Ormat Technologies has offloaded its stake in the Momotombo geothermal power plant in Nicaragua through the sale of its operator Momotombo Power Company (MPC) for $7.5m.
With this deal, the company anticipates a capital increase of $2.5m in the second quarter of 2013.
Commenting on the sale, Ormat chief executive officer Dita Bronicki stated: "With the expected expiration of the concession and off take agreements and the determination that it is unlikely to extend the concession, we concluded that selling our stake in the plant early, maximizes the value of the asset."
The power output from the 22MW plant is being sold to Disnorte and Dissur, under a 15-year contract.