HomeWorld RegionsLatin AmericaOrmat sells stake in Nicaraguan geothermal power plant

Ormat sells stake in Nicaraguan geothermal power plant

Ormat Holding Corporation, which operated the Momotombo geothermal plant in the north west of Nicaragua for 14 years, has sold its share in the plant one year ahead of the expiration of the operating agreement.

The government of Nicaragua is reportedly unhappy with Ormat Holding Corporation, which is a subsidiary of subsidiary of Ormat Technologies of the US, saying it failed to reach the agreed aims of the operating contract.

Ernesto Martinez, director of the state-owned Empresa Nicaraguense de Electricidad, said that Ormat only “made use of the steam production” from the single operating well in the plant, with an estimated of capacity between 22 MW and 35 MW.

The company was committed to achieving a total production capacity of 70 MW, AFP reports.

A report in El Nuevo Diario says that Nicaragua could produce between 1500 MW and 2000 MW of electricity from its geothermal resources.

For more Renewables news.

For more Latin America news.