Ormat Signs Its First Tolling Agreements in Texas for Two 60MW/120MWH Energy Storage Facilities

• AGREEMENTS SECURE SEVEN YEARS OF FIXED REVENUES
  
• COMBINED WITH RECENTLY ANNOUNCED 100MW/200MWH LOUISA PROJECT, ORMAT TO OWN AND OPERATE 253MW/473MWH BY END OF 2026 IN TEXAS

RENO, Nev., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, today announced the signing of two seven-year tolling agreements with Equilibrium Energy for the Lower Rio 60MW/120MWh and Bird Dog 60MW/120MWh Energy Storage facilities in Texas. This marks Ormat’s first tolling agreements signed in the ERCOT market.

The Lower Rio project is expected to come online in the second quarter of 2025, while the Bird Dog facility is anticipated to be operational in the fourth quarter of 2025. Both projects are entitled to receive a 40% investment tax credit under the Inflation Reduction Act. The tolling agreements secure fixed revenues for the energy and ancillary services provided by the facilities. This enabled Ormat to start construction on the recently announced 100MW/200MWh Louisa project, which is expected to be online by the end of 2026.

"These groundbreaking tolling agreements represent an important strategic milestone for Ormat's Energy Storage business," said Doron Blachar, Chief Executive Officer of Ormat Technologies. "By securing fixed, long-term revenues, we have de-risked approximately 50% of our strategically expanded Texas storage portfolio, aligning with our long-term plan to improve segment profitability and accelerate our growth.”

The Lower Rio and Bird Dog facilities, along with Ormat's existing 33MW/33MWh merchant energy storage operation, and the planned 100MW/200MWh Louisa project, will provide essential energy storage services that will help further enhance grid reliability in Texas.

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. 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. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,420MW with a 1,230MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 190MW energy storage portfolio that is located in the U.S.

ABOUT EQUILIBRIUM ENERGY

Equilibrium Energy is a technology company building a next-generation clean power company. Its mission is to accelerate society’s transition to climate and energy equilibriums. Founded in 2021, Equilibrium operates at the intersection of cutting-edge AI, power systems fundamentals, modern software, novel commercial structuring, and dynamic risk management across the power value chain. Equilibrium is being built by experts with decades of experience in energy, science, and software. Equilibrium thrives on supporting its partners’ efforts to tackle climate change. For additional information, please visit: www.equilibriumenergy.com.

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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives.  Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 23, 2024, and in Ormat’s subsequent quarterly reports on Form 10-Q that are filed from time to time with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.