Ormat Secured a Financing Agreement for the Development of Ijen Geothermal Project

RENO, Nev., Jan. 12, 2023 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) - Ormat Technologies (NYSE: ORA) and PT Medco Power Indonesia (“Medco Power”) through their subsidiary company, PT Medco Cahaya Geothermal (“MCG”), signed a Financing Agreement with PT Sarana Multi Infrastruktur (Persero) (“SMI”) for development of Ijen Geothermal Power Plant. The signing was witnessed by Harris Yahya, Geothermal Director of the Ministry of Energy and Mineral Resources, Adi Lumakso Director of Generation Management of PT PLN (Persero), Hilmi Panigoro President Director of MedcoEnergi, Doron Blachar CEO of Ormat, Eka Satria President Director of Medco Power and Edwin Syahruzad President Director of SMI.

The Ijen power plant will be developed in stages with the first phase of the development is expected to generate 34 MW in 2025. MCG, a jointly owned company between Medco Power (51% equity share) and Ormat Technologies (49% equity share), will develop and operate the first geothermal power plant in East Java. Ormat also signed a contract as a key contractor on OEC supply for this project.

“This signing is another step to support Indonesia’s economy towards clean renewable energy and another step in Ormat’s long term plan to increase its presence in the country both as a geothermal power plant owner and as an equipment supplier,” said Doron Blachar, Ormat’s Chief Executive Officer.

“This signing is another milestone of our climate change strategy to expand our renewable power portfolio,” said Hilmi Panigoro. Eka Satria added, “This signing demonstrates Medco Power's commitment to developing clean and renewable power for Indonesia post completion of the Riau gas-fired CCPP of 275MW and Sumbawa Solar PV of 26MWp in 2022.”

Through his speech, Edwin Syahruzad also mentioned his appreciation for this partnership, “This project is a milestone to contribute Indonesia's commitment to climate change. PT SMI also would thank USAID SINAR for their support in this project.”

ABOUT ORMAT TECHNOLOGIES

With over five 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 3,200 MW 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 1,173 MW with a 1,085 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 MW energy storage portfolio that is located in the U.S.

ABOUT PT MEDCO POWER INDONESIA

Established in 2004, Medco Power Indonesia is one of the leading Independent Power Producers under MedcoEnergi group. Operating in the business of IPP and O&M, Medco Power owns and operates power plants with gross capacity over 3.1 GW in 15 locations in Indonesia. Currently Medco Power is developing Ijen Geothermal project in East Java, PV plant projects in West and East Bali. Medco Power is wholly owned by PT Medco Energi Internasional Tbk.

PT Medco Energi Internasional Tbk (“MedcoEnergi”) is a leading Southeast Asian energy and natural resources company listed on the Indonesia Stock Exchange (MEDC-IDX). MedcoEnergi has three key business segments, Oil & Gas, Clean Power and Copper Mining. MedcoEnergi explores for and produces oil and gas primarily in Indonesia and is expanding its presence in Southeast Asia. The Group operates gas, geothermal and hydro power plants in Indonesia through Medco Power Indonesia and a non-consolidated interest in Amman Mineral Nusa Tenggara which operates a large Indonesian copper and gold mine.

ABOUT PT SARANA MULTI INFRASTRUKTUR (PERSERO) (“PT SMI”)

PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) was established on February 26, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB), with a role and mandate as a catalyst for the acceleration of infrastructure development.

PT SMI has various functions and unique products/features to support the acceleration of infrastructure development which not only functions as an infrastructure financing but also as an enabler through the implementation of a Public Private Partnership (PPP) scheme which includes various financial institutions, both private and multilateral. PT SMI actively supports the PPP implementation and encourages the acceleration of infrastructure development in the regions through regional loan products.

PT SMI has three business pillars, namely (1) Funding and Investment, financing for infrastructure projects, (2) Consultancy Services, solutions to the needs of professionals and experts in the infrastructure sector, and (3) Project Development, assistance for the Person in Charge of Cooperation Projects (PJPK) inpreparing infrastructure projects.

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 25, 2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K 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.

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