Ormat Technologies Announces Successful Monetization of 40% Investment Tax Credit for Bottleneck Energy Storage Facility
Ormat Technologies (NYSE: ORA) has successfully completed the transfer of investment tax credits (ITCs) from its 80MW/320MWh Bottleneck Project to a third party. The transaction, executed under the Inflation Reduction Act, generated gross proceeds at $0.93 per dollar, resulting in net proceeds of approximately $46.7 million after fees. This deal, combined with $14 million in Production Tax Credits (PTCs) monetized in Q3 2024, contributes to the company's goal of collecting up to $152 million in cash tax benefits this year. The proceeds will be used to fund growth capital expenditure while maintaining a strong balance sheet.
Ormat Technologies (NYSE: ORA) ha completato con successo il trasferimento di crediti d'imposta sugli investimenti (ITC) dal suo progetto da 80 MW/320 MWh Bottleneck Project a una terza parte. La transazione, eseguita sotto l'Inflation Reduction Act, ha generato introiti lordi di $0.93 per dollaro, con un ricavo netto di circa $46.7 milioni dopo le spese. Questo affare, insieme ai 14 milioni di dollari in crediti d'imposta sulla produzione (PTC) monetizzati nel terzo trimestre del 2024, contribuisce all'obiettivo dell'azienda di raccogliere fino a 152 milioni di dollari in benefici fiscali in contante quest'anno. I proventi saranno utilizzati per finanziare investimenti in capitale per la crescita, mantenendo un bilancio solido.
Ormat Technologies (NYSE: ORA) ha completado con éxito la transferencia de créditos fiscales de inversión (ITCs) de su proyecto de 80 MW/320 MWh Bottleneck Project a un tercero. La transacción, ejecutada bajo la Inflation Reduction Act, generó ingresos brutos de $0.93 por dólar, resultando en ingresos netos de aproximadamente $46.7 millones tras las tarifas. Este acuerdo, combinado con los 14 millones de dólares en Créditos Fiscales por Producción (PTCs) monetizados en el tercer trimestre de 2024, contribuye al objetivo de la empresa de recaudar hasta $152 millones en beneficios fiscales en efectivo este año. Los ingresos se utilizarán para financiar gastos de capital de crecimiento mientras se mantiene un balance sólido.
Ormat Technologies (NYSE: ORA)는 80MW/320MWh Bottleneck Project의 투자 세액 공제(ITC)를 제3자에게 성공적으로 이전했습니다. 인플레이션 감축법에 따라 진행된 이번 거래는 달러당 $0.93의 총 수익을 창출했으며, 수수료를 제외한 순수익은 약 $46.7백만에 달합니다. 2024년 3분기에 화폐화된 1400만 달러의 생산 세액 공제(PTC)와 결합하여, 올해 최대 $152백만의 현금 세액 혜택을 모으기 위한 회사의 목표에 기여하고 있습니다. 수익은 성장 자본 지출을 지원하는 데 사용되며, 강력한 재무 상태를 유지합니다.
Ormat Technologies (NYSE: ORA) a réussi à transférer les crédits d'impôt sur les investissements (ITC) de son projet de 80 MW/320 MWh Bottleneck Project à un tiers. La transaction, réalisée dans le cadre de la Inflation Reduction Act, a généré des recettes brutes de 0,93 $ par dollar, ce qui a abouti à des recettes nettes d'environ 46,7 millions de dollars après frais. Cet accord, combiné à 14 millions de dollars de crédits d'impôt sur la production (PTC) monétisés au troisième trimestre de 2024, contribue à l'objectif de l'entreprise de collecter jusqu'à 152 millions de dollars en avantages fiscaux en espèces cette année. Les revenus seront utilisés pour financer des dépenses d'investissement en croissance tout en maintenant un bilan solide.
Ormat Technologies (NYSE: ORA) hat erfolgreich die Übertragung von Investitionssteuergutschriften (ITCs) von seinem 80MW/320MWh Bottleneck Project an einen Dritten abgeschlossen. Die unter dem Inflation Reduction Act durchgeführte Transaktion generierte einen Bruttoerlös von $0.93 pro Dollar, was zu einem Nettoerlös von ungefähr $46.7 Millionen nach Gebühren führte. Dieses Geschäft, kombiniert mit $14 Millionen in monetarisierten Produktionssteuergutschriften (PTCs) im dritten Quartal 2024, trägt zum Ziel des Unternehmens bei, in diesem Jahr bis zu $152 Millionen an finanziellen Steuervorteilen zu erzielen. Die Erlöse werden verwendet, um Investitionen in Wachstumskapital zu finanzieren, während eine starke Bilanz aufrechterhalten wird.
- Successfully monetized ITCs at a high rate of $0.93 per dollar
- Secured $46.7 million in net proceeds from ITC transfer
- Additional $14 million already collected from PTC monetization in Q3 2024
- On track to collect up to $152 million in cash tax benefits in 2024
- None.
Insights
The successful monetization of investment tax credits (ITCs) from Ormat's Bottleneck Project represents a significant financial milestone. The
The transaction's pricing near par value indicates robust market confidence in Ormat's projects and validates the company's strategy to leverage tax incentives for capital recycling. With a target of
RENO, Nev., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA), a leading renewable energy company, today announced the successful deal to transfer investment tax credits (ITCs) from the 80MW/320MWh Bottleneck Project to third party. This transaction, which was facilitated under the Inflation Reduction Act (IRA), represents a significant achievement in our goal to collect up to
The gross proceeds from this transaction were priced at
Doron Blachar, Chief Executive Officer of Ormat Technologies, commented, “This successful transaction marks the first large ITC transfer we have completed and underscores our innovative approach to funding our long-term growth. By monetizing the benefits of ITCs, we are able to reinvest in our projects and deliver sustainable energy solutions that meet the evolving needs of our customers and communities. Furthermore, these proceeds, combined with the
Ormat Technologies’ financial advisor for this transaction was Paragon Energy Capital, and our legal counsel was Sheppard Mullin. The cost segregation report was issued by Marshall-Stevens.
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 3,400MW 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 1,500MW 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 270MW 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 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: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com |
FAQ
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