Independent power producer EnergySource LLC announced the commencement of construction of its Hudson Ranch I project, a 49 megawatts (MW) high temperature geothermal power generation project in Imperial County, California. The project has been under development since 2006 by Catalyst Renewables and Hannon Armstrong, the majority owners of EnergySource (formerly CHAR).
Debt financing for the nearly $400 million project was raised by an eight member bank syndicate led by ING Capital, Societe Generale and West LB, and included Union Bank, MetLife, CIBC, Siemens Financial and Investec. Additional equity was raised from GeoGlobal Energy LLC (GGE), a privately held geothermal energy-focused investment firm backed by Mighty River Power, a state-owned New Zealand utility. Hannon Armstrong represented EnergySource in raising both the debt and equity.
The project will take 21 months to build and will create 200 full-time equivalent construction jobs. Once completed, it will create 35 full-time geothermal jobs.
The project will benefit from Federal tax incentives contained in the American Recovery and Reinvestment Act ("ARRA").
EnergySource is headquartered in San Diego. The ocmpany said it has an advanced pipeline of geothermal and solar projects it is currently developing.
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