The Israeli renewable energy firm Ormat Technologies Inc. will likely be
providing online auction giant eBay Inc. with a 5-megawatt recovered energy
generation (REG) power plant to be constructed in Utah, the companies announced
The firms recently signed a joint development agreement that
will allow them to proceed with negotiations on a 20-year contract and then
begin preliminary development of the facility. The REG power plant is slated to
capture waste heat from industrial processes and transform it into electricity
for eBay’s new Salt Lake City-based data center, according to Ormat.
commend eBay Inc.’s commitment to sustainable commerce and look forward to
helping them achieve their clean energy goals,” said Yoram Bronicki, president
and chief operating officer for Ormat. “We’re hopeful that our work with eBay
Inc. will continue to promote REG as a predictable, environmentally
friendly energy source that provides a hedge against the variability of fossil
Bronicki attributed the project’s development in large part
to the fact that energy efficiency has lately begun to play a much larger role
in the US market.
“REG offers a proven solution for clean energy to
significantly improve energy efficiency to an existing facility,” he said.
“These benefits directly contribute to [US] President [Barack] Obama’s national
goal, set forth by Executive Order, to coordinate and strongly encourage efforts
to deploy 40 gigawatts of energy efficiency in the US by the end of
Ormat already has more than 160 megawatts of installed REG
capacity already operating in North America, and a total of 595 megawatts
operating around the world, the company said.
The joint development
agreement between eBay and Ormat was made possible by Utah legislation – which
eBay supported – aimed at enabling non-utility energy consumers to buy and
transmit power directly from energy developers. The law, called SB12, was passed
Afterward, eBay initiated a structured procurement process for
an external energy supplier to power its data center. Ormat was the winning
“SB12 was a critical component to identifying Ormat as a solution
to our greener energy needs,” said Dean Nelson, vice president of global
foundation services at eBay Inc. “This milestone points to our belief that
commerce can be fundamentally more sustainable than it is today – and that eBay
Inc. can be a leader in that transition.”
Nelson added that the
firm intended to pursue contracts for further REG power “and to reach, and
possibly surpass, our goal to source at least 8 percent of our energy from
cleaner sources by 2015.”
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