Ormat Commences Commercial Operation of Lower Rio Energy Storage Facility, Delivering 60MW/120MWH of Energy Storage Capacity
Ormat Technologies (NYSE: ORA) has announced the successful launch of commercial operations at its Lower Rio energy storage facility in Texas. The facility features a 60MW/120MWh Battery Energy Storage System (BESS) and will operate under a seven-year tolling agreement.
The company has partnered with Morgan Stanley Renewables in a Hybrid Tax Equity deal to monetize the 40% Investment Tax Credit (ITC), generating approximately $25.0 million in proceeds. This advances Ormat's goal of monetizing $160 million in tax benefits for the year.
With the addition of Lower Rio, Ormat's total energy storage capacity in the U.S. has reached 350MW/778MWh, strengthening its position in key U.S. markets.
Ormat Technologies (NYSE: ORA) ha annunciato l'avvio delle operazioni commerciali al suo impianto di accumulo energetico Lower Rio in Texas. L'impianto dispone di un BESS da 60MW/120MWh e funzionerà grazie a un contratto di tolling della durata di sette anni.
L'azienda ha siglato con Morgan Stanley Renewables un accordo ibrido di tax equity per monetizzare il 40% di Investment Tax Credit (ITC), ottenendo circa 25,0 milioni di dollari di proventi. Con questa operazione Ormat prosegue verso l'obiettivo di monetizzare 160 milioni di dollari in agevolazioni fiscali nel corso dell'anno.
Con l'integrazione di Lower Rio, la capacità complessiva di accumulo di Ormat negli Stati Uniti sale a 350MW/778MWh, rafforzando la sua posizione nei principali mercati statunitensi.
Ormat Technologies (NYSE: ORA) ha anunciado el inicio exitoso de las operaciones comerciales en su instalación de almacenamiento energético Lower Rio en Texas. La instalación cuenta con un Sistema de Almacenamiento de Energía en Baterías (BESS) de 60MW/120MWh y operará bajo un contrato de tolling por siete años.
La compañía se ha asociado con Morgan Stanley Renewables en un acuerdo híbrido de tax equity para monetizar el 40% del Investment Tax Credit (ITC), generando aproximadamente 25,0 millones de dólares en efectivo. Esto avanza el objetivo de Ormat de monetizar 160 millones de dólares en beneficios fiscales durante el año.
Con la incorporación de Lower Rio, la capacidad total de almacenamiento de Ormat en EE. UU. alcanza los 350MW/778MWh, reforzando su presencia en mercados clave del país.
Ormat Technologies (NYSE: ORA)가 텍사스의 Lower Rio 에너지 저장 시설에서 상업운전을 성공적으로 시작했다고 발표했습니다. 해당 시설은 60MW/120MWh 배터리 에너지 저장 시스템(BESS)을 갖추고 있으며 7년 기간의 톨링 계약으로 운영됩니다.
회사는 Morgan Stanley Renewables와 하이브리드 택스·에퀴티(세제 혜택) 거래를 통해 40% 투자세액공제(ITC)를 현금화하여 약 2,500만 달러의 수익을 창출했습니다. 이는 Ormat가 연내 1억6,000만 달러의 세제 혜택을 현금화하려는 목표를 진척시키는 것입니다.
Lower Rio를 더하면서 Ormat의 미국 내 총 에너지 저장 용량은 350MW/778MWh에 도달해 주요 미국 시장에서의 입지를 강화했습니다.
Ormat Technologies (NYSE: ORA) a annoncé le lancement commercial réussi de sa centrale de stockage d'énergie Lower Rio au Texas. L'installation est équipée d'un Système de stockage par batterie (BESS) de 60MW/120MWh et fonctionnera dans le cadre d'un contrat de tolling de sept ans.
La société s'est associée à Morgan Stanley Renewables dans un accord hybride de tax equity pour monétiser le crédit d'impôt à l'investissement (ITC) de 40%, générant environ 25,0 millions de dollars de produits. Cette opération rapproche Ormat de son objectif de monétiser 160 millions de dollars d'avantages fiscaux pour l'année.
Avec l'ajout de Lower Rio, la capacité totale de stockage d'Ormat aux États-Unis atteint 350MW/778MWh, renforçant sa position sur les marchés américains clés.
