Vulcan Power Company, a Bend, Ore., developer of geothermal energy projects, has raised $108 million in private equity funding from Denham Capital, an energy-focused investment firm. Vulcan plans to use proceeds to finance the development of its 300- megawatt project pipeline in California, Oregon and Arizona.
This is Denham’s second investment in Vulcan and brings the Boston-based PE firm’s total investment in the geothermal developer to $166 million. Bank of America Merrill Lynch is another major company investor.
In a prepared statement Vulcan acting CEO Robert Warburton, said:
Denham understands both the below ground and above ground dynamics of geothermal development, making them a great resource to Vulcan. This investment ensures Vulcan has the capital to continue the execution of its development program.
Geothermal, unlike wind or solar power, is constant, which makes it the only source of renewable power that can be used on a baseload basis.
According to a recent year-end report by the Geothermal Energy Association, in the U.S. geothermal power generates 3,152 megawatts of electricity and there are 6,442 megawatts of new capacity under development.
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