RENO, Nev., Feb. 9 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. is pleased to announce that its wholly owned subsidiary, Ormat Nevada Inc. has signed an agreement to acquire 100% of the membership interests in HSS II, LLC, which includes the Hot Sulphur Springs Geothermal Project in the northern Independence Valley of northeast Nevada. The Project is in an advanced stage of development and has one successful well. The Company plans to construct and operate a geothermal plant on the site which is expected to become operational in 2012.
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The Project will sell its output pursuant to a new 20-year power purchase agreement (PPA), signed early February - 2010 with Nevada Power Company (a subsidiary of NV Energy, Inc.). Under the PPA, Nevada Power will purchase up to approximately 40 megawatts (MW) of electricity from the Project, which will be developed in stages with the first stage of approximately 16 MW. The PPA allows for adjustment of the supply amount at the fist year after the commercial operation. The PPA is subject to approval by the Public Utilities Commission of Nevada.
Commenting on the transaction, Dita Bronicki, CEO of Ormat Technologies, said: "Upon closing, this acquisition will increase the number of projects that we expect will commence construction by 2010 and will therefore be eligible to benefit from the stimulus provisions targeted for renewable energy projects under the American Recovery and Reinvestment Act (ARRA)."
The Hot Sulphur Springs Geothermal Project is located on and has access to approximately 9,800 acres at the Hot Sulfur Springs site in Elko County, Nevada. Ormat Nevada Inc. is purchasing the interest from its current owners, private equity funds managed by Energy Investors Funds. HSS II owns the Hot Sulfur Springs Geothermal Project. The Company expects that closing of the acquisition, which is subject to customary conditions precedent under the purchase agreement, will take place in the first quarter of 2010.
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, OREG 2 and Peetz; in Guatemala - Zunil and Amatitlan; in Kenya - Olkaria III; 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 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 / 212-896-1236 dbronicki@ormat.com tfromer@kcsa.com / mcsaby@kcsa.com
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Ormat Technologies, Inc.
CONTACT: Dita Bronicki, CEO of Ormat Technologies, +1-775-356-9029,
dbronicki@ormat.com; or Investor Relations, 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/
