Haifa Chemicals Ltd. is joining the circle of private electricity producers. Sources inform ''Globes'' that the company is in advanced negotiations with Edeltech Holdings Ltd. on the construction of a private power station at the company’s facility at Mishor Rotem in the Negev.
The power station would use natural gas to generate 200 megawatts (MW), and would cost $150-200 million to build. Haifa Chemicals board must approve any deal, and is due to meet soon to discuss it.
Other companies planning to build and operate natural gas-driven power stations include American Israeli Paper Mills Ltd. (AMEX: AIP; TASE: AIP), Israel Chemicals Ltd. (TASE: CHIM) subsidiary Dead Sea Works Ltd., Solbar Industries (TASE: SLBR), Dalia Power Energies Ltd., and Israel Power Ltd.
Edeltech has already signed contracts to build 50-MW power stations with Solbar and Makhteshim Agan Industries Ltd. (TASE: MAIN) subsidiary Agan Chemical Works Ltd. at a cost of over $100 million. Edeltech is collaborating with Turkey’s Zorlu Industrial and Powerplants Construction Co. Inc. in building the power stations.
Private electricity generation is expected to expand rapidly when the natural gas pipeline reaches the Negev in 2008, after completion of the pipeline from Kiryat Gat to the Dead Sea. The Public Utilities Authority (Electricity) has already approved production licenses for private parties for the production of 2,000 MW, amounting to a fifth of Israel’s electricity production.
Haifa Chemicals said in response, “Some of the company’s activities to improve the environment include negotiations to build an independent natural gas driven power plant at its factory in the south.”
Published by Globes [online], Israel business news - www.globes.co.il - on May 7, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007