A major order for equipment and services for a new geothermal power plant in New Zealand has helped to double Ormat Technologies' backlog, says the USA-based company.
Ormat Technologies has signed both a supply and an engineering, procurement and construction (EPC) contract with Mighty River Power Limited for the first stage of the Ngatamariki geothermal project.
The contracts are together worth $130 million and represent the largest order in the company's history.
“This marks the largest EPC contract that Ormat has ever entered into for one geothermal plant,” said Dita Bronicki, CEO of Ormat Technologies. “Our backlog since the beginning of the year has more than doubled and, as of the beginning of the second quarter, stands at [a] record high of over $230 million.”
The new power plant is a key part of plans by Mighty River Power to expand its geothermal power output, which currently accounts for around one-third of the state-owned company's generation. The new plant will comprise four air-cooled Ormat energy converters and will allow 100 per cent geothermal fluid reinjection.
Mighty River Power has invested nearly NZ$1 billion in geothermal power generation in the last five years. The company's CEO, Dr. Doug Heffernan, said that the Ngatamariki project would enable the firm to build “on the core competency we have now developed in geothermal”. He added: “We are particularly pleased to have placed the contract for the design, supply and construction of plant with Ormat and look forward to another great project delivery from this very experienced team.”
Construction of the Ngatamariki plant is expected to be completed within 24 months of the contract signing. Completion of the project will bring the total installed capacity of Ormat technology in New Zealand to 350 MW in 14 plants.
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