5.1.2004: Meldung: Ormat Technologies, Inc.: 25-Year Agreement Valued at Approximately $5 Million per Year
Tuesday January 4, 5:52 am ET
25-Year Agreement Valued at Approximately $5 Million per Year
SPARKS, Nev., Jan. 4 - ORMAT Technologies, Inc. (NYSE: ORA - News) today announced that through a newly established project subsidiary, it has entered into a 25-year Power Purchase Agreement (PPA) with an electric utility according to which ORMAT will supply approximately 22 MW from recovered energy generation power plants. The power plants are to be constructed by ORMAT between 12 and 18 months from the effectiveness of the PPA. The power plants will be constructed on gas compressor stations along a Natural Gas pipeline in the Midwestern United States.
The PPA has not yet become effective and is subject to certain conditions, including agreement for the purchase of the recovered energy and a variety of agreements necessary for start of construction. The Company cannot currently estimate when these additional agreements will be finalized.
The Company estimates that construction costs for the power generation stations will be approximately $36 million. Upon completion of the construction of the power plants, Ormat expects to realize annual revenues of approximately $5 million from the sale of power generated as a result of this project.
This PPA will replace a Supply Contract for recovered energy units amounting to approximately 14 million US Dollars, which was recently cancelled and as to which the Company has a dispute with its customer. The Company believes that such dispute will not have a material effect on its business.
Lucien Y. Bronicki, Chairman of the Board and Chief Technology Officer of Ormat Technologies, said: "This PPA represents the first agreement entered into by Ormat Technologies for the sale of power from recovered energy generation. We believe that this segment of our business, from which we can generate clean electricity without the consumption of additional fuel, represents a substantial growth opportunity for Ormat. We believe that our strong technology and vast experience in the field of recovered energy power generation positions the Company to grow this segment of our business, enabling us to capitalize on additional recovered energy opportunities going forward."
About Ormat Technologies
Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, builds, owns and operates geothermal power plants and also designs, develops and builds and plans to own and operate, recovered energy-based power plants. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment and provides related services. Founded in 1994, the company currently has operations in the United States, Israel, Guatemala, Kenya, Nicaragua and the Philippines.
Ormat Technologies Contact:
CEO and President
Investor Relations Contact
Jeff Corbin/Lee Roth
Source: Ormat Technologies, Inc.