Ormat Technologies Partners with Calpine for Geothermal Energy

Ormat Technologies Partners with Calpine Energy Solutions

Ormat Technologies Inc. (NYSE: ORA), renowned for its leadership in geothermal and renewable energy innovation, has recently inked a significant 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions. This exciting arrangement will see Calpine procuring up to 15 megawatts (MW) of clean and sustainable energy from the Mammoth 2 geothermal power plant. Set in a picturesque location near Mammoth Lakes, California, this initiative aims to cater to the energy demands nestled within Calpine's retail portfolio.

Significance of the New Power Purchase Agreement

This newly signed PPA is not just a mere contractual agreement; it represents a strategic pivot in the energy landscape. The energy deliveries are slated to commence in the first quarter of 2027. This contract is poised to supersede the existing agreement with Southern California Edison Company (SCE). The revamped PPA promises not only an increase in production capacity but also a more advantageous pricing structure. This shift underscores the pressing need for carbon-differentiated electricity in California, propelled by the robust state Renewable Portfolio Standards (RPS) and a growing corporate desire for sustainability.

Leadership Insights on the Partnership

Sean Fallmer, President of Calpine Energy Solutions, emphasized the importance of partnerships in their operational strategy. He noted, "Establishing a strong network of partners, like Ormat Technologies, is essential for navigating the complex and evolving energy landscape. Our collaboration with Ormat ensures that we can deliver scalable, customized energy solutions that align perfectly with our client’s specific cost, risk, and carbon reduction goals."

Ormat's Commitment to Sustainable Energy

Doron Blachar, CEO of Ormat Technologies, expressed enthusiasm about the alliance with Calpine Energy Solutions. He stated, "This collaboration allows us to provide reliable, zero-emission power from our Mammoth 2 geothermal facility. We are thrilled to add geothermal energy to Calpine Energy Solutions' offerings, reinforcing their commitment to achieving client sustainability goals. We remain focused on meeting our long-term objectives for generation capacity growth within our Electricity segment. This new agreement highlights not only the growing demand for renewable energy but also underscores trust in our geothermal capabilities."

About Ormat Technologies

Operating for over five decades, Ormat Technologies stands as a pillar in the geothermal sector. As the only vertically integrated company focused on both geothermal and recovered energy generation (REG), Ormat is poised to accelerate its growth trajectory in the energy storage market. With a comprehensive approach that includes the design, manufacturing, and operation of power plants, the company leverages its extensive experience to cater to a global clientele. Currently, its generating portfolio boasts an impressive 1,520MW, with geothermal and solar projects spread across various countries including the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.

Exploring Calpine Energy Solutions

Calpine Energy Solutions is well-acknowledged as a retail energy provider, certified with CDP and ISO 9001:2015, managing a diverse portfolio across all deregulated electricity markets in the United States. Recognized as a significant player in the commercial and industrial energy supply sector, Calpine adopts a data-driven approach to efficiently manage their clients' energy expenditures, risks, carbon footprints, and resilience. A proud subsidiary of Calpine Corporation, which leads the nation in generating electricity from natural gas and geothermal sources, Calpine Energy Solutions continues to innovate in corporate energy management strategies.

The Future of Geothermal Energy in America

The agreement between Ormat Technologies and Calpine Energy Solutions signifies a remarkable step towards enhancing renewable energy accessibility and climate-positive practices in the energy industry. As more companies recognize the importance of sustainable energy sources, partnerships like this one can facilitate the transition needed to meet stringent regulations and societal expectations regarding carbon emissions. The strategic alliance not only strengthens Ormat's market share but also solidifies its position at the forefront of geothermal energy production as a reliable and eco-friendly energy source.

Frequently Asked Questions

1. What is the main purpose of the PPA between Ormat and Calpine?

The PPA aims to supply Calpine with up to 15MW of clean geothermal energy to support its retail portfolio.

2. When will the energy deliveries under the new PPA commence?

Energy deliveries are scheduled to begin in the first quarter of 2027.

3. How does this PPA benefit the environment?

This agreement promotes the use of renewable, zero-emission energy, contributing to reduced carbon footprints.

4. What is the significance of Ormat's geothermal capabilities?

Ormat’s geothermal capabilities highlight its role as a reliable source of sustainable energy, part of the growing demand in renewable energy markets.

5. Who can be contacted for more information regarding the partnership?

For further details, individuals can reach out to Smadar Lavi, VP Head of IR at Ormat Technologies, or the investor relations team at Alpha IR Group.

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