Ormat Completes McGinness Hills Complex Expansion

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) has completed the expansion of its McGinness Hills Phase 3 geothermal power plant in Eastern Nevada, boosting its net capacity to approximately 69 MW and the entire complex to 160 MW. The additional 21.25 MW will be supplied under a long-term agreement to the Los Angeles Department of Water and Power (LADWP), helping them achieve a renewable energy goal of 80% by 2030. The expansion demonstrates Ormat's commitment to maximizing output and efficiency in renewable energy production, providing power for around 12,000 homes and offsetting approximately 120,000 tons of CO2.

Positive

• Completion of McGinness Hills Phase 3 expansion increases net capacity to approximately 69 MW.
• Boosts total geothermal complex capacity to about 160 MW.
• Power supplied under a long-term agreement to LADWP, enhancing revenue stability.
• Expansion provides clean energy for roughly 12,000 homes.
• Offsets approximately 120,000 tons of CO2 emissions.

Negative

• None.

RENO, Nev., June 07, 2021 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA) announced the completion of the expansion of its McGinness Hills Phase 3 geothermal power plant in Eastern Nevada. The expansion increases the power plant net capacity to approximately 69 MW, bringing the entire McGinness Hills complex capacity to a total of approximately 160 MW.

The McGinness Hills Phase 3 power plant continues to sell its electricity under the current 25-year long term portfolio power purchase agreement with Southern California Public Power Authority (SCPPA) to provide 100% of the geothermal power from the expansion project to the Los Angeles Department of Water and Power (LADWP). LADWP has been receiving 48 MW of McGinness Hills 3 geothermal power plant since December 15, 2018. The recently completed McGinness Hills Phase 3 Expansion project on May 5, 2021 will provide an additional 21.25 MW to LADWP. These two projects, coupled with the four other Ormat geothermal projects totaling 57.4 MW, brings LADWP’s total Northern Nevada geothermal portfolio with Ormat to 126.65 MW.

The Phase 3 expansion is an example of Ormat’s continued commitment to maximize output during peak hours by deploying our most advanced plant designs such as improved air-condensers, turbines, and other design improvements. The new capacity is sold under the SCPPA power purchase agreement.

Doron Blachar, CEO of Ormat Technologies, said, “The McGinness Hills Complex is the largest geothermal complex in Nevada and the fourth largest in the United States, providing clean, renewable, environmentally responsible energy to the residents of Nevada and Southern California. This enhancement effort increases our capacity and improves our operating efficiency, ensuring that our customers and the residents we serve will enjoy renewable baseload energy for years to come. We leveraged the capabilities and expertise of our product segment to rapidly and cost-effectively bring this expansion online. This new state-of-the-art facility will provide additional electricity for approximately 12,000 homes while offsetting approximately 120,000 tons of CO2, providing the highest level of efficiency and safety in the geothermal industry.”

“The completion of McGinness Hills Phase 3 geothermal plant provides a significant step toward our 100% clean energy future. Unlike wind and solar, which only generate power when the wind is blowing or the sun is shining, a geothermal plant produces energy continuously, so we can rely on it for base-load renewable power, 24/7 around the clock,” said Reiko Kerr, LADWP senior assistant general manager of Power System Engineering, Planning and Technical Services. “The 126.65 MW geothermal portfolio currently online will provide approximately 4.7% of our customer annual energy needs and helps attain our goal of 80% renewable energy by 2030. When added to our other non-greenhouse gas resources, it will result in approximately 97% carbon free energy by 2030.”

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 plan to accelerate long-term growth in the energy segment market to establish 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 to 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 activity into the energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current 947 MW of geothermal and Solar generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and its 83 MW energy storage portfolio is 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. 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 February 26, 2021 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.

Ormat Technologies Contact: Smadar Lavi VP Corporate Finance and Head of Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Rob Fink FNK IR 646-809-4048 rob@fnkir.com

 

FAQ

What is the capacity of Ormat Technologies' McGinness Hills power plant after the expansion?

After the expansion, the McGinness Hills power plant's capacity increased to approximately 160 MW.

Who receives the energy produced by the McGinness Hills Phase 3 geothermal plant?

The energy from the McGinness Hills Phase 3 geothermal plant is supplied to the Los Angeles Department of Water and Power (LADWP).

How much additional capacity does the McGinness Hills Phase 3 provide?

The McGinness Hills Phase 3 expansion provides an additional 21.25 MW of capacity.

What are the environmental benefits of the McGinness Hills geothermal plant?

The expansion will offset approximately 120,000 tons of CO2 emissions and provide renewable energy for around 12,000 homes.

When was the McGinness Hills Phase 3 expansion completed?

The McGinness Hills Phase 3 expansion was completed on May 5, 2021.