Washington, D.C., May 20, 2010 —GeoGlobal Energy, a privately held geothermal investment and development company, has become the largest investor in a stand-alone, high temperature flash technology geothermal power project to be developed in California’s Imperial Valley.
The project will produce 49 MW of baseload power after its expected completion in two years. The entire electric output will be sold under a 30-year power purchase agreement with the Salt River Project, a municipal utility serving nearly one million people in the Phoenix, Ariz. area.
GGE is investing $90 million for the construction of the nearly $400 million Hudson Ranch project, alongside the project financing debt. With this equity investment, GGE is also becoming a 20 percent investor in EnergySource, a renewable energy development company founded by Catalyst Renewables and Hannon Armstrong.
“We are experiencing a shift toward greater demand for clean, renewable sources of electricity such as geothermal energy,” said A. Michael Van Vleck, GGE president. “With this investment GGE has invested in the nation’s most attractive U.S. geothermal resource.”
Hudson Ranch is the first U.S. project for GGE, which is focused on acquiring and developing geothermal resources to generate baseload, renewable, low-carbon electricity to meet the growing global need for electricity.
“GGE’s hand-selected team places it among the world’s most experienced firms in geothermal energy,” Van Vleck said. “GGE experts have decades of experience spanning all aspects of the geothermal business — exploration, development and operations. Using a proprietary database of the world’s best undeveloped geothermal resources, GGE expects to develop 500 to 1,000 MW of geothermal capacity in select markets, including the U.S., Chile and Germany.”
GGE combines this expertise with a significant capital commitment from its sponsor, Mighty River Power, a New Zealand utility with 400 MW of geothermal in development and operation. Mighty River Power has committed $250 million to GGE for development and acquisition of geothermal resources globally.