Ormat Technologies’ wholly owned subsidiary, Orsumas, LLC, has entered into a 20-year power purchase agreement with Puget Sound Energy Inc. for the supply of power from a Recovered Energy Generation System (REGS), which will be located adjacent to the Sumas Compressor Station of Northwest Pipeline Inc. (NWP) in Sumas, Washington State. The facility is expected to begin commercial operations in the last quarter of 2007 or the first quarter of 2008, and is expected to generate annual revenues of approximately $2.3 million with a 1% annual escalation.
The REGS will be owned by Orsumas and will use recovered waste heat from three NWP existing gas turbines driving compressors at the station, as well as interconnect to Puget Sound Energy’s transmission grid. The facility will employ an ORMAT Energy Converter (OEC) and will have a design capacity of 4.95 MW net. On November 15, 2005, Ormat signed a 20-year Host Agreement with NWP to site the REGS and utilize waste heat from the station.
The OEC is a closed loop Organic Rankine Cycle based power conversion technology, which converts recovered heat into electric power without the need for any additional fuel or water. The ORMAT Recovered Energy Generation System provides power with minimal environmental impact.
Dita Bronicki, Chief Executive of Ormat Technologies, said, “This project brings the total capacity of Ormat-owned REGS under construction to 27 MWs of distributed power that is emission free and does not require additional fuel, producing reliable energy when needed. Recovered energy is not only good for the environment, it is also a very cost-effective way to develop additional generating capacity and contribute to a plant’s energy efficiency.”
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