October 7, 2008
DOE Invests in Ormat Enhanced Geothermal System Research
To: ENERGY EDITORS
Contact: Dita Bronicki, CEO of Ormat Technologies, Inc., +1-775- 356-9029, [email protected]; or Investor Relations, Todd Fromer, +1-212-896-1215, [email protected], or Marybeth Csaby, +1-212-896- 1236, [email protected], both of KCSA Strategic Communications, for Ormat Technologies, Inc.
RENO, Nev., Oct. 7 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. (NYSE: ORA) today announced that the Department of Energy (DOE) has once more chosen Ormat to demonstrate the viability of Enhanced Geothermal Systems (EGS) with a grant for nearly $3.4 million to improve hot, non-commercial wells located within a stress environment and in formations favorable for permeability enhancements using EGS techniques.
Ormat, the DOE, GeothermEx Inc., and other stakeholders will apply EGS stimulation techniques at Ormat's Brady facility near Reno, Nevada to develop fracture networks that will enable currently non-commercial wells to communicate with the productive reservoir and enhance generation
"Ormat anticipates the Brady project will have a significant impact on efforts to develop EGS resources, which are anticipated to produce substantial levels of electricity, particularly in regions where conventional geothermal resource development is not economically viable. Knowledge gained from work at the Brady EGS project will help advance EGS technology, supporting the overall growth of geothermal energy in the U.S.," said Ormat Chairman and Chief Technology Officer Lucien Bronicki.
"With this project, it is Ormat's objective to advance the state of EGS knowledge, bringing the United States closer to realizing the vast potential of EGS, which has been estimated at approximately 100,000 MW of clean, baseload power in the DOE-supported study of EGS potential in the US by Massachusetts Institute of Technology."
The Brady EGS project follows the current DOE-funded EGS demonstration and development project at Ormat's Desert Peak geothermal power plant, located about 10 miles from the Brady area. Upon completion of the EGS project, the Desert Peak facility will be the first application of EGS technology to supply a producing power project in the United States. Ormat technology has been applied to another commercial EGS project in Landau, Germany, where a 3.2 MW EGS power project has been in operation for more than a year.
The Technology & Site
Ormat air-cooled power plants are chosen for EGS developments because they are well-matched to the typical range of production temperatures in EGS projects. Furthermore, Ormat power plants do not consume water in the conversion of energy into electricity; all the geothermal fluid is re-injected back to the ground, to be produced again after re-heating in the EGS reservoir.
Successful completion of the Ormat/GeothermEx/DOE program at Brady will enable the use of currently non-commercial wells, either as production wells (directly providing additional power) or injection wells (sweeping more heat toward existing producers and thus enhancing their productivity). Ormat's goal-orientated focus and dedication to process efficiency will help demonstrate the feasibility and portability of EGS technology.
About Ormat Technologies
Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal and recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems total more than 1,000 MW and are covered by more than 75 patents. Ormat currently owns and operates 400 MW of geothermal and recovered energy-based power plants in the United States -- Brady, Heber, Mammoth, Ormesa, Puna, Steamboat and OREG 1; in Guatemala -- Zunil and Amatitlan; in Kenya -- Olkaria; and in Nicaragua -- Momotombo.
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. 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 March 5, 2008. 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.
Ormat Technologies Contact: Investor Relations Contact:
Dita Bronicki Todd Fromer / Marybeth Csaby
CEO KCSA Strategic Communications
SOURCE Ormat Technologies, Inc.
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