Ormat Announces Closing of the Pomona Energy Storage Facility Acquisition in California

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) has acquired the 20 MW / 80 MWh Pomona energy storage facility in California from AltaGas Power Holdings for $47 million. This facility, operational since 2016, enhances Ormat's portfolio to 73MW/136MWh and positions the company to capitalize on California's burgeoning energy storage market. The acquisition aims to improve profitability in the energy storage segment and support California's 2045 goal of 100% carbon-free electricity. Ormat continues its strategy to lead in renewable energy, utilizing its resources and expertise in key markets.

Positive

• Acquisition of Pomona energy storage facility enhances portfolio to 73MW/136MWh.
• Transaction value of $47 million positions Ormat strongly in the California market.
• Supports California's goal for 100% renewable energy by 2045, aligning with regulatory trends.
• Expected to improve profitability in the energy storage segment.

Negative

• None.

RENO, Nev., July 21, 2020 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc.¹ (NYSE: ORA), today announced that its Ormat Nevada Inc. affiliate has closed on the transaction to acquire the 20 MW / 80 MWh Pomona energy storage facility in California from AltaGas Power Holdings (U.S.) Inc. (TSE: ALA) for a total consideration of $47 million, net of working capital adjustment  and other adjustments totaling approximately $3.1 million. The Pomona energy storage facility has been in commercial operation since December 31, 2016 under a 10-year energy storage resource adequacy agreement with Southern California Edison Company. It also participates in the energy and ancillary services markets run by the California Independent System Operator

The Pomona energy storage facility is one of the largest battery storage assets in operation in the region and our first battery storage asset in operation in California, increasing our existing operating portfolio to 73MW/136MWh and adding to our battery storage assets in New Jersey, New England and Texas.  

“Ormat continues to expand its presence and capabilities in the energy storage market, one of the most rapidly growing parts of the energy sector,” commented Doron Blachar, Chief Executive Officer. “This acquisition is an important addition to our energy storage segment, and it strengthens our activity in the California market, which is the largest and most attractive market in the US for renewables in general and for energy storage in particular. The facility should improve our storage segment profitability and assist us in meeting our overall goals in this segment. Energy storage resources play a key role in achieving California’s goal to have 100% of its electricity come from carbon-free resources by 2045, by replacing natural gas generators and facilitating massive absorption of renewable energy resources. As such, storage is a key part of the energy transformation, and Ormat continues to utilize its expertise, resources, and access to capital to build presence within the energy storage sector, in key target markets, including California, and continues its evolution into a leader in renewable energy.”

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 68 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 578 employees in the United States and 830 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 approximately 3,000 MW of gross capacity. Ormat’s current 933 MW generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe. Ormat leveraged its core capabilities and global presence, together with the energy storage expertise of its subsidiary, Viridity Energy Solutions Inc., to expand its operations to provide energy storage and energy management solutions.

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 2, 2020 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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40%; width:40%; min-width:40%;">Ormat Technologies Contact:	60%; width:60%; min-width:60%;">Investor Relations Agency Contact:
Smadar Lavi	Rob Fink
VP Corporate Finance and Head of Investor Relations	FNK IR
775-356-9029 (ext. 65726)	646-809-4048
slavi@ormat.com	rob@fnkir.com

FAQ

What is the significance of Ormat's acquisition of the Pomona facility?

The acquisition enhances Ormat's energy storage portfolio, improves profitability, and strengthens its presence in California's lucrative market.

How much did Ormat Technologies pay for the Pomona energy storage facility?

Ormat acquired the Pomona facility for a total consideration of $47 million.

What is the operational status of the Pomona energy storage facility?

The Pomona facility has been in commercial operation since December 31, 2016.

How does this acquisition align with California's renewable energy goals?

The acquisition supports California's target of achieving 100% carbon-free electricity by 2045.

What expansions does Ormat Technologies plan following this acquisition?

Ormat aims to further grow its energy storage segment and leverage this asset for enhanced market competitiveness.