TORONTO, Aug. 4, 2021 /PRNewswire/ - Polaris Infrastructure Inc. (TSX: PIF) ("Polaris Infrastructure" or the "Company"), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to announce that it has signed a definitive agreement with a wholly subsidiary ("Ormat) of Ormat Technologies Inc. (NYSE: ORA) for the supply of a 10 MW (net) Binary Unit at its San Jacinto facility in Nicaragua (the "Agreement"). The additional Binary Unit is in response to Polaris' previously announced December 2020 extension of the Power Purchase Agreement in Nicaragua, which extended its term to 2039, and allowed for additional capacity through the inclusion of a Binary Unit.
The Agreement with Ormat, calls for Polaris to purchase equipment for the construction, commissioning and operation of a geothermal binary power plant (Organic Rankine Cycle) at the San Jacinto Geothermal Project in Telica, Leon, Republic of Nicaragua.
Ormat has an excellent reputation in the design, supply, service supervision and warranty of such equipment installations, having constructed such facilities for over 55 years. Ormat's power plants have been supplying clean, reliable, cost effective and sustainable electricity to power grids on five continents, from Iceland to New Zealand, from Canada to The Andes, and from Hawaii to Japan.
Polaris anticipates a 15-18 month design, manufacture, delivery and installation of the Binary Unit with a current projected operation date of early Q1-2023. Based on this supply contract, Polaris has budgeted a total project cost of approximately $25 million to bring the project online and expects to fund such costs with current cash on hand.
Marc Murnaghan, Polaris' CEO commented "We are very happy to move forward with this project, which has resulted in a capacity at the top end of our initial range, and with a very competitive overall budget. Adding a Binary Unit to the San Jacinto plant is a natural part of the evolution of the project, as it will more fully take advantage of the energy from the resource and provide even more stability to the generation and cash flows for the years to come. We are also very excited to be working with a company such as Ormat to take this important step for the Company."
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua and a 5MW as well as another 28 MW of run-of-river projects located in Peru.
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws, which may include, but is not limited to, the timeline, cost and use of cash related to the design, manufacture, delivery and installation of the Binary Unit as well as statements with respect to future events. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "estimates", "goals", "intends", "targets", "aims", "likely", "typically", "potential", "probable", "projects", "continue", "strategy", "proposed", or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is provided as at the date of this news release and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information due to the inherent uncertainty therein.