The World's #1 Renewable Energy Network for News, Information, and Companies.

JPMorgan Buys Stake in Eight Geothermal Power Plants from Ormat

JPMorgan Buys Stake in Eight Geothermal Power Plants from Ormat

JPMorgan Chase & Co. paid about $35.7 million for an interest in eight Ormat Technologies Inc. geothermal power plants in California and Nevada.

JPMorgan plans to pay Ormat an additional $8.7 million for 25 percent of the value of production tax credits generated by the plants through the end of 2016, the Reno, Nevada-based developer said today in a statement.

The so-called tax equity investment gives JPMorgan production tax credits and accelerated depreciation benefits that Ormat isn’t able to use, because “we generate more deductions for tax purposes than we are currently able to utilize,” Ormat Chief Executive Officer Dita Bronicki said in the statement. The production tax credit for geothermal is 2.2 cents a kilowatt-hour and applies to the first 10 years of a plant’s operation.

The eight plants are part of Ormat’s Ormesa, Heber and Mammoth complexes in California and its Steamboat and Brady complexes in Nevada, Bronicki said today in an e-mail.

JPMorgan invested $24.9 million in four of Ormat’s Nevada facilities in a similar transaction in February 2011.

Copyright 2013 Bloomberg

Lead image: Geothermal plant via Shutterstock

RELATED ARTICLES

The Big Question: What Is the Most Frustrating Part about Working in Renewable Energy?

Renewable Energy World Editors

Every industry has its challenges and misunderstandings. Sometimes the obstacles we face in simply trying to do our jobs can be very frustrating.

Norway and Sweden flags

Nordic Renewables Boom Set to Exceed Wind Energy Target

Jesper Starn, Bloomberg

Sweden and Norway will probably exceed a joint target for renewable energy production by the end of the decade, industry consultant Nena AS said.

Renewable energy community

State and Metro Governments, Consumer Actions Drive Dramatic Shift in US Energy Landscape

Ron Pernick, Clean Edge The United States is experiencing a significant shift in its energy landscape. Last year, utility-scale wind and solar power combined for 47 percent of new generation capacity in the U.S. Based on this expansion, 11 states...
Paris street

Paris Geothermal Boom Brings Deep Drilling to Crowded Suburbs

Tara Patel, Bloomberg Squashed between a highway overpass and a towering suburban shopping center east of Paris, a drilling rig is completing the second of two geothermal wells aimed at capturing the earth’s natural heat for homes and offices.

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

RECAM WEEK

RECAM WEEK will bring together the incredibly successful SPG Central Am...

CIREC WEEK

Chile is still considered to be one of the world’s hottest m...

Renewables and Mining Summit and Exhibition

African mining leaders are seriously exploring new energy solutions to s...

COMPANY BLOGS

Net Zero Energy Efficient Buildings and Geothermal Heat Pumps

As the U.S. market for green building design and construction evolves, ...

Geothermal Earth Day Visual: Shaping Environmental Solutions

Earth day 2015 is an important point in history for the environment. Mem...

Environmentally friendly solutions for projects

geoAMPS joins the celebration of the worldwide observance of Earth Day o...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS