Ormat Signs Definitive Agreements to Acquire Geothermal Power Plant in the Island of Guadeloupe
14 Março 2016 - 9:00AM
Ormat Technologies, Inc. (NYSE:ORA) announced today it has signed
an Investment Agreement and Shareholders Agreement with Sageos
holding (Sageos), a fully owned subsidiary of Bureau de Recherches
Géologiques et Minières (BRGM), the French governmental
geological survey company, to acquire, gradually, 85% of Geothermie
Bouillante SA (“GB”). GB owns and operates the Bouillante
geothermal power plant. This plant currently generates
approximately 10 MW, and owns two exploration licenses with a total
additional potential capacity of up to 30 MW, all located in
Guadeloupe Island, a French territory in the Caribbean.
At closing, expected in the second quarter, Ormat
will pay approximately €22 million (approximately $24 million,
based on current foreign currency exchange rates) to Sageos for
79.6% equity interest in GB. In addition, Ormat is committed to
further invest €10 million during the first two years, which will
increase its equity interest to 85%. The cash will be used mainly
for the enhancement of the power plant.
Ormat is confident that with its technology and
expertise it can optimize the use of the resource at the existing
facilities and recover its current production to its design
capacity of 14.75 MW by mid-2017. Additionally, Ormat plans
modifications to the existing equipment as well as to further
develop the asset, with a potential of reaching a total of 45 MW in
phased development, by 2021. Under the Investment Agreement, Ormat
will pay Sageos an additional amount of up to €16 million subject
to the achievement of agreed production thresholds and capacity
expansion within a defined time period.
“Strategic M&A is a key pillar of our growth
strategy, enabling us to leverage our expertise and our balanced
model to improve existing projects, expand our geographic reach and
grow our portfolio,” noted Isaac Angel, Chief Executive Officer.
“This acquisition is an evidence to the progress we made in our
business development efforts to achieve these important goals. We
are happy to have the opportunity to share our accumulated
knowledge and experience in the geothermal development in
Guadeloupe Island. I’m certain that, together with the local
skilled employees and our partner BRGM, we can achieve great
accomplishments and add value to the assets we acquire as well as
to Ormat shareholders.”
The Bouillante geothermal plant sells its
electricity under a new 15-year Power Purchase Agreement (PPA) that
was entered into force in January 2016, with Électricité de France
S.A. (EDF) the French electric utility. As a major renewable plant
in Guadeloupe Island, the power plant is entitled to certain
benefits from the French government that were set in order to
promote renewable energy, mainly through feed-in tariff and tax
benefits.
About Ormat Technologies
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal company and the only
vertically integrated company engaged in geothermal and recovered
energy generation (REG), with the objective of becoming a leading
global provider of renewable energy. The company owns, operates,
designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter - a power generation
unit that converts low-, medium- and high-temperature heat into
electricity. With 72 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 450 employees in the United States and over
600 overseas. Ormat’s flexible, modular solutions for geothermal
power and REG are ideal for the vast range of resource
characteristics. The company has engineered, manufactured and
constructed power plants, which it currently owns or has installed
to utilities and developers worldwide, totaling over 2,000 MW of
gross capacity. Ormat’s current 697 MW generating portfolio is
spread globally in the U.S., Guatemala and Kenya.
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 26, 2016.
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:
Smadar Lavi
Investor Relations
775-356-9029
slavi@ormat.com
Investor Relations Agency Contact:
Rob Fink/Brett Maas
Hayden - IR
646-415-8972/646-536-7331
rob@haydenir.com / brett@haydenir.com
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