Ormat Technologies has started building the 35MW Geotérmica Platanares geothermal project in Honduras.
The company signed a build, operate and transfer contract with Elcosa, a privately owned Honduran energy company, for approximately 15 years from commercial operation date.
In December, Ormat concluded the drilling activity as well as tests to support the decision to construct the project.
Geotérmica Platanares will sell its power, mainly under 30-year power purchase agreements with the national utility of Honduras, ENEE.
The project is expected to reache commercial operation by the end of 2017 and generate average annual revenue of approximately $33m.
Ormat chief executive officer Isaac Angel said: “We are pleased to announce this progress in our development pipeline.
“Following a prudent process of field assessment and development, and in line with our continued focus on plant optimization, we were able to increase the projected capacity of the Platanares plant to 35MW and improve the expected returns.”
Image: Ormat’s McGinness Hill geothermal plant (Ormat)
