Two major deals have been announced for Ormat, leading Israeli thermal power provider and its U.S. subsidiary: the sale of Ormat’s Heber Solar PV project in Nevada for over $35 million, and Ormat Technologies agreement to supply $254 million in equipment for a 330-megawatt power plant in Indonesia.
According to the company press release, in the U.S., Ormat has signed an agreement with RET Holdings, LLC to sell the Heber Solar project in Imperial County, California for $35.25 million. Ormat received the first payment of $15 million with the remainder expected to be paid in the second quarter of 2014, subject to fulfillment of certain milestones.
“Our goals in the development of the Heber Solar project were to benefit from the synergies between our existing geothermal assets and solar development, to apply our development and experience as engineering, procurement and construction contractor in utility scale solar plants and to develop profitable projects. The development up to this point and the transaction that we have just concluded with RET Holdings allowed us to accomplish all three goals,” said Dita Bronicki, chief executive officer of Ormat. “The Heber Solar project, Ormat’s first PV project in the U.S., was developed in a cost-effective way. We plan to continue monitoring the solar market and pursue opportunities for developing PV plants in locations where we can offer competitively priced power generation.”
“RET is pleased to acquire this high-quality asset and looks forward to growing its business with new and existing asset partners,” said John A. Bohn, Chief Executive Officer and Chairman of RET.
In Indonesia, Ormat Technologies (a U.S. based subsidiary) has agreed to supply $254 million in equipment for a 330-megawatt power plant. As reported in Bloomberg, Ormat will also own about 12.75% of the $1.17 billion Sarulla geothermal plant. PT Medco Energi Internasional, Itochu Corp. and Kyushu Electric Power Co. are also developing the power plant and construction is expected to begin in 2016. Revenue from the sale will come in over three to four years, starting in the third quarter, according to the statement.
Ormat gained 3.3%, $30.30 at the close in New York, the highest since February 2011.
For the company press release on the U.S. sale click here.
For the full Bloomberg article click here.