Ormat Announces Commercial Operation Of McGinness Hills Geothermal Power Plant
RENO, Nev., July 26, 2012 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) announced today that its McGinness Hills geothermal power plant located in Lander County, Nevada met the requirements for commercial operation under the OFC 2 Senior Secured Notes. The 30-megawatt (net capacity) power plant has been in full operation since June 15, 2012, selling the renewable electricity to NV Energy under a 20-year power purchase agreement at approximately half of the full energy price. Full energy prices are expected to be paid upon NV Energy's approval of the Commercial Operation Date (COD). With the addition of McGinness Hills, Ormat's total portfolio generating capacity grows to 586 MW.
"We are thrilled to continue our long-standing relationship with NV Energy as we expand our geothermal portfolio," said Yoram Bronicki, president and chief operating officer of Ormat. "Today's announcement, coupled with the opening earlier this year of the 18 MW (net capacity) Tuscarora power plant, reinforces Ormat's commitment to expanding the renewable energy market across the state of Nevada and throughout the world.
"In addition, McGinness Hills demonstrates our ability to develop a successful greenfield project categorized as a blind system. Blind geothermal systems, defined by a lack of surface hot springs or fumaroles, are the future of geothermal energy growth in the western United States," Bronicki added.
The power plant features the Ormat Energy Converter, a power generation unit that converts low-, medium- and high-temperature heat into electrical energy. With the McGinness Hills project, advance techniques were implemented that provide over 10 percent improvement in brine use efficiency.
"We are grateful for the ongoing support and cooperation of the utility, state, county and federal agencies in bringing this project on line ahead of schedule. Not only does this help the state realize its RPS (renewable portfolio standard) goals, it promotes the use of renewables and delivers the benefits that come along with them," Bronicki said.
Earlier this year, NV Energy approved the COD for the Tuscarora geothermal power plant in Elko County, Nevada. Following approval, the plant is receiving full energy prices and was also given retroactive payments associated with the January 11, 2012 COD.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 82 U.S. patents. Ormat has engineered and built power plants, that it currently owns or has supplied to utilities and developers worldwide, over 1,500 MW of gross capacity. Ormat's current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.
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 February 29, 2012.
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.
SOURCE Ormat Technologies, Inc.