Investment firm acquires Coso geothermal plants in California
U.S.-based Atlantica Sustainable Infrastructure has acquired the Coso geothermal plants in California in an investment deal valued at around $170 million.
In a release today, sustainable infrastructure company Atlantica Sustainable Infrastructure plc (NASDAQ: AY) announced that it has reached an agreement to acquire Coso Geothermal Power Holdings, LLC. The company has a geothermal power plant portfolio with 3 geothermal plants/ 9 units in California.
- Navy-I (3 turbine/generator units)
- Navy-II (3 turbine/generator units)
- BLM East (2 turbine/generator units)
- BLM West (1 turbine/generator units)
The plants have a net installed power generation capacity of 135 MW geothermal power plant which is being sold to Southern California Edison. In 2019 the gross electricity production was around 1,400 GWh, according to the California Energy Commission.
Atlantic acquired the holding company from a consortium of investors, including Bardin Hill Investment Partners LP, Avenue Capital LP, Corre Partners Management, LLC and Voya Financial.
As the third largest geothermal power plant in the United States, Coso plays a critical role in supporting California’s decarbonization efforts. Atlantica’s investment is expected to be approximately US $170 million(*) and to close in the first half of 2021, subject to customary conditions and regulatory approvals. The asset provides base-load, non-intermittent, renewable energy to the California ISO and has PPAs signed with three investment grade offtakers, with 19 years average contract length.
Santiago Seage, Atlantica’s CEO, said: “We are thrilled to announce an investment in a contracted renewable energy asset that fits perfectly in our portfolio, increases our presence in the renewable sector in North America and reaffirms our goal to transition towards a more sustainable world.”
Jason Dillow, CEO and CIO of Bardin Hill, added, “It has been a pleasure working alongside Coso’s experienced management team, the other shareholders, including Avenue Capital, Corre Partners, and Voya, and the asset management team at Middle River Power over the past number of years to ensure the company’s continued success in contributing to the world’s energy transition. Coso has found a terrific new home with Atlantica.”
Following the close of the transaction, Coso’s existing management team and the asset management team at Middle River Power will continue to lead the plant’s operations.
(*) The $170 million investment includes approximately $130 million equity value and approximately $40 expected to be invested in reducing project debt.
Source: Company release via GlobeNews Wire