Ormat Technologies Announces Geothermal Project In Honduras

Ormat Technologies

announced today that an Ormat subsidiary entered into an agreement with Geotermica Platanares to acquire a late stage development geothermal project in Honduras. (Logo: http://photos.prnewswire.com/prnh/20040422/LATH066LOGO) The project comprises of the rights to a field where exploration work has been conducted in the past and a Power Purchase Agreement for up to 35MW with the national utility of Honduras, ENEE. Upon fulfillment of certain conditions precedent and the closing of the transaction, Ormat will become the owner of all project assets, including wells, land, the Power Purchase Agreement and necessary permits to develop a geothermal project. Once the well field is fully appraised and the power plant is constructed, Ormat will hold the assets under a Build, Operate and Transfer (BOT) structure for approximately 15 years. "We are very excited about the opportunity to develop the first geothermal power plant in Honduras and the opportunity to bring Ormat's unique capabilities to complete the project development work that has been done before" said Yoram Bronicki, president and COO of Ormat.  "Our plan is to implement our staged development strategy for green field prospects where a portion of the plant comes on line