GOE Incentive to Power Construction of New Geothermal Facility


Contact

Scott Kelley
Public Information Officer
(775) 687-1850 x 7307
CARSON CITY, NV - April 19, 2016

More of Nevada’s extensive geothermal energy is being tapped after the Governor’s Office of Energy (GOE) granted a tax incentive for the construction of a geothermal power plant in Churchill County.

Ormat Technologies, Inc. received the incentive for its Tungsten Mountain geothermal power plant after meeting State and local statutes requiring that the project provide employment for Nevadans, a living wage with comprehensive health benefits, and a major capital investment in the State. 

Once completed, the Tungsten Mountain power plant will have a production capacity of 24 megawatts. It will pull heat from five production wells spread across 1,355 acres in Churchill County. The generated power will enter Nevada’s grid through a 16.5 mile, 230 kilovolt transmission line and, utilizing transmission service provided by the ON-Line, supply renewable energy to a CA utility.  

“It is exciting to see more of Nevada’s abundant geothermal resources being developed and utilizing the expanded transmission infrastructure that has enabled more exportation options to the CA market,” said Angie Dykema, GOE Director.  “This project is another example of Nevada’s commitment to become a major renewable energy producer and exporter in the West.”

Geothermal power provides valuable ancillary benefits that promote grid reliability such as baseload capacity, voltage regulation, flexibility reserves and inertia, allowing for further integration of intermittent renewable resources and requiring less backup fossil fuel generation .

The tax incentive granted to Ormat is $11.8 million over 20 years. The total amount Nevada expects to receive from this project is $113 million, which includes employee wages, property and school support taxes, and a capital investment worth $94 million dollars. This represents more than a 10-to-1 return on Nevada’s investment, far exceeding the loss of revenue from the tax incentive.

“The Tungsten tax incentive is another great example of how government and industry are working to bring sustainable jobs and business to Nevada,” said Isaac Angel, CEO at Ormat. “Incentives such as these are critical in allowing Nevada to take advantage of its vast renewable resources in today’s highly competitive renewable energy market while bringing quality jobs and economic development to rural areas of our home state. To date Ormat has commissioned over 150 MWs under this tax incentive program creating significant economic development in Nevada creating a win-win for industry and the State and we look forward to continuing to develop these clean, reliable and flexible resources for the benefit of Nevadans and the region in general.”

The Tungsten geothermal power plant is expected to create 69 full-time construction jobs with an average hourly wage of $41.05 and five full-time operational jobs with an average hourly wage for Nevadans of $30.

The GOE decision to approve Ormat’s tax incentive request highlights GOE’s ability to facilitate cooperation among stakeholders, lead initiatives to stimulate economic development, and attract energy related business ventures that include site development, generation and production, and inter/intrastate transmission. 

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About the Governor’s Office of Energy

The Governor’s Office of Energy oversees energy programs required through statute and those that help to meet the mission of the office, which is to ensure the wise development of Nevada’s energy resources in harmony with local community economic needs and Nevada natural resources. For more information about GOE, please visit www.energy.nv.gov. 

About Ormat Technologies, Inc.

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter - a power generation unit that converts low-, medium- and high-temperature heat into electricity. With 69 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 470 employees in the United States and over 600 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 1,900 MW of gross capacity. Ormat’s current 647 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya. For more information about Ormat, please visit www.ormat.com.  

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