GeoGlobal Energy Fund sees first cash return from US investment
Hudson Ranch I geothermal power plant, March 2012, Salton Sea, California/ U.S. (source: EnergySource)
Alexander Richter
30 Oct 2012
Mighty River Power announces having received its first cash returns from the GeoGlobal Partners I Fund following the successful post-construction refinancing of the Hudson Ranch I geothermal power plant in the U.S. by EnergySource, in which GeoGlobal Partners fund holds a 20% equity stake.
In its Annual Report to the New Zealand Parliament, Mighty River Power highlights its growth to a today “strongly integrated generation and retail electricity business”. It has a strong geothermal base and has invested more than NZ$1.1 billion (about US$900 million) over the past five years.
The latest project of the company, the 82 MW Ngatamariki geothermal power plant is expected to start operation in the middle of next year.
The company has also positive things to report from its international involvement. Mighty River Power has now received a first cash return from the GeoGlobal Partner I Fund (GGE Fund). This follows the post-construction refinancing of the Hudson Ranch I (John L. Featherstone) geothermal power plant of EnergySource in the U.S. The successful construction and performance has allowed the company to refinance the project providing a return in capital to equity participants, which include the GGE Fund.
“This distribution from the Fund is consistent with our business case and provides the first demonstration of the financial success of Mighty River Power’s international geothermal strategy. In addition to this first substantial distribution, the GGE Fund will be entitled to further returns from the project through its continued direct investment in the project and through its 20% investment in EnergySource LLC,” said Mighty River Power Chief Executive, Doug Heffernan.
The involvement and investment in EnergySource, will allow GGE Fund to also have an ownership interest in additional development by the company in the Imperial Valley in California, including the recently approved Hudson Ranch II plant that is planned to be built next to the Hudson Ranch I plant.
To advance development of its projects, the GGE Fund is seeking additional capital and Mighty River Power is working with GeoGlobal Energy to consider contributing further capital alongside new investors.
Source: Voxy.co.nz
