Ormat Technologies Inc. (NYSE: ORA) said that a business unit entered into a build, operate and transfer agreement with Tikitere Geothermal Power Limited to explore, construct, own and operate a 45 MW geothermal power plant in the Tikitere geothermal area in New Zealand. The agreement is conditional upon regulatory approval of the plant.
Under the agreement, the parties will jointly develop a geothermal power plant with an estimated capacity of 45 MW. Ormat will operate the project and be the beneficiary for 14 years following commercial operation. Full ownership interests then will be transferred to TGL.
Construction is expected to start after permits are obtained and the plant has obtained satisfactory feasibility results.
The Tikitere plant will reinject 100 percent of the geothermal fluid by using air cooling without any water consumption. The reinjection is made to sustain the reservoir and produce electrical power with little environmental impact.
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