Ormat Technologies Awarded Tolling Agreements for Two Energy Storage Facilities in Israel
Ormat Technologies (NYSE: ORA) has secured two 15-year tolling agreements for Energy Storage facilities in Israel through a tender issued by the Israeli Electricity Authority. The facilities will have a combined capacity of 300MW/1200MWh. The projects will be developed in a 50/50 partnership with Allied Infrastructure , marking Ormat's first major entry into Israel's utility-scale energy storage market.
The partnership is in advanced stages of obtaining interconnection and land use permits before beginning construction. The projects are expected to achieve commercial operation in 2028. The agreements include an option to terminate the initial contract and transition to the merchant market. This strategic move aligns with Ormat's goal to enhance portfolio profitability and stabilize margin performance in its storage business.
Ormat Technologies (NYSE: ORA) ha ottenuto due contratti di tolling della durata di 15 anni per impianti di stoccaggio energetico in Israele tramite una gara indetta dall'Autorità Elettrica Israeliana. Gli impianti avranno una capacità combinata di 300MW/1200MWh. I progetti saranno sviluppati in partnership 50/50 con Allied Infrastructure, segnando il primo importante ingresso di Ormat nel mercato dell'energia stoccata su scala utility in Israele.
La partnership è in fase avanzata di ottenimento dei permessi di interconnessione e uso del suolo prima dell'inizio della costruzione. Si prevede che i progetti raggiungano l'operatività commerciale nel 2028. Gli accordi includono un'opzione per terminare il contratto iniziale e passare al mercato dei mercanti. Questa mossa strategica è in linea con l'obiettivo di Ormat di migliorare la redditività del portafoglio e stabilizzare le performance dei margini nel suo business di stoccaggio.
Ormat Technologies (NYSE: ORA) ha asegurado dos contratos de peaje por 15 años para instalaciones de almacenamiento de energía en Israel a través de una licitación emitida por la Autoridad de Electricidad de Israel. Las instalaciones tendrán una capacidad combinada de 300MW/1200MWh. Los proyectos se desarrollarán en una asociación 50/50 con Allied Infrastructure, marcando la primera entrada importante de Ormat en el mercado de almacenamiento de energía a gran escala en Israel.
La asociación se encuentra en etapas avanzadas de obtención de permisos de interconexión y uso del suelo antes de iniciar la construcción. Se espera que los proyectos alcancen la operación comercial en 2028. Los acuerdos incluyen una opción para rescindir el contrato inicial y pasar al mercado de comerciantes. Este movimiento estratégico se alinea con el objetivo de Ormat de mejorar la rentabilidad de su cartera y estabilizar el rendimiento de los márgenes en su negocio de almacenamiento.
Ormat Technologies (NYSE: ORA)는 이스라엘 전기 당국이 발행한 입찰을 통해 이스라엘의 에너지 저장 시설에 대한 15년 기간의 두 개의 통행 계약을 체결했습니다. 이 시설들은 300MW/1200MWh의 총 용량을 가질 것입니다. 이 프로젝트는 Allied Infrastructure와 50/50 파트너십으로 개발되며, 이는 Ormat의 이스라엘 유틸리티 규모 에너지 저장 시장에 대한 첫 번째 주요 진입을 의미합니다.
파트너십은 건설 시작 전에 상호 연결 및 토지 사용 허가를 받기 위한 진척 단계에 있습니다. 이 프로젝트들은 2028년에 상업 운영을 시작할 것으로 예상됩니다. 계약에는 초기 계약을 종료하고 상업 시장으로 전환할 수 있는 옵션이 포함되어 있습니다. 이 전략적 움직임은 Ormat의 포트폴리오 수익성을 강화하고 저장 사업의 마진 성과를 안정화하려는 목표에 부합합니다.
Ormat Technologies (NYSE: ORA) a sécurisé deux contrats de péage de 15 ans pour des installations de stockage d'énergie en Israël grâce à un appel d'offres émis par l'Autorité Électrique Israélienne. Les installations auront une capacité combinée de 300MW/1200MWh. Les projets seront développés dans le cadre d'un partenariat 50/50 avec Allied Infrastructure, marquant la première grande entrée d'Ormat sur le marché du stockage d'énergie à grande échelle en Israël.
Le partenariat est à un stade avancé d'obtention des permis d'interconnexion et d'utilisation des terres avant le début de la construction. Les projets devraient atteindre une exploitation commerciale en 2028. Les accords incluent une option de résiliation du contrat initial et de transition vers le marché commercial. Ce mouvement stratégique s'inscrit dans l'objectif d'Ormat d'améliorer la rentabilité de son portefeuille et de stabiliser la performance des marges dans son activité de stockage.
