Ormat Technologies, Inc. announced today that Ormat Nevada Inc., its wholly owned subsidiary, was selected to supply a $61.2 million engineering, procurement and construction (EPC) contract in the U.S. According to the company’s press release, Ormat will provide two air-cooled Ormat Energy Converters for a geothermal power plant project in North America. The project is expected to be completed by the end of 2013. Until the signature of the full EPC contract the parties have entered into an interim agreement in the amount of approximately $9 million for a limited scope of work to ensure timely completion of the project.
Yoram Bronicki, president and COO of Ormat said, “We are pleased to increase our backlog by this project which will continue the strong product segment performance. This development will incorporate Ormat’s low-operating-cost design and our consistent project completion standards.”
Shares of Ormat climbed 2.7 percent to $18.78 in the U.S. yesterday, the most since Feb. 24. “Aside from the obvious financial benefit, we view this win as a positive as it shows there is incremental business in the U.S. and that Ormat is quite competitive on bids,” wrote Daniel Mannes, a Berwyn, Pennsylvania-based analyst at Avondale, as reported by Bloomberg.
For the Bloomberg article click here.