Alterra Power to sell 15 MW geothermal facility for US$8.5 mn

Alterra Soda Lake geothermal facility in Nevada

Alterra Power, a renewable energy company based in Canada, has signed agreement to sell its 15 MW Soda Lake geothermal facility in Fallon, Nevada, to an affiliate of Cyrq Energy for US$8.5 million.

The sale is expected to be complete in January 2015.

The deal includes some assets that are in early stage of development, the company said.

With this deal, Alterra may also receive additional compensation upon achieving certain performance related or earn-out provisions.

Alterra Soda Lake geothermal facility in NevadaAdditionally, the agreement entitles Alterra with solar development rights at the Soda Lake facility site for solar projects of up to 40 MW total for up to eight years.

Alterra operates five power plants totaling 553 MW of generation capacity. Its portfolio includes hydro, wind, solar and geothermal facilities.

Recently the company received C$22.5 million of funds as part of its previously announced C$110 million holding company loan facility. These funds will be primarily used for Shannon wind project, the company said.

The third tranche of the loan facility (US$20.3 million) is expected to be drawn in the first quarter of 2015, concurrently with the Shannon project financing, the company said.

Rajani Baburajan