Ormat Signs a 25-Year PPA With SCPPA for Its Casa Diablo-IV Geothermal Power Plant in California
March 20 2019 - 8:00AM
Ormat Technologies Inc. (NYSE: ORA) today announced the signing of
a Power Purchase Agreement (PPA) between a subsidiary of the
Company and Southern California Public Power Authority (SCPPA).
Under the PPA, SCPPA will purchase 16MW of power generated by the
expected 30MW Casa Diablo-IV (CD4) geothermal project located in
Mammoth Lakes, California. SCPPA will resell the output to the City
of Colton.
The CD4 power plant will be the first geothermal
power plant built within the California Independent System Operator
(CAISO) balancing authority in the last 30 years. The 16MW of
energy deliveries under the PPA will begin no later than the end of
2021 with an extension option. The PPA is for a term of 25 years
and has a fixed price of $68 per MWh. Ormat intends to sell the
balance of 14MW to other offtakers or at the spot market.
Isaac Angel, CEO of Ormat Technologies said,
“This strategic PPA supports Ormat’s long-term plans to grow our
geothermal business domestically. CD4 Project is a new
state-of-the-art air-cooled binary geothermal facility that is
renewable and will have no CO2 emissions, will provide resource
adequacy and ancillary benefits. CD4 will allow the City of
Colton to meet its clean energy standards while also ensuring grid
reliability. We are delighted to be chosen again by SCPPA and
greatly appreciate their confidence in Ormat.”
“The Colton Electric Department looks forward to
taking delivery of energy from a geothermal facility as the
cornerstone of our renewable resources,” said, Colton Mayor, Frank
Navarro. “CD4 will be a long-term, renewable resource with no
greenhouse gas emissions and will provide resource adequacy
capacity and energy at an affordable price to Colton’s ratepayers.
CD4 will provide almost 25 percent of Colton’s annual energy
supplies. This power purchase agreement with Ormat for CD4
demonstrates Colton’s commitment to a green economy with affordable
energy prices for our citizen’s while committing to zero emission
sustainable resources.”
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 584 employees in the United States and 762
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for 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 2,900 MW of gross capacity.
Ormat’s current 910 MW generating portfolio is spread globally in
the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.
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’s Form
10-K/A filed with the Securities and Exchange Commission (“SEC”)
March 1, 2019 and from time to time, in Ormat’s quarterly reports
on Form 10-Q that are filed with the SEC.
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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