Ormat Signs Its First Tolling Agreements in Texas for Two 60MW/120MWH Energy Storage Facilities
Ormat Technologies (NYSE: ORA) has signed its first tolling agreements in Texas for two 60MW/120MWh energy storage facilities. The seven-year agreements with Equilibrium Energy cover the Lower Rio and Bird Dog projects, expected to come online in Q2 2025 and Q4 2025, respectively. Both projects qualify for a 40% investment tax credit under the Inflation Reduction Act.
These agreements, securing fixed revenues, have enabled Ormat to start construction on the previously announced 100MW/200MWh Louisa project, set to be operational by the end of 2026. Together with Ormat's existing 33MW/33MWh merchant storage operation, the company will own and operate 253MW/473MWh of energy storage capacity in Texas by the end of 2026.
Ormat Technologies (NYSE: ORA) ha firmato i suoi primi accordi di tolling in Texas per due impianti di stoccaggio energetico da 60MW/120MWh. I contratti della durata di sette anni con Equilibrium Energy riguardano i progetti Lower Rio e Bird Dog, la cui attivazione è prevista per il secondo e il quarto trimestre del 2025, rispettivamente. Entrambi i progetti si qualificano per un credito d'imposta sugli investimenti del 40% ai sensi dell'Inflation Reduction Act.
Questi accordi, che garantiscono entrate fisse, hanno permesso a Ormat di avviare la costruzione del progetto Louisa da 100MW/200MWh, annunciato in precedenza, previsto per diventare operativo entro la fine del 2026. Insieme all'attuale operazione di stoccaggio commerciale da 33MW/33MWh di Ormat, l'azienda possiederà e gestirà 253MW/473MWh di capacità di stoccaggio energetico in Texas entro la fine del 2026.
Ormat Technologies (NYSE: ORA) ha firmado sus primeros acuerdos de peaje en Texas para dos instalaciones de almacenamiento de energía de 60MW/120MWh. Los acuerdos de siete años con Equilibrium Energy cubren los proyectos Lower Rio y Bird Dog, que se espera que entren en funcionamiento en el segundo y cuarto trimestre de 2025, respectivamente. Ambos proyectos califican para un crédito fiscal de inversión del 40% según la Ley de Reducción de la Inflación.
Estos acuerdos, que aseguran ingresos fijos, han permitido a Ormat comenzar la construcción del proyecto Louisa de 100MW/200MWh, anunciado anteriormente, que se espera que esté operativo a finales de 2026. Junto con la operación de almacenamiento comercial existente de Ormat de 33MW/33MWh, la compañía poseerá y operará 253MW/473MWh de capacidad de almacenamiento de energía en Texas para finales de 2026.
Ormat Technologies (NYSE: ORA)가 텍사스에서 60MW/120MWh 규모의 에너지 저장소 2곳에 대한 첫 번째 톨링 계약을 체결했습니다. 7년 계약은 Equilibrium Energy와 체결되어 있으며, Lower Rio와 Bird Dog 프로젝트를 포함합니다. 두 프로젝트는 각각 2025년 2분기와 4분기에 온라인 상태가 될 것으로 예상됩니다. 두 프로젝트 모두 인플레이션 감축법에 따라 40% 투자 세액 공제를 받을 자격이 있습니다.
이 계약들은 고정 수익을 보장함으로써 Ormat이 이전에 발표된 100MW/200MWh Louisa 프로젝트의 건설을 시작할 수 있게 해주었습니다. 이 프로젝트는 2026년 말까지 운영될 예정입니다. Ormat의 기존 33MW/33MWh 상업 저장 운용과 함께, 회사는 2026년 말까지 텍사스에서 253MW/473MWh의 에너지 저장 용량을 소유하고 운영할 예정입니다.
Ormat Technologies (NYSE: ORA) a signé ses premiers accords de péage au Texas pour deux installations de stockage d'énergie de 60MW/120MWh. Les accords de sept ans avec Equilibrium Energy concernent les projets Lower Rio et Bird Dog, qui devraient entrer en service au 2e et 4e trimestre 2025, respectivement. Les deux projets sont éligibles à un crédit d'impôt sur les investissements de 40% en vertu de la loi sur la réduction de l'inflation.
Ces accords, garantissant des revenus fixes, ont permis à Ormat de commencer la construction du projet Louisa de 100MW/200MWh, annoncé précédemment, qui devrait être opérationnel d'ici fin 2026. Avec l'exploitation de stockage commercial existante d'Ormat de 33MW/33MWh, l'entreprise possédera et exploitera 253MW/473MWh de capacité de stockage d'énergie au Texas d'ici la fin 2026.
