The parties will form a limited liability company, Crump Geothermal (CGC), for such purpose that will be owned by NGP and Ormat Nevada on a 50:50 basis.
The parties plan to start construction and drill at least one development well for the first power plant with an expected generation capacity of up to 30MW in 2010 and to place the plant in service before the end of 2013.
Under the agreement, NGP will contribute its title and interest in Crump Geyser Project geothermal leases, technical and engineering data, existing permits and the benefit from the on-going Department of Energy (DOE) cost-share grant for exploration in relation to the Crump Geyser area.
Ormat will fund 100% of the initial development activities of CGC in the amount of $15m and pay NGP $2.5m in installments over a three-year period.
Ormat will be the EPC contractor for the power plant, utilizing its proprietary generating and other balance of plant equipment.
The company will be responsible for all development activities and will provide plant operations and management services to CGC.
