Under the agreement, delivery of the power plant is expected to occur within 13 months.
“This new contract is Ormat’s fourth geothermal installation in the Kawerau field,” said Dita Bronicki, CEO of Ormat Technologies. “We are excited for the opportunity to once again supply our equipment in New Zealand and take part in the efforts to achieve the New Zealand government’s target for greenhouse gas emissions reductions to between 10 percent to 20 percent below 1990 levels by 2020 and increased renewable electricity generation to 90% by 2025.
“This contract increases our products backlog as of March 31, 2011 to $104 million. We view this contract as a demonstration of the reliability of Ormat's solutions and it further reinforces the applicability of our renewable energy solutions to the world electricity markets," Bronicki added.
Norske Skog is a world leader in the use of renewable energy in the production of newsprint, with a history of over 50 years of utilization of geothermal energy from the Kawerau field in New Zealand.
The new project will mean a substantial proportion of the Mill’s electricity needs will be provided directly or indirectly from renewed geothermal energy.
Ormat has been actively designing and supplying geothermal power solutions in New Zealand since 1986.
The Norske Skog plant is Ormat’s 13th geothermal facility in New Zealand, and upon its completion, it will raise the company’s capacity to 250 MW.
The new plant will use air-cooled condensers and allow 100 percent geothermal fluid re-injection, which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact.
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