Ormat Technologies (NYSE: ORA) hat seine ersten Tolling-Vereinbarungen in Texas für zwei Energiespeichereinrichtungen mit 60MW/120MWh unterzeichnet. Die siebenjährigen Vereinbarungen mit Equilibrium Energy betreffen die Projekte Lower Rio und Bird Dog, die voraussichtlich im 2. Quartal 2025 und im 4. Quartal 2025 in Betrieb genommen werden. Beide Projekte qualifizieren sich für einen 40%igen Investitionssteuerabzug gemäß dem Inflation Reduction Act.
Diese Vereinbarungen, die fixe Einnahmen sichern, haben es Ormat ermöglicht, mit dem Bau des bereits angekündigten Louisa-Projekts mit 100MW/200MWh zu beginnen, das bis Ende 2026 betriebsbereit sein soll. Zusammen mit dem bestehenden 33MW/33MWh Handelsspeicherbetrieb von Ormat wird das Unternehmen bis Ende 2026 253MW/473MWh an Energiespeicherkapazität in Texas besitzen und betreiben.
- Secured seven-year tolling agreements for two 60MW/120MWh energy storage facilities in Texas
- Projects qualify for 40% investment tax credit under the Inflation Reduction Act
- Fixed revenue streams secured for energy and ancillary services
- De-risked approximately 50% of Texas storage portfolio
- Expanded total energy storage capacity in Texas to 253MW/473MWh by end of 2026
- None.
Insights
Ormat's signing of two seven-year tolling agreements for energy storage facilities in Texas marks a significant strategic move. The agreements secure fixed revenues, effectively de-risking 50% of their Texas storage portfolio. This aligns with their long-term strategy to improve segment profitability and accelerate growth.
The projects are entitled to a
While specific financial figures aren't provided, the seven-year fixed revenue stream adds stability to Ormat's future earnings, potentially making the stock more attractive to risk-averse investors. However, investors should monitor the execution of these projects and their impact on Ormat's overall financial performance in the coming years.
Ormat's entry into the ERCOT market with these tolling agreements is a strategic move in a critical energy market. Texas has faced significant grid reliability challenges and these energy storage facilities will play a important role in enhancing grid stability.
The timing is opportune, as the demand for energy storage in Texas is likely to grow. The state's increasing reliance on renewable energy sources necessitates more storage capacity to manage intermittency issues. Ormat's projects, totaling 253MW/473MWh by 2026, position the company to capitalize on this trend.
The seven-year fixed revenue structure provides a stable foundation, but it's important to note that energy markets can be volatile. Investors should consider how Ormat plans to optimize the remaining
- AGREEMENTS SECURE SEVEN YEARS OF FIXED REVENUES
- COMBINED WITH RECENTLY ANNOUNCED 100MW/200MWH LOUISA PROJECT, ORMAT TO OWN AND OPERATE 253MW/473MWH BY END OF 2026 IN TEXAS
RENO, Nev., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, today announced the signing of two seven-year tolling agreements with Equilibrium Energy for the Lower Rio 60MW/120MWh and Bird Dog 60MW/120MWh Energy Storage facilities in Texas. This marks Ormat’s first tolling agreements signed in the ERCOT market.
The Lower Rio project is expected to come online in the second quarter of 2025, while the Bird Dog facility is anticipated to be operational in the fourth quarter of 2025. Both projects are entitled to receive a
"These groundbreaking tolling agreements represent an important strategic milestone for Ormat's Energy Storage business," said Doron Blachar, Chief Executive Officer of Ormat Technologies. "By securing fixed, long-term revenues, we have de-risked approximately
The Lower Rio and Bird Dog facilities, along with Ormat's existing 33MW/33MWh merchant energy storage operation, and the planned 100MW/200MWh Louisa project, will provide essential energy storage services that will help further enhance grid reliability in Texas.
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 3,400 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 1,420MW with a 1,230MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 190MW energy storage portfolio that is located in the U.S.
ABOUT EQUILIBRIUM ENERGY
Equilibrium Energy is a technology company building a next-generation clean power company. Its mission is to accelerate society’s transition to climate and energy equilibriums. Founded in 2021, Equilibrium operates at the intersection of cutting-edge AI, power systems fundamentals, modern software, novel commercial structuring, and dynamic risk management across the power value chain. Equilibrium is being built by experts with decades of experience in energy, science, and software. Equilibrium thrives on supporting its partners’ efforts to tackle climate change. For additional information, please visit: www.equilibriumenergy.com.
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 23, 2024, 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: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com | Investor Relations Agency Contact: Josh Carroll or Joseph Caminiti Alpha IR Group 312-445-2870 ORA@alpha-ir.com |
FAQ
What new tolling agreements has Ormat Technologies (ORA) signed in Texas?
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What tax benefits do Ormat's (ORA) new energy storage projects in Texas qualify for?
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