Ormat Technologies, a family energy business from Israel, has big plans for geothermal and recovered energy generation and the energy storage market
BHI, a full-service commercial bank, announced that it has entered into an agreement with Reno, Nevada-based Ormat Technologies (NYSE: ORA) to provide a new $75 million term loan for the company.
When I interviewed Ormat’s then CEO Yehudit ‘Dita’ Bronicki (in 2007), she told me that she started the company with her husband Lucien: “We started working in clean technology a long time ago – in 1965 well before anyone had ever heard of this market. We were never hippies, though. We were always square people with a clear vision that we wanted to do something in which Israel could excel.”
Today Ormat has realized its vision. It is one of the most important alternative and renewable energy companies in the world, especially in the areas of geothermal energy and energy recovery.
Fast forward: With over five decades of experience, and started in Israel, Ormat Technologies is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with plans to accelerate long-term growth in the energy storage market and to establish a leading position in the US energy storage market.
Ormat 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’s current total generating portfolio is 1,385 MW with a 1,215 MW geothermal and solar generation portfolio and a 170 MW energy storage portfolio.
Ormat will use the proceeds for general corporate purposes, including the acquisition of Italian power and gas giant, Enel Group for $271 million. BHI will also continue its long-standing relationship with Ormat, serving as a depository bank while maintaining an active dialogue with the entire global management team as the company continues to pursue its strategic portfolio expansion and assess ways that their equipment can further optimize facility operations.
“Ormat’s highly experienced management team has positioned the company with a strong balance sheet and capital structure along with a geographically diverse plant portfolio, supported by long-term Power Purchase Agreements, which provide highly visible, secure cash flows,” said Uri Shusterman, First Vice President & Head of International C&I at BHI.
“We anticipate that this strategic foresight, coupled with favorable regulatory and policy tailwinds, will help further propel the company as it continues to pursue expansion plans and strategies to utilize their equipment to enhance the efficiencies and output of their growing portfolio of power plant assets.”
