Tuesday, May 9, 2017

Honduras: 35 MW Platanares Geothermal Project Expected to Reach Commercial Operation by the End of the Year

Ormat Technologies' CEO Isaac Angel on Q1 2017 Results - Earnings Call Transcript (Seeking Alpha)

Isaac Angel, CEO of Ormat spoke at the GRC Annual Meeting
Isaac Angel - CEO, Ormat Technologies

We continue to share our expertise as work continues on the second and third units of the Sarulla project that are expected to come online by 2017 and 2018 respectively. For the second phase of the power plant, engineering and procurement has been substantially completed. Site construction is in progress and all of the major generating units including those to be supplied by Ormat were delivered.

For the third phase engineering, procurement and construction work at the site are in progress and manufacturing of equipment to be supplied by Ormat is underway as planned. Drilling for the second and third phases of the power plant is ongoing and the project has achieved today based on preliminary estimate 100% of the required injection capacity, and approximately 65% of the required production capacity.

We are continuing with the construction of the 35 megawatt Platanares geothermal project in Honduras. This project which we expect to reach commercial operation by the end of 2017 will sell its power with national utility of Honduras. We expect the project to generate an annual revenues of approximately $33 million under the 15-years DoD agreement.

We also initiated construction of Tungsten Mountain project in Nevada. We expect Tungsten to generate 24 megawatt when it comes online at the end of 2017. Dixie Meadows is at earlier stage, drilling is ongoing and this project is expected to generate approximately 15 megawatt to 20 megawatts by the end of 2018. We believe that both Dixie and Tungsten Mountain will qualify for the production tax credit.

In Kenya we started the construction of the 10 megawatt repowering that will increase Olkaria III complex were 150 megawatts during 2018. In Guadeloupe, we are planning to increase Bouillante - to increase the capacity of Bouillante by an additional 10 megawatts that will be added by the end of 2018 or early 2019.

Another exciting progress is done in McGinness Hills complex in Nevada where we are developing a third phase to be added to the current 86 megawatt complex. We started drilling activity and we are in advanced stage of securing PPA. We now expect the third phase to be 48 megawatts and upon its completion, McGinness Hills will be our largest complex in the U.S. with the generating capacity of over 130 megawatts.

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