RENO, Nev., Dec. 14, 2010 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) announced today that its subsidiary, Ormat Andina Energia Ltda., completed the official granting process for the 26,000 acre San Pablo II geothermal exploration concession in northern Chile.
Located north of the San Pablo/San Pedro twin volcanic complex, the concession is close to access roads and copper mines that could be potential offtakers for electricity generated by a power plant built on the property. The company will launch exploration testing and studies to assess the feasibility of the site for commercial development. Results from these tests will determine Ormat's next steps including field development and application for an exploitation concession.
Earlier this year, the Chilean government established a goal for 20 percent of the country's electricity matrix to be supplied by Non-Conventional Renewable Energy by the year 2020. While renewable energy currently accounts for approximately 3.5 percent of all energy used in Chile, the government also indicated new legislative initiatives and an allocation of resources, including funds, to reduce geothermal exploration risks.
Further demonstrating its support to the development of geothermal energy, last month the Chilean government initiated additional public tender for 20 new geothermal concessions. Ormat participated in the tender and submitted proposals for exploration concessions throughout the country. The tender results are expected by the end of February 2011.
If this concession and future opportunities succeed, Ormat will continue to add to the company's diverse portfolio of activities in Latin America, as owner and operator of power plants as well as EPC and supplier of power plant equipment.
"With a large, untapped potential for geothermal energy, a supportive environment, strong demand for electricity and the mutual eagerness to increase Chile's renewable portfolio, we are happy to expand our activities in Latin America," said Yoram Bronicki, President and COO. "Our experience as a vertically integrated leader in geothermal technologies will prove beneficial to future development in Chile. We plan to continue to explore business opportunities in the country and take part in the necessary growth of its energy capacity."
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 75 U.S. patents. Ormat has engineered and built power plants, that it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1300 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, Mammoth, Ormesa, Puna, Steamboat, 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 March 8, 2010.
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.