Ormat Technologies, Inc. (NYSE: ORA) last week announced the completion
of phase two construction at the Olkaria III geothermal power plant in
Kenya. The power plant has been synchronized to the grid, adding 35
megawatts (MW) of base load capacity to the existing 13-MW plant that
has been in operation since 2001.
The expanded power plant will save 120,000 tons of imported oil,
mitigate approximately 200,000 tons of carbon dioxide (CO2) emissions
per year and reduce the average production cost of electricity in
Kenya, while reducing its dependence on imports.
"Ormat is proud to have built up the plant capacity to the
original target of 48 MW," said Lucien Bronicki, Chairman and Chief
Technical Officer of Ormat.
Ormat Technologies financed the construction of both phases along with
the drilling of the wells by investing approximately $150 million into
the project from its own internal sources.
The additional clean, base load geothermal energy generated by
Olkaria III will increase the supply to the local transmission,
distribution and retail utility, Kenya Power and Lighting Company Ltd
(KPLC), and help meet the country's increasing demand for reliable,
fuel-free electricity.
Since the earliest stages, the plant's operations team, managed by Eng.
Ernest S. Mabwa, has consisted entirely of skilled local employees who
receive on the job training, competitive wages and indirect benefits.
Ormat built and maintains a modern staff village including
entertainment facilities, a library and a playground.
"Ormat's commitment to Africa started with our first project--a solar
pump installed in Mali in 1966," added Mr. Bronicki. "We hope this
project spurs additional development and opens the world's eyes to
Africa's immense renewable potential. We sincerely hope that Olkaria
III will serve as an example for other private investors in Africa and
encourage International Financial Institutions to upgrade their support
for private renewable energy projects."
Ormat Technologies, Inc. is the only vertically-integrated
company primarily engaged in the geothermal and recovered energy power
business. The Company designs, develops, owns and operates geothermal
and recovered energy-based power plants around the world.
On Tuesday, the United Nations Environmental Programme
released details of a $1 million research project that identified as
much as 7,000 MW of geothermal energy along the Rift Valley in East Africa.
