Last week Ormat reported results from the quarter: $84.1M in total revenue and $8.5M in net income. The quarter presented a good news/bad news scenario for investors. The good, electricity production is back on track after an earlier miss this year, revenue increased overall, and there are signs of life in the equipment business. The bad, despite growing revenue 13.5% YoY, net income remained flat due to decreased gross margins and increased dilution of outstanding shares.

The full earnings report is available here.

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Italcementi Cement Plant


Yesterday, Ormat announced a $5.7M deal with Italcementi Group to be installed at a Martinsburg, West Virginia cement plant. While the total size of the plant in MW was not disclosed, we believe it to be in the 3.5MW range. This marks another win in Ormat’s strategy to diversify from geothermal into the waste heat harvest business.

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As referenced earlier today, ArcLight Capital and Caithness Energy LLC have entered into a deal where ArcLight will take an interest in 824MW of power generation in geothermal, solar thermal, and wind projects.

Upon reviewing the remaining Caithness Energy LLC portfolio the company is left with one undisclosed hydro power project and the remainder of its portfolio is now fossil fuel based with the largest component being natural gas (one diesel and one coal project exist as well.)

With the transfer of the geothermal, solar thermal, and wind assets and their operation to ArcLight, Caithness has effectively exited the renewable energy business after 25 years. Once operating agreements with eneXco and Seapower West lapse in the wind projects, it is likely ArcLight will take over operation of those projects as well.

With renewable energy’s move toward the mainstream, it’s interesting that Caithness would take this opportunity to exit. Perhaps it is because of the current hot market the management team looked for a high dollar value exit, on asset value alone, this is a billion dollar deal. Does the Caithness management team believe that the sector valuation has peaked?

The flip side of that is ArcLight’s asset acquisition positions them to enter the renewable power business in a big way. The Caithness assets join CPV Wind Ventures in the portfolio. ArcLight has vast experience in the power industry and has extensive interest in coal and gas fired power plants, along with transmission and pipeline operations.

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COSO Geothermal Field


ArcLight Capital has invested an undisclosed amount in Caithness Energy, LLC in exchange for interest in 18 different renewable energy projects in the geothermal, wind, and solar thermal areas totally more than 800MW. In addition to securing an interest, ArcLight will assume operations and maintenance responsibilities for 10 of the 18 projects. Caithness benefits from this transaction by attracting capital to help complete their 350MW Long Island project. Subject to regulatory approval, the anticipated close of the deal should occur in the 3rd quarter of 2007.

The specific projects included in the deal are:

• Geothermal: Coso (240 MW), Dixie Valley (66 MW) and Beowawe (18 MW)
• Wind: Cameron Ridge (60 MW), Pacific Crest (47 MW), San Gorgonio (43 MW), Foote Creek II-IV (43 MW), Texas Big Spring (34 MW), Ridgetop (31 MW), Peetz (30 MW), Oak Creek (23 MW), 251 (18 MW), VG Repower (7 MW), and Chandler (2 MW)
• Solar: SEGS VIII (80 MW), SEGS IX (80 MW)

The full press release is available from the ArcLight Capital website.

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Treehugger.com is worth $4,914,320.70.
How much is your blog worth?


The links above show what the Technorati links think the Treehugger.com site is worth. It apparently sold at 2x that valuation (~$10M) to Discovery Communications.

SILVER SPRING, Md., Aug. 1 – Discovery Communications, the number-one nonfiction media company, today announced the acquisition of the leading eco-lifestyle website, TreeHugger.com. The interactive site becomes part of Discovery’s global multiplatform initiative Planet Green, which includes the first 24/7 eco-lifestyle TV network launching in 50 million homes in early 2008.

The deal brings TreeHugger.com’s rich mix of news, blogs and advice to Planet Green and furthers Discovery’s previously announced goal of developing original programming related to the environment, sustainable development, conservation and organic living. In acquiring TreeHugger.com, Discovery is pursuing its multiplatform strategy of being the leading content provider across nonfiction genres around the world. The transaction will not have a material impact on earnings in year one.

Read more…

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