Ormat Industries Ltd. (TASE: ORMT) unit Ormat Technologies Inc. (NYSE: ORA) has completed the acquisition of a geothermal project in Honduras and plans to begin drilling wells in 2014. Ormat will own the assets of the Geotermica Platanares project, including wells, land, permits and the 35-megawatt Power Purchase Agreement for up to 35 megawatt with Honduras's national untiy ENEE under a Build, Operate and Transfer (BOT) agreement for 15 years.
Platanares, previous owner, Elcosa, has already conducted exploration work. Ormat will develop the project in phases, beginning with an 18-megawatt plant, which is planned to begin operations in three years.
"We are very excited to kick off the first geothermal project in Honduras through this partnership with ELCOSA, a strong local renewable player," said Ormat president and COO Yoram Bronicki. "We've had great success implementing our technology and our phased development methodology worldwide and we plan to repeat this success in Honduras.
Bronicki added that the project supports Ormat's strategy to expand its global footprint in areas where demand for electricity is strong and where Ormat can deliver clean renewable power from local resources. "This project along with other prospects will support our growth for 2016 and beyond," he concluded.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2013
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