$47 Million Acquisition to add a 20 MW / 80 MWh Contracted, Operating Asset to Broaden Ormat’s Energy Storage Portfolio
Ormat Technologies, Inc.1 (NYSE: ORA), today announced that its Ormat Nevada Inc. affiliate has closed on the transaction to acquire the 20 MW / 80 MWh Pomona energy storage facility in California from AltaGas Power Holdings (U.S.) Inc. (TSE: ALA) for a total consideration of $47 million, net of working capital adjustment and other adjustments totaling approximately $3.1 million. The Pomona energy storage facility has been in commercial operation since December 31, 2016 under a 10-year energy storage resource adequacy agreement with Southern California Edison Company. It also participates in the energy and ancillary services markets run by the California Independent System Operator.
The Pomona energy storage facility is one of the largest battery storage assets in operation in the region and our first battery storage asset in operation in California, increasing our existing operating portfolio to 73MW/136MWh and adding to our battery storage assets in New Jersey, New England and Texas.
“Ormat continues to expand its presence and capabilities in the energy storage market, one of the most rapidly growing parts of the energy sector,” commented Doron Blachar, Chief Executive Officer. “This acquisition is an important addition to our energy storage segment, and it strengthens our activity in the California market, which is the largest and most attractive market in the US for renewables in general and for energy storage in particular. The facility should improve our storage segment profitability and assist us in meeting our overall goals in this segment.
“Energy storage resources play a key role in achieving California’s goal to have 100% of its electricity come from carbon-free resources by 2045, by replacing natural gas generators and facilitating massive absorption of renewable energy resources. As such, storage is a key part of the energy transformation, and Ormat continues to utilize its expertise, resources, and access to capital to build presence within the energy storage sector, in key target markets, including California, and continues its evolution into a leader in renewable energy.”
Source: Company Press Release