Haifa Chemicals Ltd. and Edeltech Holding Ltd. have signed an agreement to build a private power plant at Mishor Rotem at an investment of $250 million. "Globes" revealed the negotiations between the companies and Turkey's Zorlu Industrial and Power Construction Co. Inc a year ago.
In the first stage, the natural gas-driven cogeneration power plant will have a 100 megawatt capacity. Construction will cost $150 million. The power plant is due to begin operating within four years, and by mid-2012 at the latest. The plant will supply Haifa Chemicals' electricity needs, and the company plans to sell any surplus to other private consumers via the national grid.
The negotiations between Haifa Chemicals and Edeltech picked up pace with the construction of the natural gas pipeline to the Negev. Haifa Chemicals chairman and CEO Avi Pelossof said, "The decision to build the power station is another step in the company's efforts to improve the environment, following its earlier transition to low-sulfur crude oil."
Haifa Chemicals predicts that it will switch to natural gas within a year.
Edeltech is currently Israel's top private electricity producer and is involved in the construction of power stations for manufacturers. The company is involved in the construction of power stations at an aggregate investment of NIS 1.5 billion, including a 100-MW plant for Solbar Industries Ltd. (TASE: SLBR), a 55-MW plant for Agan Chemical Manufacturers Ltd., and a 100-MW plant at Ramat Hovav for Makhteshim Agan Industries Ltd. (TASE: MAIN).
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2008
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