Ormat Technologies (NYSE: ORA) hat den erfolgreichen Beginn des kommerziellen Betriebs seiner Energiespeicheranlage Lower Rio in Texas bekannt gegeben. Die Anlage verfügt über ein 60MW/120MWh Batterie-Energiespeichersystem (BESS) und wird im Rahmen eines siebenjährigen Tolling-Vertrags betrieben.
Das Unternehmen ist eine Partnerschaft mit Morgan Stanley Renewables eingegangen und hat in einem hybriden Tax-Equity-Deal den 40% Investment Tax Credit (ITC) monetarisiert, wodurch rund 25,0 Millionen US-Dollar erlöst wurden. Damit kommt Ormat seinem Ziel näher, im Jahr 160 Millionen US-Dollar an Steuervorteilen zu monetarisieren.
Mit Lower Rio steigt Ormats gesamte Energiespeicherkapazität in den USA auf 350MW/778MWh und stärkt damit seine Position in wichtigen US-Märkten.
- Secured seven-year tolling agreement providing fixed, long-term revenues
- Successfully monetized 40% ITC through $25.0 million tax equity partnership
- Expanded total U.S. energy storage capacity to 350MW/778MWh
- Project contributes to $160 million tax benefits monetization goal for the year
- None.
Insights
Ormat strengthens energy storage business with new 60MW Texas facility, 7-year revenue contract, and $25M tax equity deal.
Ormat has achieved a significant operational milestone with the commencement of commercial operations at its Lower Rio energy storage facility, a 60MW/120MWh Battery Energy Storage System in Texas. This development strengthens Ormat's position in the energy storage sector while diversifying its traditional geothermal portfolio.
The facility operates under a seven-year tolling agreement, which creates a stable, predictable revenue stream for Ormat, effectively reducing market exposure in the volatile Texas electricity market. Under tolling agreements, facility owners receive fixed payments for making capacity available, regardless of how frequently the batteries are dispatched - essentially transferring market risk to the counterparty while securing reliable returns.
The company's strategic expansion in Texas is particularly noteworthy as the state continues to experience grid reliability challenges due to extreme weather events and growing renewable penetration. Battery storage facilities like Lower Rio provide essential grid services including frequency regulation, voltage support, and peak demand management.
The $25 million tax equity transaction with Morgan Stanley Renewables represents excellent financial engineering, allowing Ormat to immediately monetize the 40% Investment Tax Credit for which the project qualifies. This transaction accelerates returns and improves project economics significantly compared to carrying these tax credits forward.
With this addition, Ormat's total energy storage capacity in the U.S. now reaches 350MW/778MWh, demonstrating consistent execution of their strategic expansion beyond their traditional geothermal base. The diversification into storage complements their renewable generation assets and positions them favorably in the evolving energy transition landscape where flexible resources command premium valuations.
- Facility Operating Under Ormat’s First Tolling Agreement in Texas
- Successful Closing of Ormat’s First Hybrid Tax Equity Deal
RENO, Nev., Sept. 02, 2025 (GLOBE NEWSWIRE) -- Ormat Technologies Inc. (NYSE: ORA) (“Ormat” or the “Company”), a leading geothermal and renewable energy company, today announced the successful commencement of commercial operations at its Lower Rio energy storage facility. This 60MW/120MWh Battery Energy Storage System (BESS), located in Texas, will provide energy and ancillary services under a seven-year tolling agreement.
Ormat also recently signed a Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. to monetize the
Doron Blachar, Chief Executive Officer of Ormat Technologies, stated, “We are excited to announce the successful commencement of commercial operations at our Lower Rio facility. This achievement highlights our commitment to expanding our Energy Storage portfolio in key U.S. markets and demonstrates our continued leadership in both energy storage and geothermal energy production. The tolling agreement we signed will provide Ormat with fixed, long-term revenues and further reduce risk in our expanded Texas storage portfolio, aligning with our long-term plan to improve segment profitability and accelerate growth.”
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 1,618MW 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 350MW 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 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: | Investor Relations Agency Contact: |
| Smadar Lavi | Joseph Caminiti or Josh Carroll |
| VP Head of IR and ESG Planning & Reporting | Alpha IR Group |
| 775-356-9029 (ext. 65726) | 312-445-2870 |
| slavi@ormat.com | ORA@alpha-ir.com |
FAQ
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