RENO, Nev.,September 24, 2015, Ormat Technologies, Inc. (NYSE:ORA) announced today that the second phase of its Don A. Campbell geothermal power plant located in Mineral County, Nevada began commercial operation on September 17, 2015. The power plant is expected to generate 19 MW (net) on a yearly average basis, above the nominal target of 16.2 MW listed in the 20-year Power Purchase Agreement (PPA) with the Southern California Public Power Authority (SCPPA). SCPPA resells the entire output of this plant to the Los Angeles Department of Water and Power (LADWP).
“The Don A. Campbell Phase 2 plant reached commercial operation 10 months after the project broke ground and less than two years after we commenced firm operation of the first phase in December 2013,” commented Isaac Angel, Ormat's CEO. “This rapid execution is the result of multiple improvements we have been implementing across our entire value chain, enabling Ormat to shorten time to market and accelerate time to revenue, in this case six months ahead of our original schedule. This second phase has doubled the generating capacity of the Don. A Campbell geothermal complex, and we are delighted to be able to provide LADWP with this additional firm, reliable and affordable renewable power, supporting its efforts to transition away from coal and reach its renewable energy goals.”
As previously announced, Northleaf Capital Partners, Ormat's new joint venture investor, will purchase 36.75% equity interest in the project which will be added to the existing ORPD joint venture according to the terms of the agreement. Ormat will continue to consolidate the joint venture and its assets, and will continue to provide day-to-day management control, operations and maintenance control over the projects.
“Reaching this milestone is a validation that this relationship will represent a long-term, mutual beneficial arrangement that enables Ormat to monetize our operational assets at an attractive valuation,” added Mr. Angel. “Bringing this asset online will strengthen our financial performance in the second half of the year, supporting our full-year guidance and positioning us for another growth year in 2016.”
About Ormat Technologies
With five 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 69 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 470 employees in the United States and over 620 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 installed to utilities and developers worldwide, totaling approximately 2,000 MW of gross capacity. Ormat’s current 666 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.
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 26, 2015.
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.