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Ormat pushing ambitious geothermal growth plan to reach 1,000+ MW by 2020

Screenshot Ormat Investor Presentation year-end 2017
Alexander Richter Alexander Richter 6 Mar 2018

With its ambitious growth plan, Ormat Technologies expects to add up to 200 MW of geothermal power generation capacity, which would bring the company over the 1,000 MW threshold within the next 2 years.

In its investor presentation on the annual results for 2017, Ormat Technologies provides some guidance on the coming years.

In 2017, the company added four new power plants in two new regions with 90 MW in added geothermal power generation capacity added.

In March 2017, Ormat added its share in the 110 MW Sarulla Unit 1 geothermal plant, in September 2017, the Platanares geothermal plant in Honduras, Central America started operation, in October 2017, Unit 2 of the Sarulla geothermal plant in Indonesia, and in December 2017, the Tungsten Mountain geothermal plant in Nevada, U.S.

Ormat holds a 12.75% minority interest in the Sarulla geothermal power project in Indonesia, which has an installed capacity of 220 MW today with an additional 110 MW to be added in the coming weeks.

Currently, Ormat has an installed geothermal power generation capacity of 795 MW.

  • United States – 535 MW
  • Guatemala – 43 MW
  • Honduras – 35 MW
  • Guadeloupe/ Caribbean – 15 MW
  • Kenya – 139 MW
  • Indonesia – 28 MW (12.75% equity share in the Sarulla project)

This includes some capacity adjustments for higher performance at McGinness Hill and Tungsten Mountain plants, and capacity reductions due to lower performance at Heber Complex, Steamboat Complex and Brawley.

As of February 26, 2018, Ormat Technologies has a backlog of product orders of $243 million, which includes the $36 million Soda Lake EPC Contract, as well as added new orders from Turkey, New Zealand and the Philippines.

Ormat expects the following organic growth adding up to 200 MW to its generation capacity portfolio:

  • Indonesia – Sarulla added capacity of 14 MW (based on 12.75% equity share) Q1/ Q2 2018
  • U.S. – Brady repowering, adding 4 MW in Q1 2018
  • Kenya – Olkaria III Plant 1 repowering, adding 10 MW in 2H 2018
  • U.S. McGinness Hills, phase 3 – adding 48 MW and of Q4 2018
  • U.S., Hawaii – Puna enhancement, adding 8 MW in Q4 2019/ Q1 2020
  • U.S. – CD4 adding 25 MW in 2020
  • Guadeloupe – Bouillante plant to add 10 MW by 2020

The company has currently 32 prospects under exploration an development. These include 21 projects in the United States, four sites in Guatemala, Honduras and Guadeloupe, four sites in Ethiopia and one site in New Zealand.

Announced earlier this year, Ormat has signed a definitive agreement to acquire U.S. geothermal, which will add another 38 MW in Oregon, Nevada and Idaho in the U.S. , as well as a development pipeline with projects in Nevada, California and Guatemala. The deal is expected to close in the second quarter of 2018.

Source: Ormat Investor Presentation Year-End 2017 (pdf)