Denham Capital ploughs further $108m into renewables company Vulcan Power

The investment is the second equity investment in Vulcan by Denham Capital and brings its total investment in the company to $166m.

Vulcan’s geothermal property portfolio consists of approximately 170,000 acres of geothermal properties in Nevada, California, Oregon and Arizona.

The company said the latest investment will allow Vulcan to continue its ongoing development of properties representing more than 300MW of estimated geothermal resources from just half of the company’s total acreage.

Vulcan added that it has long-term power sales contracts with major California and Nevada utilities, and transmission access to northern and southern California are already completed or underway.

According to the Geothermal Energy Association, electricity generation capacity from geothermal energy in the US is expected to triple within five years, supported by a federal government stimulus allocation of $400m. In coming years installed capacity is expected to be nearly 10GW.

Scott Mackin, partner at Denham Capital, said, “Since the initial investment in 2008, Vulcan has progressed its plans to become a premier geothermal power producer which will provide low cost, baseload renewable energy. Vulcan continues to distinguish itself through its large portfolio of attractive properties, its dedicated employees and geological and drilling management.”

Denham oversees approximately $4.3bn of invested and committed capital.

Copyright © 2010 AltAssets