Ormat Technologies Provides Puna Power Plant Update
February 04 2010 - 10:19AM
PR Newswire (US)
RENO, Nev., Feb. 4 /PRNewswire-FirstCall/ -- Ormat Technologies,
Inc. (NYSE:ORA) today issued an update on its 30 MW Puna ("Puna")
power plant in Hawaii. Puna is currently operating at approximately
17 MW as a result of a decline of the steam supply to the power
plant. This decline is resulting in a monthly revenue decrease of
less than $1 million based on current energy rates. Energy rates
for the Puna power plant are based on the short run avoided cost of
the local utility and are calculated monthly. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO) The plant
generated 25 MW following the completion of repair work on
production wells in the fourth quarter of 2009 and was expected to
recover to approximately 30 MW. However, the actual steam supply
gradually declined and in January 2010 the plant reached a
generation level of 17 MW. Our analysis of the current situation
determined that the decline is not related to the reservoir
parameters. We believe the issue is a wellbore restriction that
reduces the flow from the existing wells to the power plant. We are
in the process of implementing a quick repair through a chemical
cleaning of the wells. If this is not successful we will have to
perform a mechanical cleaning, which will be more expensive and
take more time. An update will be provided once we have further
information. In addition, we plan to start drilling a new
production well in the next few days. The drilling work of the new
well and its connection to the power plant is expected to be
completed by the end of the second quarter of 2010. This plan is
intended to increase the available geothermal fluid and enable the
power plant to generate at full capacity. The estimated cost to
execute this plan is approximately $11 million. About Ormat
Technologies Ormat Technologies, Inc. is the only
vertically-integrated company primarily engaged in the geothermal
and recovered energy power business. The Company designs, develops,
owns and operates geothermal and recovered energy-based power
plants around the world. Additionally, the Company designs,
manufactures and sells geothermal and recovered energy power units
and other power-generating equipment, and provides related
services. The Company has more than four decades of experience in
the development of environmentally-sound power, primarily in
geothermal and recovered-energy generation. Ormat products and
systems are covered by 75 U.S. patents. Ormat has built over
approximately 1,200 MW of plants half for its own account and half
as supplies to utilities and developers. Ormat's current generating
portfolio includes the following geothermal and recovered
energy-based power plants: in the United States - Brady, Heber,
Mammoth, Ormesa, Puna, Steamboat, OREG 1 and OREG 2; in Guatemala -
Zunil and Amatitlan; in Kenya - Olkaria; and in Nicaragua -
Momotombo. 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 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 2, 2009 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: Investor Relations
Contact: Dita Bronicki Todd Fromer / Marybeth Csaby CEO KCSA
Strategic Communications 212-896-1215 (Todd) /212-896-1236
775-356-9029 (Marybeth) / -------------------
http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO
http://photoarchive.ap.org/ DATASOURCE: Ormat Technologies, Inc.
CONTACT: Dita Bronicki, CEO of Ormat Technologies, +1-775-356-9029,
; or Investor Relations, Todd Fromer, +1-212-896-1215, , or
Marybeth Csaby, +1-212-896-1236, , both of KCSA Strategic
Communications, for Ormat Technologies Web Site:
http://www.ormat.com/
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