Mercury signs EPC contract with Ormat for Ngatamariki expansion

Aerial view of Ngatamariki plant, New Zealand in March 2013 (source: Mighty River Power)

Ormat Technologies, Inc. (Ormat) has signed a supply and Engineering, Procurement, and Construction (EPC) contract with Mercury NZ Limited for the planned 56-MW geothermal power plant at Ngatamariki, New Zealand. Mercury had just recently announced plans of adding a fifth generating unit at the Ngatamariki geothermal power station.

Under the agreement with Mercury, the project will be an expansion of the existing 96 MW Ngatamariki geothermal power plant in operation, which was also built by Ormat in 2012. The new power plant will be built on the same platform as the existing power plant and once in operation with the new Ormat Energy Converter (OEC) it will have a total output of over 150 MW (gross). This development, once complete, will make the Ngatamariki facility the largest pure binary power plant in New Zealand and one of the top-5 largest globally.

Upon full operation of the Ngatamariki plant, Ormat’s advanced geothermal equipment will take the lead in powering nearly 45% of New Zealand’s geothermal energy market. Notably, when combined with Ormat’s existing geothermal power plants in the country, the Ngatamariki facilities will play a pivotal role in substantially reducing CO2 emissions throughout the region. This will be achieved through the consistent delivery of clean, reliable, and sustainable electricity to the national grid.

The new power plant will utilize Ormat’s advanced state-of-the-art organic Rankine cycle technology and is equipped with the latest turbine providing not only high efficiency and reliability, but also requiring lower maintenance. This is the third order awarded to Ormat by Mercury, who already operate the 35 MW Rotokawa and the existing four Ngatamariki units.

“We are thrilled to partner with Mercury for the extension of the Ngatamariki Geothermal Power Station. We have witnessed significant growth in New Zealand, and we’re proud to build upon this momentum by expanding our Ngatamariki facility. This new order now represents the second largest contract that has come out of New Zealand within the last 18 months, and we are encouraged at the rate of adoption and expansion for geothermal electricity generation in the country. The inclusion of this new project will double the size of the expected third quarter backlog in the Company’s Products segment,” said Doron Blachar, CEO of Ormat Technologies.

“With this new power plant together with Topp 2 and Tehuka projects both in progress, we believe we are in a great position to continue growing our share in the region, while simultaneously helping New Zealand continue its efforts to reduce CO² emissions through sustainable electricity generation.” 

Source: Ormat Technologies Inc.