OME acquires Rye Patch Humboldt House GeothermalAugust 24, 2017
Salt Lake City, Utah April 12, 2017 – Open Mountain Energy, LLC (“OME”) has acquired geothermal related assets of the Wabuska Geothermal Project from Homestretch Geothermal 2010, LLC (“Homestretch”). Located approximately 12 miles north of Yerington in Lyon County, NV, the Wabuska project is the oldest operating geothermal plant in Nevada, beginning operation in the 1980’s. It’s currently operating 7 Ormat ORC units.
Pursuant to an Asset Purchase, Project Development, and Royalty Agreement, Open Mountain Energy, LLC acquired approximately 5,000 acres of Federal and Private geothermal leases. In addition to the geothermal leases, the assets acquired by OME include:
- 4 drilled geothermal production wells
- Wellfield piping and pumps, electrical and interconnection equipment and infrastructure
- Permits and other rights associated with the wells and operation of the power plant
As consideration for the Assets, OME paid an undisclosed amount at closing and will make additional payments including production royalties based on the successful development of the geothermal resource. The agreement also allows OME to lease cooling water under a five-year agreement with an option to purchase the water rights at the end of the agreement.
OME will commence development by replacing the existing power generation with Kaishan power generation equipment. OME expects the first phase of development to be online by the end of 2017 with a beginning generation of 4 MW of net power. The existing infrastructure will allow OME to achieve a lower cost per installed kw than a comparable greenfield development.
OME plans to develop additional phases of the project with the goal of adding 20 MW of Kaishan power generation equipment at the site by the end of 2020.
About Open Mountain Energy
Open Mountain Energy (www.openmountainenergy.com) is a renewable energy development company specializing in utility scale geothermal and recovered energy projects. Open Mountain’s expertise in developing, managing, and financing power projects combined with Kaishan’s advanced power plant technologies form a vertically integrated premier geothermal and recovered energy company. Open Mountain combines technology, engineering, project development, financing, and operation, to make its projects highly energy efficient and environmentally friendly. Open Mountain is based in Salt Lake City, Utah and has projects under development in the United States and Canada.
About Kaishan Group
Kaishan (www.kaishancomp.com) is a world leader in compressor technology and manufacturing. It’s the largest supplier of air compressor equipment in Asia and the third largest in the world. The Kaishan Group includes manufacturing of modular steam and ORC-based screw expander generators, applying its global leading technology to geothermal and recovered energy applications.
Kaishan Group is headquartered in Quzhou, China, has more than 4,100 employees, offices in 6 countries, and has 200 sales outlets in 60 countries. During the first three quarters of 2016, Kaishan’s sales amounted to 1.23 billion RMB ($178 million US). Kaishan has no long-term debt and as of December 2016 has a Dun and Bradstreet investment grade rating of 5a2.
About Homestretch Geothermal 2010, LLC
Homestretch Geothermal 2010, LLC (“Homestretch”) is a privately held company based in St George, Utah. In addition to its ownership of the geothermal power plant and geothermal energy rights at Wabuska, Homestretch has extensive farming operations in Lyon County.
For additional information contact: Brady Olson - [email protected]