The project will produce 49MW 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, Arizona area.
The company is investing $90m for the construction of the nearly $400m Hudson Ranch project, alongside the project financing debt. With this equity investment, the company is also becoming a 20% investor in EnergySource, a renewable energy development company founded by Catalyst Renewables and Hannon Armstrong.
Hudson Ranch is the first US 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.
Michael Vleck, president of GGE, said: “GGE’s hand-selected team places it among the world’s most experienced firms in geothermal energy. 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 500MW to 1,000MW of geothermal capacity in select markets, including the US, Chile and Germany.”
