Ormat and Gotion Sign a New Multi-Year Agreement Supporting the Company’s Energy Storage Growth Plans
News provided byOrmat Technologies, Inc.
Sep 18, 2023, 7:50 AM ET
RENO, Nev., Sept. 18, 2023 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, today announced that it has secured a new multi-year contract in partnership with Gotion High-Tech to supply batteries in support of Ormat’s upcoming Energy Storage projects. Under this supply contract, Gotion will provide Ormat with batteries at a capacity of up to 750MWh, with a variable pricing structure, partly linked to Lithium Carbonate prices. In addition to the signed agreement, the companies are discussing additional supply contracts and expansions to the existing signed agreement to provide Ormat with U.S. domestic manufactured batteries from Gotion’s planned battery plant in Manteno, Illinois which will allow Ormat to benefit from higher Investment Tax Credits.
Doron Blachar, CEO of Ormat Technologies, said, “We are excited to partner with Gotion and sign this new multi-year battery supply contract. We have been encouraged by the long-term trends we’re seeing in the Storage segment, and securing a critical battery supply while solidifying our supply chains gives us confidence in our ability to successfully advance our projects currently in development and achieve our long-term capacity goals. Our 2025 Energy storage goal of 600MW to 670MW remains well within our reach, and this multi-year deal strengthens our confidence in Ormat’s ability to expand and grow our storage offerings into new regions both in the short-term and long-term.”
Chen Li, CEO of Gotion Global, said, “We look forward to the strategic partnership with Ormat and supporting Ormat with batteries for their ESS projects. We are excited to deliver products that support the green energy transition and carbon neutral future for generations to come, and to begin manufacturing products right here in the United States. Gotion is committed to the US and Americas market by ‘our local for local’ strategy to enable the value chain, and we look to grow our presence through strategic partnerships and innovative solutions with developers like Ormat.”
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures, and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company 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 leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,277 MW with a 1,107 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 170 MW energy storage portfolio that is located in the U.S.
ABOUT GOTION HIGH-TECH
Gotion, established in May 2006, with US headquarters in Fremont, California and Global Headquarters in Hefei, China, is one of the top battery cell manufacturers in the world. The company is one of the earliest enterprises engaged in the independent research and development, production, and sales of lithium-ion batteries for electric vehicles and stationary energy storage systems. Gotion promotes energy storage products such as battery cells, modules, packs, racks, and DC battery containers globally and is growing its U.S. customer base as well as US manufacturing base. Gotion will continue to adhere to the mission to “make green energy accessible and sustainable” by accelerating the development of energy storage business, improving the layout of the whole energy industry supply chain, actively participating in global collaboration, focusing on advancing technology, and becoming a leader in the global energy storage industry.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts, and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2023, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed from time to time with the SEC.
These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
|Ormat Technologies Contact:||Investor Relations Agency Contact:|
|Smadar Lavi||Alec Steinberg or Joseph Caminiti|
|VP Head of IR and ESG Planning & Reporting||Alpha IR Group|
|775-356-9029 (ext. 65726)||312-445-2870|
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