Ormat, Toshiba forge links to develop strategic opportunities
Ormat Technologies Inc. and Toshiba Corporation have signed a strategic collaboration agreement to develop strategic opportunities for collaboration in the areas of geothermal power generation systems and related equipment.
According to a news release, under the terms of the agreement, the parties will explore and develop projects 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 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 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 a geothermal project in Kenya to be constructed and operated by Ormat. The parties have already initiated negotiations on the supply agreement and the plant design is at an advanced stage.
The companies said they 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.
“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,” said Isaac Angel, CEO of Ormat, which has its North American headquarters in Reno.
“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.”