Profile: Ormat Technologies, Inc. (ORA.N)

Ormat Technologies, Inc. (Ormat) is engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal recovered energy-based power plants, usually using equipment that it designs and manufactures. Ormat conducts its business activities in two business segments: Electricity and Products. In the Electricity Segment, the Company develops, builds, owns and operates geothermal and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world, and sells the electricity generated by these plants. In the Products Segment, Ormat designs, manufactures and sells equipment for geothermal and recovered energy-based electricity generation, remote power units and other power generating units, and provides services relating to the engineering, procurement, construction, operation and maintenance of geothermal and recovered energy power plants.

Power Generation Business

The Company owns or controls, and operates geothermal and recovered energy projects in the United States. It also owns or controls and operates geothermal projects in Guatemala, Kenya, Nicaragua and New Zealand. During the year ended December 31, 2008, the Company completed the construction of power plants that added an additional capacity of approximately 109 megawatts. During 2008, the Company’s revenues from the Electricity Segment accounted for approximately 74% of the Company's total revenues.

The 10 megawatts Heber South plant at the Heber Complex in California commenced operation in April 2008. The eight megawatts GDL project in New Zealand commenced commercial operation in September 2008. An increase of 35 megawatts, attributable to Phase II of Olkaria III in Kenya, commenced commercial operation in January 2009. A 5.5 megawatts recovered energy generation unit at the OREG 2 project in North Dakota, which commenced commercial operation in December 2008. The 50 megawatts North Brawley project in California’s construction was completed in December 2008.

The Company’s projects in operation includes Ormesa Complex, Heber Complex, Steamboat Complex, Mammoth Complex, Puna, Brady Complex, North Brawely, OREG 1, OREG 2, Momotombo, Zunil, Olkaria III Complex, Amatitlan and GDL. Projects under construction include OREG II, Peetz, Puna, GRE, East Brawley and Jersey Valley. Projects under development include Carson Lake, Mammoth, Imperial Valley, Sarulla and McGinness Hills.

Ormat competes with CalEnergy, Calpine, Terra-Gen Power LLC, ENEL SpA, Vulcan Power, U.S. Geothermal Inc., Nevada Geothermal Power Corp., Chevron Corporation, Siemens AG, T G Power LLC and Raser Technologies Inc.

Products Business

The Company designs, manufactures and sells power units for geothermal electricity generation, referred to as Ormat Energy Converters (OECs). The Company’s customers include contractors, and geothermal plant owners and operators. The Company designs, manufactures and sells power units used to generate electricity from recovered energy or waste heat, which is generated as a residual by-product of gas turbine-driven compressor stations, and a variety of industrial processes, such as cement manufacturing. Ormat’s customers include interstate natural gas pipeline owners and operators, gas processing plant owners and operators, cement plant owners and operators, and other companies engaged in other energy-intensive industrial processes.

Ormat designs, manufactures and sells fossil fuel-powered, turbo-generators with a capacity ranging between 200 watts and 5,000 watts. The Company's customers include contractors installing gas pipelines in remote areas. In addition, it designs, manufactures and sells generators for various other uses, including heavy-duty direct current generators. The Company engineers, procures and constructs, as an engineering, procurement and construction (EPC) contractor, geothermal and recovered energy power plants on a turnkey basis, using power units designed and manufactured by it. Its customers include geothermal power plant owners.

The Company competes with Mitsubishi, Fuji, Toshiba, GE/Nuovo Pignone, Ansaldo Energia, Turboden s.r.l., Siemens AG, Alstom S.A., OAO Kaluga Energo, United Technology Company and Global Thermoelectric.