Monday, March 14, 2016

Guadeloupe: Ormat Completes Purchase of 10 MW Bouillante Geothermal Power Plant

Ormat Signs Definitive Agreements to acquire Geothermal Power Plant in the Island of Guadeloupe (News Release)

Ormat Technologies, Inc. announced today it has signed an Investment Agreement and Shareholders Agreement with Sageos holding, a fully owned subsidiary of Bureau de Recherches Géologiques et Minières (BRGM), the French governmental geological survey company, to acquire, gradually, 85% of Geothermie Bouillante SA. GB owns and operates the Bouillante geothermal power plant. This plant currently generates approximately 10 MW, and owns two exploration licenses with a total additional potential capacity of up to 30 MW, all located in Guadeloupe Island, a French territory in the Caribbean.

Ormat is confident that with its technology and expertise it can optimize the use of the resource at the existing facilities and recover its current production to its design capacity of 14.75 MW by mid-2017. Additionally, Ormat plans modifications to the existing equipment as well as to further develop the asset, with a potential of reaching a total of 45 MW in phased development, by 2021. Under the Investment Agreement, Ormat will pay Sageos an additional amount of up to €16 million subject to the achievement of agreed production thresholds and capacity expansion within a defined time period.

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