Ormat Announces the Completion of Its Acquisition of the Blue Mountain Geothermal Power Plant From Cyrq Energy

Rhea-AI Summary

Ormat Technologies has completed its acquisition of the Blue Mountain geothermal power plant from Cyrq Energy for $88 million, adding 20MW to its electricity generation portfolio. The Nevada-based facility, originally built with Ormat technology, currently operates under a Power Purchase Agreement with NV Energy that expires in 2029. Ormat plans strategic upgrades to increase the plant's capacity by 3.5MW and aims to add a 13MW solar facility for auxiliary support, subject to permits and PPA approval. The acquisition, funded through bank debt, brings Ormat's total electricity segment generating portfolio to 1,268MW. The company sees potential for additional value through future PPA renewal and planned asset improvements.

Positive

• Immediate 20MW capacity addition to Ormat's generating portfolio, bringing total to 1,268MW
• Planned 3.5MW capacity upgrade potential through plant improvements
• Additional 13MW solar facility planned to support operations
• Existing PPA with NV Energy provides stable revenue through 2029
• Plant already uses Ormat's technology, potentially reducing integration and upgrade complexity

Negative

• $88 million acquisition funded through bank debt increases company's leverage
• Current PPA expires in 2029, creating future revenue uncertainty
• Solar facility addition still pending permit and PPA approval

Insights

Renewable Energy Financial Analyst

Ormat's $88M acquisition adds 20MW of geothermal capacity with upgrade potential and stable revenue through 2029.

Ormat's $88 million acquisition of the Blue Mountain geothermal plant represents a strategic expansion of their core business at approximately $4.4 million per MW, which aligns with typical valuations for established geothermal assets. The addition immediately increases their generation portfolio to 1,268MW while providing multiple value creation opportunities.

The existing Power Purchase Agreement with NV Energy through 2029 provides stable revenue visibility for the next four years, mitigating short-term market risks while allowing time to plan for renewal negotiations. The fact that the facility was originally built with Ormat's own technology creates operational familiarity that should reduce integration challenges and implementation risks for the planned upgrades.

Particularly noteworthy is Ormat's plan to increase the plant's capacity by 17.5% (approximately 3.5MW) through upgrades, suggesting the resource is currently underutilized. This capacity expansion would improve the economics of the acquisition by spreading fixed costs across greater production. The proposed addition of a 13MW solar facility further demonstrates Ormat's hybrid energy strategy, which could optimize the use of existing interconnection infrastructure while reducing the plant's parasitic load.

The decision to finance through bank debt rather than equity preserves shareholder dilution but incrementally increases financial leverage. While this acquisition won't dramatically transform Ormat's financial profile, it represents consistent execution of their stated growth strategy in their core geothermal business while establishing a stronger foothold in Nevada's renewable energy market.

• ACQUISITION INCREASES ORMAT’S ELECTRICTY SEGMENT GENERATING PORTFOLIO TO 1,268MW
• POTENTIAL TO UNLOCK ADDITIONAL VALUE THROUGH EXPECTED PPA RENEWAL AND ASSET UPGRADES

RENO, Nev., June 18, 2025 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), (the “Company” or “Ormat”), a leading geothermal and renewable energy company, announced today that it has closed its previously disclosed acquisition of the Blue Mountain geothermal power plant from Cyrq Energy. Under the agreement, Ormat paid $88 million for 100% of the equity interest in the 20MW power plant.

The Blue Mountain geothermal power plant is located in Nevada and was originally built with Ormat technology. The 20mw geothermal plant currently delivers power under a PPA with NV Energy (“NVE”), which is set to expire at the end of 2029. As part of the Company’s generation capacity growth strategy, Ormat plans to upgrade the power plant and increase its capacity by approximately 3.5MW. Ormat’s strategic expansion plans also include the proposed addition of a 13MW solar facility to support the power plant's auxiliaries, pending permit and PPA approval. The overall transaction was funded through bank debt.

Doron Blachar, Chief Executive Officer of Ormat Technologies, said, “The acquisition of the Blue Mountain geothermal power plant enhances our portfolio and reinforces our commitment to sustainable base-load energy solutions. This acquisition not only immediately increases our generating capacity but also provides the potential for a significant upside in revenue generation through our planned upgrades and the potential addition of a solar facility. We are excited about the opportunities this acquisition brings, and we look forward to continuing our partnership with NV Energy as we deliver reliable and clean energy to the people of Nevada.”

ABOUT ORMAT TECHNOLOGIES

With six 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 1,558MW with a 1,268MW 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 27, 2025, 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.

Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com

FAQ

How much did Ormat (ORA) pay for the Blue Mountain geothermal power plant?

Ormat paid $88 million for 100% of the equity interest in the Blue Mountain geothermal power plant.

What is the current capacity of the Blue Mountain geothermal plant and how much will it increase?

The current capacity is 20MW, with planned upgrades to increase capacity by 3.5MW, plus a proposed 13MW solar facility.

When does the Blue Mountain power plant's PPA with NV Energy expire?

The Power Purchase Agreement (PPA) with NV Energy is set to expire at the end of 2029.

How much total generating capacity does Ormat have after the Blue Mountain acquisition?

After the acquisition, Ormat's electricity segment generating portfolio reaches 1,268MW.

How is Ormat funding the Blue Mountain geothermal plant acquisition?

The acquisition was funded through bank debt.