Ormat Commences Commercial Operation of Two New Battery Storage Facilities for 43MW/43MWh of Cumulative Capacity
Ormat Commenced Commercial Operation of Eight Assets Under Both the Energy Storage and Electricity Segments and Met Its Growth Target for the First Half of 2023
RENO, Nev., June 26, 2023 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, today announced that it has successfully commenced commercial operations for two new battery storage facilities, adding a cumulative capacity of 43MW/43MWh. These storage assets were part of four facilities with a total capacity of 62MW/62MWh planned for the first half of 2023. The completed projects include:
The Upton project, a 23MW/23MWh Battery Energy Storage System (BESS) located in Texas, will provide energy and ancillary services to the Electricity Reliability Council of Texas (ERCOT) and support the electric grid in times of scarcity.
The Andover BESS project, a 20MW/20MWh located in New Jersey, will provide ancillary services to PJM.
The previously announced commercial operation of the 12MW/12MWh Bowling Green and 7MW/7MWh Howell BESS projects, located in Ohio and New Jersey, respectively, that provide ancillary services to PJM.
Doron Blachar, CEO of Ormat Technologies, stated "We are delighted to announce the commencement of operations of two new battery storage facilities. This achievement highlights our commitment to expanding our portfolio of energy storage assets in key U.S. markets. Ormat has successfully executed multiple complex projects overcoming supply chain challenges and met its growth target for the first half of 2023 showcasing our operational capabilities.”
Blachar further highlighted Ormat's recent accomplishments, remarking, “since the beginning of 2023, Ormat has met all Electricity Segment growth targets and successfully completed the construction or enhancement of four power plants, including the 25MW North Valley geothermal power plant, the 6 MW Brady Solar facility, the recovery of Heber 1, and the 6MW upgrade to the Dixie Valley power plant. The successful completion of these projects aligns with the company's goal of expanding its renewable power portfolio and demonstrates a total increase of 99 MW in all segments since the beginning of the year, reaching 1,257 MW.”
Blachar further emphasized the financial benefits of the storage projects, stating, “Ormat will now be able to maximize the economic advantages of these storage assets as they become eligible for Investment Tax Credits (ITC) for the first time. This eligibility allows us to claim approximately 30% of the asset value in tax credits, reducing our capital needs and enhancing earnings. We remain on track with our energy storage growth targets, with plans to bring online two additional assets in 2023 and make further progress towards achieving between 500 to 530 megawatts and over 1 gigawatt-hour in total capacity by the end of 2025. These targets support further top-line and EBITDA expansion."
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 robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. 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. The Company has engineered, manufactured, and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, PV solar and energy storage plus PV solar. Ormat’s current total generating portfolio is 1,257MW, comprised of a 1,107 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 150 MW energy storage portfolio located in the U.S.
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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2023, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed from time to time with the SEC. These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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