Sources inform ''Globes'' that IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Industries and Investments Ltd. (TASE: CII) is in negotiations to build a 150-megawatt pumped storage hydroelectric plant on Mount Carmel in Haifa. The project will cost an estimated $100-150 million.
Clal Industries has asked the Public Utilities Authority (Electricity) to begin procedures for obtaining a conditional license for the power station. The company owns land on Mt. Carmel through its subsidiary, Nesher Israel Cement Enterprises Ltd., on which it plans to build the power station.
Pumped storage hydroelectric technology is considered eco-friendly. It generates electricity by utilizing the altitude difference between two reservoirs. The pumping is carried out during off-peak electricity demand hours when there is a surplus of power production. The electricity is generated during peak demand by draining the upper reservoir into the lower one, which drives the turbines.
This project is another step by IDB, controlled by chairman and CEO Nochi Dankner, to expand its energy business. A few months ago, Clal Industries set up a $200 million joint venture with Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) to develop and acquire controlling interests in wind energy projects outside of Israel. The two companies will own the joint venture in equal shares.
Worldwide, there are 350 hydroelectric plants utilizing this technology.
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2008
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