RENO, Nev., Nov. 3, 2014 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) today announced that its majority owned Kenyan subsidiary (the Project Company) owned by Ormat (51%), Symbion Power LLC (24.5%) and Civicon Ltd. (24.5%), signed a 25-year Power Purchase Agreement (PPA) with Kenya Power and Lighting Co. Ltd (KPLC) and a project implementation and steam supply agreement (PISSA) with Geothermal Development Company (GDC) for the 35 MW Menengai geothermal project in Kenya.
Under the PISSA agreement, the Project Company will finance, design, construct, install, operate and maintain the Menengai steam plant on a build-own-operate (BOO) basis for 25 years. GDC, which is wholly owned by the Government of Kenya, will develop the geothermal resource, supply the steam for conversion to electricity and maintain the geothermal field through the term of the agreement. Under the PPA, KPLC will purchase all the energy generated by the project.
The Menengai project is expected to benefit from the Partial Risk Guarantee (PRG) arrangement to be provided by the African Development Bank. Moreover, this project is part of the Power Africa initiative promoted by the U.S. Government. Such initiative was launched by President Obama in June 2013 in order to increase access to power in sub-Saharan Africa. The Project Company expects to start construction upon financial closing.
Isaac Angel, Ormat's Chief Executive Officer, stated: "We are extremely excited to contribute from Ormat's expertise in the geothermal industry in building and operating this project. This will be our fifth plant in Kenya and once it is operational, we will supply 145 MW to the Kenyan grid. Upon completion of the Menengai project, more households in Kenya will gain access to cost-effective and clean power from their nation's geothermal resources."
About the Project Company Partners
About Symbion Power
Symbion Power is an American company in the electricity generation, transmission and distribution industry with operations throughout Africa. Symbion builds, owns and operates electrical power infrastructure. Symbion's power plants supply electricity to some of the world's most critically underserved regions. Symbion also undertakes Engineering, Procurement, and Construction (EPC) work in the electricity supply sector and has worked on large-scale generation, transmission, and distribution projects in the Middle East, Africa and Asia. With a deep commitment to empowering local communities Symbion brings together the knowledge and operational know-how to succeed in the world's most challenging environments. Symbion Power is based in Washington DC, USA. www.symbion-power.com
Civicon Ltd. (24.5% stake) is the leading engineering and Construction Company in East and Central Africa with a focus on oil & gas, power, industrial installations, transport, road & bridge and mining sectors.
With over four 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). 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 over 77 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 480 employees in the United States and about 640 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 supplied to utilities and developers worldwide, totaling more than 1,800 MW of gross capacity. Ormat's current generating portfolio of 626 MW (net) is spread globally in the U.S., Guatemala and Kenya.
Learn more about Ormat Technologies by visiting Ormat.com. To download Ormat's investor relations app, which offers access to its SEC filings, press releases, webcast and more, please visit Apple's App Store for the iPhone and iPad or Google Play for Android mobile devices.
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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. 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. 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 Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2014.
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.
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Source:Ormat Technologies, Inc.