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Ormat to build Makushin power plant
The plant is a major component of a geothermal power system being built on the flank of the Makushin Volcano on Unalaska Island
Alan Bailey for Petroleum News
Ounalashka/Chena Power LLC has formed an agreement with Ormat Technologies Inc. for Ormat to build a 36-megawatt geothermal power plant, as part of the Makushin Geothermal Project on Unalaska Island in the Aleutians, OCCP announced on Jan. 18. Ormat is a geothermal company based in Reno, Nevada, with international experience in building geothermal power systems.
OCCP President Bernie Karl said that the Ormat contract represents by far the largest and most technically complex part of the overall project.
“Having secured a fixed result contract in this important area of the project is indeed an important milestone,” Karl said. “The MGP is a $235-million development project with Ormat’s part of the project over $90 million. Ormat received OCCP’s intent to award the contract, on a best value evaluation basis, after an international competition.”
“We cannot be more pleased to have concluded our contract negotiations and have Ormat as an official team partner and key player for the MGP development,” said Ounalashka Chairman Vince Tutiakoff.
On the flank of Makushin Volcano The project involves building a geothermal electricity generation facility on a flank of the Makushin Volcano on Unalaska Island. Ounalashka Corp., as the local Native village corporation, owns the land and subsurface rights in the area of the project. From previous exploratory drilling there is a known significant source of hot geothermal water underground on the side of the volcano facing the City of Unalaska, the island’s main community.
The concept behind the project is the provision of geothermal power on Unalaska Island, as a replacement for the diesel power currently used to generate electricity. In addition to supplying power to the local electricity utility, OCCP hopes to sell power to fish processing plants located on the island. In August 2020 OCCP signed a 30-year power purchase agreement with the City of Unalaska. The city hosts the port of Dutch Harbor.
While involving relatively high up-front development costs, a geothermal system can deliver power at a predictable and stable price. OCCP is confident that its system will be able to compete with the cost of diesel power.
OCCP anticipates using two to three production wells to deliver hot geothermal water into the power plant. Cooled geothermal water that has passed through the plant will be pumped back underground through injection wells for reheating. The power plant will be located on a plateau on the side of the volcano. A 14-mile transmission line will connect the power plant to city’s power grid.
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