Ormat starts second phase of Kenyan geothermal project

Ormat Technologies (NYSE: ORA) today announced it is proceeding with the second phase of its Olkaria III geothermal plant in Kenya - a project worth $32M in revenue to Ormat.

The project had been on hold pending the exchange of securities with Kenyan Power & Lighting Company (KPLC).

Construction is expected to begin immediately with completion in approximately two years.

The project is expected to add 35 MW to the existing Olkaria III plant, bringing the plant's total capacity to approximately 48 MW.

"This is an important milestone in the advancement of private sector investments in Kenya's energy infrastructure. This second phase of Olkaria III will add more clean and reliable electricity that will assist KPLC in meeting the increasing demand of the Kenyan economy at a cost which is lower then any other new local capacity," said Dita Bronicki, CEO of Ormat.

In addition to its clean energy benefits, the first phase of the project supplies CO2 to greenhouses adjacent to the plant. The CO2 extracted during the first phase is used to enhance the growth of flowers on the large flower farm.

Ormat Technologies designs, develops, builds, owns and operates geothermal power plants. Ormat is a pioneer in Organic Rankine Cycle (ORC) technology and a leader in the manufacture of ORC power equipment.

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