Jun 30 2010
Ormat International, Inc., a subsidiary of Ormat Technologies, Inc., and JFE Holdings, Inc. subsidiary JFE Engineering Corporation have finalized a cooperation agreement for executing geothermal power plant projects on the basis of Engineering Procurement and Construction ("EPC") in Japan, using the proprietary Geothermal Combined Cycle Units and binary cycle ORMAT Energy Converters ("OEC") of Ormat International.
As per the terms of the contract, Ormat International will provide the energy producing equipment along with associated engineering while JFE Engineering Corporation will carry out the construction work on the power plants as well as the associated infrastructure, balance of plant and field surface sites. Moreover, JFE Engineering Corporation will offer domestic maintenance services.
Geothermal energy is very much part of the Renewable Portfolio Standards of Japan. Japan’s Ministry of Economy, Trade and Industry has announced plans to execute policies to promote growth in the geothermal installed capacity of the nation by surplus 600 MW over the next decade. Ormat International believes that its technology will play a crucial role in the geothermal industry.
Itochu Corporation represents Ormat International in Japan. Itochu Corporation and Ormat International are partners in certain Indonesian geothermal projects and have already partnered in a Philippine geothermal BOT project.