Canadian power company Magma Energy has purchased another power company, and will be changing its name to Alterra Power.
Viðskiptablaðið reports that Magma and US power company Plutonic Power Corporation will be merging, and in so doing, Magma will become Alterra Power. Ross Beaty will also be the CEO of this company.
Ásgeir Margeirsson, the chairman of HS Orka (still 98% owned by Magma) and one of Magma’s board members, told Viðskiptablaðið that the merger would be highly beneficial. As 2/3 of all the work Alterra will do will cover Magma operations, “this means a broader foundation and the possibility of more growth in the areas of hydro, wind and solar power as well,” Ásgeir said. “This is not to pull back the emphasis from geothermal power or Iceland, but rather to strengthen the company.”
Magma’s relationship with Iceland has been anything but smooth, as many Grapevine readers are aware. The company is currently in talks with both the government and certain pension funds over these funds owning at least 25% of HS Orka, and over shortening the length of time that Magma leases geothermal energy.