RENO, Nev., Oct. 14, 2015 (GLOBE NEWSWIRE) -- and TOKYO, Oct. 15, 2015 Ormat Technologies Inc. (NYSE: ORA) and Toshiba Corporation (TOKYO: 6502) announced today that the two companies have signed a strategic collaboration agreement (SCA) to develop strategic opportunities for collaboration in the areas of geothermal power generation systems and related equipment.
Under the terms of the agreement, the parties will explore and develop strategic opportunities that will enable them to offer potential customers a more competitive solution for comprehensive supplies and services related to geothermal developments, from resource assessment, field development, power plant engineering, procurement and construction (EPC) to power plant operation.
Geothermal power plants generally utilize either a binary system or a conventional flash system. In some situations, a combined cycle using both systems can be employed, with the specific technology for each project chosen based on the unique characteristics of the geothermal resource. This collaboration will leverage Toshiba's 49 years of expertise in flash systems and Ormat's proven leadership in binary systems, to offer an efficient solution that combines the two technologies and meets the technological needs of geothermal projects around the world, enabling Toshiba and Ormat to approach and capture a larger portion of the geothermal market
The first project expected to be implemented under this collaboration is the Menengai geothermal project in Kenya to be constructed and operated by the Ormat - Symbion Power LLC - Civicon Ltd Consortium, majority owned by Ormat. The parties have already initiated negotiations on the supply agreement and the plant design is at an advanced stage.
The parties are actively analyzing global prospects for upcoming and potential projects in which they can jointly submit applications for geothermal power plants utilizing a geothermal solution consisting of Ormat's binary system and Toshiba's flash system.
Yoshihiro Aburatani, President and CEO of Toshiba's Power Systems Company said, 'I am pleased that we have signed the SCA and taken the first step forward in our long-term strategy. A collaboration between globally respected Ormat and Toshiba, bringing together Ormat's capabilities in developing geothermal projects and its reliable binary equipment and our expertise in geothermal power, notably our highly reliable flash type geothermal steam turbines, offers tremendous potential for delivering comprehensive customer satisfaction. We look forward to working with Ormat to implement the first project.'
'This milestone collaboration with Toshiba, an innovation leader in the geothermal steam turbine industry, is another significant step in our long-term strategy to expand our presence in the geothermal space and ultimately target the larger renewable energy market,' commented Isaac Angel Chief Executive Officer of Ormat. 'We view this collaboration as a key to support our strategic expansion in the geothermal industry to diversify our technological base, as well as extend our geographic reach. I believe that this collaboration of two market leaders, each with its own area of expertise, will enhance the value proposition to our clients, expand the market opportunities and accelerate the growth for both Ormat and Toshiba.'