Ormat signs $42M New Zealand contract

Reno, Nev.-based Ormat Technologies (NYSE: ORA) said today that it signed a $45.6 million contract to supply and build a binary geothermal power station for Wellington, New Zealand's Contact Energy.

The 23.3 megawatt binary power station will be located in the Tauhara Geothermal Field, near Taupo on New Zealand's North Island.

"We are very pleased to receive this repeat contract from Contact Energy and are excited for the opportunity to once again work with the company's geothermal team," said Dita Bronicki, CEO of Ormat.

The company said Contact Energy already has one operating geothermal binary power plant that was supplied by Ormat in 2005.

Ormat said the geothermal fluid driving a binary plant can be hot water — also called brine — or steam, or a mixture, extracted from an underground reservoir.

"These contracts increase our geothermal products backlog by $58 million for the second quarter and $134 million since the beginning of the year, including $50 million that is still subject to notice to proceed," said Bronicki.

"We view this milestone as a demonstration of the effectiveness and reliability of Ormat's solutions and it further reinforces the applicability of our renewable energy solutions to the world electricity markets."

The New Zealand contract comes just days after Ormat announced a $16 million supply contract for a new geothermal power plant to be constructed in Turkey (see Ormat gets contract for geothermal plant in Turkey).

That deal is also with a return customer. Ormat said Menderes Geothermal Elektrik Uretim, a private developer and owner of the resource in Turkey, has one operating geothermal power plant that was supplied by Ormat in 2004.

Ormat said the New Zealand geothermal plant is expected to be completed within 23 months from the contract date.