Sources inform ''Globes'' that NOR flash memory maker Numonyx Inc. is in talks with Paz Oil Company Ltd. (TASE:PZOL) to buy electricity from the private power plant at Paz Ashdod Refinery for its Fab 1 in Kiryat Gat. Numonyx reportedly wants to buy 20 megawatts of electricity a year under a 5-10 year contract. The estimated value of the deal is NIS 200-400 million.
The contract is due to come into effect next year, after Paz obtains a private electricity license. The deal could help Numonyx slash its energy costs, saving tens of millions of shekels.
Numonyx shareholder Intel Corporation (Nasdaq: INTC) plans to build a 50-megawatt private power plant for its own Fab 28 in Kiryat Gat, at an investment of $80-100 million. It is not clear how the pending contract between Numonyx and Paz might affect Intel's own plans.
Intel and STMicroelectronics NV (NYSE: STM) jointly spun off their flash memory businesses to create Numonyx. Intel owns 48% of the company.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2009
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