Ormat Technologies Inc. Secures Land Parcels in Nevada's BLM Auction to Advance Future Geothermal Development

Rhea-AI Summary

Ormat Technologies Inc. (NYSE: ORA) has successfully acquired multiple land parcels in Nevada's Annual Bureau of Land Management (BLM) Auction. These lease acquisitions will support Ormat's ongoing exploration and expansion efforts in the state, strengthening its commitment to advancing renewable energy solutions and meeting Nevada's increasing demand for sustainable energy.

The newly leased parcels offer significant potential for geothermal energy production, including:

• A new greenfield prospect
• An expansion opportunity for an existing operational asset
• Several additional parcels enhancing Ormat's land position on an existing greenfield prospect

CEO Doron Blachar expressed confidence in the high success rate of the acquired parcels, which will support Ormat's growth in the U.S. The company aims to explore and develop these resources to their fullest potential, providing reliable and eco-friendly energy to Nevada residents.

Positive

• Acquisition of multiple land parcels with high potential for geothermal energy production
• Expansion opportunity for an existing operational asset
• Enhancement of land position on an existing greenfield prospect
• Support for ongoing exploration and expansion efforts in Nevada

Negative

• None.

Insights

Energy Industry Analyst

The acquisition of new land parcels in Nevada's BLM auction is a strategic move for Ormat Technologies, bolstering its geothermal development pipeline. This expansion aligns with the company's growth strategy and the increasing demand for renewable energy sources. The parcels offer diverse opportunities, including a new greenfield prospect, expansion of an existing asset and enhancement of current projects. While specific financial details are not provided, the CEO's statement suggests a high confidence in the success rate of these acquisitions. This could potentially translate to increased revenue and market share in the medium to long term. However, investors should note that geothermal development involves significant upfront costs and time before revenue generation. The impact on Ormat's financials will likely be gradual, with the full benefits realized over several years as projects are developed and brought online.

Environmental Policy Expert

Ormat's successful bid in the BLM auction demonstrates the ongoing support for renewable energy development on public lands. This aligns with broader policy goals to increase clean energy production and reduce carbon emissions. The company's focus on geothermal energy is particularly noteworthy, as it provides baseload power, unlike intermittent sources such as solar or wind. This characteristic makes geothermal a valuable component in the transition to a low-carbon energy mix. The expansion in Nevada, a state with significant geothermal resources, could contribute to local economic development and job creation in the renewable sector. From a regulatory perspective, Ormat's long-standing expertise in the field positions them well to navigate the complex permitting and development processes associated with geothermal projects on federal lands. This expertise could translate into a competitive advantage in project execution and timelines.

RENO, Nev., Oct. 10, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA), a leading renewable energy company, today announced it has successfully secured multiple land parcels in Nevada’s Annual Bureau of Land Management (BLM) Auction. These lease acquisitions will significantly support Ormat's ongoing exploration and expansion efforts in the state, further strengthening the company's commitment to advancing renewable energy solutions and meeting Nevada's increasing demand for sustainable energy.

The newly leased parcels hold substantial potential for geothermal energy production including a new greenfield prospect, an expansion opportunity for an existing operational asset, and several additional parcels that will enhance Ormat’s land position on an existing greenfield prospect.

“We believe the parcels we successfully won have a high success rate that will support our growth in the U.S.,” said Doron Blachar, CEO of Ormat Technologies Inc. “Our team is dedicated to exploring and developing these resources to their fullest potential, providing reliable and eco-friendly energy to the people of Nevada.”

By leveraging nearly 60 years of advanced technologies and industry expertise, Ormat is an industry leader in geothermal energy production and environmental stewardship.

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.

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: Alec Steinberg or Joseph Caminiti Alpha IR Group 312-445-2870 ORA@alpha-ir.com

FAQ

What did Ormat Technologies (ORA) acquire in Nevada's BLM Auction?

Ormat Technologies (ORA) acquired multiple land parcels in Nevada's Annual Bureau of Land Management (BLM) Auction, which have potential for geothermal energy production.

How will the newly acquired land parcels benefit Ormat Technologies (ORA)?

The newly acquired land parcels will support Ormat's exploration and expansion efforts in Nevada, offering opportunities for a new greenfield prospect, expansion of an existing operational asset, and enhancement of their position on an existing greenfield prospect.

What did Ormat Technologies' (ORA) CEO say about the land acquisitions?

Ormat Technologies' CEO, Doron Blachar, stated that they believe the acquired parcels have a high success rate that will support the company's growth in the U.S., and that the team is dedicated to exploring and developing these resources to their fullest potential.

How does Ormat Technologies (ORA) plan to use the newly acquired land parcels?

Ormat Technologies plans to explore and develop the newly acquired land parcels to their fullest potential for geothermal energy production, aiming to provide reliable and eco-friendly energy to the people of Nevada.