Ormat Technologies Secures $20 Million Contract for its Product Segment Backlog

RENO, Nevada, May 12, 2011 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) today announced that its subsidiary entered into a supply contract with Norske Skog Tasman Limited of New Zealand ("Norske Skog") to supply a new geothermal power plant that is to be constructed in the Kawerau Geothermal Field in New Zealand. The contract is valued at a total of approximately $20 million and delivery of the power plant is expected to be completed within 13 months from the contract date.

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Norske Skog is a world leader in the use of renewable energy in the production of newsprint, with a history of over 50 years of utilization of geothermal energy from the Kawerau field in New Zealand. This new project will mean a substantial proportion of the Mill's electricity needs will be provided directly or indirectly from renewed geothermal energy.

Dita Bronicki, CEO of Ormat Technologies, said, "This new contract is Ormat's fourth geothermal installation in the Kawerau field. We are excited for the opportunity to once again supply our equipment in New Zealand and take part in the efforts to achieve the New Zealand government's target for greenhouse gas emissions reductions to between 10% to 20% below 1990 levels by 2020 and increased renewable electricity generation to 90% by 2025."

Ms. Bronicki concluded, "This contract increases our products backlog as of March 31, 2011 to $104 million. We view this contract as a demonstration of the reliability of Ormat's solutions and it further reinforces the applicability of our renewable energy solutions to the world electricity markets."

Ormat has been actively designing and supplying geothermal power solutions in New Zealand since 1986. The Norske Skog plant will mark over 250 MW, and the 13th geothermal power plant, built by Ormat in New Zealand. The new plant will use air-cooled condensers and allow 100% geothermal fluid reinjection, which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact. The geothermal power plant will utilize the hi-performance, hi-efficiency ORC turbine developed by Ormat for geothermal and recovered-energy applications.

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 80 U.S. patents. Ormat has engineered and built power plants, that it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1370 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, 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 February 28, 2011.

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.