Ormat announces having signed a $6 million EPC contract for the construction of the Soda Lake 3 geothermal project by Cyrq Energy in Nevada, U.S.
Ormat Technologies, Inc. (NYSE:ORA) today announced that its subsidiary, Ormat Nevada Inc., concluded and signed a $36 million engineering, procurement and construction (EPC) contract with a subsidiary of Cyrq Energy, Inc. (Cyrq). Under the EPC contract, Ormat will provide one air-cooled ORMAT® Energy Converter (OEC) at Cyrq’s Soda Lake geothermal power project in northern Nevada. The project is expected to come on line in the first half of 2018.
The new OEC will increase generation and reduce operating costs by replacing the two currently operating power plants, which were commissioned by Ormat in the late 1980’s and early 1990’s, respectively.
Isaac Angel, CEO of Ormat Technologies said, “We are delighted to be chosen again by Cyrq, having provided the successful construction of the Thermo No. 1 generation upgrade in 2013. Ormat continues to gain repeat customers for our power plant solutions due to our strategic advantage of being a vertically integrated company which enables Ormat to constantly develop and advance our technology. Over the years, we increased our OEC unit sizes considerably and improved efficiencies, providing our clients with the ability to utilize geothermal resources in a more sustainable and economical manner. The Soda Lake project will benefit from these advancements in our OEC proprietary technology derived over the past three decades, and this contract will further strengthen our position as a reliable and dependable supplier and contractor. Following the signing of this contract, which was included in the previously announced $100 million of contracts under negotiations, it will be added to our backlog, bolstering the revenues from our products segment over the next two years.”
“We are very pleased to work with Ormat on our Soda Lake 3 project,” said Nick Goodman, CEO of Cyrq Energy, Inc. “Ormat has been able to provide the best overall solution in our competitive process, and based on their performance on our Thermo No. 1 project, which was nothing short of stunning, we have every expectation that Soda Lake 3 will be another flagship project in Nevada. Soda Lake 3 will be a great example of the evolution of geothermal technology and the sustainability of geothermal resources.”