Atlantica Sustainable Infrastructure has agreed to acquire Coso Geothermal Power Holdings, a 135MW geothermal power plant, from a consortium of investors for around $170m.
Located in California, the geothermal power plant is owned by Bardin Hill Investment Partners, Avenue Capital, Corre Partners Management and Voya Financial.
Claimed to be the third-largest geothermal power plant in the US, Coso is said to play a significant role in supporting the decarbonisation efforts of California.
Atlantica CEO Santiago Seage said: “We are thrilled to announce an investment in a contracted renewable energy asset that fits perfectly in our portfolio, increases our presence in the renewable sector in North America and reaffirms our goal to transition towards a more sustainable world.”
The geothermal power facility delivers base-load, non-intermittent and renewable energy to the California ISO.
With 19 years average contract length, the geothermal power plant has PPAs with three investment-grade offtakers.
Bardin Hill CEO and CIO Jason Dillow said: “It has been a pleasure working alongside Coso’s experienced management team, the other shareholders, including Avenue Capital, Corre Partners, and Voya, and the asset management team at Middle River Power over the past number of years to ensure the company’s continued success in contributing to the world’s energy transition.”
Subject to customary conditions and regulatory approvals, the transaction is expected to be completed in the first half of 2021.
Upon completion of the deal, Coso’s existing management team and the asset management team at Middle River Power will continue to manage the operations of the facility.
Atlantica, a sustainable infrastructure company, has a diversified portfolio of contracted renewable energy, storage, natural gas, electric transmission and water assets in North and South America, and certain markets in EMEA.
