Ormat Technologies Launches Innovative Energy Storage Solution
Ormat Technologies Launches Lower Rio Energy Storage Facility
Ormat Technologies Inc. (NYSE: ORA) proudly announces the commencement of commercial operations at its latest innovation, the Lower Rio energy storage facility. This state-of-the-art facility boasts a significant capacity of 60MW/120MWh, positioning it as a key player in the energy storage sector.
Expanding the Energy Storage Landscape
Located in a strategic area, the Lower Rio Battery Energy Storage System (BESS) is designed to provide essential energy and ancillary services under a favorable long-term tolling agreement. The agreement enables Ormat to secure a stable income, while ensuring that the facility contributes effectively to grid stability and efficiency.
A Noteworthy Partnership in Financing
In a complementary development, Ormat has entered a Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. This collaboration focuses on maximizing the 40% Investment Tax Credit (ITC) available to the Lower Rio project, facilitating significant financial benefits amounting to approximately $25 million. This investment reflects Ormat's strategy to optimize its tax situation, aiming for $160 million in tax benefits within the fiscal year.
Strategic Growth and Future Outlook
Doron Blachar, the CEO of Ormat Technologies, expressed enthusiasm about the project's success, emphasizing the company's commitment to increasing its footprint within the energy storage sector. This initiative represents not just a singular achievement, but rather a crucial step in Ormat's broader strategy to enhance profitability while minimizing risks in its Texas storage portfolio.
About Ormat Technologies
With a rich history spanning over sixty years, Ormat Technologies stands as a leader in geothermal energy and recovered energy generation (REG). The company’s core capabilities enable it to design, manufacture, and operate geothermal plants effectively. The recent addition of the Lower Rio facility accentuates its robust capabilities and ambitions in the energy storage market, aiming for a significant position in the evolving energy landscape.
Ormat's integrated approach not only positions it as a geothermal entity but also enhances its ventures into energy storage, solar Photovoltaic (PV) systems, and combined energy storage solutions. Globally, the company boasts a total generation portfolio of 1,618MW, consisting of 1,268MW from geothermal and solar sources. Its operations extend across various continents, including North America, Africa, and Europe, showcasing its global reach and expertise.
Contact Information
For further inquiries regarding Ormat Technologies, please reach out to:
Ormat Technologies Contact:
Smadar Lavi
VP Head of IR and ESG Planning & Reporting
775-356-9029 (ext. 65726)
slavi@ormat.com
Investor Relations Agency Contact:
Joseph Caminiti or Josh Carroll
Alpha IR Group
312-445-2870
ORA@alpha-ir.com
Frequently Asked Questions
What is the capacity of the Lower Rio energy storage facility?
The Lower Rio energy storage facility has a capacity of 60MW/120MWh.
Who is partnering with Ormat Technologies in the tax equity deal?
Ormat has partnered with Morgan Stanley Renewables, Inc. for the Hybrid Tax Equity deal.
What is the expected tax benefit from the Lower Rio project?
The project is expected to generate approximately $160 million in tax benefits this fiscal year.
What key services will the Lower Rio facility provide?
It will offer essential energy and ancillary services for grid support.
How does this project align with Ormat's overall goals?
This project helps Ormat reinforce its commitment to expanding its energy storage portfolio and enhancing long-term revenue stability.
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