Ormat Provides an Update on the Puna Power Plant in Hawaii Following the Kilauea Volcanic Eruption
May 15 2018 - 6:03PM
Ormat Technologies Inc. (NYSE:ORA) provides an update on the Puna
geothermal power plant located about 15 miles away from the Kilauea
volcano, which erupted on May 3, 2018 and which continues to erupt
and flow lava.
Plant and company personnel have been and
continue to be in close communication with local and state
authorities, as well as HELCO officials, regarding the Puna
facility. Several steps have been taken to secure the Puna
facilities in accordance with its emergency response plan. These
steps include:
- Taking electricity generation offline
- Shutting down all the geothermal wells
- Placing physical barriers around, and protective coverings
over, the geothermal wells
- Removing flammable materials from the facility to a storage
area off-site
- Working together with the state emergency agencies on
implementing measures to secure the geothermal wells and mitigate
any hazards to the surrounding area and damage to the geothermal
wells
According to the alert issued by U.S. Geological
Survey on May 14, 2018, the eruption of lava continues from
multiple points along the northeast end of the active fissure
system. This eruption is still evolving, and additional outbreaks
of lava are possible. Ground deformation continues, and seismic
activity remains elevated in the area. However, topographical paths
of steepest descent for possible lava flows are around and away
from the power plant in the direction of the ocean. This gives the
Company confidence that there is a low risk of surface lava
impacting or making its way to the facility.
“Currently there is no physical damage to the
Puna facilities above-ground, however, we will be able to assess
the impact of the volcanic eruption on the Puna geothermal wells
only after the situation stabilizes,” commented Isaac Angel, CEO of
Ormat Technologies. “We continue to monitor the situation in
coordination with HELCO, and with local and state authorities. We
expect to restore the Puna operations as soon as it is safe to do
so.”
The 38 MW Puna power plant, which is owned and
operated by Puna Geothermal Venture GP (PGV), reflects
approximately 4.5% of Ormat’s total generating capacity. In 2017,
PGV generated approximately $11 million of net income and $20
million of Adjusted EBITDA. Ormat owns a 63.25% interest in PGV and
the balance is held by its partner, an affiliate of Northleaf
Capital Partners.
Ormat has property and business interruption
insurance policies that include insurance coverage in the event of
volcanic eruptions and earthquake in an amount of up to $100
million (combined). The Company is working with its insurance
broker and provided notice to its insurance carriers regarding the
situation at Puna and expects to submit a claim under its business
interruption cover.
Any significant physical damage to, or extended
shut-down of, the Puna facilities could have an adverse impact on
the power plant's electricity generation and availability, which in
turn could have a material adverse impact on our business and
results of operations.
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal Company and the only
vertically integrated Company engaged in geothermal and recovered
energy generation (REG), with the objective of becoming a leading
global provider of renewable energy. The Company owns, operates,
designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation
unit that converts low-, medium- and high-temperature heat into
electricity. With 77 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 530 employees in the United States and 770
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for the vast range of resource characteristics.
The Company has engineered, manufactured and constructed power
plants, which it currently owns or has installed to utilities and
developers worldwide, totaling over 2,600 MW of gross capacity.
Ormat’s current 851 MW generating portfolio is spread globally in
the U.S., Guatemala, Guadeloupe, Honduras, Indonesia and Kenya. In
March 2017, Ormat expanded its operations to provide energy storage
and energy management solutions, by leveraging its core
capabilities and global presence as well as through its Viridity
Energy Solutions Inc. subsidiary, a Philadelphia-based Company with
nearly a decade of expertise and leadership in energy storage,
demand response and energy management.
ORMAT'S SAFE HARBOR STATEMENT
Information provided in this press release may
contain statements relating to current expectations, estimates,
forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally relate to Ormat's plans, objectives and expectations for
future operations and are based upon its management's current
estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties. For a discussion of such
risks and uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Form 10-K filed with the SEC on March 16,
2018.
These forward-looking statements are made only
as of the date hereof, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Ormat
Technologies Contact:Smadar LaviVP Corporate Finance and Head of
Investor Relations775-356-9029 (ext. 65726) slavi@ormat.com |
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Investor
Relations Agency Contact: Rob Fink Hayden - IR 646-415-8972
rob@haydenir.com |
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