Magma, Plutonic plan renewable power merger
Magma Energy and Plutonic Power intend to merge and create a more diverse renewable energy power producer. The new company, Alterra Power, will be worth about $575 million.
VANCOUVER: Magma Energy Corp. and Plutonic Power Corp. intend to merge and create a more diverse renewable energy power producer. The new company, Alterra Power Corp., will be worth about $575 million.
Magma, based in Vancouver, currently focuses on geothermal power while Plutonic, also based in Vancouver, is involved in hydroelectric and wind power, plus some solar-electric projects.
The merged company will have six operating plants in three locations: two geothermal plants in Iceland and one in Nevada; two hydro plants in BC; a wind farm in BC; and an option on one solar project in Ontario. Magma’s geothermal assets will account for 198 megawatts of capacity and Plutonic’s 168 megawatts will come from hydro and wind assets.
Alterra is looking at near-term growth in Iceland and Nevada geothermal production, BC hydro, wind assets and solar in Ontario and “significant” long-term geothermal growth in Chile, Peru, Nevada and Iceland, and in BC hydro.
“This merger will strengthen both companies and will create a larger, more diversified renewable energy company with assets across a broader spectrum of the clean energy industry,” said Ross Beaty, Magma’s chairman and CEO. “It has the potential to lower the cost of capital to develop each company’s existing growth assets, to enable those assets to be developed more quickly, and to better attract new opportunities for future development.”