Ormat, NV Energy sign 30MW geothermal power contract

Ormat Technologies, Inc. announced this week that it has signed a 20-year power purchase agreement (PPA) with NV Energy, Inc. for the purchase 30 megawatts (MW) from the McGinness Hills Geothermal project, which is currently under construction.

The PPA is subject to various approvals including the approval of the Public Utilities Commission of Nevada and is projected to come on line in 2012.

When completed, the McGinness Hills project will increase the total output supplied from Ormat to NV Energy, Inc. to approximately 135 MWs, helping NV Energy to meet its renewable energy requirement. Nevada's renewable portfolio standard legislation requires 15 percent of all electricity generated in the state to be derived from new renewable energy sources by the end of 2012.

Dita Bronicki, CEO of Ormat said, “We have enjoyed a long and successful relationship with NV Energy and are grateful for its support of geothermal power. This PPA is further evidence that geothermal can supply a significant amount of power and is a preferable choice given its cost effectiveness, reliability and baseload nature.”

Ormat plans to apply for federal stimulus funds to help pay for the project, including investment tax credits or performance tax credits, and an Energy Department loan guarantee to back debt financing.

The McGinness Hills project will consist of Ormat binary energy converters that re-inject the geothermal fluid produced.

Ormat Technologies is the Reno, Nevada-based subsidiary of Israel-based Ormat Industries.

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Ormat doubles production capacity at Israeli factory

Ormat Technologies, Inc. today inaugurated a new wing at its manufacturing plant in Yavne, Israel.

Ormat invested $10 million in the new area, which covers 7,200 square meters and will enable the company to double its production capacity, according to a report in Globes. Ormat has hired 140 new employees for the expanded factory, increasing its workforce by 30%.

Guests at the inauguration ceremony included Minister of National Infrastructures Uzi Landau, high-tech entrepreneur Yossi Vardi, who is a close friend of Ormat Group controlling shareholders Yehudit and Yehuda Bronicki, and Dov Lautmann, former Chairman of Delta Galil Industries.

Ormat, a global leader in the geothermal power industry, develops, builds, owns and operates geothermal recovered energy-based power plants, usually using equipment that it designs and manufactures in Israel.

Ormat's shares are traded on the New York Stock Exchange (NYSE: ORA), where the company is valued at approximately $1.8 billion.

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Ormat to build 330 MW geothermal plant in Indonesia

Ormat Technologies is combining with Itochu Corporation to build a 330 megawatt (MW) geothermal power plant in Northern Sumatra, Indonesia.

The project will cost an estimated $800 million, according a report in Reuters. Ormat and Japan's Itochu Corp. were originally awarded the contract in 2006 and are working in collaboration with Indonesdian energy firm PT Medco.

On Wednesday, Indonesia's energy ministry urged PT Medco to speed up construction. "We want this project to be built quickly because it is very important for Indonesia," J. Purwono, director general of electricity at the ministry, told reporters, adding, "we badly need more power plants."

Indonesia, the world's most populous Muslim country, does not maintain diplomatic relations with Israel. The only OPEC member in Southeast Asia., Indonesia has become a net importer of oil in recent years.

The vast archipelago, with hundreds of active and extinct volcanoes, has the potential to produce an estimated 27,000 MW of electricity from geothermal sources.

Ormat Technologies is the NYSE-listed, U.S.-based subsidiary or Ormat Industries. Ormat Industries, located in Yavne, Israel, is one of the world's leading vertically integrated companies dedicated to providing solutions for geothermal power, recovered energy generation (REG) and remote power.

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Ormat secures $65m contract for Costa Rican geothermal plant

Ormat Technologies, Inc. announced that it has signed a contract with Banco Centroamericano de Integración Económica ("BCIE") for the supply, supervision of installation, start-up and testing of Las Pailas Geothermal Plant, a new geothermal power plant that is to be constructed in Las Pailas Field, Costa Rica.

The plant will be utilized by Instituto Costarricense de Electricidad ("ICE"), the Costa Rican national electricity and telecommunications company. The contract is valued at approximately $65 million and supply of the power plant is expected to be completed within 18 months from the contract start date.

Ormat Technologies is the U.S-based subsidiary of Yavne, Israel-based Ormat.

This is the second order for an Ormat geothermal power plant in Costa Rica for operation by ICE. ICE has been operating an Ormat 18 MW binary geothermal power plant in Miravalles V since 2004. Ormat has been actively designing, supplying, upgrading and operating geothermal power solutions in Central America since 1999.

