LISBON, June 12 (Reuters) - Portuguese conglomerate Martifer (MARTI.LS) said on Thursday it will build and operate a hybrid solar-thermal electricity plant in California in an investment worth $450 million (291 million euros).
The plant, with a capacity of 106.8 mega watts, will sell electricity to Pacific Gas and Electricity (PG&E) (PCG.N) under 20-year power purchase agreements.
“The power purchase agreements encompass a firm commitment by PG&E to purchase all scheduled energy produced,” Martifer said in a statement.
The plant, which will be made up of two units, will be 80 percent owned by Martifer and 20 percent by U.S. partner Clean Energy Ventures.
The plant is expected to be ready in 2011.
Martifer said it intends to finance the project through a combination of equity and debt and will benefit from a 30 percent tax credit on solar energy investments.
The plant will produce energy from a combination of advanced solar thermal technology and biomass from agricultural waste. (Reporting by Axel Bugge; Editing by Gary Hill)