RENO, Nev., May 2, 2013 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) announced today that it reached commercial operation of Plant 2 in the Olkaria III complex in Naivasha, Kenya, increasing the company's total generating capacity by 36 MW to 611 MW worldwide. Ormat also plans to add an additional 16 MW of generation at Olkaria III by building a third plant, which it expects to complete in 2014. Once Plant 3 is complete, total capacity at the Olkaria III complex will reach approximately 100 MW. The power generated in the Olkaria III complex is sold under a 20-year power purchase agreement (PPA) with Kenya Power and Lighting Company Limited (KPLC).
Ormat financed the new 36 MW plant, as well as the first two phases of the complex completed in 2000 and 2009, with a $265 million debt facility provided by the Overseas Private Investment Corporation (OPIC). OPIC will also finance the construction of Plant 3 with another $45 million debt facility.
As a clean, base-load power source, the Olkaria III geothermal complex provides the country with a cost-effective alternative to imported oil, offsetting approximately 450,000 tons of carbon dioxide annually.
"Ormat benefited significantly from implementing a multi-phased development strategy with Olkaria III and our success in Kenya exemplifies the value of this approach. Drawing knowledge from each phase of development to improve project and plant performance as we methodically expand has allowed us to maximize efficiency and reduce risk," said Dita Bronicki, chief executive officer of Ormat. "Ormat is proud to be a part of Kenya's efforts to provide reliable power and reduce emissions for a cleaner future. We have achieved these great accomplishments through the hard work and dedication of many throughout our organization, including Olkaria III's operation team comprised entirely of skilled local employees."
About Ormat Technologies
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 550 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 611 MW (net) is spread globally in the U.S., Guatemala, Kenya, and Nicaragua.
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.
SOURCE Ormat Technologies, Inc.