Ormat Signs $22.3M Contract With UAMPS for Recovered Energy Generation Project

Ormat Technologies, Inc.

announced today that its wholly-owned subsidiary has entered into a $22.3 million engineering, procurement and construction (EPC) contract with the Utah Associated Municipal Power Systems (UAMPS). Ormat will install an air-cooled Ormat Energy Converter at the Kern River Gas Transmission Company's ("Kern River") Veyo natural gas compressor station in southern Utah. Ormat's energy converter will generate power using heat that would have otherwise gone to waste. The Veyo project, which is expected to go online in fall 2016, marks the second Recovered Energy Generation (REG) facility on the Kern River natural gas pipeline. The other unit in southern Nevada has been in operation for over four years and provides 7 MW of power. "We are excited to work with UAMPS to provide clean, fuel-free energy to its customers while showcasing how our waste heat recovery solution can benefit compressor stations along natural gas pipelines," said Isaac Angel, chief executive officer of Ormat. "The Veyo project will produce electricity without burning additional gas or creating emissions, therefore increasing the use of energy content of the natural gas by about 30 percent. This is a great example of how states can reduce emissions by using a cost effective heating source that is readily available in the U.S." In 2009, Utah became one of the first states to recognize waste heat recovery as a renewable energy technology and has taken steps to incentivize its development. Since then, Utah has continued to see a wave of new projects across the renewable spectrum, including geothermal and waste heat. To date, Ormat has provided 49 MW of capacity for third-party customers in the state. "Renewable energy plays a significant role in our state's energy economy," said Doug Hunter, general manager of UAMPS. "We're confident that deploying proven technology like Ormat's REG solution will further promote our goal for an efficient and sustainable future." Ormat's REG power plants capture waste heat that would otherwise be released to the atmosphere and convert that heat into electrical energy using an Ormat Energy Converter, similar to those used in geothermal electricity generation. With approximately 150 MW of installed REG capacity in North America, Ormat is the leading manufacturer and supplier of waste heat recovery generation equipment, services and power.