The 330 MW Sarulla Geothermal Power Project In Indonesia Signed Project
Ormat named power plant technology provider
Among the world's largest single-contract geothermal power plant
Project company expects to complete financing and begin construction in one
RENO, Nev., April 4, 2013
RENO, Nev., April 4, 2013 /PRNewswire/ --Ormat Technologies, Inc. (NYSE: ORA)
announced today that Sarulla Operations Ltd. (SOL) has signed a Joint
Operating Contract (JOC) and Energy Sales Contract (ESC) for the 330 MW
Sarulla geothermal power project in Tapanuli Utara, North Sumatra in
Ormat participation in this project includes two roles. Ormat designed the
plant and will supply its Ormat Energy Converters to the power plant. In
addition, Ormat, through its subsidiary Ormat International, Inc., holds a
12.75% equity stake in SOL, which owns and operates the Sarulla project. As a
supplier, the company expects to recognize revenues of $254 million related to
the equipment sales over the construction period. Other members of the
consortium that owns SOL include Medco Energi Internasional Tbk (Medco);
Itochu Corporation (Itochu); and Kyushu Electric Power Co. Inc (Kyushu).
Under the JOC, PT Pertamina Geothermal Energy (PGE), the concession holder for
the project, has provided SOL with the rights to use the geothermal field and
under the ESC PT PLN, the state electric utility will be the off-taker at
Sarulla for 30 years.
The Sarulla project is the largest single contract geothermal power project to
capitalize on the large scale potential of highly productive Indonesian
geothermal resources. The project will be implemented in three phases of 110
MW each, utilizing both steam and brine extracted from the geothermal field to
increase the power plant's efficiency.
The Ormat technology was selected for this project as it's maximize the
efficient use of varied composition of geothermal fluid, which in this case
includes steam, brine and gases. In addition Ormat's technology allows
practically 100% reinjection of the geothermal fluid back into the reservoir,
maintaining the sustainability of the geothermal resource thus increasing
power and mitigates the negative effect of gases.
The consortium has started preliminary testing and development activities at
the site. Construction is expected to begin after the consortium obtains
financing, which is expected to take approximately one year. The first phase
is scheduled to commence operation in 2016. The remaining two phases are
scheduled to start within 18 months of the first phase.
The project is expected to obtain construction and term loans under a limited
recourse financing package of direct loans from the Japan Bank for
International Cooperation (JBIC) and the Asian Development Bank (ADB), as well
as loans to be provided by five commercial banks (the MLAs). The MLAs are
expected to be backed by political risk guarantees from JBIC.
Dita Bronicki, Ormat's Chief Executive Officer, stated: "After a long process
of negotiations, we reached an agreement on the amendments to the JOC and ESC
agreements that were required for the bankability of the project. Once the
financing closes, we will be able to recognize revenues from the supply of the
equipment over the construction period and further strengthen the performance
of our Product Segment. This project, represents our entry into Indonesia, a
region we have been excited about for some time, We believe the potential
opportunity in Indonesia is significant, and we look forward to pursuing
opportunities in what we anticipate will be a growing market in the years to
come. I would like to thank Pertamina, PGE, PLN and our partners for their
confidence in our technology."
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's flexible, modular
solutions for geothermal power and REG are ideal for the vast range of
resource characteristics. The company has engineered and built 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 575 MW (net) includes Brady, Brawley, Heber, Jersey Valley,
Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2,
OREG 3 and OREG 4 in the U.S.; Zunil and Amatitlan in Guatemala; Olkaria III
in Kenya; and, Momotombo in 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 toOrmat'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 inOrmat
Technologies, Inc.'s Annual Report on Form 10-K filed with theSecurities and
Exchange CommissiononMarch 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.
Ormat Technologies Contact: Investor Relations Contact:
Dita Bronicki Todd Fromer/Rob Fink
CEO KCSAStrategic Communications
775-356-9029 212-896-1215(Todd)/212-896-1206 (Rob)
email@example.com firstname.lastname@example.org / email@example.com
SOURCE Ormat Technologies, Inc.
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