Tuesday, Ormat Technologies, Inc. (ORA), a company engaged in geothermal and recovered energy power business, announced that two of its subsidiaries have entered into a supply and construction contract, worth about $42 million, with New Zealand-based Contact Energy Ltd for a new geothermal power plant. The construction of the plant is expected to be completed within 23 months from the contract date.
These contracts will increase Ormat's geothermal products backlog by $58 million for the second quarter and $134 million since the beginning of the year, including $50 million which is still subject to notice to proceed.
The company said that the new plant named Centennial Binary Plant will be constructed in the Tauhara Geothermal Field in New Zealand and will utilize Ormat's hi-performance, hi-efficiency organic turbine for geothermal and recovered-energy applications. It will use air-cooled condensers and will allow 100% geothermal fluid reinjection, which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact, the company noted.
Commenting on the deal, Dita Bronicki, chief executive officer of Ormat Technologies, said, "We are very pleased to receive this repeat contract from Contact Energy and are excited for the opportunity to once again work with the company's geothermal team. The award of these contracts demonstrates the trust that Contact Energy has in our ability to contribute experience and knowledge to the development of this new geothermal field, and we are looking forward to delivering a great performing power plant on schedule."
ORA closed Monday's session on NYSE at $49.18, up $1.07, or 2.22%.
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