Ormat Technologies secures $100m EPC contracts in New Zealand and Indonesia

Steamboat Complex 1988-2020, NV, USA, 84 MW (source: Ormat)

In a release shared today, Ormat Technologies, Inc. (NYSE: ORA), announced that it has signed an Engineering, Procurement and Construction contract with energy company Contact Energy for a new maximum continuous performance 59 MW geothermal power plant in New Zealand  and signed a 6 MW supply contract with Sarulla Operations Ltd. in Indonesia. The combined expected revenue of the two contracts is approximately USD 100 million.

Under the agreement with Contact Energy, Ormat will provide its air-cooled Ormat Energy Converters for the Tehuka 3 geothermal project. We reported on the plans of Contact Energy for this new project in an article yesterday. This power plant will be built in the vicinity of the Tehuka 1 & 2 plants that are already operating on the Tauhara resource. This is the third EPC contract Ormat has signed with Contact Energy and the 16th geothermal power plant Ormat has built in New Zealand.

Under the signed 6 MW contract with Sarulla, Ormat will supply its air-cooled Ormat Energy Converters as part of the remediation work being performed to improve the power plant’s performance.

Doron Blachar, CEO of Ormat Technologies said, “The signing of these two contracts increase our Product Segment backlog to approximately $150M, the highest since 2020 and should provide a significant contribution to our expected product segment revenues and margins. After the prolonged impact Covid-19 had on our Product Segment, we are happy to see our clients are moving forward with development of new projects and expect this trend to continue.

This repeated contract with Contact Energy demonstrates our full and long-term relationship with our clients and evidences our proven technology. Ormat’s technology is designed to accommodate a wide range of geothermal reservoirs, while maintaining maximum flexibility and efficiency. We anticipate delivery and construction for these projects during 2023 and 2024.”

Source: Company release