Ormat Technologies (NYSE: ORA) hat zwei 15-jährige Tolling-Verträge für Energiespeicheranlagen in Israel durch eine Ausschreibung der Israelischen Elektrizitätsbehörde gesichert. Die Anlagen werden eine kombinierte Kapazität von 300MW/1200MWh haben. Die Projekte werden in einer 50/50-Partnerschaft mit Allied Infrastructure entwickelt, was Ormats ersten großen Eintritt in den Markt für Energiespeicherung im Versorgungsmaßstab in Israel markiert.
Die Partnerschaft befindet sich in einem fortgeschrittenen Stadium der Genehmigung von Netzanschluss- und Flächennutzungsbewilligungen, bevor die Bauarbeiten beginnen. Es wird erwartet, dass die Projekte im 2028 den kommerziellen Betrieb aufnehmen. Die Verträge beinhalten eine Option zur Beendigung des ursprünglichen Vertrags und den Übergang zum Handelsmarkt. Dieser strategische Schritt steht im Einklang mit Ormats Ziel, die Rentabilität des Portfolios zu erhöhen und die Margenleistung im Speichergeschäft zu stabilisieren.
- Secured two 15-year tolling agreements providing long-term revenue stability
- Large-scale project with 300MW/1200MWh combined capacity
- 50/50 partnership structure reduces capital requirements and risks
- Option for merchant market participation provides future flexibility
- Strategic expansion into new market (Israel) with growth potential
- Long timeline to revenue generation (commercial operations in 2028)
- Pending regulatory approvals and permits create execution risk
Insights
This strategic win represents a significant expansion of Ormat's energy storage portfolio, with two important aspects that warrant attention. First, the 15-year tolling agreements provide a stable, predictable revenue stream that will enhance the company's financial stability and reduce earnings volatility - a key consideration for infrastructure investors. The 300MW/1200MWh combined capacity positions these facilities as substantial players in Israel's emerging energy storage market.
The partnership structure with Allied Infrastructure is particularly noteworthy. The 50/50 ownership model allows Ormat to leverage local expertise while maintaining significant control over the assets. This approach effectively balances risk exposure with operational influence, while halving the capital requirements for project development.
The inclusion of a merchant market option in the agreement provides valuable strategic flexibility. This optionality allows Ormat to potentially capture higher margins in a mature market, should energy storage prices rise above the tolling agreement rates. The 2028 operational timeline suggests a measured approach to project development, allowing for proper integration with Israel's grid infrastructure and potentially coinciding with increased renewable energy penetration in the region.
From a competitive positioning perspective, these agreements establish Ormat as a first-mover in Israel's utility-scale storage market. The long-term nature of the contracts provides a defensive moat against new entrants, while the partnership with a leading local infrastructure company smooths the path for potential future expansions in the region. The development also diversifies Ormat's geographical footprint beyond its traditional markets, reducing country-specific risks in its portfolio.
New Tolling Agreements Advance Ormat’s Strategic Transition Towards a More Stable, Profitable Portfolio
RENO, Nev., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA), (“Ormat” or the “Company”) a leading geothermal and renewable energy technology company, today announced that it has won a tender issued by the Israeli Electricity Authority and has been awarded two separate 15-year tolling agreements for two Energy Storage facilities. The facilities under the tolling agreements are expected to have a combined capacity of approximately 300MW/1200MWh.
These projects are developed in partnership with Allied Infrastructure LTD (“Allied”), a leading infrastructure company in Israel. The ownership of the projects will be shared, 50/50 between Ormat and Allied. This marks Ormat’s and the partnership’s first major entry into the Israeli utility scale energy storage market. The partnership intends to develop this activity and develop additional Energy Storage facilities.
The parties are in advanced stages of obtaining the interconnection for the two projects, and the necessary land use permits ahead of starting construction. Commercial operation date is expected during 2028. The tolling agreement includes an option for termination of the initial contract and move to participation in the merchant market.
“We are delighted to announce the award of these two tolling agreements, marking another key strategic milestone for our growing Energy Storage business,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “These long-term agreements highlight our team’s ability to advance and execute Ormat’s Energy Storage portfolio expansion strategy. The tolling agreements for these two assets will further enhance the Company’s portfolio profitability and add stability to margin performance, each a key element of our growth strategy in our storage business.”
Blachar concluded, “These energy storage contracts mark the Company’s first owned project in Israel, and we look forward to continuing to work with Allied as Ormat’s capabilities and assets will now help drive Israel’s efforts to achieve its renewable energy and energy continuity goals.”
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 1.5GW with a 1.2GW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.
ABOUT THE ISRAELI ELECTRICITY AUTHORITY
The Israeli Electricity Authority is a government authority charged with providing utility services, setting tariffs, regulation, and oversight of the electricity market in Israel.
ABOUT ALLIED INFRASTRUCTURE LTD
Allied Infrastructure LTD is a multi-disciplined specialist contractor working primarily in the Airports, Highways, Defense and Construction sectors. Allied is delivering innovative and quality services using specially developed materials to offer complete solutions to preserve, protect, maintain and restore infrastructure assets, especially in the airside environment.
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 |
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