A subsidiary of US-based alternative energy company Ormat Technologies has secured a contract worth approximately $50m for the extension of the Ngawha geothermal project in New Zealand.
Awarded by the country’s electricity distribution and generation company Top Energy, the new engineering, procurement and construction (EPC) contract will see Ormat Technologies deliver its air-cooled Ormat Energy Converters for the expansion.
This is the third EPC contract signed between Ormat Technologies and Top Energy following deals for the Ngawha I power plant project in 1998 and the Ngawha II plant in 2008.
Ormat Technologies CEO Isaac Angel said: “This is the continuation of a long and mutually productive, two-decade-long relationship between Ormat and Top Energy.
“This third significant contract demonstrates our full and long-term commitment to our clients, as well as an evidence to our technology superiority over the project life span, designed to accommodate a wide range of geothermal reservoirs, while maintaining maximum flexibility and efficiency.
“We anticipate final notice to proceed in the second half of 2018 and expect this contract to have a significant contribution to our 2019 and 2020 product segment revenues, providing longer-term visibility for this segment.”
The Ngawha geothermal extension project is expected to be completed in Q1 2021 and has the potential to generate 200 new job opportunities in the Kaikohe area of New Zealand.