RENO, USA: Ormat Technologies Inc. announced that on December 20, 2011, Ormat Nevada Inc., its wholly-owned subsidiary, signed a $21.4 million engineering, procurement and construction (EPC) contract and a credit agreement with Thermo No. 1 BE-01, LLC (Thermo I), a subsidiary of Cyrq Energy Inc., in connection with the construction of an Ormat Energy Converter (OEC) at Thermo I's existing geothermal project in Utah to increase project’s output and reduce operating costs.
The project is expected to have a relatively short completion schedule and could come on line by the middle of 2013. Under the credit agreement Ormat will provide financing in an aggregate principal amount not to exceed $22.7 million that will be used to finance the project construction costs under the EPC contract with Thermo I.
Yoram Bronicki, president and COO of Ormat Technologies said: "We are very happy to continue the cooperation with Cyrq Energy, Inc. with the addition of the Thermo 1and believe that the specifics of this project will allow for a very rapid execution. The project will incorporate Ormat’s low operating cost design features which have been developed for small or remote installation and are successfully operating in our recent installations and will benefit this project greatly.”
David Kay, director of Cyrq, said: “We are pleased to continue the strategic partnership with Ormat on this project. The construction of Thermo1 will prove commercial viability of this resource and is the first step in our development of several additional plants in the Thermo area.”