China's Kaishan Compressor Buys Warren Buffett’s Geothermal Project in US for USD5.1 Million
Dou Shicong
DATE:  Feb 18 2021
/ SOURCE:  Yicai
China's Kaishan Compressor Buys Warren Buffett’s Geothermal Project in US for USD5.1 Million China's Kaishan Compressor Buys Warren Buffett’s Geothermal Project in US for USD5.1 Million

(Yicai Global) Feb. 18 -- China's Kaishan Compressor has spent USD5.1 million to buy its third geothermal project in Nevada from Warren Buffett's flagship investment company.

Kaishan acquired the Fish Lake project from Berkshire Hathaway’s units for USD3.2 million, the Zhejiang province-based firm said in a statement today. It also splurged USD1.9 million on a related land leasing contract.

The Chinese company is working to transform itself from a large compressor equipment maker into a green energy firm. It is operating or has contracted to build geothermal projects in several countries, including Hungary and Kenya.

The US is one of the world’s most important geothermal power markets, and after the Star Peak and Wabuska projects, Kaishan's third project in Nevada will help it transform into a renewable energy equipment manufacturer, it said.

The Fish Lake project has five standard-size geothermal wells. The area's assets are valued at USD15 million, much higher than the contract price, said the buyer. Kaishan will build a geothermal power station with about 10 megawatts of output to raise the project's total to 31 MW.

Kaishan's stock price [SHE:300257] edged up 1.1 percent to CNY15.16 (USD2.40) in the afternoon. The Shenzhen Stock Exchange Composite Index was 0.75 percent down.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Kaishan Compressor,Geothermal,Buffett,nevada,us,energy,China