Atlantica Sustainable acquires 135MW geothermal power plants in California
Atlantica Sustainable Infrastructure has signed an agreement to acquire Coso Geothermal Power Holdings, the owner of 135MW geothermal power plants in California, for about $170 million.
The seller of the geothermal power plants is a consortium of investors comprising Bardin Hill Investment Partners, Avenue Capital, Corre Partners Management, and Voya Financial.
Geothermal Power Holdings owns nine geothermal units built on US Navy-owned land. Power produced by the geothermal power plants is sold to Southern California Edison.
Coso Geothermal Power Holdings is said to be the third largest geothermal power project in the US.
Santiago Seage – Atlantica Sustainable Infrastructure 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.”
Coso Geothermal Power Holdings’ asset offers base-load, non-intermittent, renewable energy to the California ISO. It is underpinned by power purchase agreements (PPAs) with three investment grade offtakers, with an average contract length of 19 years.
Jason Dillow – CEO and CIO of Bardin Hill said: “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.”
Post transaction, the existing management team of Coso Geothermal Power Holdings and the asset management team at Middle River Power will continue to manage the operations of the geothermal project.
The deal is expected to close in the first half of this year, subject to the meeting of customary conditions and receipt of regulatory approvals.