Geothermal Firm Goes Biodiesel

Geothermal Firm Goes Biodiesel
Red Herring - CA,USA
Ormat plans to invest over $60 million in R&D and building its first biodiesel production plant. Ormat Industries said Tuesday it ...


Click Here to Make $20-$75/Hour for Your Opinion

Ormat Industries said Tuesday it plans to enter the biodiesel field.

The Israeli company is already well established in the geothermal field and is looking to expand into additional areas in the clean energy domain. The company has announced plans to invest over $60 million in the new venture.

“We’re developing a much higher-quality biodiesel fuel than is currently available on the market,” said an Ormat spokesperson.

The new fuel was developed by a yet-unnamed academic institution with which Ormat has signed a licensing agreement. The company is tight-lipped about the academic institution and will not even say where it is located.

Unlike most biodiesel fuels now being marketed, the new one Ormat is developing will not have to be mixed with conventional fuel before being used in ordinary combustion engines.

All Aspects of Production
Ormat plans to invest $13.5 million in research and development and $35 million to $50 million in the construction of the first production facility. The first production plant is expected to be online within three years.

“The market will be in those countries that grant incentives for producing biofuels,” said an Ormat spokesperson. These include the United States, Brazil, and Germany.

Unlike other companies in the field Ormat will focus on all aspects of production, from the production of alkyl esters used in the processing of biodiesel fuel, to the development of actual production processes, as well as the construction and operation of production facilities. The location of the first production plant has not yet been determined.

“Ormat has a great track record and this new venture will allow it to expand into additional niches in the field of renewable energy,” said Shimon Seroussi, co-CEO at Eco-Energy, an Israeli energy industry consulting firm.

The Israeli firm produces hundreds of megawatts of geothermal energy at power plants in the U.S., the Far East, and Latin America.

Click Here to Make $20-$75/Hour for Your Opinion