RENO, Nev., July 02, 2019 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc.1 (ORA) today announced that it has signed and closed a set of agreements to acquire from a Medco Power subsidiary 49% in the Ijen geothermal project company, which is holding the geothermal license to develop Ijen project in East Java. This acquisition further bolsters Ormat’s global portfolio, and particularly strengthens its position in Indonesia.
Under terms of the agreements, Ormat will acquire 49% of the shares of the Ijen geothermal project company and will commit to additional funding for the project exploration and development, subject to specific conditions. A subsidiary of Medco Power will retain 51% ownership in the company. Ormat and Medco will develop the project jointly.
“We have established a tremendous relationship with Medco, including partnering on our Sarulla plant, and we are excited to extend this relationship to a second major project in Indonesia,” commented Isaac Angel, Chief Executive Officer. “As part of this partnership, Ormat holds a preferential right to supply equipment to the project, leveraging our expertise and increasing the opportunities for our product segment. Medco shall hold a preferential right to operate and manage the project after its commercial operation, in-line with Medco’s significant operation and maintenance experience.
Indonesia has significant volcanic geology that is reported to have a major part of the world's potential geothermal resources, estimated at 28,000 megawatts. The government of Indonesia has announced plans to produce more than 9,000 MW of geothermal power by 2025, becoming the world's leading geothermal energy producer. This would account for 5% of Indonesia's total energy needs, creating significant opportunities for additional geothermal expansion.”
The Ijen project assets, whose final capacity will be determined after exploration, include a geothermal concession and 30-year PPA for up to 110 MW capacity. The project is ready for exploration and development with some slim holes already drilled and commercial operation is expected at the end of 2022.
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 77 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 584 employees in the United States and 762 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for 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 2,900 MW of gross capacity. Ormat’s current 910 MW generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe. Ormat expanded its operations to provide energy storage and energy management solutions, by leveraging its core capabilities and global presence as well as through its Viridity Energy Solutions Inc. subsidiary.
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’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2019 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.
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.
1 Ormat Technologies, Inc. is also referred to herein as the “Company”, “Ormat”, “we” or “us”
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