Ormat Technologies Inc. (NYSE: ORA) unit Ormat Nevada Inc. and Nevada Geothermal Power Inc. (NGP) (CDNX: NGP; Bulletin Board: NGLPF) have obtained a Limited Notice to Proceed (LNTP) from NGP Blue Mountain I LLC (NGP I) to build the first phase of NGP's Faulkner 1 35-megawatt geothermal power development at Blue Mountain, Nevada. The initial $20 million contract includes engineering, procurement and construction (EPC).
Ormat will begin the detailed engineering design, manufacturing and purchasing of certain long lead items for power plant in order to meet the guaranteed substantial completion date of December 31, 2009. The company expects full release of the EPC contact by the end of June 2008.
The plant design incorporates Ormat's proprietary power generation technology with water-cooling. The output of the plant will meet the power delivery requirements of the 20-year power purchase agreement between NGP and the Nevada Power Company.
Ormat CEO Yehudit Bronicki said, "We are delighted to have been selected as the supplier and contractor of choice for NGP's first power plant. Our technology is perfectly suited for the Blue Mountain resource and we are looking forward to delivering a great performing power plant on schedule."
Ormat Technologies closed at $42.47 yesterday. The company is a subsidiary of Ormat Industries Ltd. (TASE: ORMT).
Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2008
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