Ormat Technologies Inc. (NYSE: ORA) has received $108.2 million in US government funding for its North Brawley geothermal power plant in California.
The funds are in lieu of a tax credit. The Section 1603 program of the American Recovery and Reinvestment Act of 2009 (ARRA) allows qualifying renewable power projects eligible for either the federal production tax credit or investment tax credit to instead elect a 30% cash grant administered by the US Department of the Treasury.
Ormat CEO Dita Bronicki said that the funding will go toward continued expansion.
Bronicki said, "We also continuously seek out funding from programs like the ARRA that help support development of geothermal projects in the US. We expect that by the end of the year we will start construction of more than 100 MW of new projects in the US, which will make them eligible to receive ITC cash grants. The DOE programs are important and great support to the renewable energy market for as long as they are available."
Bronicki said that Ormat has improved power generation and operating costs at the plant, and that net output exceeded 25 MW in September.
Ormat Technologies shares closed at $29.11 on Friday, giving a market cap of $1.32 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2010
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