(Yicai Global) April 17 -- Whitegrass No. 1 LLC, a US subsidiary of Zhejiang Kaishan Compressor Co. [SHE:300257], has signed a USD600,000 agreement with Homestretch Geothermal 2010 LLC for the rights to acquire assets and develop and commission projects at a geothermal power plant near Wabuska, Nevada.
Whitegrass will renovate and expand the facility, and targets a 40 MW total generation capacity, Zhejiang Kaishan said in an announcement yesterday.
From Jan. 1, 2018 Whitegrass will pay Homestretch USD300,000 in addition to a 3.5 percent commission on annual gross revenue from the plant's energy sales during the leasing period.
The deal is a significant move in the company's entry into geothermal markets in the US and South America, the announcement said. It will help the firm transform into a maker and operator of renewable energy equipment.