Ormat Completed the Acquisition of TG Geothermal Portfolio, LLC; Increasing Its Total Operating Portfolio to 1.1 GW

RENO, Nev., July 14, 2021 (GLOBE NEWSWIRE) — Ormat Technologies, Inc. (NYSE: ORA) announces that it has closed the previously announced acquisition of TG Geothermal Portfolio, LLC, paying $171 million for 100% of the equity interests and assumed debt and associated lease obligations with a book value of approximately $206 million as of June 30, 2021.

Following the acquisition, Ormat now owns and operates two geothermal power plants in Nevada at Dixie Valley and Beowawe, with a total net generating capacity of approximately 67.5 MW. In addition, Ormat now owns rights to Coyote Canyon, a greenfield development asset adjacent to Dixie Valley with high resource potential and an underutilized transmission line, capable of handling between 300MW and 400MW of 230KV electricity, connecting Dixie Valley to California.

The operating assets sell power under existing power purchase agreements. Dixie Valley sells its electricity generation to Southern California Edison under a long term PPA expiring in 2038 and Beowawe sells its electricity generation to NV Power, Inc. under a PPA expiring in December 2025. Ormat plans to improve the acquired operating assets and implement synergies and cost reductions and expects these assets to generate $55 million in revenue and approximately $37 million in EBITDA in 2022.

“This acquisition further expands our leadership in the Western United States, increasing our generating capacity in Nevada and enabling us to bring clean, renewable energy to California through our newly purchased transmission line,” commented Doron Blachar, Ormat’s Chief Executive Officer. “We were able to take advantage of our strong balance sheet and established presence to add these attractive assets to our portfolio, and we expect to leverage our products segment capabilities and technology to increase the EBITDA of these plants by 20% over the next few years.”

On August 4, 2021, the Company will issue financial results for the second quarter of 2021, at which time it will provide a more comprehensive update on full year 2021 guidance inclusive of this acquisition.

Advisors

Norton Rose Fulbright acted as Ormat’s legal advisor and Citi acted as its Financial Advisor

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 3,200 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 1.1 GW that comprises of 1,015 MW of geothermal and Solar generating portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and 83 MW energy storage portfolio that is located in the U.S.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release contains 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 expected revenue and EBITDA contributions from the acquired assets, the achievement of synergies, 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’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.

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.