Ormat, Solar Millenium collaborate on Ashelim bid

The deal may lead to a new bidding consortium, after a previous one involving Solar fell apart.

Ormat Technologies Inc. (NYSE: ORA) and Germany's Solar Millenium AG have agreed to collaborate on a bid in the $1.5 billion Ashelim tender to build solar power plants. A notice of the joint bid was sent to the tenders committee led by deputy Accountant General Gil Shabtai.

According to the notice, the two companies agreed to form a special purpose company (SPC). Ormat will own 67% of the company, and Solar Millenium will own 33%.

Signing a deal with Ormat boosts the chances of success of the Ashelim tender, since it may lead to re-establishing the bidding consortium which included Solar Millenium. That group fell apart after the departure of Electra Ltd. (TASE: ELTR) and Minrav Holdings Ltd. (TASE: MNRV).

Ormat Technologies, led by CEO Yehudit Bronicki, confirmed the report.

The Ashelim solar energy venture is Israel's flagship alternative energy project. The government is looking for two thermo-solar power plants, generating 100-125 megawatts each, and a photovoltaic power plant generating 30 megawatts.

Ormat Technologies has made a move recently to expand beyond geothermal energy and into solar energy, including a plant in Arizona that uses its turbine.

Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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