Ormat takes on Nevada’s 40MW Tuscarora geothermal project

Geothermal developer and technology firm Ormat Technologies has acquired a stake in the Hot Sulphur Springs II geothermal site in northern Nevada.

The 9,800-acre site in Elko County includes the Tuscarora geothermal project, which is already in an advanced stage of development. Initially developed by TG Power LLC of Trussville, Alabama, Ormat now plans to construct and operate the plant, now expected to become operational in 2012.

With construction starting this year, the company is expecting to benefit from federal Recovery Act funding.

The project will sell power though a 20-year, 40-megawatt power purchase agreement with NV Energy, Inc., subsidiary Nevada Power Company. However, the terms of the deal are pending approval from regulators.

“Potential”

Dita Bronicki, Chief Executive Officer of Reno-based Ormat Technologies, said: “The Tuscarora project has the potential to yield a sizable geothermal project, and will be developed in phases with the first phase being 16 MW. As we are beginning construction work on the project this year, we are able to take advantage of government funding options that support renewable energy projects.”

Ormat already owns around 400MW of geothermal plants in the US, and in Nevada it has the 25MW Brady complex and the 85MW Steamboat complex operational with a further four projects in construction.