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.
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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
775-356-9029 212-896-1215/212-896-1236
dbronicki@ormat.comtfromer@kcsa.com/mcsaby@kcsa.comSOURCE Ormat Technologies, Inc.
Contact: Dita Bronicki, CEO of Ormat Technologies, Inc., +1-775-356-9029, dbronicki@ormat.com; or Investor Relations, Todd Fromer, +1-212-896-1215, tfromer@kcsa.com, or Marybeth Csaby, +1-212-896-1236, mcsaby@kcsa.com, both of KCSA Strategic Communications, for Ormat Technologies, Inc.