RENO, Nev., Oct. 8, 2013 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE:ORA) announced that it has signed an agreement for the development of the Hu'u Dompu project in Indonesia. The agreement was signed today in the presence of Penny Pritzker, Secretary of Commerce for the U.S. Department of Commerce. President Obama's U.S. Asia Pacific Comprehensive Energy Partnership (USACEP) is encouraging U.S. companies to develop renewable energy in South East Asian countries, including Indonesia. Ormat will develop the project through the project company Pacific Geo Energy (PAGE). The Hu'u Dompu greenfield geothermal project is located in West Nusa Tenggara Province on Indonesia's Sumbawa Island, and may be developed for up to 60 megawatts (MW) in three phases over the next six years.
"President Obama has made it very clear that the United States is deeply committed to deepening our commercial and economic ties in the Asia-Pacific. Part of increasing our engagement in the region will be achieved as U.S. and Asian businesses work together on projects that benefit both of our economies," said U.S. Secretary of Commerce Penny Pritzker. "A joint project like this represents a clear win-win for our bilateral commercial relationship with Indonesia, and demonstrates the opportunities that exist in the world's fastest-growing region for U.S. companies to not only sell their goods and services but share their expertise and drive development in high-priority areas like clean energy."
Ormat's greenfield development experience combined with extensive knowledge of the Indonesian geothermal market brings significant value to meeting USACEP goals. In addition, the Hu'u Dompu geothermal project will benefit from Ormat's phased approach to greenfield development, unique exploration tools developed in the U.S., flexible power plant technology, operational experience and knowledge base provided by the U.S. subsurface industry.
Under the terms of the agreement with the initial developers, Ormat will hold a 90 percent stake in the project, while the remaining 10 percent will be held by the current owners of PAGE, PT Trimatra Energy and PT Bima Transindo Persada. PAGE obtained the geothermal license for the project, which entitles it to a power purchase agreement price of ¢9.65/kWh.
Dita Bronicki, chief executive officer of Ormat said, "As the first greenfield development for Ormat in Indonesia, we are pleased with the opportunity that this project presents. Together with our new local partners and the support from U.S. and international sources, we're hopeful that this prospect will be a successful source of renewable sustainable and affordable energy to Sumbawa Island."
The development of the Hu'u Dompu geothermal project will contribute significant economic value to the U.S. industrial sector and support valuable domestic U.S. jobs in renewables. Through the various phases of exploration, development and construction, U.S. export content will be sourced from states stretching coast-to-coast including California, Nevada, Minnesota, Wisconsin, Massachusetts, Iowa and South Carolina. An estimated 530 U.S. jobs will be created or retained throughout project development. Upon completion, the Hu'u Dompu geothermal project will save 500,000 tons of carbon dioxide emissions each year of operation.
This project supports the goals of the USACEP, which was launched by President Obama and the leaders of Indonesia and Brunei to improve the region's ability to provide energy for its citizens. The Partnership aims to drive investment and facilitate progress through four key regional priorities: encouraging the use of renewables and cleaner energy, developing cross-border connectivity, promoting the greater use of natural gas, and addressing rural electrification issues and energy efficiency.
About Ormat Technologies, Inc.
With over four decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). 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. With over 82 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has over 500 employees in the United States and about 600 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1600 MW of gross capacity. Ormat's current generating portfolio of 595 MW (net) is spread globally in the U.S., Guatemala and Kenya.
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. 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. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2013.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Ormat Technologies Contact:
Dita Bronicki
CEO
775-356-9029
dbronicki@ormat.com
Investor Relations Contact:
Todd Fromer/Rob Fink
KCSA Strategic Communications
212-896-1215 (Fromer)/212-896-1206 (Fink)
tfromer@kcsa.com / rfink@kcsa.com
