Intel Israel is in talks on the building of a private power plant with a 100-150 megawatt production capacity on the grounds of its fab in Kiryat Gat. The plant will cost an estimated $150 million to build.
Intel recently published an international tender for the building of a private power plant at its site in Kiryat Gat. The plant is designed to supply the plant's energy needs, with surplus production to be sold to the national grid. It is believed that the lead bidder in the tender is Edeltek Ltd., controlled by Yosef Edelsburg, which is also a partner in the Dorad power plant in Ashkelon.
Intel's plans to begin producing its own energy are not new. "Globes" first reported in 2005 that the company had begun the conversion of its fab to natural gas. The Intel fab in Kiryat Gat is located near the route of the natural gas pipeline in the south.
Should its plans reach fruition, Intel will become the latest in series of industrial companies that are due to build their own private power plants in the coming years, including Israel Chemicals Ltd. (TASE: ICL), American Israeli Paper Mills (AMEX: AIP; TASE: AIP), Oil Refineries Ltd. (TASE:ORL), and Paz Ashdod Refinery Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2008
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