Ormat Industries Ltd. (TASE: ORMT) US subsidiary Ormat Technologies Inc. (NYSE: ORA) said a unit has signed a 20-year power purchase agreement with a Nevada utility.
Ormat Technologies said the deal was signed with NV Energy subsidiary Nevada Power Company. Nevada Power Company will purchase 30 megawatts (MW) from Ormat's McGinness Hills geothermal project, which is currently under construction.
When completed, the McGinness Hills project will increase the total output supplied from Ormat to NV Energy, Inc. to about 135 MWs.
The renewable portfolio standard legislation requires 15% of all electricity generated in Nevada to be derived from new renewable energy sources by the end of 2012.
Ormat CEO Dita Bronicki said, "This PPA is further evidence that geothermal can supply a significant amount of power and is a preferable choice given its cost effectiveness, reliability and baseload nature."
Ormat said its McGinness Hills project will consist of Ormat binary energy converters that re-inject the geothermal fluid produced. The project will not produce any environmentally harmful emissions while working continuously to provide power 24 hours per day, 7 days per week.
Ormat recently reported its third quarter results, and noted then than product segment revenue rose 65.5% in the quarter due to equipment procurement contracts for the construction of three large binary geothermal projects in Nevada, New Zealand, and Costa Rica.
Ormat shares rose 4.6% in afternoon trading on the New York Stock Exchange.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2009
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