RENO, Nev., June 8, 2011 /PRNewswire/ -- Ormat Technologies,
Inc. (NYSE: ORA) today announced that it received the largest
product order in the company's history. The Supply contract
and the Engineering, Procurement and Construction, (EPC) contract,
signed by two of its subsidiaries with Mighty River Power Limited
(Mighty River Power) of New
Zealand, are for the first stage of the Ngatamariki
geothermal project valued at a total of approximately $130 million. The new power plant is to be
constructed on the Ngatamariki Geothermal Field in New Zealand. Construction of the power plant
is expected to be completed within 24 months from the contract
date.
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Dita Bronicki, CEO of Ormat Technologies said, "This marks the
largest EPC contract that Ormat has ever entered into for one
geothermal plant. Our backlog since the beginning of the year
has more than doubled and, as of the beginning of the second
quarter, stands at record high of over $230
million. Accordingly, we are increasing our Product
Segment guidance for 2011 by approximately 15 percent to between
$90 million and $100 million."
Mighty River Power, a state-owned
enterprise, is a New Zealand
electricity generation and electricity retailing company and one of
the most experienced geothermal operators in the world. Geothermal
energy represented 33 percent of Mighty River Power's overall
generation in the last quarter -- a total that is expected to grow
to approximately 43 percent by 2013, following the completion of
the new power plant.
Mrs. Bronicki continued, "We are very proud to receive this
repeat contract which demonstrates the confidence Mighty River
Power and its Maori Trust partner have in our technology,
experience and knowledge. We have a long-standing relationship with
both and are excited for the opportunity to, once again, work with
the Mighty River Power geothermal team to deliver another strong
performing power plant on schedule."
Mighty River Power's Chief
Executive Dr. Doug Heffernan said,
"Our Company is now seeing the benefits of the near NZ$1 billion
investment it has made in geothermal generation over the past five
years flowing through to the Company's financial performance as
exampled by the 22 percent uplift in earnings, (EBITDAF) recorded
for the six months to 31 December,
2010. The Ngatamariki project will allow us to continue that
growth trend by building on the core competency we have now
developed in geothermal. We are particularly pleased to have placed
the contract for the design, supply and construction of plant with
Ormat and look forward to another great project delivery from this
very experienced team."
Lucien Bronicki, chairman and CTO
of Ormat Technologies, Inc., said, "New
Zealand is one of the early pioneers in geothermal energy
development. For the past forty years, it has been the country with
the most consistent policy of support for geothermal energy and has
developed advanced expertise in drilling, geophysics, reservoir
engineering, as well as operations. NZ consulting firms assisted
many developing countries such as the
Philippines, Kenya and
Indonesia in geothermal
development. Because of their extensive knowledge, New Zealand companies recognized very early,
some 25 years ago, the value of Ormat's technology and experience
in optimizing resource utilization. The cooperation between
New Zealand's geothermal companies
and Ormat has continued since then and also in other
countries."
Mr. Bronicki concluded, "Ormat has supplied technology and
plants adapted to various types of geothermal fields to all of
New Zealand's key geothermal
players. We view this milestone as a demonstration of the
effectiveness and reliability of Ormat's technology, as well as a
trust in our accumulated geothermal knowledge and experience. The
completion of this power plant will bring the total installed
capacity of Ormat's technology in New
Zealand to approximately 350 MW in 14 plants. We look
forward to a fruitful cooperation with Mighty River Power in this
project and in further developing geothermal resources in
New Zealand and around the
world."
About the Ngatamariki Geothermal Project
The new power plant will be comprised of four air-cooled Ormat
Energy Converters and will allow 100 percent geothermal fluid
reinjection, which serves both to sustain the reservoir and to
produce electrical power with virtually no environmental impact.
The specification and special technical requirements for this power
plant are based upon Mighty River Power's and Ormat's long
professional experience in geothermal development.
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 80 U.S. patents. Ormat has engineered and built power plants,
that it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1370 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,
Jersey Valley, 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 February 28, 2011.
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 /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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212-896-1215 ( Todd)
/212-896-1206 (Rob)
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dbronicki@ormat.com
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tfromer@kcsa.com/rfink@kcsa.com
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SOURCE Ormat Technologies, Inc.