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Ormat in cooperation for projects in Japan

Ormat in cooperation for projects in Japan Monkey bathing in a geothermal hot spring, Japan (source: flickr/tristanf, creative commons)
Alexander Richter 28 Jun 2010

Ormat Technologies Inc signed a cooperation agreement for implementing geothermal power plant projects in Japan.

“Ormat Technologies Inc signed a cooperation agreement for implementing geothermal power plant projects in Japan.”, so a release by the company.

“Ormat Technologies subsidiary Ormat International Inc and JFE Engineering Corporation (JFEE), a subsidiary of JFE Holdings Inc, have agreed to work together on the implementation of geothermal power plant projects on an Engineering, Procurement and Construction (EPC) basis utilising Ormat’s proprietary binary cycle ORMAT Energy Converters and Geothermal Combined Cycle Units.

Under the terms of the agreement Ormat will supply power generation equipment and related engineering while JFEE will undertake the construction of the power plants and the related balance of plant, infrastructure and field surface facilities. JFEE will also provide local maintenance services as may be required by clients.”

The first commercial binary power plant in Japan was the Ormat 2 MW OEC supplied to the Kyushu geothermal facility at Hatchobaru. The Ministry of Economy, Trade and Industry of Japan announced plans to implement policies to stimulate growth in the country’s geothermal installed capacity in the next 10 years, by an additional 600 MW. Geothermal energy is part of Japan’s Renewable Portfolio Standard. The Company believes that a significant part of this potential is suited to Ormat’s technology.

Ormat is represented in Japan by Itochu Corporation. Itochu and Ormat are partners in geothermal projects in Indonesia and were partners in a geothermal BOT project in the Philippines.

Lucien Bronicki, Chairman and Chief Technology Officer of Ormat Technologies, stated, “We expect that the synergy brought about by this cooperation with JFEE and the ongoing support of Itochu Corporation shall significantly enhance our ability to provide a ‘full service’ capability for our equipment and technology in Japan, and thereby assist us to participate in a meaningful way in the anticipated expansion of the Japanese geothermal industry.”

Source: Trading Markets, Ormat release via MarketWatch