Good for the Congress, they managed to do something and something important. While we can poke many holes in the legislation, it does include 15% national renewable portfolio standard and shifts some $16B toward renewable energy and conservation programs. This was an important step and Congress should be commended for getting it done, a little late, but better than never.

A mainstream press account of the event is available here.

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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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Glitnir Bank of Iceland has extended a $20M loan to Nevada Geothermal to help ease the cash crunch in the preconstruction phase of the Blue Mountain project. Upon entering the construction phase, the previously announced $100M loan from Morgan Stanley will be used to repay the bridge loan from Glitnir. The near-term financing should help the project move along into the construction phase.

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