Geothermal power producerOrmat Technologies Inc. (NYSE: ORA) subsidiary Ormat International, Inc. will collaborate with Japan's JFE Engineering Corporation to build and operate geothermal power plants in Japan.
The companies will develop projects on an engineering procurement and construction basis utilizing Ormat's proprietary binary cycle energy converters and geothermal combined cycle units. Ormat will supply the power generation equipment and related engineering while JFE Engineering will build the power plants, infrastructures, and field surface facilities. It will also provide local maintenance services.
JFEE Engineering Corporation is a subsidiary of JFE Holdings Inc.
Ormat provided the equipment for Japan's first commercial binary power plant, a two-megawatt for the Hatchobaru geothermal facility in Kyushu. Japan's Ministry of Economy, Trade and Industry plans to boost geothermal energy production by 600 megawatts over the next ten years as part of Japan's Renewable Portfolio Standard. Ormat plans to participate in this program.
Ormat is represented in Japan by Itochu Corporation (TSE: 8001), Ormat's partner in the Sarulla geothermal projects in Indonesia.
Ormat Technologies chairman and CTO Lucien Bronicki said, "We expect that the synergy brought about by this cooperation with JFEE and the ongoing support of Itochu Corporation shall significantly enhance our ability to provide a 'full service' capability for our equipment and technology in Japan, and thereby assist us to participate in a meaningful way in the anticipated expansion of the Japanese geothermal industry."
Ormat Technologies' share price rose 0.4% at the opening in New York to $28.51, giving a market cap of $1.31 billion. Ormat Industries' share price rose 2.6% on the TASE today to NIS 29.01.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2010
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