Ormat Technologies signs EPC contract valued at $61.4 million with Enel Green Power North America for its Cove Fort geothermal power plant project in southern Utah.
Reported earlier here, Ormat Technologies, Inc. “announced today that its wholly owned subsidiary, Ormat Nevada Inc., concluded and signed the $61.4 million engineering, procurement and construction (EPC) contract with Enel Green Power North America. Under the EPC contract, Ormat will provide two air-cooled Ormat Energy Converters at Enel’s Cove Fort geothermal power plant project in southern Utah.
The parties have entered into an interim agreement in the amount of approximately $9 million to ensure timely completion of the project in April 2012. Now that the full EPC contract has been executed, Ormat’s product backlog announced May 8, 2012 increased by an additional $52 million to a total of approximately $260 million, most of which is expected to be recognized as revenues through 2013.
“This development will incorporate Ormat’s low-operating-cost design and our consistent project completion standards,” said Yoram Bronicki, president and COO of Ormat. “We’ve had great success in deploying similar equipment to a myriad of projects worldwide and we intend to continue reinforcing this track record in established and new markets.”
Source: Ormat release via Marketwatch