Ormat plans to double output in the next few years.
Alexander Richter
19 Feb 2010
Ormat plans to double its power output capacity in the next few years, which would mean installation of additional 520 MW.
According to a recent interview with Bloomberg BusinessWeek, “Ormat Industries Ltd., the second- biggest owner of geothermal power plants in the U.S., expects to double its output, aided by cash from government stimulus programs, Chief Executive Dita Bronicki said.
The company, based in Yavne, Israel, already has more than $13 million of U.S. government funding to probe for underground heat sources able to drive turbines at seven locations in Nevada, California and Hawaii. It’s applying for loan guarantees “in excess of $100 million” that would back new plants in the same three states, she said in a telephone interview.
“The renewable energy environment is very supportive of growth,” Bronicki said, noting an abundance of government grants and loan guarantees. “When you couple both of them together, they make a very positive environment for growth.”
Electricity-generation capacity from tapping the Earth’s heat will triple within five years in the U.S., the Washington- based Geothermal Energy Association said on Jan. 26. Countries around the world are trying to tap renewable sources of power to reduce dependence on oil and cut greenhouse gas emissions in an effort to fight climate change.
In the U.S., 3,153 megawatts of geothermal power generating capacity already exists, enough for almost 1 million homes. Another 6,400 megawatts is under development over the next five years, according to Ormat, which trails Calpine Corp. of California.
Bronicki said Ormat “absolutely” plans to build new plants and expand in the U.S. He declined to give specific details. Asked how soon she expected the company to double output worldwide, she said: “I don’t know if in the near future, but certainly in the foreseeable future.”
Ormat and its New York-listed unit, Ormat Technologies Inc., own and operate 520 megawatts of geothermal generating capacity worldwide, with 392 megawatts in the U.S. It also has facilities in Guatemala, Kenya, Nicaragua and New Zealand.
Ormat two days ago said it intends to add up to 52 megawatts of additional capacity to a plant in Naivasha, Kenya, which currently generates 48 megawatts.
In June 2008, Bronicki said Ormat planned to double output from 410 megawatts over four years. Since then, the company has added 110 megawatts.
Bronicki said the current target markets for Ormat include Indonesia and the Philippines, though expansion will be easier in those countries where the Israeli firm already is operating.
“We’re definitely focused on where we already have a presence,” Bronicki said. “It’s much easier to increase where we are than to go into new frontiers.”
Source: Bloomberg BusinessWeek
