Source: GlobeNewswire (MIL-OSI)
RENO, Nev., Sept. 28, 2021 (GLOBE NEWSWIRE) — Ormat Technologies Inc. (NYSE: ORA) and PT Archi Indonesia Tbk (“Archi”; IDX: ARCI), one of the largest pure-play gold mining companies in Indonesia and Southeast Asia, announced the signing of an agreement to establish a Joint Venture (“JV”) company, PT Toka Tindung Geothermal (“TTG”).
This JV company is designed to explore the potential of geothermal energy prospects in the Bitung area of North Sulawesi region, especially within the Toka Tindung gold mine concession area. This is also in line with the Government’s target to expand electricity generation from renewable energy sources.
The shareholding composition of TTG, subject to completion of certain conditions, which fall under a Power Purchase Agreement (“PPA”), are 75% shareholding interest will be entitled to Ormat, while the rest of 25% shareholding interest will be owned by Archi.
TTG aims to develop a geothermal power project within the Toka Tindung mining concessions on an exclusive basis. Ormat will execute the exploration drilling program at the Klabat Wineru prospect in the North Sulawesi province and ultimately the field development drilling program, design, engineering, procurement, financing, construction, testing, commissioning, ownership, management, operation and maintenance of the Geothermal Facilities.
Mr. Ken Crichton, President Director of Archi, said: “We are very pleased with the signed corporation agreement as we enter a new chapter and reach a new milestone of our Company. Archi is very proud to take part of the national geothermal projects, and this is in line with our commitment to support environmental sustainability using renewable energy sources.”
Mr. Doron Blachar, Ormat’s Chief Executive Officer, said: “Ormat is committed to exploring and developing geothermal resources around the world and our activity in Indonesia, which represents an attractive market with significant potential resources and strong government support, will help us meet our growth plans. The agreement with Archi, which marks our third joint venture in the country enables us to leverage our expertise and accelerates our efforts to expand our growth in Indonesia and bring clean, renewable energy to the local population.”
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 1.1 GW that comprises a 1,015 MW of geothermal and Solar portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and an 83 MW energy storage portfolio that is located in the U.S.
Archi Indonesia (“Archi”) is one of the largest pure-play gold mining companies in Indonesia and Southeast Asia, with more than 10 years’ experience and an uninterrupted operational track record at the Toka Tindung Gold Mine, which is located in North Sulawesi.
Since its establishment in 2010, Archi through its wholly owned subsidiaries, PT Meares Soputan Mining (“MSM”) and PT Tambang Tondano NUSAJAYA (“TTN”), has been able to produce more than 200 kilo ounces (equivalent to 6,2 tons) of gold per year for the last five years and possess 3.9 million ounces of Ore Reserves as at the end of December 2020. In running its business, Archi always upholds its commitment to ESG best practice values and provides supports in developing and improving socio-economic aspects of the near-mine surrounding community.
Behind Archi’s success story is a solid management team and a team of technical experts with extensive experience in the mining, exploration, and production of the gold and minerals industry. Archi is supported by Rajawali Group (“Rajawali”) as the controlling shareholder, an investment holding company in Indonesia that has a portfolio of various businesses in different industries and has a proven track record in building world-class operations and creating value to shareholders. For more information, please visit www.archiindonesia.com.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release contains 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. These forward-looking statements generally relate to expected revenue and EBITDA contributions from the acquired assets, the achievement of synergies, 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. Actual future results may differ materially from those projected as a result of certain risks and uncertainties.
For a discussion of such risks and uncertainties, see “Risk Factors” as described in Ormat’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.