Ormat Technologies Announces Closing of the Acquisition of Viridity Energy

RENO, Nev. March 15, 2017 Ormat Technologies, Inc. (“Ormat”) (NYSE:ORA) today announced that it has closed its previously announced acquisition of substantially all of the business and assets of Viridity Energy, Inc. (VEI).
VEI is a privately held Philadelphia-based company with nearly a decade of expertise and leadership in demand response, energy management and storage. Using proprietary software and solutions, VEI serves primarily retail energy providers, utilities, and large industrial and commercial clients.

Pursuant to the Asset Purchase Agreement, Ormat paid an initial consideration of $35 million. Additional contingent consideration will be payable in two installments upon the achievement of certain performance milestones measured at the end of fiscal years 2017 and 2020. The acquired assets of VEI will be injected into a newly incorporated company named Viridity Energy Solutions Inc.(Viridity), which is a wholly owned subsidiary of Ormat.

“The successful completion of this acquisition is an important milestone in our strategic plan to expand our presence in the growing energy storage and demand respond markets” noted Isaac Angel, Chief Executive Officer. “We believe that the integration plan we developed will combine Ormat’s and Viridity’s business’ expertise and resources to accelerate our long term growth”

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 the objective of becoming a leading global provider of renewable energy. 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. With 73 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 474 employees in the United States and over 700 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling 2,200 MW of gross capacity. Ormat’s current 713 MW generating portfolio is spread globally in the U.S., Kenya, Guatemala, and Guadeloupe.

Ormat’s Safe Harbor Statement

Information provided in this press release may contain 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 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 Technologies, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 01, 2017.

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.

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Ormat to Acquire Viridity’s business

Ormat to Acquire Viridity Energy’s business and resources to capture market share in demand response and energy storage markets

Ormat will pay Viridity’s shareholders an initial consideration of $35 million at closing. Additional contingent consideration will be payable in two installments upon the achievement of certain performance milestones measured at the end of fiscal years 2017 and 2020. Upon closing of the acquisition, expected in early 2017, Viridity will continue operations and retain current management and staff, as well as maintain all customer relationships and agreements. The new ownership structure will result in additional resources, capabilities, services, and solutions being made available to Viridity’s customers.
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Viridity Energy Awarded Key Patent for Energy Storage Used With Rail Systems and Electric Vehicles

It is the latest in a series of patents awarded to Viridity, including patents related to data center operations and battery/solar asset-combined operations.

Viridity President Raj Chudgar commented: “Since 2012, Viridity has operated two award-winning energy storage systems in partnership with the South Eastern Pennsylvania Transportation Authority. The intellectual property inherent in our systems relates to the parallel functions for savings and market revenue and system support for voltage management and power assist. It’s a unique combination of regenerative braking capture and reuse, coupled with revenue-generating, market-based services. Indeed, the value is so compelling that the project has expanded from a single battery installation to a fleet of nine batteries that will be operational in the coming months.”

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Viridity Energy Raises $8.5 Million in Growth Round

AltEnergy Increases Investment to Expand Energy Management Technology and Battery Storage Solutions

“Since AltEnergy’s original investment in Viridity in 2009, the company has evolved into an industry leader with innovative software technology that maximizes the value of flexible energy load,” said Russell Stidolph, Founder and Managing Director of AltEnergy. “This investment will help fuel the continued rapid growth of the company, and further extend its leadership position in energy storage and advanced demand response.”

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Half Moon Ventures Selects Viridity Energy

Half Moon Ventures Selects Viridity Energy to Operate Largest Solar + Storage Project in Continental U.S.

The Village of Minster, Ohio is developing a 4.2MW solar array paired with a 7.5MW storage system. Energy produced by the solar array will be stored in batteries and deployed by Viridity’s market operations center in high-value applications that keep the grid in balance and provide back-up power support.

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Will Brake for Batteries

SouthEastern Pennsylvania Transportation Authority, Constellation, and Viridity Energy Announce 8.75-Megawatt Energy Storage Project

A battery storage network, which captures and reuses the energy created by braking subway cars, will help Southeastern Pennsylvania Transportation Authority (SEPTA) reduce operating costs, ensure energy resiliency, and support the stability of the electrical grid. Viridity Energy will provide energy market services for the project, bidding the batteries into the PJM market as frequency regulation resources to help match generation with demand and maintain the desired electrical frequency on the grid.

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