New Contracts Highlight Ormat’s Ability to Capture Opportunities in the Attractive Geothermal Markets of Indonesia and New Zealand to Rebuild Its Product Segment Backlog

Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced that it has signed with Contact Energy of New Zealand (“Contact Energy”) an Engineering, Procurement and Construction (“EPC”) contract for a new maximum continuous performance 59MW geothermal power plant in New Zealand and signed a 6MW supply contract with Sarulla Operations Ltd. (“SOL”) in Indonesia. The combined expected revenue of the two contracts is approximately $100 million USD.

Under the agreement with Contact Energy, Ormat will provide its air-cooled Ormat Energy Converters for the Tehuka 3 geothermal project. This power plant will be built in the vicinity of the Tehuka 1 & 2 plants that are already operating on the Tauhara resource. This is the third EPC contract Ormat has signed with Contact Energy and the 16th geothermal power plant Ormat has built in New Zealand.

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Under the signed 6MW contract with SOL, Ormat will supply its air-cooled Ormat Energy Converters as part of the remediation work being performed to improve the power plant’s performance.  

Doron Blachar, CEO of Ormat Technologies said, “The signing of these two contracts increase our Product Segment backlog to approximately $150M, the highest since 2020 and should provide a significant contribution to our expected product segment revenues and margins. After the prolonged impact Covid-19 had on our Product Segment, we are happy to see our clients are moving forward with development of new projects and expect this trend to continue.

This repeated contract with Contact Energy demonstrates our full and long-term relationship with our clients and evidences our proven technology. Ormat’s technology is designed to accommodate a wide range of geothermal reservoirs, while maintaining maximum flexibility and efficiency. We anticipate delivery and construction for these projects during 2023 and 2024.”

Source: Ormat Technologies