Ormat Technologies Inc. (NYSE: ORA) announced on December 1 that the Tungsten Mountain geothermal power plant, which utilizes the Ormat Energy Converter, started its commercial operations.
The geothermal power plant, located in Nevada, is expected to generate an average net output of nearly 24 megawatts, and with Ormat’s technology, will only need one turbine rather than two to do so, consequently decreasing operating costs.
According to Zacks, the power generated from the Tungsten Mountain project will be sold under a 26-year Ormat Northern Nevada Geothermal Portfolio Power Purchase Agreement with the Southern California Public Power Authority and is anticipated to generate nearly $15 million in average annual revenues for Ormat.
Ormat is working on several other geothermal technology projects, including an Engineering, Procurement and Construction contract worth $50 million with TOP ENERGY Ltd., the Dixie Meadows project (which will begin operations by the end of 2017), and repowering projects in Kenya and Guadeloupe, both expected to begin operations by the end of 2018 or early 2019. The company’s order backlog, as of Aug 3, 2017 was pegged at $192 million.
Shares of Ormat have outperformed the industry in the last one year. The company’s shares gained 20.7 percent, compared with the industry’s growth of 19 percent.