Ormat Announces Closing of $33.4 Million Partnership Transaction for Tungsten Mountain Geothermal Power Plant
Tuesday, 22 May 2018
RENO, Nev., May 22, 2018 (GLOBE NEWSWIRE) -- 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:
VP Corporate Finance and Head of Investor Relations
775-356-9029 (ext. 65726)
firstname.lastname@example.org Investor Relations Agency Contact:
Hayden - IR
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