Ormat Technologies Inc. (NYSE: ORA) and Germany's Solar Millenium AG have agreed to collaborate on a bid in the $1.5 billion Ashelim tender to build solar power plants. A notice of the joint bid was sent to the tenders committee led by deputy Accountant General Gil Shabtai.
According to the notice, the two companies agreed to form a special purpose company (SPC). Ormat will own 67% of the company, and Solar Millenium will own 33%.
Signing a deal with Ormat boosts the chances of success of the Ashelim tender, since it may lead to re-establishing the bidding consortium which included Solar Millenium. That group fell apart after the departure of Electra Ltd. (TASE: ELTR) and Minrav Holdings Ltd. (TASE: MNRV).
Ormat Technologies, led by CEO Yehudit Bronicki, confirmed the report.
The Ashelim solar energy venture is Israel's flagship alternative energy project. The government is looking for two thermo-solar power plants, generating 100-125 megawatts each, and a photovoltaic power plant generating 30 megawatts.
Ormat Technologies has made a move recently to expand beyond geothermal energy and into solar energy, including a plant in Arizona that uses its turbine.
Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2010
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