ORA Ormat Technologies Inc

RENO, Nev., Sept. 20 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. (NYSE: ORA) is pleased to announce that it has received $108.2 million for Specified Energy Property in Lieu of Tax/Credits relating to its North Brawley geothermal power plant under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009 ("ARRA").

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"The funding we received today will go toward our continued expansion, including the construction of new projects that will be eligible for future funding under the ITC cash grant program," commented Dita Bronicki, Chief Executive Officer of Ormat.  "Our goal has always been to seek out innovative and low cost funding sources; and in this regard, we have successfully demonstrated our capabilities many times.  Last month, we raised approximately $142 million in a 7 years, 7% private bond offering, and we initiated with John Hancock the application for up to $350 million senior secured construction and term loan facilities.  These loans will be supported by the DOE Loan Guarantee under the financial and construction plans of additional geothermal projects in the U.S., and will enable our new projects to qualify for Institution Partnership Program ("FIPP") in the framework of Section 1705 of the ARRA. We also continuously seek out funding from programs like the ARRA that help support development of geothermal projects in the U.S. We expect that by the end of the year we will start construction of more than 100 MW of new projects in the U.S., which will make them eligible to receive ITC cash grants.  The DOE programs are important and great support to the renewable energy market for as long as they are available."

The Section 1603 program of the ARRA enables qualifying renewable power projects eligible for either the federal production tax credit or investment tax credit to instead elect a 30% cash grant administered by the U.S. Department of the Treasury.

Update on the North Brawley Project

Since it was placed in service in January 2010, we have improved both the power generation and the operating costs of the plant, with the net output exceeding 25 MW in September 2010. The gradual increase in generation was accomplished through the deployment of efficient solids removal equipment that began in late March and allowed for the stable operation of the production wells. The shift from disposable filtration to the high efficiency hydro clones has substantially reduced the operating expenses, and as additional units are installed on the production wells we expect further reduction.

Generation is expected to increase late in the fourth quarter when the tie-in of wells that were drilled east of the existing field is completed.  

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, OREG 3 and OREG 4; 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.

SOURCE Ormat Technologies, Inc.