Commercial Operation is Expected by Year-End 2017; Project Expects to Generate Average Annual Revenue of Approximately $33 Million
RENO, Nev., Jan. 12, 2016 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) announced today that its indirect, wholly owned subsidiary has commenced construction of the 35 MW Platanares geothermal project in Honduras.
In 2013, Ormat signed a Build, Operate, and Transfer (BOT) contract for the Geotérmica Platanares geothermal project in Honduras with ELCOSA, a privately owned Honduran energy company, for approximately 15 years from commercial operation date (COD). In December 2015, Ormat concluded the drilling activity as well as extensive tests that support the decision to construct a 35 MW project, which is larger than initially estimated.
Geotérmica Platanares will sell its power, mainly under 30-year power purchase agreements with the national utility of Honduras, ENEE. The project expects to reach commercial operation by the end of 2017 and generate average annual revenue of approximately $33 million.
"We are pleased to announce this progress in our development pipeline," noted Isaac Angel, Chief Executive Officer. "Following a prudent process of field assessment and development, and in line with our continued focus on plant optimization, we were able to increase the projected capacity of the Platanares plant to 35 MW and improve the expected returns. Another component of our long-term strategic plan is continued geographic expansion and diversification, and this project facilitates that goal. The Platanares project will be the first geothermal project in Honduras and will further expand Ormat's global presence."
The Platanares geothermal project is regulated by the Law to Promote the Generation of Electric Energy by Renewable Resources, which was enacted in 2007. Under this law, the project may benefits from an income tax exemption during the first 10 years of operation.
About Ormat Technologies
With over 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), with the objective of becoming a leading global provider of renewable energy. 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 600 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 over 2,000 MW of gross capacity. Ormat's current 666 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.