Ormat Secures $100 Million Supply and EPC Contracts in New Zealand and Indonesia
August 16 2022 - 8:30AM
Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy
storage, solar PV and recovered energy power company, today
announced that it has signed with Contact Energy of New Zealand
(“Contact Energy”) an Engineering, Procurement and Construction
(“EPC”) contract for a new maximum continuous performance 59MW
geothermal power plant in New Zealand and signed a 6MW supply
contract with Sarulla Operations Ltd. (“SOL”) in Indonesia. The
combined expected revenue of the two contracts is approximately
$100 million USD.
Under the agreement with Contact Energy, Ormat
will provide its air-cooled Ormat Energy Converters for the Tehuka
3 geothermal project. This power plant will be built in the
vicinity of the Tehuka 1 & 2 plants that are already operating
on the Tauhara resource. This is the third EPC contract Ormat has
signed with Contact Energy and the 16th geothermal power plant
Ormat has built in New Zealand.
Under the signed 6MW contract with SOL, Ormat
will supply its air-cooled Ormat Energy Converters as part of the
remediation work being performed to improve the power plant’s
performance.
Doron Blachar, CEO of Ormat Technologies said,
“The signing of these two contracts increase our Product Segment
backlog to approximately $150M, the highest since 2020 and should
provide a significant contribution to our expected product segment
revenues and margins. After the prolonged impact Covid-19 had on
our Product Segment, we are happy to see our clients are moving
forward with development of new projects and expect this trend to
continue.
This repeated contract with Contact Energy
demonstrates our full and long-term relationship with our clients
and evidences our proven technology. Ormat’s technology is designed
to accommodate a wide range of geothermal reservoirs, while
maintaining maximum flexibility and efficiency. We anticipate
delivery and construction for these projects during 2023 and
2024.”
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 robust plans to accelerate
long-term growth in the energy storage market and to establish a
leading position in the U.S. energy storage market. 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. The Company has engineered,
manufactured and constructed power plants, which it currently owns
or has installed for utilities and developers worldwide, totaling
approximately 3,200 MW of gross capacity. In addition, Ormat is
expanding its activity into energy storage services, solar
Photovoltaic (PV) and solar PV plus energy storage. Ormat’s current
total generating portfolio is 1.2 GW with 1,080 MW of geothermal
and solar generation portfolio that is spread globally in the U.S.,
Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 MW
energy storage portfolio that is located in the U.S.
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. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that we expect or
anticipate will or may occur in the future, including such matters
as our projections of annual revenues, expenses and debt service
coverage with respect to our debt securities, future capital
expenditures, business strategy, competitive strengths, goals,
development or operation of generation assets, market and industry
developments and the growth of our business and operations, are
forward-looking statements. When used in this press release, the
words “may”, “will”, “could”, “should”, “expects”, “plans”,
“anticipates”, “believes”, “estimates”, “predicts”, “projects”,
“potential”, or “contemplate” or the negative of these terms or
other comparable terminology are intended to identify
forward-looking statements, although not all forward-looking
statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected
in or suggested by these forward-looking statements are reasonable,
we may not achieve these plans or objectives. Actual future results
may differ materially from those projected as a result of certain
risks and uncertainties and other risks described under "Risk
Factors" as described in Ormat’s annual report on Form 10-K filed
with the Securities and Exchange Commission (“SEC”) on February 25,
2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and
annual reports on Form 10-K that are filed from time to time with
the SEC.
These forward-looking statements are made only
as of the date hereof, and, except as legally required, 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 Head of IR and ESG
Planning & Reporting 775-356-9029 (ext.
65726)slavi@ormat.com |
|
Investor Relations Agency Contact:Sam Cohen or Joseph CaminitiAlpha
IR Group312-445-2870ORA@alpha-ir.com |
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