Ormat Announces Closing of $33.4 Million Partnership Transaction for Tungsten Mountain Geothermal Power Plant
May 22 2018 - 05:00PM
Ormat Technologies Inc. (NYSE:ORA) today announced that one of its
wholly-owned subsidiaries that indirectly owns the 26 MW Tungsten
Mountain Geothermal power plant entered into a partnership
agreement with a private investor.
Under the transaction documents, the private
investor acquired membership interests in the project for an
initial purchase price of approximately $33.4 million and for which
it will pay additional installments that are expected to amount to
approximately $13 million. Ormat will continue to operate and
maintain the power plant and will receive substantially all the
distributable cash flow generated by the power plant.
“We are excited to close another partnership
transaction that enable us to better benefit from tax incentives
available to geothermal projects,” commented Isaac Angel, Ormat’s
CEO. “Since 2011 we achieved the flip date under two of these
partnerships, on or before the target date, evidencing our strong
performance capabilities and commitment to our investors. We have
in our development pipeline a few more projects that are expected
to be entitled to production tax credits and we will continue to
explore tax monetization opportunities for those projects to
increase our profitability and obtain low cost funding to support
our future growth.”
The Tungsten Mountain geothermal power plant,
located in Churchill County, Nevada, began commercial operation on
December 1, 2017. Tungsten Mountain is the first power plant to
sell its power under the 26-year Ormat Northern Nevada Geothermal
Portfolio Power Purchase Agreement with Southern California Public
Power Authority (SCPPA), which was announced in June 2017.
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 Lavi VP Corporate Finance and Head of Investor
Relations 775-356-9029 (ext. 65726)
slavi@ormat.com |
Investor Relations
Agency Contact: Rob Fink Hayden - IR 646-415-8972
rob@haydenir.com |
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