Ormat Signed a New Product Segment Supply Contract in Indonesia Supporting Its Backlog

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) has secured a contract with Star Energy Geothermal Salak to extend the Salak geothermal field in Indonesia, marking a positive sign for market recovery post-COVID. The new 14 MW geothermal power plant will utilize air-cooled Ormat Energy Converters, allowing for 100% geothermal fluid reinjection. Revenue is expected to be recorded in 2021 and 2022. CEO Doron Blachar emphasizes the growing demand for clean energy and plans to pursue further contracts globally as the pandemic's impact wanes.

Positive

• Secured a contract to extend the Salak geothermal field, indicating growth opportunities.
• The new 14 MW geothermal power plant promotes environmental sustainability with 100% fluid reinjection.
• Expected revenue recognition partially in 2021 and balance in 2022, enhancing future earnings visibility.
• CEO's remarks highlight increasing demand for renewable energy resources.

Negative

• None.

Contract Award Signals Markets Reopening Post-Covid

RENO, Nev., June 17, 2021 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA) announced today that it has secured a new contract with Star Energy Geothermal Salak to supply products to extends the Salak geothermal field in Indonesia. The Salak geothermal field is located near Jakarta on the southwest flank of the Gunung Salak volcano and is currently contains geothermal power plant utilizing steam.

The new 14 MW Salak geothermal power plant will use air-cooled Ormat Energy Converter and will allow 100% geothermal fluid reinjection which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact. Ormat is in partnership with local contractor that will provide the EPC services. The supply of the plant is expected to be completed within 12 months from contract start.

Doron Blachar, CEO of Ormat Technologies, said, “This contract signals that the markets for our products segment are beginning to reopen as the impact of Covid-19 dissipates. We expect to record revenue partially in 2021, with the balance in 2022. Demand for clean, renewable energy continues and municipalities and utilities are seeking to expand the use of geothermal resources wherever possible. As the impact of the pandemic continues to decrease, we plan to pursue additional contracts worldwide.”

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, 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 contains 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 expected revenue and EBITDA contributions from the acquired assets, the achievement of synergies, 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 recent contract did Ormat Technologies secure?

Ormat Technologies secured a contract with Star Energy Geothermal Salak to extend the Salak geothermal field in Indonesia.

What is the capacity of the new geothermal power plant by Ormat?

The new geothermal power plant will have a capacity of 14 MW.

When does Ormat expect to record revenue from the new project?

Ormat expects to record revenue partially in 2021 and the balance in 2022.

How does the Salak geothermal power plant impact the environment?

The Salak geothermal power plant allows for 100% geothermal fluid reinjection, resulting in virtually no environmental impact.

What does CEO Doron Blachar say about market demand?

CEO Doron Blachar stated that demand for clean, renewable energy is increasing as the impact of the pandemic decreases.