Atlantica Sustainable Infrastructure announced today it signed an agreement with a consortium of investors, including Bardin Hill Investment Partners LP, Avenue Capital LP, Corre Partners Management, LLC, and Voya Financial.
Accordingly, the agreement contemplates the acquisition of Coso Geothermal Power Holdings, LLC (“Coso”), a 135 MW geothermal power plant and the third-largest in the United States.
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Coso Geothermal Power Plant acquisition
Earlier today, Atlantica Sustainable infrastructure, a sustainable infrastructure company that owns a diversified portfolio of contracted assets in the energy and environment sectors, announced it signed an agreement to acquire Coso Geothermal Power Holdings, LLC (“Coso”). In fact, this is a 135 MW geothermal power plant.
Moreover, Atlantica is acquiring “Coso” from a consortium formed by Bardin Hill Investment Partners LP, Avenue Capital LP, Corre Partners Management, LLC, and Voya Financial. Furthermore, “Coso” is the third-largest geothermal plant in the US.
Indeed, the plant plays a critical role in supporting California’s decarbonization efforts. Therefore, Atlantica will make an expected investment of approximately $170 million. Besides, the company will probably close the agreement in the first half of 2021; still subject to customary conditions and regulatory approvals.
Currently, the asset provides base-load, non-intermittent, renewable energy to the California ISO, the company says in a public statement. Furthermore, the plant has PPAs signed with three investment-grade off-takers, with 19 years average contract length.
According to 2018 data, the plant produced as much as 270 megawatts of electricity, enough power to supply 250,000 homes, but currently generates approximately 145 net megawatts.
About Atlantica and Reception
In this regard, Santiago Seage, Atlantica’s CEO, said; “We are thrilled to announce an investment in a contracted renewable energy asset that fits perfectly in our portfolio. Also, it increases our presence in the renewable sector in North America; and reaffirms our goal to transition towards a more sustainable world.”
Moreover, Jason Dillow, CEO and CIO of Bardin Hill noted; “It has been a pleasure working alongside Coso’s experienced management team; the other shareholders, including Avenue Capital, Corre Partners, and Voya. Besides, we enjoyed working with the asset management team at Middle River Power.”
Furthermore, “it’s been possible over the past number of years to ensure the company’s continued success in contributing to the world’s energy transition. Therefore, Coso found a terrific new home with Atlantica.”
Atlantica is a sustainable infrastructure company that owns a diversified portfolio of contracted renewable energy. Furthermore, it operates various storage, efficient natural gas, electric transmission, and water assets; these are located in North America, South America, and specific markets in Europe, the Middle East, and Africa.
Finally, following the transaction’s close, Coso’s existing management team and the asset management team at Middle River Power; will continue to lead the plant’s operations.