SPX receives $100 million order for geothermal components

Charlotte, North Carolina-based SPX Corporation (NYSE: SPW) today announced its thermal equipment and services business is to supply approximately $100 million worth of critical components to Orkuveita Reykjavikur (OR), an Iceland utility.

Components from the Fortune 500 company are slated for OR’s five planned geothermal power plants to be built at the base of Hengill volcano in Iceland. Currently, the Icelandic utility operates two geothermal plants in the Hengill area.

The new plants, which are to use hot steam from within the earth to produce electricity, are anticipated to begin operation by 2011 and are to have a total output of 225 MW.

Under terms of the contract, SPX will supply a complete cold-end solution for the plants, which includes engineering, design, manufacturing and installation of steam condensing system utilizing multiple SPX heat exchanges.

OR provides electricity, geothermal water for heating and cold water for consumption and fire fighting for 67 per cent of the Icelandic population.

Last year, in a major drilling project in Iceland, OR joined Pittsburgh-based aluminum maker Alcoa (NYSE: AA), Hitaveita Sudurnesja and Landsvirkjun to fund the drilling of a 3.5 kilometer to 4 kilometer deep well in their own geothermal fields (see Alcoa backs Iceland geothermal project).

The first wells of this project were to be drilled this year, with more drilling at Hengill and Reykjanes geothermal fields in 2009 and 2010, and pilot plant testing expected to be completed in 2015.

My midday trading, the SPX stock increased 2.31 per cent, to $135.97.