Ormat planning acquisition of 16 MW geothermal project in Nevada

Alexander Richter 10 Feb 2010

Ormat Technologies announces plan to acquire 16 MW Hot Sulphur Springs project in Elko County, Nevada from TG Power, likely allowing the company to tap into stimulus funds.

Reported from Nevada, “Ormat Technologies Inc. (ORA) says it plans to buy a 16-megawatt geothermal power plant under development in northeast Nevada.

Reno-based Ormat is buying the Hot Sulphur Springs geothermal project in Elko County, Nev., which the company said is in an “advanced stage” of development, from privately held Nevada developer TG Power. Once completed, the plant’s output will be sold to a unit of NV Energy Inc. (NVE) under a 20-year power-purchase agreement, Ormat said.

The project is slated to be developed in stages, with initial output expected at 16 megawatts, and potential expansion to as much as 40 megawatts, the company said. Construction is scheduled to start this year, making the project eligible for federal stimulus funds, with completion expected in 2012, said Ormat Chief Executive Dita Bronicki. Terms of the agreement weren’t disclosed.

Shares of Ormat closed 1% higher Tuesday at $34.23.”

Source: Wall Street Journal