UNCONSOLIDATED INVESTMENTS

12 Months Ended

Dec. 31, 2011

UNCONSOLIDATED INVESTMENTS

NOTE 5 — UNCONSOLIDATED INVESTMENTS

Unconsolidated investments, mainly in power plants, consist of the following:

	December 31,
	2011		2010
	(Dollars in thousands)
Sarulla	$	2,215	$	2,244
Watts & More Ltd.		1,542		2,000
	$	3,757	$	4,244

The Sarulla Project

The Company is a 12.75% member of a consortium which is in the process of developing a geothermal power project in Indonesia with expected generating capacity of approximately 340 MW. The project is located in Tapanuli Utara, North Sumatra, Indonesia and will be owned and operated by the consortium members under the framework of a Joint Operating Contract with PT Pertamina Geothermal Energy (“PGE”). The project will be constructed in three phases over five years, with each phase utilizing the Company’s 110 MW to 120 MW combined cycle geothermal plants in which the steam first produces power in a backpressure steam turbine and is subsequently condensed in a vaporizer of a binary plant, which produces additional power. The consortium is still negotiating certain contractual amendments for facilitation of project financing and for signing the resulting amended energy sales contract, and intends to proceed with the project after those amendments have become effective.

The Company’s share in the results of operations of the Sarulla project was not significant for each of the years presented in these consolidated financial statements.

Watts & More Ltd.

In October 2010, the Company invested $2.0 million in Watts & More Ltd. (“W&M”), an early stage start-up company, engaged in the development of energy harvesting and system balancing solutions for electrical sources and, in particular, solar photovoltaic systems. The Company holds approximately 28.6% of W&M’s shares.

The Company’s investment in W&M was not significant for the years ended December 31, 2011 and 2010.

The Mammoth Complex

Prior to August 2, 2010, the Company had a 50% interest in Mammoth Pacific, which owns the Mammoth complex. The Company’s 50% ownership interest in Mammoth Pacific was accounted for under the equity method of accounting as the Company had the ability to exercise significant influence, but not control, over Mammoth Pacific. On August 2, 2010, the Company acquired the remaining 50% interest in Mammoth Pacific (see Note 2).

The unaudited condensed results of Mammoth Pacific are summarized below:

	Period from January 1, 2010 to August 1, 2010			Year Ended December 31, 2009
	(Dollars in thousands)
Condensed statements of operations:
Revenues	$	11,484		$	19,841
Gross margin		2,670			6,181
Net income		2,528			5,993
Company’s equity in income of Mammoth:
50% of Mammoth net income	$	1,264		$	2,997
Plus amortization of basis difference		345			593
		1,609			3,590
Less income taxes		(611	)		(1,363	)
Total	$	998		$	2,227