Ormat Technologies concluded and signed a USD 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 USD 9 million to ensure timely completion of the project. Now that the full EPC contract has been executed, Ormat’s product backlog increased by an additional USD 52 million to a total of approximately USD 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.”
