News

Ormat signs EPC contract with Lightning Dock Geothermal/ Cyrq Energy

Drilling start at Lightning Dock project, New Mexico (source: Raser Technologies)
Alexander Richter 29 Nov 2011

Ormat Technologies via Ormat Nevada Inc. signs EPC contract for the Lightning Dock geothermal project in New Mexico with Cyrq Energy (formerly Raser Technologies).

In a release by Ormat Technologies, the company announces that its its wholly-owned subsidiary Ormat Nevada Inc., “signed a $65 million engineering, procurement and construction (EPC) contract and a credit agreement with Lightning Dock Geothermal HI-01, LLC (LDG), a subsidiary of Cyrq Energy, Inc., in connection with the construction of LDG’s geothermal project in New Mexico.”

Cyrq Energy is the new name for Raser Technologies, that was recently restructured under bankruptcy proceedings in the United States.

“The EPC contract work is scheduled to be released in stages based on LDG’s progress in the well field drilling and development necessary to support the project. Early engineering will be released as soon as the basic well field characteristics are confirmed in order to maintain the project schedule. Further work will be released based on the progress of the well field development. Under the credit agreement Ormat will provide financing in an aggregate principal amount not to exceed $66 million that will be used to finance the project construction costs under the EPC contract with LDG. The project is expected to come online by the end of 2013.

Yoram Bronicki, President and COO of Ormat Technologies, said, “The Lightning Dock project is an opportunity to match Ormat’s execution capabilities with Cyrq Energy’s front-end development that we hope will enable swift project execution. This project is part of a broader initiative between our two companies to co-develop projects at a fast pace, while adhering to the traditional risk distribution between Owner and Constructor.”

Source: PR Newswire via Sacramento Bee