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Ormat Technologies (ORA) and Archi Indonesia Announce Plans to Develop Geothermal Exploration Joint Venture; Shares Rise

Tuesday, September 28, 2021 09:51 AM | Kyle Depontes

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Ormat Technologies (ORA) and Archi Indonesia Announce Plans to Develop Geothermal Exploration Joint Venture; Shares Rise

What is going on with ORA?

Ormat Technologies Inc. (ORA) and PT Archi Indonesia Tbk (IDX: ARCI) announced today the signing of an agreement to establish a Joint Venture company, PT Toka Tindung Geothermal. Archi Indonesia is one of the largest gold mining companies in Southeast Asia.

This Jint Venture company will explore geothermal energy prospects in the Bitung area of North Sulawesi region in Indonesia, especially within the Toka Tindung gold mine concession area.

Shares of ORA declined 0.44% to $68.50 as of Tuesday at 9:41am.

What does this mean for Ormat Technologies?

Through the joint venture, ORA aims to develop a geothermal power project within the Toka Tindung mining concessions on an exclusive basis.

Under the agreement terms, Ormat will execute the exploration drilling program at the Klabat Wineru prospect in the North Sulawesi province, as well as undertake drilling, 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.”

75% of the shareholding composition of PT Toka will be entitled to Ormat, while the rest of 25% shareholding interest will be owned by Archi.

Long-Term Technical Rank - 59

ORA has a Long-Term Technical Rank of 59. Find out what this means to you and get the rest of the rankings on ORA!

Ormat Technologies derives approximately 80% of its revenue from building and operating geothermal plants and the rest from manufacturing geothermal and recovered energy equipment. Nearly two thirds of its capacity is in the United States, with the balance in Africa and Central America. Nearly all the plants have long-term contracts with local utilities.

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