RENO, Nev., Feb. 9 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. announced today that its North Brawley power plant in California has been placed in service and is currently operating at a stable capacity of 17 MW.
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As previously disclosed, while the Company believes that the North Brawley reservoir is sufficient to support the 50MW output, the re-injection of the geothermal fluid has been a challenge due to the exceptional amount of un-dissolved solids in the geothermal fluid.
During the last few months the Company has made substantial progress in its ability to manage the solids production by installing temporary measures. As a result, the Company is now able to maintain a stable generation level of 17 MW, while awaiting the arrival of permanent equipment for the solids handling. The Company believes that the permanent equipment will provide both a higher efficiency and lower operating cost for the facility.
However, it appears that even with the solids in check, the injection capacity of some of the wells is disappointing and the Company is evaluating how to increase the injection capacity and bring the plant to its rated design.
The Company plans to request the power purchase agreement off taker to extend the firm operation date to the end of the year, which it expects allows sufficient time to bring the power plant to its design capacity of 50MW.
Because the Company expects to incur additional capital expenditures to fully resolve the operational issues described above, it has temporarily deferred submitting an application for the ITC cash grant for the project. The cash grant is expected to be more than $100 million.
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 built over approximately 1,200 MW of plants half for its own account and half as supplies to utilities and developers. Ormat's current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Heber, Mammoth, Ormesa, Puna, Steamboat, OREG 1 and OREG 2; in Guatemala - Zunil and Amatitlan; in Kenya - Olkaria; and in Nicaragua - Momotombo.
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 2, 2009
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: Investor Relations Contact: Dita Bronicki Todd Fromer / Marybeth Csaby CEO KCSA Strategic Communications 775-356-9029 212-896-1215 (Todd) /212-896-1236 (Marybeth) dbronicki@ormat.com tfromer@kcsa.com/mcsaby@kcsa.com
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Ormat Technologies, Inc.
CONTACT: Dita Bronicki, CEO of Ormat Technologies, Inc.,
+1-775-356-9029, dbronicki@ormat.com; or investors, Todd Fromer,
+1-212-896-1215, tfromer@kcsa.com, or Marybeth Csaby, +1-212-896-1236,
mcsaby@kcsa.com, both of KCSA Strategic Communications, for Ormat
Technologies, Inc.
Web Site: http://www.ormat.com/
