RENO, Nev., June 2 /PRNewswire-FirstCall/ -- Ormat
Technologies, Inc. (NYSE: ORA) announced today that it will
accelerate geothermal exploration work this summer on Mount Spurr
following Alaska Governor
Sean Parnell's signing of Senate
Bill 243. Originally, the annual royalty rate paid from geothermal
production on state lands was a minimum of 10 percent of gross
revenues. This bill significantly reduces that rate to the same
level paid on Federal land.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO)
While it is believed that Alaska has substantial geothermal potential,
it has yet to develop a commercial geothermal power plant.
"Reducing this rate is an important first step towards
developing the state's renewable geothermal resources into utility
scale power plants," said Yoram
Bronicki, president and COO of Ormat. "At the end of
the day, SB 243 provides Ormat with the confidence that the state
supports the development of the geothermal industry in a manner
that is financially viable."
"Alaskans want to live and work where they have access to
reliable and affordable energy," said the bill's sponsor Senator
Lesil McGuire. "By reducing
the royalty rate on geothermal power, we acknowledge the unusually
high costs of geothermal development in Alaska but still protect the State's
interests. This bill will ultimately lower the cost of clean,
reliable power to the ratepayers."
"SB 243 provides the initial regulatory framework that is
critical to attracting private sector investment capital necessary
to develop Alaska's vast and very
promising geothermal resources," said Rep. Mike Hawker. "The geothermal resource in
southcentral Alaska has the
potential to replace nearly one-third of our region's electrical
generation that is currently dependent upon a nearly depleted
supply of natural gas from Cook Inlet. Geothermal resource
development is one of the routes to our future energy security and
SB 243 is the first step down that road."
In October 2008, Ormat leased
approximately 36,000 acres of state land through a competitive bid
process, and has since conducted early exploration work at the
site. Ormat plans to begin drilling core holes this year as part of
exploration and early field development, which is expected to take
three years. Construction is forecasted to last another three
years. Ormat hopes to be the first Independent Power Provider
selling geothermal power to utilities in Alaska.
"We all know that developing a geothermal project in
Alaska is difficult due to our
remote location, climate and terrain found at many sites," said
Brad Evans, CEO of Chugach Electric.
"With the passage of SB 243, we are removing some of the
burden layered on top of what is already a high cost development
environment. We appreciate Ormat's commitment that it will
pass along the benefit of SB 243 to customers by lowering the price
of power. Chugach Electric supported this bill and is eager
to work with Ormat and others as they strive to develop world class
geothermal power plants in Alaska."
Geothermal energy is a well-proven form of reliable, affordable,
base-load renewable energy. "Geothermal energy equals green
energy," said Rep. Charisse Millett.
"Geothermal electrical production has been used for decades all
over the world and, with the passage of Senate Bill 243,
Alaska is taking a big step to
utilize this proven and secure energy resource."
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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Marybeth Csaby/ Rob
Fink
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CEO
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KCSA Strategic
Communications
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775-356-9029
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212-896-1296/
212-896-1236
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dbronicki@ormat.com
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mcsaby@kcsa.com/rfink@kcsa.com
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SOURCE Ormat Technologies, Inc.