M a r k e t N e w s
Ormat Signs 25-Year Power Contract for Kenya Geothermal Project
Posted on : Friday , 19th December 2014
Ormat Technologies Inc. (ORA), a U.S. developer of geothermal energy, signed a 25-year agreement to supply Kenya Power & Lighting Co. with electricity from a 35-megawatt project.
Ormat’s majority-owned Kenya unit will build and operate the Menengai power plant, according to a statement today from the Reno, Nevada-based company. Construction is expected to begin after financing is completed, and terms of the power sale weren’t disclosed.
Ormat owns 51 percent of the unit. Symbion Power LLC, a U.S. energy developer, and Civicon Ltd., Mombasa, Kenya-based construction company, each own 24.5 percent.
This is Ormat’s fifth geothermal project in Kenya, and when it’s done the company will be supplying 145 megawatts of capacity to the country’s grid. The Menengai project is part of President Barack Obama’s Power Africa initiative aimed at stimulating economic growth in the region, and received a partial risk guarantee from the African Development Bank.
Source : bloomberg.com
