Ormat jumps on Texas energy storage acquisition

Ormat CEO Doron Blachar  / Photo: PR
Ormat CEO Doron Blachar / Photo: PR

Ormat’s wholly owned subsidiary, Viridity Energy Solutions Inc., will design, build, own and operate a 25 MW battery energy storage system (BESS) project at the site.

Israeli geothermal and recovered energy generation provider Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) has announced that it has completed the acquisition of a shovel-ready energy storage asset in Upton County, Texas. No financial details about the acquisition were disclosed.

Ormat's share price jumped 5.13% on Wall Street on Friday to $86.52, giving a market cap of $4.83 billion.

Ormat acquired the asset from Con Edison Development. Ormat’s wholly owned subsidiary, Viridity Energy Solutions Inc., will design, build, own and operate a 25 MW battery energy storage system (BESS) project at the site. The project is co-located with an operational 157 MW solar PV generating facility that is owned and operated by CED Upton County Solar, LLC. Ormat is targeting commercial operation of the BESS before the end of 2021.

The BESS facility will provide ancillary services and energy optimization to the wholesale markets managed by the Electricity Reliability Council of Texas (ERCOT).

Ormat CEO Doron Blachar said, "This represents our second energy storage project in Texas, following the success of our Rabbit Hill BESS project which has been operating with high availability within the ERCOT market since April of this year. We are delighted to have been able to partner with Con Edison Development, a leading renewable energy developer and independent power producer, and hope to extend this collaboration further in the future. With this second project, Ormat strengthens its position as one of the early movers in the ERCOT energy storage market. Ormat is well-positioned to grow its energy storage footprint, and this acquisition reinforces our target to add between 80 MW to 175 MW revenue-generating energy storage assets by year end 2022 and is in-line with our stated strategy to build, own and operate energy storage assets in strategic high growth markets including Texas."

Published by Globes, Israel business news - en.globes.co.il - on December 20, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Ormat CEO Doron Blachar  / Photo: PR
Ormat CEO Doron Blachar / Photo: PR
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