Geothermal power for EDF: Ormat signs 30-year PPA for geothermal power plant in the Caribbean

Reno, USA - Ormat Technologies is further expanding its activities in the Electricity business segment. The US geothermal specialist announces the signing of a 30-year Power Purchase Agreement (PPA) with Electricité de France (EDF) for the development of a new 10 MW geothermal power plant on the Caribbean island of Guadeloupe.

Ormat will have a 63.75 percent stake in the power plant. The new plant will be added to Ormat's existing 15 MW Bouillante geothermal power plant in the French overseas department. According to Ormat, the development of the project area has already been completed and the resources have been secured. Ormat expects the project to be operational by the end of 2025.

The new power plant will be a seawater-cooled binary system using state-of-the-art Ormat Energy Converters (OEC). The system will be located approximately 100 meters above sea level and will include an intercooling circuit to optimize energy efficiency.

"This landmark agreement is the second agreement with EDF, reflecting the strength and value creation of our existing relationship. With the addition of the new Bouillante power plant in Guadeloupe and the recent signing of the new 10MW power plant to be built in Dominica, our total geothermal capacity in the Caribbean region will be 35 MW by the end of 2025," said Ormat Technologies CEO Doron Blachar.

Ormat owns, operates, designs, manufactures and sells geothermal and REG power plants based primarily on the Ormat Energy Converter - a power generation unit that converts low, medium and high temperature heat into electricity. The company has designed, manufactured and built power plants with a total gross capacity of approximately 3,200 MW, which it currently owns or has installed for utilities and developers worldwide. In addition to geothermal energy, Ormat is active in energy storage, solar photovoltaics (PV) and energy storage plus solar PV. The US company, which is listed on the renewable share index RENIXX World, currently has a generation portfolio totaling 1,385 MW, including 1,215 MW of geothermal and solar generation plants located worldwide in the USA, Kenya, Guatemala, Indonesia, Honduras and Guadeloupe. In addition, there is an energy storage portfolio of 170 MW in the USA.

Like most RENIXX stocks, Ormat's share price has fallen significantly since the turn of the year. The share is currently down 12% at a price of EUR 60.25 (closing price 04.03.2024, Stuttgart Stock Exchange).

Source: IWR Online, 05 Mar 2024