Base Load Renewable - Geothermal
Utility scale geothermal power plant in Salton Sea Area
EnergySource LLC had a 30-year PPA with a utility off-taker for a utility-scale geothermal power plant, but lacked the capital required for construction.
The Project Finance market had not seen a triple-flash geothermal transaction in 20 years and to make matters worse, there was no EPC wrap on the project.
Hannon Armstrong advised EnergySource how to create a synthetic EPC structure and reacquainted the lenders on the merits of base-load geothermal power plants. As a result, Hannon Armstrong was successful in arranging approximately $400 million in construction loans and project equity for the company.
EnergySource was able to begin construction of its geothermal power plant, bringing hundreds of jobs to Imperial County, CA, and was able to finance the development of its project portfolio.