Ormat to Supply $254 Million of Geothermal Gear in Indonesia
Ormat Technologies Inc. (ORA), a U.S. developer of geothermal power, agreed to supply $254 million in equipment for a 330-megawatt power plant in Indonesia.
Ormat also will own about 12.75 percent of the $1.17 billion Sarulla geothermal plant, the Reno, Nevada-based company said in a statement today. PT Medco Energi Internasional (MEDC), Itochu Corp. and Kyushu Electric Power Co. (9508) are also developing the power plant and construction is expected to begin in 2016.
Revenue from the sale will come in over three to four years, starting in the third quarter, according to the statement.
Japan Bank for International Cooperation, Asian Development Bank and six commercial lenders are providing construction and term loans to finance the project in northern Sumatra, and the national utility Perusahaan Listrik Negara PT will purchase the output under a 30-year contract.
Ormat gained 3.3 percent to $30.30 at the close in New York, the highest since February 2011. The company said yesterday it had agreed to sell its Heber solar farm in California to RET Holdings LLC for $35.3 million.
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