Wednesday, May 26, 2010
Ormat Taps Into Geo-Thermic Volcano Energy In Indonesia
NASDAQ-traded Ormat Technologies (ORA) is involved in the proposed construction of a giant geo-thermal electric power plant in Indonesia, a country that is now in bad need of more electric power, even though it is a member of the Organization of the Petroleum Exporting Countries (OPEC).
The project is estimated to cost around $800 million, and has been in the works since 2006, when a contract was awarded to a consortium of companies headed by PT Medco Energi Internasional (MEDC.Jk), and including the Japanese company Itochu Corporation.
The plan is to have Ormat, whose geo-thermal energy collection installations can be found around the world, tap into the raw energy of Indonesia’s hot springs and magma fissures. One small problem – there is a chance that Ormat’s technology might cause a volcano eruption.
In a meeting with news reporters, Indonesia’s Energy J. Purwono, said that his country “badly needs more power plants.”We need this project to be built quickly because it is very important for Indonesia.”
Indonesia is the world’s largest Muslim country. It has large, untapped geothermal energy potential do to numerous volcanoes and hot springs which can provide the energy to run the 330 megawatt geothermal plant in Sarulla, North Sumatra. Indonesia is estimated to have geothermal potential to produce 27,000 mgw of electricity.
It is unusual that Indonesia, which has no diplomatic relations with Israel is willing to do business with Ormat. Ormat was established in 1965 as Ormat Turbines Ltd., in Yavne, Israel, by engineer Lucien Bronicki (Chairman and CTO) and wife Yehudit "Dita" Bronicki (CEO).
Ormat Industries is one of the world’s leading vertically integrated companies dedicated to providing solutions for geothermal power, recovered energy generation (REG) and remote power. Geothermal energy is an excellent alternative energy source that is both clean and non-polluting.
Ormat Energy Converters (OEC), are Closed Cycle Vapor Turbogenerators (CCVT) with capacities ranging between 200 and 4500 Watt for unattended operation.
There is some risk in trying to “tap” the energy potential of these hot springs and molten magma fissures, due to the possibility of their becoming active volcanoes. For this reason, using this power source is generally more expensive than other energy sources, including petroleum and natural gas. But the advantages are surely worth the costs.