Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) has signed two major deals, one in New Zealand and the other in Turkey.
In New Zealand, Ormat signed a $42 million supply and construction contract with Contact Energy Ltd. for the Centennial Binary Plant, a new geothermal power plant to be built at the Tauhara Geothermal Field. The plant is due to come on line within 23 months.
Contact Energy is New Zealand's largest geothermal power plant owner and operator as well as the country's largest wholesaler and retailer of natural gas and liquid petroleum gas. It generates 28% of the country's total electricity capacity, including approximately 27% of the retail electricity market share and supplies electricity and gas is to around 635,000 customers. Ormat sold the company a geothermal binary power plant in 2005.
Ormat has delivered 12 geothermal power plants, with a total capacity of over 250 megawatts, to New Zealand since 1986.
Ormat Technologies CEO Yehudit Bronicki said, "These contracts increase our geothermal products backlog by $58 million for the second quarter and $134 million since the beginning of the year, including $50 million that is still subject to notice to proceed."
Last week, Ormat Technologies signed a $16 million contract with Turkey's MEGE - Menderes Geothermal Elektrik Uretim, AS for a supply contract for a new geothermal power plant. Delivery of the equipment is slated to be completed within 16 months. MEGE is a private company that has one operating geothermal power plant that was supplied by Ormat in 2004.
Bronicki noted, "This marks our fourth order to supply equipment for geothermal power in Turkey."
Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2008
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