GEOTHERMAL

Ormat signs new product segment supply contract in Indonesia

Ormat Technologies Inc. has secured a new contract with Star Energy Geothermal Salak to supply products to extend the Salak geothermal field in Indonesia.

 Ormat Technology’s Energy Converter is to be used at the Salak geothermal field in Indonesia

Ormat Technology’s Energy Converter is to be used at the Salak geothermal field in Indonesia

The Salak geothermal field is located near Jakarta on the southwest flank of the Gunung Salak volcano and it currently contains a geothermal power plant utilising steam.

The new 14MW Salak geothermal power plant will use air-cooled Ormat Energy Converter and will allow 100 per cent geothermal fluid reinjection which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact.

Ormat is in partnership with a local contractor that will provide the EPC services. The supply of the plant is expected to be completed within 12 months from the contract start.

Doron Blachar, CEO of Ormat Technologies, said: "This contract signals that the markets for our products segment are beginning to reopen as the impact of COVID-19 dissipates. We expect to record revenue partially in 2021, with the balance in 2022. Demand for clean, renewable energy continues and municipalities and utilities are seeking to expand the use of geothermal resources wherever possible. As the impact of the pandemic continues to decrease, we plan to pursue additional contracts worldwide."