Ormat Technologies has signed an agreement to acquire 85% of Geothermie Bouillante SA, geothermal project developer for US$56 million.
GB owns and operates a 14.75-megawatt geothermal power plant and owns two exploration licenses with a total additional potential capacity of up to 30MW, all located in Guadeloupe Island, a French territory in the Caribbean.
Ormat’s total consideration will be paid in instalments in accordance with the specific milestones, including production milestones, expected to be achieved in the next few years. Teh deal is expected to close by May 2016.
GB has two Power Purchase Agreements (PPAs) with Electricite de France, the French electric utility. A new 15-year PPA with EDF with improved energy rates is expected to enter into force in January 1, 2016 and replace the current PPAs.
Ormat said it is confident that with its technology and expertise it can optimize the use of the resource and existing facilities and recover its current approximate production of 10 MW to its designed production of 14.75MW by mid-2017. Additionally, Ormat plans modifications to the existing equipment as well as to further develop the asset, with a potential of reaching a total of 45 MW in phased development, by 2021.