The energy portfolio includes two contracted operating geothermal power plants and one triple hybrid geothermal, solar PV (20MW nameplate) and solar thermal power plant with a total generation of approximately 43MW, two solar assets with a total nameplate capacity of 40MW, and two greenfield development assets, for a total of $271 million.
The acquisition of these US-based operating geothermal and solar assets supports Ormat's strategic portfolio expansion goals. The acquisition is expected to close by the first quarter of 2024, subject to regulatory approvals and customary closing conditions.
The acquired assets are:
- Cove Fort geothermal power plant - located in Beaver County, Utah, this Ormat-designed binary geothermal power plant sells its clean electricity generation to the Salt River Project under a long-term Power Purchase Agreement (PPA);
- Stillwater Hybrid geothermal and solar - located in Churchill County, Nevada, the triple hybrid power plant consists of a geothermal binary unit, Solar PV plant, and solar thermal plant that sells its clean electricity under a long-term PPA with NV Energy;
- Salt Wells geothermal power plant - located in Churchill County, Nevada, this geothermal binary power plant has a long-term PPA with NV Energy;
- Stillwater Solar PV II - located in Churchill County, Nevada, this Solar PV facility sells its electricity output to Wynn Las Vegas under a long-term PPA; and
- Woods Hill Solar PV Park - located in Windham County, Connecticut, this Solar PV facility sells its electricity output to seven different off-takers under a long-term PPA.
- Greenfield development projects - Ormat has acquired the rights to explore and potentially develop two greenfield projects, one adjacent to the Cove Fort power plant, and the other in a high-potential geothermal resource area in California.
Doron Blachar, CEO of Ormat Technologies, said: "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. We are confident that this accretive acquisition, which carries approximately an 8x EV/EBITDA multiple (inclusive of the future planned enhancement and optimisation but excluding the Cove Fort expansion), will support both our short and long-term growth plans, further leveraging our unique core capabilities to maximise the efficiency and output from these power plants' energy sources, strengthening our financial position, and delivering meaningful value to our investors.
"This transaction demonstrates our commitment to environmental stewardship, economic growth, and a greener, more sustainable future for all, aligning seamlessly with our business strategy of pursuing accretive M&A transactions alongside organic growth."
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