Ormat Announces $175 Million JV Equity Investment (News Release)
Portfolio of 106 MW includes two geothermal facilities and three REG power plant complexes. Ormat to retain day-to-day managerial and operating control over the portfolio
Ormat Technologies, Inc. today announced that its wholly-owned subsidiary Ormat Nevada Inc. has entered into a binding agreement with infrastructure funds managed by
Northleaf Capital Partners under which Ormat will contribute certain geothermal and recovered energy generation power plants into a newly established holding company subsidiary, and Northleaf will acquire an approximately 40% equity interest in the JV. The company will raise approximately $175 million from the transaction. The transaction is expected to close in the first quarter of 2015, subject to customary closing conditions.
The power plants that will be contributed to the JV as part of the transaction include Ormat’s Puna geothermal power plant in Hawaii, the Don A. Campbell geothermal power plant in Nevada, and nine power plant units across three recovered energy generation assets known as OREG 1, OREG 2, and OREG 3. Ormat will continue to consolidate the JV and its assets, and will continue to provide day-to-day management control, operations and maintenance control over the projects.
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