News
Feb 09, 2010Ormat Nevada Inc. Signs Purchase Agreement for an Advanced Stage Development Property
Reno, Nevada, February 9, 2010 – Ormat Technologies, Inc. (NYSE: ORA) is pleased to announce that its wholly owned subsidiary, Ormat Nevada Inc. has signed an agreement to acquire 100% of the membership interests in HSS II, LLC, which includes the Hot Sulphur Springs Geothermal Project in the northern Independence Valley of northeast Nevada. The Project is in an advanced stage of development and has one successful well. The Company plans to construct and operate a geothermal plant on the site which expected to become operational in 2012.
The Project will sell its output pursuant to a new 20-year power purchase agreement (PPA), signed early February - 2010 with Nevada Power Company (a subsidiary of NV Energy, Inc.) Under the PPA, Nevada Power will purchase up to approximately 40 megawatts (MW) of electricity from the Project, which will be developed in stages with the first stage of approximately 16 MW. The PPA allows for adjustment of the supply amount at the fist year after the commercial operation. The PPA is subject to approval by the Public Utilities Commission of Nevada
Commenting on the transaction, Dita Bronicki, CEO of Ormat Technologies, said: “Upon closing, this acquisition will increase the number of projects that we expect will commence construction by 2010 and will therefore be eligible to benefit from the stimulus provisions targeted for renewable energy projects under the American Recovery and Reinvestment Act (ARRA).”
The Hot Sulphur Springs Geothermal Project is located on and has access to approximately 9,800 acres at the Hot Sulfur Springs site in Elko County, Nevada. Ormat Nevada Inc. is purchasing the interest from its current owners, private equity funds managed by Energy Investors Funds. HSS II owns the Hot Sulfur Springs Geothermal Project. The Company expects that closing of the acquisition, which is subject to customary conditions precedent under the purchase agreement, will take place in the first quarter of 2010.
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