Independent power producer (IPP) Dorad Energy Ltd. has signed three electricity sales contracts with big customers: Fattal Hotels Management Ltd., which will buy up to 35 megawatts of electricity a year over 15 years; Beit Gibor Sport in Ramat Gan; and the Med1 server farm, which will 10 megawatts of electricity a year over 12 years. The contracts are worth over NIS 1 billion altogether, based on the IPP's previous contract with food company Osem Investments Ltd. (TASE: OSEM) for the sale of 20 megawatts of electricity a year for NIS 500 million.
Dorad Energy is building an 840-megawatt power station, which will supply 7% of Israel's electricity needs, on land owned by Eilat-Ashkelon Pipeline Company (EAPC). The NIS 4 billion power plant to due to come online by the end of 2013. The company believes that it can bring forward the starting date to next summer, subject to receiving a NIS 350 million financial incentive.
Last week, "Globes" reported that Dorad Energy was about to sign a natural gas supply contract with the Tamar partners, after the regulators approved in principle the Tamar partners' contract with Israel Electric Corporation (IEC) (TASE: ELEC.B22) and other IPPs.
The new contracts bring Dorad Energy's orders to two-thirds of the power station's capacity. It has signed contracts with the Ministry of Defense, Mekorot National Water Company, hotels company Isrotel Ltd. (TASE: ISRO), and Osem. Remaining capacity will be made available to the national grid.
EAPC owns 37.5% of Dorad, Turkish conglomerate Zorlu Industrial and Energy Holding AS owns 25%, Adeltech Ltd. unit Adelcom Ltd. owns 18.75%, and Dori Group Ltd. (TASE: DORI) and Ellomay Capital Ltd. (AMEX: ELLO) joint venture Dori Energy Ltd. owns 18.75%. The company had a contract for natural gas with Egypt's East Mediterranean Gas Company (EMG).
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2012
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