Under the terms of the agreement, the parties will explore and develop strategic opportunities that will enable them to offer potential customers a more competitive solution for comprehensive supplies and services related to geothermal developments, from resource assessment, field development, power plant engineering, procurement and construction (EPC) to power plant operation, the companies said in a statement.
The deal means the companies can offer both Toshiba’s flash equipment and Ormat’s binary systems, the two main types of geothermal power plants.
Yoshihiro Aburatani, president and CEO of Toshiba’s Power Systems Company said the collaboration between the two companies, "offers tremendous potential for delivering comprehensive customer satisfaction. We look forward to working with Ormat to implement the first project.”
Meanwhile, Isaac Angel chief executive officer of Ormat, called the hookup a "milestone collaboration."
“We view this collaboration as a key to support our strategic expansion in the geothermal industry to diversify our technological base, as well as extend our geographic reach," he continued. "I believe that this collaboration of two market leaders, each with its own area of expertise, will enhance the value proposition to our clients, expand the market opportunities and accelerate the growth for both Ormat and Toshiba.”
The first project where this will come into play is the 35 MW Menengai geothermal plant in Kenya that’s majority owned by Ormat.
The companies are currently negotiating a supply agreement for Menengai, which has a 25year power purchase agreement with Kenya Power and Lighting Co.
Ormat is developing the project with Symbion Power LLC and Civicon Ltd.
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