RENO, Nev., June 21, 2011 /PRNewswire/ -- Ormat Technologies,
Inc. (NYSE: ORA) ("Ormat") today announced that its subsidiary has
entered into a Build, Operate and Transfer Agreement ("BOT
Agreement") with Tikitere Geothermal Power Limited ("TGL") to
explore, develop, supply, construct, own and operate a geothermal
power plant in the Tikitere geothermal area near Rotorua,
New Zealand. Ormat was awarded the
project following a competitive bidding process initiated by
TGL.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
TGL was established as a joint venture vehicle for the various
Maori trusts that own and administer the land. TGL's shares
are held by the Tikitere Trust. The field from which the energy
will be drawn is owned by the Tiki Tere Trust, Paehinahina Mourea
and Tiki Tere A (Aggregated) and the Manupirua Ahu Whenua Trust.
The wells will be sited on land owned by the Paehinahina Mourea
Trust.
Under the BOT Agreement, the parties will jointly develop a
geothermal power plant with an estimated capacity of approximately
45 MW. The project will be operated by Ormat, which shall be the
project's beneficiary for an initial period of 14 years following
commercial operation and then 100 percent of ownership interests in
the project shall be transferred to TGL. During the BOT period, TGL
will receive an income stream while a coordination committee,
comprised of representatives from both parties, will monitor the
operations of the project in order to protect and promote the
heritage and cultural values of the Maori land owners.
The project will utilize Ormat's generating units, similar to
those already deployed in 12 geothermal projects in New Zealand, totaling approximately 260
MW.
The BOT Agreement is conditional upon receiving regulatory
approval. Construction of the power plant will commence following
the obtaining of local permits, as well as satisfactory feasibility
results following exploration and development activities to be
carried out by Ormat.
Jim Gray, Director of TGL, said,
"Following the competitive bidding process we ran to find the most
suitable project partner, we are pleased to be joining forces with
Ormat on this project, the true value of which goes far beyond its
economic and commercial success. Through the involvement of Ormat
Technologies, and the human, cultural and community values shared
by all those involved, this is truly a paradigm shift for New
Zealand Maori in the fulfillment of our vision."
"We thank TGL and the trusts for their confidence in Ormat,"
said Lucien Y. Bronicki, Chairman of
the Board and Chief Technology Officer of Ormat Technologies. "As
the first BOT project for Ormat in New
Zealand, this will diversify Ormat's portfolio that today
includes operations in the U.S., Guatemala, Nicaragua and Kenya. Upon completion, it will expand our
existing portfolio by approximately 8 percent. As with previous
developed projects in New Zealand,
Ormat will maintain close cooperation with local contractors and
engineering firms."
The new plant will optimize energy utilization by converting the
heat of both geothermal steam and brine from geothermal wells into
electrical power. Like all Ormat plants in New Zealand, the Tikitere plant will reinject
100 percent of the geothermal fluid by using air cooling without
any water consumption. The 100 percent reinjection serves
both to sustain the reservoir and produce electrical power with
virtually no environmental impact.
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.