Due to the rapidly changing makeup of the U.S. power grid and the distressed nature of many U.S. geothermal plants, the opportunity has arisen to capitalize on these undervalued assets and position the Clean Energy Partners (CEP) as a leading provider of clean electric power. CEP is situated to fill the void as fossil fuel (coal) and nuclear facilities are faced with mounting public pressure to decommission. AltaRock is enabling CEP to achieve above-average returns by executing timely acquisitions at low multiples from a pipeline of operating geothermal projects that are subsequently re-powered by AltaRock. Geothermal stimulations are used to avoid the cost of new drilling and add up to 100% more power at substantially lower capital cost to plants with long-term power purchase agreements (PPAs) already in place. Clean Energy Partners is the first entity of its kind designed to provide investors strong annualized returns, secured by existing cash flows and leveraging geothermal power as a unique, underutilized energy resource in the U.S.
Historically, geothermal assets have generated significantly lower than expected revenues, which resulted in an over investment in capital improvements and an under utilization of such assets. While geothermal plants are capable of producing continuous energy, facilities typically do not meet expected production due to inefficient and costly exploration and development and a lack of options for long-term reservoir management.
AltaRock understands how to engineer permeability that boosts the output of under-performing wellfields and power plants. AltaRock has developed and commercialized geothermal stimulations to solve these industry challenges and increase the productivity of existing geothermal generation.
Stimulations are a proven technique involving the use of pressurized cold water to open up and expose natural fractures in the subsurface that increase heat flow and subsequently power generation.