President Hernandez Joins OPIC to Inaugurate Honduras’ First Geothermal Plant
COPÁN, HONDURAS – At a ribbon cutting ceremony, Honduran President Juan Orlando Hernández and U.S. Overseas Private Investment Corporation (OPIC) Vice President for Investment Policy Ryan Brennan today inaugurated Geotérmica Platanares, a 35 megawatt geothermal baseload power plant in western Honduras. The project is supported by $135 million of financing from OPIC, the U.S. Government’s development finance institution, and developed by Reno, Nevada-based Ormat Technologies, Inc. It is the first utility-scale geothermal project in Honduras.
“This project is transformative for many reasons, principally for the reliable energy it will supply to the people of Honduras,” said OPIC President and Chief Executive Officer Ray W. Washburne. “OPIC is proud to support this facility which will advance Honduras’ economic prosperity.”
“OPIC is thrilled to provide the U.S. government’s support for this important project. Creating sustainable energy solutions that contribute to economic and social development in the Northern Triangle is a top priority for OPIC,” said Brennan. “Integration of multiple sources of new energy will help ensure reliability of energy supply as Honduras continues to grow.”
“It is an honor to play a key role in such a significant development and to advance a project from the earliest stages of exploration all the way through to commercial operation,” said Isaac Angel, CEO of Ormat Technologies, Inc. “As the geothermal industry leading vertically integrated company, we leveraged more than 50 years of experience and utilized our state of the art technology to provide affordable and renewable geothermal power to the Honduran grid. We appreciate OPIC's recognition of the importance of this project and their commitment to work with us on this financing. ”
Honduras requires a 26 percent increase in power generation capacity over the next decade to keep up with projected GDP growth. This project is expected to generate sustainable, reliable, and cost-effective power, while contributing to the Honduran Government’s goal of generating 80 percent of its energy from renewables by 2032.
OPIC currently has $235 million invested in Honduras and roughly $675 million in the Northern Triangle region.
The inaugural event had strong attendance by Honduran and U.S. government officials, local dignitaries, Ormat senior leadership, and business and community leaders.
The Overseas Private Investment Corporation (OPIC) is the U.S. Government's development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker's rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.