RENO, Nev., April 26 /PRNewswire-FirstCall/ -- Ormat
Technologies, Inc. (NYSE: ORA) announced today that the
Medco-Ormat-Itochu-Kyushu Consortium (the "Consortium"), which
consists of Medco Energi Internasional Tbk, Ormat International
Inc., a subsidiary of Ormat Technologies, Inc., ("Ormat"); Itochu
Corporation and Kyushu Electric Power Co. Inc., have signed the
"Sarulla Project Joint Confirmation" with the state-owned
Indonesian power company PT Perusahaan Listrik Negara ("PLN")
confirming agreement on terms for amendments to the Energy Sales
Contract ("ESC"), with the concession holder PT Pertamina
Geothermal Energy ("PGE"), a wholly owned subsidiary of the
Indonesian state-owned oil and gas company PT Pertamina (Persero),
signing as witness. The ESC was executed in December 2007 for the 330 MW net power Sarulla
Geothermal Project (the "Project"). The Sarulla Project Joint
Confirmation was signed during the opening ceremony of the World
Geothermal Congress in Bali.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO)
The parties have agreed to change the price of the power sold
under the ESC to a levelized payment of US 6.79 cents / kWh, whereby the tariff payable in
the early years after commercial operation date shall be higher and
shall be reduced in the later years. The parties have as well
agreed on a 90 days schedule for resolving certain other
contractual amendments for facilitation of project financing and
for signing the resulting amended ESC. The modified tariff itself
is subject to verification by the State Audit Agency for
Development and approval from the Minister of Energy and Mineral
Resources.
The Project, located in Tapanuli Utara District, North Sumatra Province in Indonesia, represents the largest
single-contract geothermal power project to date, and is a
reflection of the large scale, high productivity and potential of
Indonesian geothermal resources. The Project will be owned and
operated by the Consortium members under the framework of a Joint
Operating Contract ("JOC") with the concession holder PGE, and is
to be constructed in three phases, with each phase utilizing
Ormat's 110 to 120 MW -Combined Cycle geothermal plants in which
the steam first produces power in a backpressure steam turbine and
is subsequently condensed in vaporizers of ORMAT® Energy
Converters. The separated brine from the wells will not be wasted,
but will produce additional power by means of supplemental OECs.
Construction is expected to be completed within the next five
years.
The first phase is scheduled to commence operation within 30
months of financial close, which is expected one year after
signature of the ESC, although the Consortium shall endeavor to
accelerate the commissioning of part of the first phase. The
remaining two phases are scheduled to commence operation in stages
within 18 months after the first phase's scheduled
commissioning.
The total project cost is expected to be approximately
$1.0 billion, including drilling of
wells, power plants, surface facilities for collecting and
disposing of the steam and hot water and infrastructure. It is
expected that the Japan Bank for International Corporation ("JBIC")
will provide the majority of the project financing based on the
Umbrella Note of Mutual Understanding signed between the Ministry
of Finance of Indonesia and JBIC,
with additional financing from the Asian Development Bank
("ADB").
Ormat's equity participation shall be 12.75%. In addition,
under Ormat's role as the power plant equipment supplier for the
project, the value of Ormat's scope of supply is expected to be
over $300 million. Negotiations with
the Consortium are on-going for additional construction activities
and balance of plant supply which may be undertaken by Ormat in
addition to the supply portion of the scope.
Lucien Bronicki, Chairman and
Chief Technology Officer of Ormat Technologies, stated, "The
Sarulla Project is an important landmark for Ormat as it will use
Ormat's Geothermal Combined Cycle technology, which is
especially valuable for optimizing Indonesia's very large but varied geothermal
resources. We congratulate the teams of PLN and Pertamina, as well
as our Consortium partners. Our commitment to the development of
geothermal resources in Indonesia
is strong and we are impressed by the commitment of the Government
of Indonesia to the development of
its significant geothermal resources. We are pleased to be sharing
our long experience in developing, constructing and operating
geothermal plants. Ormat's air-cooled geothermal Combined Cycle
technology, well proven over the last 18 years in the US and
New Zealand, is particularly
suited to assure maximum utilization of the Sarulla resource in a
sustainable manner."
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 engineered and built power plants,
that it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1300 MW of gross capacity.
Ormat's current generating portfolio includes the following
geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber,
Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2 and Peetz; in
Guatemala - Zunil and Amatitlan;
in Kenya – Olkaria III; and, in
Nicaragua - Momotombo.
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 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March
8, 2010.
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:
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Investor Relations
Contact:
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Dita
Bronicki
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Todd Fromer /
Marybeth Csaby
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CEO
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KCSA Strategic
Communications
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775-356-9029
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212-896-1215 (Todd)
/212-896-1236 (Marybeth)
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dbronicki@ormat.com
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tfromer@kcsa.com/mcsaby@kcsa.com
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SOURCE Ormat Technologies, Inc.