After a year of negotiations, Ormat has withdrawn from contract talks with Hawaii Electric Light Co. for providing the next 25 megawatts of geothermal power on Hawaii Island, the utility announced Wednesday.
After a year of negotiations, Ormat has withdrawn from contract talks with Hawaii Electric Light Co. for providing the next 25 megawatts of geothermal power on Hawaii Island, the utility announced Wednesday.
In February 2015, HELCO selected Ormat Nevada Inc., a subsidiary of Ormat Technologies, which operates Puna Geothermal Venture, to build the next geothermal power plant.
In a press release issued late Wednesday afternoon, HELCO President Jay Ignacio said the utility is “disappointed” Ormat chose not to proceed with the project. He didn’t say what caused the company to withdraw.
The release said HELCO remains focused on “cost-effective renewable energy,” including geothermal, but it also didn’t mention if the 25-megawatt expansion would still be pursued.
Ignacio didn’t immediately return phone calls requesting comment.
Of the five companies that submitted best and final offers, Ormat had the best proposals based on price levels and performance standards, HELCO said.
The Boston Pacific Co., which oversaw the geothermal selection process, gave its support to Ormat’s selection, noting it could meet the pricing threshold of 12 cents per kilowatt hour.
Mike Kaleikini, Ormat’s Hawaii spokesman, said he couldn’t immediately comment.
The project would have been located on Kilauea’s East Rift Zone, likely in the same area as the 38-megawatt PGV plant, currently the only geothermal project in the state.
Email Tom Callis at tcallis@hawaiitribune-herald.com.