Israeli geothermal energy developer Ormat Technologies Inc. (NYSE: ORA; TASE: ORMT) has signed a strategic collaboration agreement with Japan's Toshiba Corp. in geothermal power generation systems and related equipment.
Under the terms of the agreement, the parties will explore and develop strategic opportunities that will enable them to offer potential customers a more competitive solution for comprehensive supplies and services related to geothermal developments, from resource assessment, field development, power plant engineering, procurement and construction (EPC) to power plant operation.
The first project to be implemented under this collaboration is the Menengai geothermal project in Kenya to be constructed and operated by the Ormat - Symbion Power LLC - Civicon Ltd Consortium, majority owned by Ormat. The parties have already initiated negotiations on the supply agreement and the plant design is at an advanced stage.
The parties are actively analyzing global prospects for other projects in which they can jointly submit applications for geothermal power plants.
Toshiba’s Power Systems Company president and CEO Yoshihiro Aburatani said, "A collaboration between globally respected Ormat and Toshiba, bringing together Ormat’s capabilities in developing geothermal projects and its reliable binary equipment and our expertise in geothermal power, notably our highly reliable flash type geothermal steam turbines, offers tremendous potential for delivering comprehensive customer satisfaction. We look forward to working with Ormat to implement the first project.”
Ormat CEO Isaac Angel said, “This milestone collaboration with Toshiba, an innovation leader in the geothermal steam turbine industry, is another significant step in our long-term strategy to expand our presence in the geothermal space and ultimately target the larger renewable energy market,” commented Isaac Angel Chief Executive Officer of Ormat. “We view this collaboration as a key to support our strategic expansion in the geothermal industry to diversify our technological base, as well as extend our geographic reach. I believe that this collaboration of two market leaders, each with its own area of expertise, will enhance the value proposition to our clients, expand the market opportunities and accelerate the growth for both Ormat and Toshiba.”
Ormat's share price rose 2.1% on the NYSE to $36.83, giving the company a market cap of $1.8 billion. However, the share price is down 1.2% on the TASE today.
Published by Globes [online], Israel business news - www.globes-online.com - on October 15, 2015
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