Dita Bronicki, CEO of Ormat Technologies, said, "We are very pleased to receive this repeat contract for a geothermal project in Costa Rica and to be able to contribute to the Country's effort to move closer to independence from fossil energy sources. The award of these contracts demonstrates the trust that BCIE and ICE have in our ability to contribute experience and knowledge to the development of this new geothermal field, and we look forward to delivering a high performing power plant on schedule and once again work with ICE's geothermal team."

Ms. Bronicki concluded, "We view this milestone as a demonstration of the effectiveness and reliability of Ormat's solutions and it further reinforces the applicability of our renewable energy solutions to the world electricity markets."

The Pailas plant will mark the fifth geothermal power plant with total capacity of over 150 MW erected and upgraded in Central America by Ormat. The new plant will use water-cooled condensers and will utilize the hi-performance, hi-efficiency organic turbine developed by Ormat for geothermal and recovered-energy applications.

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Ormat geothermal project in Guatemala receives United Nations' Clean Development Mechanism registration

Ormat Technologies, Inc., the U.S. subsidiary of Yavne, Israel-based Ormat, announced today that the Executive Board of the United Nations Framework Convention on Climate Change ("UNFCCC") officially registered Ormat's Amatitlan Geothermal Project in Guatemala as a Clean Development Mechanism ("CDM") on December 12, 2008.

The Mechanism was designed to provide business from developed countries with an economic incentive to help reduce carbon emissions and increase sustainable development in countries that do not have emission reduction targets. The Project is expected to offset emissions of approximately 83,000 tones of CO₂ per year.

With Amatitlan registered under the CDM, the project will be eligible to receive certified emission reduction ("CER") credits, each equivalent to one tone of carbon dioxide, which can be traded or sold. The Project has a long term contract to sell all Amatitlan's CERs to a buyer domiciled in Europe.

Ormat's generating portfolio includes 13 projects totaling 414 MW in the United States, Central America, Kenya and New Zealand. The Amatitlan project is Ormat's first registered CDM project and one of the few CDM registered geothermal projects worldwide and the only project in Guatemala that is CDM registered. Amatitlan was developed on a build-own-operate basis and comprises a 20 MW geothermal power plant based on Ormat Energy Converters. The Project has a long-term power purchase agreement with the Instituto Nacional de Electrificatio.

Mr. Lucien Y. Bronicki, Chairman of Ormat, said: "This registration is a major encouragement for Ormat to continue developing additional geothermal CDM eligible projects worldwide. Even looking beyond the benefit it provides for Ormat, it is an arrangement with far-reaching advantages that will allow for developing host countries to gain access to cost effective, clean and reliable base-load power, that will help reduce their dependency on imported fuels and on rainfall required to sustain their Hydro reservoirs."

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Ormat discovers magma chamber in Hawaii

Ormat Technologies, the U.S. subsidiary of Yavne, Israel-based Ormat, discovered magma while drilling a geothermal well in Hawaii and announced the discovery this week at the American Geophysical Union meeting in San Francisco.

The discovery was the first time magma was found its natural environment instead of being ejected by volcano eruption, said Bruce Marsh, a geologist at the Johns Hopkins University and a magma expert, during a press event at the AGU meeting.

"It's like Jurassic Park – it's what's for me, to see this in its natural habitat," Marsh said. "This is a singular event, the first contact with inner Earth."

Ormat began drilling the well in the Puna Geothermal Venture field and power plant in the eastern part of the Big Island of Hawaii in 2005.

Ormat, which has been operating the Puna field and 30-megawatt power plant since 1993, has no commercial use for the magma, but the magma's high temperature means the rock surrounding it could be ideal for extracting geothermal energy.

Ormat plans to drill in areas above the magma chamber and inject water into wells to produce the steam necessary for electricity generation, said Lucien Bronicki, chairman and chief technology officer of Ormat, after the AGU press event.

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Ormat completes $150m Kenyan geothermal project

Ormat Technologies, Inc. announced this week the completion of phase two construction at the Olkaria III geothermal power plant in Kenya. The power plant has been synchronized to the grid, adding 35 MW of base load capacity to the existing 13 MW plant that has been in continuous operation since 2001 with availability between 97% and 99%.

The expanded power plant will save 120,000 tons of imported oil, mitigate approximately 200,000 tons of CO₂ emissions per year and reduce the average production cost of electricity in Kenya while reducing its dependence on imports.

"Ormat is proud to have built up the plant capacity to the original target of 48 MW," said Lucien Bronicki, Chairman and Chief Technical Officer of Yavne, Israel-based Ormat. "This accomplishment was made possible by Ormat's belief in Kenya's economy combined with the hard work and dedication of our Kenyan employees and colleagues."

Ormat Technologies financed the construction of both phases along with the drilling of the wells by investing approximately $150 million into the project from its own internal sources.

