Ormat begins construction of 35-MW geothermal plant in Honduras

US-based Ormat Technologies Inc (NYSE:ORA) said on Tuesday it has initiated construction work on the 35-MW Geotermica Platanares geothermal project in Honduras.

A subsidiary of the company will realise the project under a Build, Operate and Transfer (BOT) contract that was signed with local energy firm ELCOSA in 2013. Commercial operation is expected by the end of 2017.

Upon completion, the power station will start selling its output to Honduras’ national utility ENEE under a 30-year power purchase agreement (PPA). The plant is seen to generate an average of USD 33 million (EUR 30.5m) in annual revenue per year.

Under the Law to Promote the Generation of Electric Energy by Renewable Resources, enacted in 2007, the Platanares facility may benefit from an income tax exemption during the first 10 years of operation.

(USD 1.0 = EUR 0.924)

Choose your newsletter by Renewables Now. Join for free!