Portfolio Expansion: Ormat Acquires Geothermal And Solar Power Plants in Nevada, Utah and Connecticut

Reno, USA - Geothermal specialist Ormat has entered into a purchase agreement with Enel Green Power North America (EGPNA), a subsidiary of Enel SpA (ENEL. MI), for a 150 MW portfolio of various renewable energy assets. Ormat puts the total purchase price at $271 million.

The assets are the two existing geothermal power plants, Cove Fort in Beaver County, Utah, and Salt Well s in Churchill County, Nevada. In addition, there is the hybrid combined cycle power plant Stillwater with a geothermal part, a PV-solar part (20 MW) and a solar thermal power plant part (43 MW). The portfolio also includes two solar plants in Nevada and Connecticut with a total capacity of 40 MW and two new greenfield power plants.

The acquisition of the U.S.-based geothermal and solar assets supports Ormat's strategic portfolio expansion objectives. Ormat expects the acquisition to close in the first quarter of 2024, subject to regulatory approvals and customary closing conditions.

Ormat has committed to a number of value-enhancing measures, including the technical improvement and optimization of the existing Cove Fort, Salt Wells and Stillwater facilities through the installation of Ormat's advanced technology. Ormat also intends to explore and potentially develop the two Greenfield projects as part of its growth plans.

"We are excited to announce this strategic acquisition, marking a significant milestone for Ormat as we expand our generating capacity portfolio and expand our footprint in the renewable energy sector", said Doron Blachar, CEO of Ormat Technologies, welcoming the transaction.

Ormat's shares are down 2.11 percent to a price of 62.75 euros by early afternoon today in a generally weak stock market environment (2:55 p.m., Oct. 23, 2023 Stuttgart Stock Exchange). Compared to the price at the turn of the year, the share currently stands at a loss of around 23 percent.

Source: IWR Online, 23 Oct 2023