The additional clean, base load geothermal energy generated by Olkaria III will increase the supply to the local transmission, distribution and retail utility, Kenya Power and Lighting Company Ltd (KPLC), and help meet the country's increasing demand for reliable, fuel-free electricity.

"Ormat's commitment to Africa started with our first project - a solar pump installed in Mali in 1966," added Mr. Bronicki. "We hope this project spurs additional development and opens the world's eyes to Africa's immense renewable potential. We sincerely hope that Olkaria III will serve as an example for other private investors in Africa and encourage International Financial Institutions to upgrade their support for private renewable energy projects."

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Ormat secures Alaskan geothermal rights

Ormat Technologies, which builds and operates geothermal power plants, announced it has paid $3.3 million for geothermal energy exploration rights on about 35,000 acres in a volcanic region in Alaska.

Ormat said the leased land, which is owned by the state of Alaska, is on the southern flank of the 11,070-foot Mount Spurr about 75 miles west of Anchorage. The company won 15 of 16 tracts offered in the lease sale conducted by Alaska's Department of Natural Resources.

The company claimed that the topographical structure of the region increases the chance of finding a large geothermal field, as compared to the more mature geological structures of Nevada and California.

Commenting on the news, Lucien Bronicki, Chairman and Chief Technology Officer, stated, "Alaska is a new frontier in the geothermal arena with many technological and logistical challenges. Our global experience, particularly in Hawaii, and the support of the local Government along with the collaboration of other local stakeholders, will turn this challenge into an opportunity."

Mr. Bronicki continued, "Alaska has a special significance to Ormat that dates as far back as 1975 when we supplied 100 remote gate valve power systems used for protection of the environment along the TransAlaska pipeline which have been operating continuously for more than 30 years. Even the first geothermal unit developed by Ormat was for the University of Fairbanks for 130 deg Fahrenheit water at the Manley Hot Spring. We have been a friend to Alaska for many years now and we are up to the challenge of creating the State's first large-scale geothermal power plant.

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Ormat projects approved in Nevada

Two renewable energy projects representing a $100 million-plus investment by Las Vegas-based Nevada Power Co. were approved last week by state regulators.

The Public Utilities Commission of Nevada approved a 30-megawatt (MW) co-development geothermal project with Ormat Technologies, a world-leading geothermal company, at Carson Lake, Nev. The project will sit on federal lands, a portion of which includes the Naval Air Station at Fallon, Nev.

Also approved was Nevada Power's proposal to invest in a six-MW heat recovery energy generating facility at Goodsprings, approximately 30 miles south of Las Vegas. The project will be located at the Kern River Gas compressor station, and Ormat is supplying the heat-recovery generating equipment and will build the project for Nevada Power.

Nevada Power is a wholly-owned subsidiary of Sierra Pacific Resources, a utility listed on the New York Stock Exchange.

"The Commission's action marks a significant milestone, demonstrating our company's commitment to invest in renewables projects," said Michael Yackira, president and CEO of Sierra Pacific Resources. "These facilities will make an essential contribution to help assure clean, affordable and reliable energy, somewhat buffering our customers from future fossil fuel market uncertainties, most notably natural gas price increases."

Yackira added, "Nevada is already number one in solar and geothermal power per capita and we are continuing to push forward aggressively. We currently have 23 other geothermal plants under contract, and are actively pursuing further investments in geothermal, solar and wind energy."

Nevada Power provides electricity to about 826,000 residential and business customers in a 4,500-square-mile southern Nevada service area.

Source: Nevada Power press release

Ormat secures $16m geothermal contract in Turkey

Ormat Technologies has announced that one of its subsidiaries entered into a $16 million supply contract for a new geothermal power plant to be constructed in Turkey.

Ormat said the customer, Menderes Geothermal Elektrik Uretim, a private developer and owner of the resource in Turkey, already has one operating geothermal power plant that was supplied by Ormat in 2004.

"This marks our fourth order to supply equipment for geothermal power in Turkey and continues our leadership position in creating clean energy both in megawatts and the number of power plants in the country. With the addition of this plant, Ormat will have increased the amount of megawatts it supplies to 20 countries to over 950 MW," said Dita Bronicki, CEO of Ormat.

Ormat did not disclose how much power the new plant would produce, but said it would convert both steam and brine from geothermal wells into electric power.

The company said the plant would also use air-cooled condensers and allow 100 percent geothermal fluid reinjection, which Ormat said serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact.

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Google is in talks with Ormat about cooperation in the field of renewable energy, Google co-founder Sergey Brin told The Marker in an interview over the weekend.

Brin was in Israel for President Shimon Peres' "Facing Tomorrow" conference. He called Ormat an incredible company and said there are a lot of interesting Israeli companies that work in renewable and alternative energy, as well as electric cars.

