GEN1 Energy to Acquire World's No.1 Omat-Owned Geothermal Power Plant... "Expanding US Lithium Business"

[Asia Economy Reporter Jang Hyowon] GEN1 Energy announced on the 10th that it is pursuing the acquisition of a geothermal power plant owned by the world's No.1 geothermal power specialist company to advance its lithium business in the United States.

GEN1 Energy revealed on the 10th that it signed a Letter of Intent (LOI) with Ormat Technologies, Inc. for the acquisition of a geothermal power plant. This geothermal power plant is located in Brawley near Salton Sea, California.

Ormat Technologies is the world's No.1 geothermal power specialist company listed on the New York Stock Exchange. Headquartered in the western United States, it operates power plants in Israel, the Philippines, Kenya, Guatemala, and other countries. It is also a manufacturer and distributor supplying geothermal power equipment to over 70 countries worldwide. In 2021, its revenue was $663 million, with a market capitalization of $4.8 billion.

The geothermal power plant to be acquired is equipped with a 30-megawatt (MW) production facility and owns land for a solar power plant and related storage facilities. Near the geothermal power plant at Salton Sea, global companies such as Warren Buffett's Berkshire Hathaway and General Motors are conducting lithium exploration and development activities using geothermal brine.

GEN1 Energy plans to accelerate its U.S. lithium extraction business through this acquisition. Previously, last month, it signed a main contract with its U.S. partner, Mineral Resources International (MRI), to build a pilot plant for direct lithium extraction from the salt lake.

A company official stated, "Through the acquisition of the geothermal power plant, we plan to expand not only lithium extraction from existing salt lakes but also lithium extraction from geothermal brine," adding, "This is significant as it links with GEN1 Energy's core geothermal energy business."

He continued, "We plan to complete due diligence on the geothermal power plant as quickly as possible and proceed with the main acquisition contract," adding, "The acquisition of the Brawley geothermal power plant is expected to serve as a foothold within the U.S. for securing lithium."