Ormat buys out Mammoth geothermal partner for $72m

August 3, 2010

Geothermal power developer Ormat Technologies has bought out its partner in the Mammoth geothermal complex in California, in a $72.5 million deal.

The company based in Reno, Nevada, closed the deal yesterday, buying up Constellation Energy’s 50% stake in the project.

The deal leaves Ormat as the solar owner of the land, three power plants and associated equipment, which currently generates about 29MW of power.

It also means Ormat has the rights to over 10,000 acres of undeveloped federal lands.

The Mammoth complex, located near Mammoth Lakes, California, had its three power plants installed in 1985 and 1990.

Assets

Dita Bronicki, CEO of Ormat, said the complex had “many strong assets”, including the operating team running the facility and a “high quality” geothermal reservoir.

She said Ormat now plans to move quickly to expand the facility, aiming to double generation capacity.

“Mammoth offers the same development opportunities that we have exploited in our Steamboat complex, and expect to dramatically increase the capacity of the existing plant through modernization of the equipment and the addition of new equipment with very little resource risk,” explained the Ormat CEO.