The contract has been signed in connection with the construction of an Ormat Energy Converter at Thermo I’s existing geothermal project in Utah to increase project’s output and reduce operating costs.
The project is expected to have a relatively short completion schedule and is expected to come on line by the middle of 2013.
Under the credit agreement, Ormat will provide financing in an aggregate principal amount not to exceed $22.7m that will be used to finance the project construction costs under the EPC contract with Thermo I.
Ormat Technologies president and COO Yoram Bronicki said the company is continuing the cooperation with Cyrq Energy with the addition of the Thermo 1 and believe that the specifics of this project will allow for a very rapid execution.
"The project will incorporate Ormat’s low operating cost design features which have been developed for small or remote installation and are successfully operating in our recent installations and will benefit this project greatly," Bronicki said.
Cyrq director David Kay said the construction of Thermo1 will prove commercial viability of this resource and is the first step in our development of several additional plants in the Thermo area.
