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| Nevada Geothermal Issues Limited Notice to Proceed to Ormat for the Blue Mountain Faulkner 1 Power Plant
| | 02/21/08 - Nevada Geothermal Power Inc. and Ormat Technologies Inc. announced that NGP Blue Mountain I LLC has issued a US$20 million Limited Notice to Proceed under a fixed-price, date-certain engineering, procurement and construction contract to be signed with Ormat Nevada Inc. to supply and construct the Phase 1 power plant of NGP's planned geothermal power development at Blue Mountain, Nevada. Ormat will commence detailed engineering design, manufacturing and purchasing of certain long lead items for Blue Mountain's, Faulkner 1 geothermal power plant in order to meet the guaranteed substantial completion date of December 31, 2009. Full release of the EPC contact is subject to finalizing of the financing for the project and is expected to occur before June 30, 2008.
"Ormat is a recognized world leader in the geothermal industry and the Ormat binary technology complements Blue Mountain's resource parameters and chemistry most efficiently. The plant will extract more megawatt-hours of energy per unit volume of geothermal fluid compared to steam flash or other available technologies maximizing the overall megawatt potential for the Blue Mountain geothermal field," stated Brian Fairbank, President and CEO of NGP.
The plant design incorporates Ormat's proprietary power generation technology with water-cooling for maximum efficiency. The output of the plant will meet the power delivery requirements of the 20-year Power Purchase agreement between NGP and the Nevada Power Company.
"We are delighted to have been selected as the supplier and contractor of choice for NGP's first power plant. Our technology is perfectly suited for the Blue Mountain resource and we are looking forward to delivering a great performing power plant on schedule," said Dita Bronicki, CEO.
Blue Mountain, located 30 kilometers west of the town of Winnemucca, Nevada, is ideally situated for development. The proposed Faulkner I geothermal plant will require a 20-mile long transmission line over relatively flat, undeveloped desert land to a connection point located on the Utility's 120kV-transmission line north of Mill City, Nevada. The electric power will be sold to Nevada Power Company under a 20-year Power Purchase Agreement for up to 35 MW gross of geothermal power. Phase I at Blue Mountain is expected to commence power generation in late 2009.
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