A 20% stake in US company EnergySource is the latest addition to the Mighty River Power geothermal empire.Mighty River announced today that its international partner GeoGlobal Energy (GGE) would front up $US107 million for a new geothermal station in sout
A 20% stake in US company EnergySource is the latest addition to the Mighty River Power geothermal empire.
Mighty River announced today that its international partner GeoGlobal Energy (GGE) would front up $US107 million for a new geothermal station in southern California, in exchange for a 20% share in parent company EnergySource.
The Hudson Ranch Power 1 station, small by Mighty River standards at just 49.9MW, will use almost identical technology to that used in the 100MW Kawerau and 140MW Nga Awa Purua stations.
“The success of the Nga Awa Purua and Kawerau projects was an important factor in EnergySource selecting GGE as an investor in the Hudson Ranch Power 1 Project,” GGE president Michael Van Vleck said in a prepared statement.
Mighty River holds a 25% share in the GGE management company and is the sole investor in projects approved by the GGE management team.
Chief executive Doug Heffernan told NBR the EnergySource investment would generate returns greater than those achievable by Mighty River in New Zealand.
“The funding is coming straight from the balance sheet, and we do have debt funding in place," he added.
A long-term supply contract for Hudson Ranch offtake has already been negotiated with Arizona utility Salt River Project.
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