Tag Archives: Ram Power

Ram Power Walks Away From Southern California Edison PPA

Ram Power has announced the cancelation of a crucial long-term power purchase agreement with Southern California Edison (SCE) for the sale of power from its Orita project in Southern California’s Imperial Valley.

It seems Ram was forced to cancel the contract because it was unable to secure development capital. In a statement Ram said its inability “to meet the critical milestone schedule outlined in the PPA” forced it to terminate the contract with SCE.

Fully developed Orita would have supplied SCE up to 300 megawatts of geothermal power generated across three projects.

The termination of the PPA comes just a few weeks after Ram closed a $160 million debt financing supporting the expansion of the fully-contracted San Jacinto-Tizate project in  Nicaragua.

Geothermal companies have had a hard time securing financing to develop what, on paper, are promising projects. To blame are the relative small size of geothermal developers and the long development time necessary to get a project commercial-ready.

These realities forced  Raser Technologies last spring to filed for bankruptcy. Developer Magma Power  has opted to diversify its portfolio by acquiring Plutonic Power, a developer of small hydro and wind projects.

Magma Energy IPO Starts Wave of Geothermal M&A

The C$100 million ($88.7 million) initial public offering this month of Canadian geothermal developer Magma Energy has kickstart a wave of consolidation as companies seek to create scale in a sector poised to benefit from significant government fundings.

On Wednesday Reuters reported that four Geothermal developers –three Canadian companies and a U.S.-based developer — announced they would consolidate into a single company. The merger, the companies say, will help them raise funds to develop power projects.

The merged companies on the Canadian side are Polaris Geothermal, Western GeoPower and GTO Resources. Joining from the U.S. is Ram Power, a privately owned geothermal power developer.

The newly formed company plans to raise C$100 million — about the same amount as the Magma IPO — via a private placement that will give investors shares in the combined company.

Polaris will own 54.1 percent of the newly formed company. Western GeoPower will own 29.2 percent; Ram Power 15.4 percent and GTO Resources 1.3 percent.

In the U.S. geothermal accounts for about 17 percent of electricity generated from renewable resources. While getting to a “hot” geothermal sources takes acute geological surveying and some precise drilling, once piped into a power plant, unlike wind or solar, geothermal is constant.

Earlier this week the Bureau of Land Management distributed 255,457 acres (103,423 hectares) of public land as part of its latest auction of public land for the development of geothermal energy resources. Federal land holds about half of the country’s geothermal potential. In that auction Magma spent $2.55 million to acquire seven leases, all located in Nevada

Magma Energy IPO Starts Wave of Geothermal M&A

The C$100 million ($88.7 million) initial public offering this month of Canadian geothermal developer Magma Energy has kickstart a wave of consolidation as companies seek to create scale in a sector poised to benefit from significant government fundings.

On Wednesday Reuters reported that four Geothermal developers –three Canadian companies and a U.S.-based developer — announced they would consolidate into a single company. The merger, the companies say, will help them raise funds to develop power projects.

The merged companies on the Canadian side are Polaris Geothermal, Western GeoPower and GTO Resources. Joining from the U.S. is Ram Power, a privately owned geothermal power developer.

The newly formed company plans to raise C$100 million — about the same amount as the Magma IPO — via a private placement that will give investors shares in the combined company.

Polaris will own 54.1 percent of the newly formed company. Western GeoPower will own 29.2 percent; Ram Power 15.4 percent and GTO Resources 1.3 percent.

In the U.S. geothermal accounts for about 17 percent of electricity generated from renewable resources. While getting to a “hot” geothermal sources takes acute geological surveying and some precise drilling, once piped into a power plant, unlike wind or solar, geothermal is constant.

Earlier this week the Bureau of Land Management distributed 255,457 acres (103,423 hectares) of public land as part of its latest auction of public land for the development of geothermal energy resources. Federal land holds about half of the country’s geothermal potential. In that auction Magma spent $2.55 million to acquire seven leases, all located in Nevada