Ormat Signed Historic 25-Year Power Purchase Agreement With Dominica Electricity Services Ltd.
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Development Project in Dominica Expands Ormat’s Presence in the Caribbean
RENO, Nev., Dec. 06, 2023 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, announced today at the United Nations Climate Change Conference (COP28) the signing of a groundbreaking 25-year Power Purchase Agreement (PPA) with Dominica Electricity Services Ltd. (DOMLEC) for the development of a state-of-the-art 10 MW binary geothermal power plant in the Caribbean country of Dominica. The project is expected to be operational by the end of 2025.
This agreement follows the Government of the Commonwealth of Dominica’s successful development of the geothermal reservoir in the Roseau Valley. At the end of the agreement term, ownership of the power plant will be transferred to the Government of the Commonwealth of Dominica. Ormat intends to finance the development through the issuance of concessional long-term debt with a below market interest rate. This project not only strengthens the Company’s global presence, but also supports its long-term growth plans.
Located on an island adjacent to Ormat’s existing Bouillante power plant in Guadeloupe, the new geothermal facility will allow Ormat to benefit from operational synergies that will reduce manpower costs and strengthen the economic potential of the expected Dominica geothermal project. Looking ahead, Ormat plans to expand its Bouillante power plant and, with the development in Dominica, will bring total generating capacity in the Caribbean to approximately 35 MW. The company also aims to extend its proprietary technology to neighboring islands, displacing fossil fuels in the region's electricity generation.
Doron Blachar, CEO of Ormat Technologies, stated, “This landmark agreement demonstrates our commitment to pioneering sustainable energy solutions. Not only is Ormat ensuring a cleaner and more resilient future for Dominica, its energy sources, and its economy, but we’re also contributing to a positive impact on the quality of life of its residents. Our partnership with DOMLEC and the Government of the Commonwealth of Dominica is a testimony to our shared vision for a greener and more sustainable tomorrow. We extend our sincere gratitude to DOMLEC and the Government of the Commonwealth of Dominica for their collaborative efforts in making this groundbreaking project a reality.”
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 total generating portfolio is 1,285 MW with a 1,115 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 170 MW energy storage portfolio that 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. 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 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.
| Ormat Technologies Contact: | Investor Relations Agency Contact: | |
| Smadar Lavi | Alec Steinberg or Joseph Caminiti | |
| VP Head of IR and ESG Planning & Reporting | Alpha IR Group | |
| 775-356-9029 (ext. 65726) | 312-445-2870 | |
| slavi@ormat.com | ORA@alpha-ir.com |
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