We’re used to thinking about Ormat Industries Ltd. (TASE: ORMT) as a producer of energy from geothermal sources. However it has now won an interesting contract, albeit small, because it is connected to solar energy production using photovoltaic cell technology. In accordance with US regulations for encouraging solar energy electricity production, Arizona Public Service Company (APS), the state’s largest electricity company, has decided to produce part of its power with solar energy.
APS published a tender for the production of one Megawatt of electricity by solar energy, and contacted solar energy equipment makers, including Israel’s Solel Solar Systems Ltd. and Solargenix Energy of the US. Both companies approached Ormat to be a sub-contractor to provide a turbine in the event that they won the tender. Solel Solar Systems lost the tender to Solargenix, which is using an Ormat turbine. Ormat Nevada Inc., a wholly owned subsidiary through Ormat Technologies Inc. (NYSE: ORA), provided the turbine.
The solar energy facility is the first of its kind in Arizona, although, as mentioned, it is a small scale project, producing only one MwH. The interesting point is that the contract opens the door for Ormat to supply equipment to the solar energy sector as well. Ormat started out as a solar energy company, before becoming identified with geothermal energy.
Published by Globes [online], Israel business news - www.globes.co.il - on May 1, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006