Alterra Power Corp., the Canadian renewable energy developer, has signed an agreement to sell its 15-megawatts Soda Lake geothermal power plant in Fallon, Nevada to an affiliate of Cyrq Energy for US$8.5 million.
The deal includes a number of early-stage development assets also located in Nevada. Cyrq Energy has operating geothermal plants in southern Utah and southwest New Mexico in addition to geothermal interests in various stages of development in New Mexico, Utah, Oregon, Nevada and Indonesia.
Alterra said it stands to receive additional compensation over the next five years upon the achievement of certain performance-related or earn-out provisions. Completion of the sale is expected in January 2015, subject to certain conditions.
Alterra will retain solar development rights at the Soda Lake facility site for solar projects of up to 40MW in total capacity for up to eight years. Alterra operates five power plants totalling 553MW of generation capacity, including British Columbia’s largest run-of-river hydro facility and largest wind farm, and two geothermal facilities in Iceland.