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.
RENO, Nev., March 14, 2016 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) announced today it has signed an Investment Agreement and Shareholders Agreement with Sageos holding (Sageos), 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"). 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.
"Strategic M&A is a key pillar of our growth strategy, enabling us to leverage our expertise and our balanced model to improve existing projects, expand our geographic reach and grow our portfolio," noted Isaac Angel, Chief Executive Officer. "This acquisition is an evidence to the progress we made in our business development efforts to achieve these important goals. We are happy to have the opportunity to share our accumulated knowledge and experience in the geothermal development in Guadeloupe Island. I'm certain that, together with the local skilled employees and our partner BRGM, we can achieve great accomplishments and add value to the assets we acquire as well as to Ormat shareholders."
The Bouillante geothermal plant sells its electricity under a new 15-year Power Purchase Agreement (PPA) that was entered into force in January 2016, with Électricité de France S.A. (EDF) the French electric utility. As a major renewable plant in Guadeloupe Island, the power plant is entitled to certain benefits from the French government that were set in order to promote renewable energy, mainly through feed-in tariff and tax benefits.
About Ormat Technologies
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (REG), with the objective of becoming a leading global provider of renewable energy. The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter - a power generation unit that converts low-, medium- and high-temperature heat into electricity. With 72 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 450 employees in the United States and over 600 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 2,000 MW of gross capacity. Ormat's current 697 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.