Collaboration Expected to Increase Geothermal Market Opportunities to Support Future Growth
RENO, Nev. & TOKYO - Thursday, October 15th 2015 [ME NewsWire]
(BUSINESS WIRE)-- Ormat Technologies Inc. (NYSE:ORA) and Toshiba Corporation (TOKYO:6502) announced today that the two companies have signed a strategic collaboration agreement (SCA) to develop strategic opportunities for collaboration in the areas of geothermal power generation systems and related equipment.
Under the terms of the agreement, the parties will explore and develop strategic opportunities that will enable them to offer potential customers a more competitive solution for comprehensive supplies and services related to geothermal developments, from resource assessment, field development, power plant engineering, procurement and construction (EPC) to power plant operation.
Geothermal power plants generally utilize either a binary system or a conventional flash system. In some situations, a combined cycle using both systems can be employed, with the specific technology for each project chosen based on the unique characteristics of the geothermal resource. This collaboration will leverage Toshiba’s 49 years of expertise in flash systems and Ormat’s proven leadership in binary systems, to offer an efficient solution that combines the two technologies and meets the technological needs of geothermal projects around the world, enabling Toshiba and Ormat to approach and capture a larger portion of the geothermal market
The first project expected to be implemented under this collaboration is the Menengai geothermal project in Kenya to be constructed and operated by the Ormat - Symbion Power LLC - Civicon Ltd Consortium, majority owned by Ormat. The parties have already initiated negotiations on the supply agreement and the plant design is at an advanced stage.
The parties are actively analyzing global prospects for upcoming and potential projects in which they can jointly submit applications for geothermal power plants utilizing a geothermal solution consisting of Ormat’s binary system and Toshiba’s flash system.
Yoshihiro Aburatani, President and CEO of Toshiba’s Power Systems Company said, “I am pleased that we have signed the SCA and taken the first step forward in our long-term strategy. A collaboration between globally respected Ormat and Toshiba, bringing together Ormat’s capabilities in developing geothermal projects and its reliable binary equipment and our expertise in geothermal power, notably our highly reliable flash type geothermal steam turbines, offers tremendous potential for delivering comprehensive customer satisfaction. We look forward to working with Ormat to implement the first project.”
“This milestone collaboration with Toshiba, an innovation leader in the geothermal steam turbine industry, is another significant step in our long-term strategy to expand our presence in the geothermal space and ultimately target the larger renewable energy market,” commented Isaac Angel Chief Executive Officer of Ormat. “We view this collaboration as a key to support our strategic expansion in the geothermal industry to diversify our technological base, as well as extend our geographic reach. I believe that this collaboration of two market leaders, each with its own area of expertise, will enhance the value proposition to our clients, expand the market opportunities and accelerate the growth for both Ormat and Toshiba.”
About Ormat Technologies
With five 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 69 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 470 employees in the United States and over 600 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 installed to utilities and developers worldwide, totaling approximately 2,000 MW of gross capacity. Ormat’s current 666 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.
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. 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 26, 2015.
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.
Toshiba Corporation, a Fortune Global 500 company, channels world-class capabilities in advanced electronic and electrical product and systems into five strategic business domains: Energy & Infrastructure, Community Solutions, Healthcare Systems & Services, Electronic Devices & Components, and Lifestyles Products & Services. Guided by the principles of The Basic Commitment of the Toshiba Group, “Committed to People, Committed to the Future”, Toshiba promotes global operations and is contributing to the realization of a world where generations to come can live better lives.
Founded in Tokyo in 1875, today’s Toshiba is at the heart of a global network of over 580 consolidated companies employing 199,000 people worldwide, with annual sales surpassing 6.6 trillion yen (US$55 billion). To find out more about Toshiba, visit www.toshiba.co.jp/index.htm
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