Green St. Energy has announced that a recently completed sale of the Alta Wind Project in Tehachapi, located in the County of Kern, California, a prolific area for the production of energy from wind, validates the Company's decision to enter into an option agreement that provides it a three-year option to acquire 4,840 areas of land located in Tehachapi to develop a wind farm.
Green St. previously acquired 160 acres of land from the same property owner. It was reported that the 3,100 MW Alta Wind Project in Tehachapi, California was sold for $325 million, plus the assumption of approximately $65 million of outstanding letters of credits.
According to reports, Allco Finance Group Limited, the project's owner, received over 60 indications of interest, with seven bidders invited to submit fully binding proposals. The project was estimated to have great value due to its access to transmission lines.
Southern California Edison has entered into an agreement to purchase the energy produced by the project. Green St. Energy believes that its acreage is located in an area comparable to the Alta Wind Project and that it will also have access to transmission lines when completed.
"We believe that our securing an option to purchase this highly desirable acreage has created a great deal of value for shareholders," said Tony Cataldo, Green St. Energy's Chief Executive Officer.
"The recent sale of Allco's property, in which there was great interest, validates our decision to acquire and develop property in the "wind capital" of the United States."
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