Tikitere Geothermal Power (TGL) awarded Ormat the project following a competitive bidding process. TGL was established as a joint venture vehicle for the various Maori trusts that own and administer the land.
Under the BOT Agreement, the parties will jointly develop a geothermal power plant with an estimated capacity of approximately 45MW. The project will be operated by Ormat, which will be the project’s beneficiary for an initial period of 14 years following commercial operation. Ownership of the project will then be transferred to TGL. During the BOT period, TGL will receive an income stream while a coordination committee will monitor the project operations to safeguard the land owners’ interests.
The BOT agreement is conditional upon receiving regulatory approval.
Ormat Technologies chairman and chief technology officer said: “As the first BOT project for Ormat in New Zealand, this will diversify Ormat’s portfolio that today includes operations in the US, Guatemala, Nicaragua and Kenya. Upon completion, it will expand our existing portfolio by approximately 8%. As with previous developed projects in New Zealand, Ormat will maintain close cooperation with local contractors and engineering firms.”
The new plant is designed to optimise energy usage by converting the heat of both geothermal steam and brine from geothermal wells into electrical power. Like all Ormat plants in New Zealand, the Tikitere plant will reinject 100% percent of the geothermal fluid by using air cooling without any water consumption.
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