Vulcan Gains Financing for Geothermal Power Development

Last week, Merrill Lynch Commodity Partners (MLCP) closed on a $35 million principal investment in Vulcan Power Company, a private entity holding one of the largest geothermal property portfolios in the U.S. — including properties in California, Nevada, Oregon, and Arizona.

The MLCP investment is the first stage of a $150 million private round of financing by Vulcan to develop prime geothermal property with potential to generate 900 megawatts (MW) to 2,000 MW of natural steam fuel. “We believe that an investment in Vulcan is critical to accelerate development of geothermal resources to benefit the environment,” added Rob Jones, Head of the Global Energy and Power Group and Principal of MLCP. Vulcan has signed 20-year term Power Purchase Agreements (PPAs) with Nevada Power Company, Pacific Gas & Electric Company and Southern California Edison Company. It is also negotiating additional PPAs with other utilities. “Many of our properties in advanced stages of development have been the subject of more than $50 million in development expenditures before Vulcan acquired them,” said Steve Munson, the company’s chairman and CEO, “Vulcan has also invested an additional $21 million of development expenditures to date.”
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