Ormat wins another Nevada contract

NGP Blue Mountain will buy 3 Ormat Energy Converters for $76 million.

3 April 08 12:26, Globes' correspondent

Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) has won a $76 million engineering, procurement, and construction contract (EPC) from NGP Blue Mountain I LLC for a 49.5 megawatt (MW) power plant at the Blue Mountain geothermal project in Nevada. The company will supply three Ormat Energy Converters and incorporate the company's proprietary power generation technology with water-cooling for maximum efficiency.

The EPC contract follows the Limited Notice to Proceed (LNTP) with NGP, which was issued in order to secure the guaranteed substantial completion date of December 31, 2009. The output of the power plant at Blue Mountain will meet the Phase 1 power delivery requirements of the existing 20-year Power Purchase Agreement (PPA) between NGP and Nevada Power Company with a reserve of excess power. NGP is currently in discussions with Nevada Power Company for a Phase II power contract covering the reserve power.

Ormat CEO Yehudit Bronicki said, "We are pleased for the opportunity to work with NGP's development team and are delighted to contribute from our experience and knowledge in this field. Our technology is perfectly suited for the Blue Mountain resource and we are looking forward to delivering on schedule a great performing power plant."

Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2008

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