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Strategic Acquisition: Ormat Completes Purchase of Geothermal And Solar Portfolio From Enel Green Power

Reno, USA - US-based geothermal technology, photovoltaic and energy storage company Ormat Technologies has completed its previously announced acquisition of a portfolio of geothermal and solar assets from Enel Green Power North America (EGPNA).

Under the terms of the agreement, Ormat paid $271 million (USD) for 100 per cent of the equity interest in the portfolio's assets located in Nevada, Utah, Connecticut and California. The strategic acquisition advances Ormat's growth plans in the power segment and further strengthens its presence in the renewable energy sector in the US, the company said.

The acquired portfolio includes two operating geothermal power plants, a triple-junction hybrid geothermal, solar PV and solar thermal power plant with a total capacity of approximately 40 MW for geothermal and 20 MW for solar PV, two solar plants with a total capacity of 40 MW and two greenfield plants.

The overall transaction was financed by available cash in combination with newly issued long-term corporate bonds totalling USD 200 million. Ormat expects the acquisition to have an immediate positive impact on revenue and EBITDA. The RENIXX Group intends to further improve the performance of the acquired asset portfolio through a series of measures to optimise operations.

"We look forward to integrating these attractive geothermal and solar assets into our existing portfolio and translating our results into enhanced shareholder value creation in both the near-and long-term. This deal serves as a testimony to our team’s execution as well as Ormat’s position as a leader in the renewable energy space," commented Ormat CEO Doron Blachar on the transaction.

Ormat currently has a generation portfolio totalling 1,385 MW in the US, Kenya, Guatemala, Indonesia, Honduras and Guadeloupe, including 1,215 MW of geothermal and solar generation assets. In addition, the plant portfolio includes energy storage facilities with a capacity of 170 MW, which are located in the USA.

In the first trading week of 2024, Ormat shares lost 1 per cent to a price of EUR 67.75 by Thursday evening (4 January 2024, closing price, Stuttgart Stock Exchange). In a weak stock market environment, the Ormat share is thus still one of the best-performing RENIXX stocks.

Source: IWR Online, 05 Jan 2024