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Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal and renewable energy technology company, today announced that it has reached an understanding with Contact Energy to sign an Engineering, Procurement, and Construction (EPC) contract for the development of the Te Mihi Stage 2 101MW geothermal power plant in New Zealand. The EPC contract, valued at approximately $200 million, is expected to be signed following the approval received today by Contact Energy’s Board of Directors. Te Mihi Stage 2 geothermal power plant is expected to be completed by mid-2027.
This significant agreement marks Ormat’s fourth large project in New Zealand currently under development and is expected to replace, in stages, the 1950’s-built Wairakei geothermal power station. This agreement highlights Ormat’s advantages in developing binary technology, which is also suitable for high enthalpy geothermal reservoirs. Subject to final investment decision, Contact Energy, is also planning a second phase of development, Te Mihi Stage 3, which is expected to come online by mid-2031.
Doron Blachar, Chief Executive Officer of Ormat Technologies, commented: “We are thrilled to partner with Contact Energy on this landmark geothermal project. The Te Mihi Stage 2 project is a testament to Ormat’s commitment to delivering cutting-edge geothermal solutions that drive the transition to clean energy. We expect that our year-end Product Segment backlog, once the contract is signed, will exceed $300 million and we will recognize the bulk of the revenues associated with this contract during 2026 and 2027. The 101MW Te Mihi Stage 2 plant, along with the additional 160MW we are currently building in New Zealand, strengthens our position as market leader while also expanding New Zealand’s renewable energy capacity to support the country’s ambitious goal of achieving zero emissions. Our advanced binary technology will enable Contact Energy to operate with zero emissions, contributing to a sustainable future.” |
