A target=new href=http://www.ormat.com/>Ormat Technologies (NYSE: ORA) announced today that its wholly owned subsidiary, Ormat Nevada, signed a letter of intent with a utility company located in the northwestern US regarding the purchase of an Ormat recovered energy generation system (REGS) facility for approximately $13 million.
Ormat did not name the utility company, but stated that the facility will have a design capacity of 4.95 MW net and will utilize recovered waste heat from gas turbines driving compressors on a major interstate gas pipeline located in Washington State.
The transaction is subject to Ormat and the utility company entering into definitive agreements, which the parties plan to conclude by June 30, 2005. The expected completion date of the facility is 22 months from the definitive agreement.
The REGS facility will include the recovery of exhaust gas heat of three existing gas turbines, and convert that heat to electrical power through an Ormat energy converter (OEC) and interconnection to the utility's transmission grid.
The OEC converts recovered heat to electric power without the need for any additional fuel or water. Ormat stated that the REGS provides for a power generation facility with minimal environmental impact.
Ormat Technologies chairman and CTO Lucien Y. Bronicki said, "Ormat sees recovered energy as a market with a high growth potential. Recovered energy not only is good for the environment, but it is a very cost-effective way to develop additional generating capacity and contribute to a plant's energy efficiency. In addition to our recently announced power purchase agreement for Ormat to supply 22 MW from recovered energy generation plants, we believe that the letter of intent further substantiates the importance of recovered energy and the growth opportunity that exists."
Ormat Technologies, a subsidiary of Ormat Industries (TASE: ORMT), is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, builds, owns and operates geothermal power plants. It also designs, develops and builds, and plans to own and operate, recovered energy-based power plants. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by more than 70 patents. Ormat currently has operations in the United States, Israel, the Philippines, Guatemala, Kenya and Nicaragua.
Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, April 21, 2005