Ormat Technologies, Inc. (NYSE: ORA) announced that two of its subsidiaries entered into a supply contract and a construction contract with Contact Energy LTD of New Zealand for Centennial Binary Plant, a new geothermal power plant that is to be constructed in the Tauhara Geothermal Field in New Zealand. The contracts are valued at a total of approximately $42 million and construction of the power plant is expected to be completed within 23 months from the contract date.
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 LPG. Contact Energy generates about 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 across New Zealand. Contact Energy already has one operating geothermal binary power plant that was supplied by Ormat in 2005.
Ormat has been actively designing and supplying geothermal power solutions in New Zealand since 1986. The Centennial plant will mark the twelfth geothermal power plant with total capacity of over 250 megawatts (MW) erected in the country by Ormat. The new plant will use air-cooled condensers and will allow 100% geothermal fluid reinjection, which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact.
Dita Bronicki, CEO of Ormat Technologies, 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."
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, owns and operates geothermal and recovered energy- based power plants around the world. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The company has more than four decades of experience in the development of environmentally- sound power, primarily in geothermal and recovered-energy generation.
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