Enel’s subsidiary Enel North America, Inc., announced the acquisition of geothermal developer AMP Resources, LLC (AMP) from AMP Capital Partners and a minority investor.
The acquisition includes one operating and four advanced stage geothermal development projects expected to add approximately 150 MW of capacity over the next four years to Enel’s North American operations, as well as access to a number of future opportunities.
Located in Nevada, California, and Utah, the projects, once fully developed, are expected to generate enough renewable power for over 100,000 average U.S. households annually.
“I am pleased to announce Enel’s entry into the U.S. geothermal market. These development projects will benefit from Enel’s expertise in geothermal power and will consolidate and extend Enel’s leadership in using the earth’s natural heat to produce zero-emissions electricity. This acquisition further confirms our commitment toward environmentally-friendly technologies worldwide. By 2011 Enel plans to invest globally over 4 billion euros in combating climate change. A plan having few rivals in quality and presence” commented Fulvio Conti, Enel’s CEO.
The agreement calls for an initial payment of approximately $90 million and milestone-based contingent payments.
Enel pioneered geothermal electricity generation with projects developed over 100 years ago in Tuscany, Italy in Larderello (Pisa) and the surrounding provinces of Siena and Grosseto. Enel has used innovative operational and drilling techniques to optimize the projects’ output and over 700 MW remains in full operation today. In early 2002, Enel expanded its geothermal focus to Latin America, partnering with LaGeo S.A. in El Salvador. LaGeo currently operates 178 MW of geothermal generation. In addition, Enel has geothermal development activity underway in Chile, Guatemala, and El Salvador.
About Enel
Enel is Italy’s largest power company and Europe’s third-largest listed utility by market capitalization. Listed on the Milan and New York stock exchanges since 1999, Enel has the largest number of shareholders of any European company, at some 2.3 million. It has a market capitalisation of about EUR50 billion at current prices.
Enel North America, Inc. (ENA), is a leading owner and operator of renewable energy projects in North America, with project activity in 21 U.S. states and three Canadian provinces. Based in Andover, Massachusetts, Enel North America has a diversified renewable energy portfolio that includes hydropower, wind, biomass, and now geothermal. ENA currently operates 70 projects with a total installed capacity of around 410 MW. In addition to the recently announced geothermal activity, ENA has 190 MW of wind power under construction with over 1000 MW of wind in the development pipeline.
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