North Brawley plant generating 17 MW, on its way to 50 MW

10 February 2010 - Ormat Technologies, Inc. said its North Brawley power plant in California has been placed in service and is currently operating at a stable capacity of 17 MW.

As previously disclosed, while the Company believes that the North Brawley reservoir is sufficient to support the 50MW output, the re-injection of the geothermal fluid has been a challenge due to the exceptional amount of un-dissolved solids in the geothermal fluid.

During the last few months the Company has made substantial progress in its ability to manage the solids production by installing temporary measures. As a result, the Company is now able to maintain a stable generation level of 17 MW, while awaiting the arrival of permanent equipment for the solids handling. The Company believes that the permanent equipment will provide both a higher efficiency and lower operating cost for the facility.

However, it appears that even with the solids in check, the injection capacity of some of the wells is disappointing and the Company is evaluating how to increase the injection capacity and bring the plant to its rated design.

The Company plans to request the power purchase agreement off taker to extend the firm operation date to the end of the year, which it expects allows sufficient time to bring the power plant to its design capacity of 50MW.

Because the Company expects to incur additional capital expenditures to fully resolve the operational issues described above, it has temporarily deferred submitting an application for the ITC cash grant for the project. The cash grant is expected to be more than $100 million.

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