Ormat Technologies Commences Commercial Operations of 35MW Ijen Geothermal Power Plant in East Java, Indonesia

Ormat Technologies announced the Ijen geothermal power plant's commercial operations, contributing 35MW to Indonesia's energy grid.

Quiver AI Summary

Ormat Technologies Inc. announced the commencement of commercial operations for the 35MW Ijen geothermal power plant, which is co-owned with PT Medco Power Indonesia. This facility is the first geothermal power plant in East Java and will contribute to Indonesia's target of increasing geothermal capacity by 7.2 GW by 2035. Ormat holds a 49% stake in the facility, with plans for a total capacity of 110 MW under a 30-year power purchase agreement. The power plant, which utilizes the Ormat Energy Converter, began operation with its first phase delivering power to the Java grid. Ormat's CEO expressed satisfaction with the launch, emphasizing the company's commitment to expanding geothermal energy in Indonesia and supporting the country's goals for renewable energy and net zero emissions.

Potential Positives

• Ormat Technologies successfully commenced commercial operations for the 35MW Ijen geothermal power plant, marking a significant achievement in their renewable energy portfolio.
• This plant is the first geothermal power facility in East Java, contributing to Indonesia's ambitious plan to increase geothermal capacity by 7.2 GW by 2035.
• The commencement of operations at the Ijen facility supports Ormat's strategy for growth in the geothermal energy sector and strengthens its presence in Indonesia, a country with substantial geothermal potential.
• The Ijen geothermal facility is expected to aid Indonesia in its efforts to achieve net zero emissions, aligning Ormat's operations with global sustainability goals.

Potential Negatives

• The company's share in the Ijen geothermal power plant is only 49%, which may limit its control and decision-making capabilities regarding operations and future expansions.
• The press release heavily relies on forward-looking statements, which carry inherent risks and uncertainties, suggesting potential instability in achieving projected growth and objectives.
• Despite the positive announcement, the company's dependence on joint ventures, such as the one with Medco Power, raises concerns regarding alignment of interests and resources in future operations.

FAQ

What is the Ijen geothermal power plant's capacity?

The Ijen geothermal power plant has a total planned capacity of 110 MW, with Ormat's share being 17 MW.

Who owns the Ijen geothermal power plant?

The Ijen geothermal power plant is jointly owned by Ormat Technologies and PT Medco Power Indonesia, through PT Medco Cahaya Geothermal.

What role does Ormat play in the Ijen facility?

Ormat owns 49% of the Ijen geothermal facility and will support its operation and development.

How does the Ijen plant contribute to Indonesia's energy goals?

The Ijen plant supports Indonesia's plan for 7.2 GW of geothermal capacity by 2035, aiding in net zero emissions efforts.

What technologies does Ormat use in its power plants?

Ormat utilizes the Ormat Energy Converter, which converts low-, medium-, and high-temperature heat into electricity.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

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Full Release

RENO, Nev., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA), a leading geothermal and renewable energy company, today announced the successful commencement of commercial operations (COD) for the 35MW Ijen geothermal power plant. The power plant is jointly owned with PT Medco Power Indonesia (“Medco Power”), through their subsidiary company, PT Medco Cahaya Geothermal (“MCG”). Ormat’s share of the facility is 17MW. This is the first geothermal power plant in East Java, Indonesia, contributing to Indonesia’s plan for an additional 7.2 GW of geothermal capacity by 2035.

The Ijen Geothermal Power Plant, equipped with Ormat Energy Converter (“OEC”), began operations with its first phase, delivering 35 MW of electricity power to the Java grid. The commencement of this first phase marks a significant step of the Ijen Facility, which has a total planned capacity of 110 MW under a 30-year power purchase agreement.

MCG, a jointly owned company between Medco Power (51% equity share) and Ormat Technologies (49% equity share), will operate the Ijen geothermal facility.

Doron Blachar, Chief Executive Officer of Ormat Technologies, stated, “We are pleased to announce the commencement operations of the Ijen geothermal facility. The launch of the Ijen facility is a key step in our strategy to consistently and accretively grow our leading global geothermal energy portfolio and expand our presence in Indonesia. Indonesia has one of the largest geothermal potentials globally and with the geothermal targets set by the Indonesian government, we plan to expand our operations in the country. Achieving COD at Ijen demonstrates our strong development capabilities and our commitment towards advancing our short and long-term growth targets in our Electricity segment. We look forward to supporting Indonesia’s goal of increasing geothermal deployment and aiding in their efforts to achieve net zero emissions.”

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 3,400MW 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 1,537MW with a 1,247MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.