Despite low 2nd quarter earnings, Ormat has secured $350 million in loan guarantees to develop renewable, geothermal energy plants
Israeli-founded geothermal power company Ormat Technologies (NYSE: ORA) failed to meet the market’s expectations when the company presented its results for Q2: a $1.5 million loss was reported, resulting in a $0.03 loss per share. Most analysts were expecting a gain of $0.07, according to a Globes report. CEO Dita Bronicki sited low generation and high operating costs are factors contributing to the results. The total net loss reportedly was $3.5 million, while the corresponding number for the same quarter last year was $28.1 million. In addition to the falling profit, Globes reports that a power struggle has developed between two of the company’s shareholders, Bronicki family and Chaim Katzman, who is the controlling shareholder of Gazit Inc.
On the bright side, at the beginning of August, Ormat secured $350 million in loan guaranties for three new geothermal power plants in Nevada. These loans are part of a new strategy by the US Department of Energy (DOE) to provide up to 80% of loans for qualified renewable technology projects.
From Israel to the world
Ormat Technologies was founded in the Israeli city of Yavne, located south of Tel Aviv, in 1972. They have since relocated to Reno, Nevada.
Today Ormat has operations in 71 counties ranging from Japan and Russia to Alaska in the US. Its three principal areas of operations are geothermal power plants. To date, Ormat has installed 1,300 MW of geothermal power across the globe.
Geothermal plants utilize the heat produced deep underground to generate electricity and are often located near volcanic areas.
Ormat has also activated its Recovered Energy Generation (REG) program, which “captures unused waste heat from industrial processes and converts it into electricity that can be sold to the grid or used on-site,” according the company’s website.
The technology is particularly attractive to industries that are dependent on a constant electricity flow, and where production can be hurt by blackouts.
Remote Fossil Power
Ormat’s third major focus area is on remote power stations driven by fossil fuel, and includes visions of everything from arctic power stations to off shore platforms.
:: Photo via flydime and article via Globes
More on Ormat:
Ormat Set to Release Alaska’s Geothermal Energy Potential
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Sunday And Ormat Build Largest Solar Roof in the Middle East
Author: Matt Khoury
Matt grew up with a love for nature; be it as a boy scout or working in his dad’s garden. After finishing University and traveling the Middle East, by cheer luck Matt got a change to try out journalism and has remained in the field ever since focusing on new cleanteach and the money behind it. In addition to news, Matt has also written several research papers on cleantech for international corporation.
