U.S. Geothermal is involved in the development, production and sale of electricity from geothermal energy.
Presently, U.S. Geothermal is operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho with a total designed output of 45MW that generates about 38MW of net energy.
Besides, U.S. Geothermal is developing additional projects at the Geysers, California; a second phase project at San Emidio, Nevada; at Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala.
The operating assets of U.S. Geothermal are selling power under existing power purchase agreements, with an aggregate contract capacity of 55MW.
Closing of the transaction is subject to approval from the company’s shareholders and regulatory approvals. The acquisition is expected to be closed in the second quarter of this year.
After the acquisition is completed, Ormat expects to improve the profitability of the operating projects by about 50% during next year.
Ormat Technologies CEO Isaac Angel said: “This acquisition significantly broadens and diversifies our operations in the United States, expanding our presence into Idaho and Oregon and giving us additional opportunities as we evaluate U.S. Geothermal’s development pipeline.
“With this transaction, we demonstrate again the implementation of our business strategy to grow our business with accretive M&A transactions and organic growth, underscoring our commitment to creating sustainable value for our shareholders.”
US Geothermal CEO Doug Glaspey said: “This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented team members.”
Image: Ormat’s 20MW binary power plant at Steamboat Springs, Nevada. Photo: Courtesy of Rjglewis/Wikipedia.org.
