita Bronicki said this is the second transaction in which JPM has partnered with the company.

"This transaction will enable us to maximize the use of our available production tax credits and accelerated depreciation that we would not have otherwise been able to utilize either at all or for a long time due to the fact that as a growth company we generate more deductions for tax purpose than we are currently able to utilize," Bronicki added.

For this transaction, RLR Consultants advised Ormat Nevada and Chadbourne & Parke represented Ormat Nevada as counsel.