Ormat Technologies concluded and signed a $61.4 million engineering, procurement and construction (EPC) contract with Enel Green Power North America. Under the EPC contract, Ormat will provide two air-cooled Ormat Energy Converters at Enel's Cove Fort geothermal power plant project in southern Utah.
As previously announced on April 25, 2012, the parties have entered into an interim agreement in the amount of approximately $9 million to ensure timely completion of the project. Now that the full EPC contract has been executed, Ormat's product backlog announced May 8, 2012 increased by an additional $52 million to a total of approximately $260 million, most of which is expected to be recognized as revenues through 2013.
"This development will incorporate Ormat's low-operating-cost design and our consistent project completion standards," said Yoram Bronicki, president and COO of Ormat. "We've had great success in deploying similar equipment to a myriad of projects worldwide and we intend to continue reinforcing this track record in established and new markets."