Basin Electric To Supply 22 MW From Recovered Energy

Sparks, NV — Ormat Technologies, Inc. has announced that a 25-year Power Purchase Agreement (PPA) between an Ormat subsidiary and Basin Electric Power Corporation for the supply of approximately 22 MW from recovered energy generation power plants has become effective. All the required agreements and conditions have been met and fulfilled. The PPA was previously entered into by the parties, and was contingent upon both parties meeting and fulfilling certain conditions and agreements as stated in a press release dated January 4, 2005.

The power plants are to be constructed by Ormat, and be completed by the end of 2006. The power plants will be constructed on gas compressor stations along the Northern Border Pipeline Company's natural gas pipeline in North and South Dakota.

Ormat estimates that construction costs for the power generation stations will be approximately $35 million. Upon completion of the construction of the power plants, Ormat expects to realize annual revenues of approximately $5 million from the sale of power generated as a result of this project.

SOURCE: Ormat Technologies, Inc.