According to Ha'aretz, senior Google executives have met with their counterparts from Ormat at two alternative energy conferences, and Larry Page, the other co-founder of Google, visited an Ormat geothermal plant in Desert Peak, Nevada.

Google operates in the alternative energy field through its philanthropic arm, Google.org, and the company hopes to "create utility-scale electricity from clean renewable energy sources that is cheaper than electricity produced from coal."

Just last week, Google.org also participated in the $115 million Series C round of financing for BrightSource Energy, the US parent company of Israeli solar energy technology company Luz II.

Ormat chairman Lucien Bronicki said in response that the meetings with Google are being held on a professional basis in order to advance geothermal technology. The firms are working to advance legislation for geothermal technology development budgets from the U.S. government.

Ormat announces new geothermal contract in Nevada

Ormat Technologies Inc. and Nevada Geothermal Power Inc. (NGP) announced this week that NGP Blue Mountain I LLC has entered into an Engineering, Procurement and Construction Contract for a 49.5 MW power plant, consisting of three Ormat Energy Converters at Blue Mountain's geothermal project in Nevada.

The plant design incorporates Ormat's proprietary power generation technology with water-cooling for maximum efficiency. The total contract value is US$76 million.

If you are interested in learning more about Ormat and geothermal power, I suggest reading this interview with Paul Thomsen, Ormat's Public Policy Manager, which was published this week on AlternativeEnergy.com. Thomsen discusses Ormat's technology, its competitiveness vis a vis coal and natural gas power plants, the company's plans for R&D and expansion, the influence of government policy on the company's prospects, and the obstacles to geothermal's growth as a renewable energy source.

Ormat Technologies 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.

Listed on the NYSE, Ormat Technologies is a subsidiary of Yavne, Israel-based Ormat Industries. Founded in 1965 by Lucien and Yehudit Bronicki, a husband-and-wife team who now serve, respectively, as chairman and CEO, the company has developed over a gigawatt of geothermal generation around the world, and it owns and operates approximately 400 megawatts in the US. It has a market capitalization of $2 billion.

Much of Ormat's success owes to a breakthrough turbine design developed by the Bronickis that permits renewable energy sources such as geothermal or solar-heated steam to be converted into electricity more efficiently. After decades of selling turbines alone, Ormat in the mid 1990s started building geothermal plants of its own around the world that use its super-efficient turbine technology.

Geothermal's great advantage over intermittent renewables such as solar and wind power is that it is not dependent on the elements, and it produces continuous power 24 hours a day. The big drawback is that geothermal plants tend to be small. Depending on the strength of the natural source, they're usually no more than 100 megawatts in capacity.

Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, renewable and sustainable. NGP currently owns a 100% leasehold interest in four properties: Blue Mountain that is expected to commence power generation late 2009, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon.

Ormat signs 20-year agreement with S. California Edison

Ormat Technologies, Inc. (NYSE: ORA) has announced that its subsidiary has signed a 20-year power purchase agreement with Southern California Edison (SCE). The agreement is for the sale of geothermal energy to be produced by a new plant that will be built in Imperial Valley, California. The plant is expected to come on line by mid 2012 and is expected to have a total output of 30 megawatts. The agreement includes an option to increase capacity to 100 megawatts.

"The agreement for the new Imperial Valley Power Plant is the eighth such agreement between Ormat and SCE, and the second executed since the enactment of California's aggressive renewable portfolio standard legislation," said Ormat Technologies CEO Dita Bronicki. "We are very happy to bring more baseload through clean geothermal energy to California. We are already supplying approximately 160 megawatts of geothermal energy to SCE from the existing power plants that we operate and we have an additional 50 megawatts under construction. This new contract will further increase our share in SCE's impressive portfolio of clean energy generation."

In May, Ormat signed a 20-year agreement with Nevada Power Company, for the sale of energy produced from the Grass Valley Geothermal Power Plant. That contract has recently received the approval the Public Utilities Commission of Nevada.

(Sourced here)

Ormat Technologies to raise funds in secondary offering

Ormat Technologies (NYSE: ORA), a leading geothermal power company, has filed a prospectus with the SEC to raise $130-$140 million in a public offering of three million shares.

Listed on the NYSE and headquartered in Nevada, Ormat Technologies is a subsidiary of Ormat Industries (TASE: ORMT), which in recent weeks has been rumored to be an acquisition target of Goldman Sachs, Africa-Israel, and Apax Partners.

Ormat Technologies will use proceeds from the sale to fund possible acquisitions and the construction of additional geothermal and Recovered Energy Generation (REG) power plants.