News

Stock of Kaishan Compressor up following PPA for geothermal plants in the U.S.

Wabuska (Whitegrass no.1) geothermal power plant under construction, August 2018 (source: Open Mountain Energy)
Alexander Richter 3 Mar 2020

The stock price for Kaishan Compressor has risen on news of a new PPA signed by its U.S. unit Open Mountain Energy for two geothermal power plants currently under construction in Nevada, U.S.

As reported by Chinese news, Kaishan Compressor’s shares have risen following the signing of a 25-year power purchase agreement (PPA) with Southern California Public Power Authority.

The company’s stock value climbed 4.&% to CNY 10.05 (USD 1.44) today putting the market capitalization of the company to CNY 8.3 billion or around USD 1.2 billion).

The PPA was signed between Open Mountain Energy, a unit of Kaishan in the U.S., on delivery of electricity from two geothermal power plants, as we reported last week.

The first one will start generating energy to Glendale’s residents in California on April 1, 2020, and the second one a year after that. The price range is from USD 0.0675/ kWh to o.o7025/ kWh.

OME looking to boost its capacity via expansion and asset purchases in the States, the statement said, adding that the company is in talks with the SCPPA and others about more deals.

Besides the US, Kaishan has geothermal projects in Indonesia, Hungary, and Kenya.

Source: YiCai Global