First Phase of Sarulla Geothermal Plant Set to Begin Operations in January ’17

Ormat Technologies expects to begin commercial operations in January 2017 for the first 110-MW phase of its Sarulla geothermal power plant in Tapanuli Utra, North Sumatra in Indonesia, Ormat CEO Isaac Angel said during a Nov. 8 company earnings call.

Angel said the project is in the commissioning and “fine-tuning” stage, and commercial operation has been delayed briefly due to a work stoppage.

Ormat, as part of an owners consortium with PT Medco Energi International, Itochu and Kyushu Electric, is developing the Sarualla project in three 110-MW phases.

“For the second phase [of the Sarulla project], engineering and procurement has been substantially completed, site construction is in progress and all of the equipment to be supplied by Ormat was delivered,” Angel said. “For the third phase, engineering and procurement is still in progress, construction work at the site is in progress and manufacturing of equipment to be supplied by Ormat is underway as planned.”

He added that drilling activities for the second and third phases are still going on.

“Based on the preliminary estimate, the project has achieved to-date approximately 80 percent of the required production and injection capacity,” Angel said.

Operation of the second and third phases is expected to commence within 18 months after the commercial operation of the first phase.

Earnings Report

Ormat Chief Financial Officer Doron Blachar said during the earnings call that, for 3Q16, Ormat’s total revenue increased 13.4 percent to $184.6 million, compared to $162.9 million in 3Q16.

Ormat’s revenues in the electricity segment increased 12.9 percent to $109.8 million in 3Q16, up from $97.2 million in 3Q15. Blachar said that the increase was primarily attributable to the commencement of operation of the second phase of the Don Campbell power plant in Nevada in September 2015 and to the commencement of operation Plant 4 at Olkaria III Complex in Kenya in January 2016.

Lead image credit: Max Grabert | Flickr

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Jennifer Delony, analyst for TransmissionHub, started her career as a B2B news editor in the local and long-distance telecommunications industries in the '90s. Jennifer began covering renewable energy issues at the local level in 2005 and covered U.S. and Canadian utility-scale wind energy as editor of North American Windpower magazine from 2006-2009. She also provides analysis for the oil and natural gas sectors as editor of Oilman Magazine.

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