ORMAT QUALIFICATIONS AND EXPERIENCE

Transcription

1 ORMAT QUALIFICATIONS AND EXPERIENCE August East Glendale Ave., Sparks, Nevada Telephone (702) Facsimile (702) Telex

2 TABLE OF CONTENTS 1. OVERVIEW 2. ORMAT GROUP OF COMPANIES 3. OPERATING PROJECTS 4. PROJECTS UNDER DEVELOPMENT 5. ENGINEERING 6. PROJECT MANAGEMENT PLAN 7 CORPORATE RESUMES 8. BROCHURE/FACT SHEETS

3 2. ORMAT GROUP OF COMPANIES The Ormat Group of companies includes the following entities: A. ORMAT INC. AND SUBSIDIARIES o Ormat Inc. (01), Sparks, Nevada, established in 1972 for the marketing, engineering support and, after sales service of OEC's and related equipment. o Ormat Engineering Inc. (OEI), Sparks, Nevada (wholly owned subsidiary), established in 1980, to provide engineering and project management services. o In addition, Ormat Inc. holds interests in various geothermal projects through special purpose corporations. B. ORMAT ENERGY SYSTEMS AND SUBSIDIARIES o Ormat Energy Systems, Inc. was established at the end of 1986 for the development of renewable energy projects and the sale of related equipment and services in the United States and Canada. Fifty percent (50%) of OESI's stock is held by LFC Financial Corporation. The association with LFC will contribute to the financial strength of Ormat. o OESI also holds projects through corporations. interests special C. ORMAT TURBINES (1965) LTD. (OTL) OEC and renewable energy related activities. in various purpose Ormat Turbines Ltd. was formed in 1965 by President, Lucien Y. Bronicki, in order to bring to the market, products based on a technology which had previously been developed in a solar engine research project in the National Physical Laboratory in Jerusalem. Using this technology, Ormat adapted the basic system to the use of fossil fuel, and concentrated its efforts on highly reliable, on-site power generators for telecommunications. It was at this very time when, following the introduction of solid state electronics to telecommunications, a reliable

4 maintenance-free power source was being sought. From 1974, following the energy crisis, Ormat applied the meanwhile matured technology to develop new products and systems directed toward cogeneration and the use of alternative energy sources.

5 1. OVERVIEW Ormat Turbines Ltd. was formed in 1965 by its current President, Lucien Y. Bronicki, in order to bring to the market products based on technology which had previously been developed in a solar engine research project in the National Physical Laboratory in Jerusalem. Using this technology, Ormat adapted the basic system to the use of fossil fuel, and concentrated its efforts on highly reliable, on-site power generators for telecommunications. It was at this very time when, following the introduction of solid state electronics to telecommunications, a reliable maintenance-free power source was being sought. The "remote power OEC" was specifically developed. for this application. Through this product, Ormat entered a field which was dominated by large international companies with relatively static product lines. Ormat's innovative high technology equipment quickly gained worldwide industry acceptance. This product, which has proven its high reliability in the field, has been the key element in Ormat's growth over the years. Another element in Ormat's business development was the entry into license agreements with U.S. Companies - first with Lear--Siegler, where Ormat manufactured and supplied electrical generators for Israeli built aircraft. Later, similar "know how transfer" agreements were executed with Kato Engineering for the manufacture of large electrical generators and Ecolaire Heat Transfer for the fabrication of specialized heat exchangers. From 1974, following the energy crisis, Ormat applied the meanwhile matured technology to develop new products and systems directed toward cogeneration and the use of alternative energy sources. Through an intensive research and development effort, which was approved and supported by the Government of Israel as a National Research Project, Ormat developed a new family of products, including systems, utilizing waste or unused process heat in refineries and other process industries which produce electricity at power levels of 300 to 5,000 kw in various modular configurations. Along with this product line, Ormat, through its affiliated company, Solmat, was engaged in a $20 million project to build a 5,000 kwe Solar Pond Power Plant. In addition to the significant internal research and development, in which the company has engaged continuously since its inception, substantial work was performed in collaboration with external research institutes and universities, among them the Weizmann Institute the Hebrew University, Tel Aviv University, Technion and the Ben Gurion University.

6 3. OPERATING PROJECTS A. Steamboat Geothermal - Steamboat Springs, Nevada Ormat managed the resource development and construction of the power plant and operates the facility. The plant incorporates seven (7) modular power units in Ormat's proprietary cascading design, to generate 6,700 kw gross power, with a capacity for sale to the utility of 5,400 kw. The temperature of the geothermal fluid is F. The plant was placed in commercial operation in late B. Ormesa Geothermal I - Imperial Valley, California Located in Imperial Valley, California. The 30 MW (Gross) geothermal power plant constitutes the largest project developed by Ormat to date. Ormat has arranged the $88 million financing for the project, developed the field which contains the geothermal resource, including drilling, piping and installation of the pumps. As an active participant in this project, Ormat constructed the power plant (With Atkinson Mechanical as the general contractor) using 26 Ormat Energy Converters (OECs), as well as cooling towers, transformers and interconnections. All the OECs are computer controlled. The plant operates continuously to produce a total output of 30 MW. The project sells electricity to Southern California Edison Company (SCE) under a 30-year Power Purchase Agreement. C. Ormesa Geothermal II - Imperial Valley, California Located In imperial Valley, California, this 20 MW (gross) facility is the sister project to Ormesa I. The financing of $66 million for this project was based solely on the private capital market arranged by Ormat. This project was funded as a non-recourse leveraged lease. Ormat and Harbert International (also the general contractor) act as the lessee and will also operate and maintain both the field and the power plant, which consists of 20 OECs, as well as cooling towers, pumps and piping, transformers and interconnections, all of which are computer controlled. The project declared firm operation in March 1988.

7 D. Tad's Enterprises - Wabuska, Nevada This project was the first geothermal power plant to generate electrical power in the state of Nevada. The first 800 kw turbine has been operating successfully since September The availability has exceeded 96% over the last year. A second OEC was installed in early 1987 and is currently operating successfully. E. Cove Fort Geothermal - Sulphurdale, Utah The Sulphurdale project is a modular power plant which Ormat constructed on a turnkey basis. The first phase, rated at 3.2 MW, was inaugurated in September Since start-up on October 15, 1985, the four units have been operating continuously. The City of Provo municipal utility is the ultimate purchaser of the power. F. Empire Geothermal - Empire, Nevada Ormat managed the resource development and construction of the power plant, and will operate the facility. The project became operational in December The financing of thj.s 4.8 MW (gross) power project was arranged by Ormat. This project has the potential of 10 MW (net) and will use the Ormat technology. Sierra Pacific Power Company (SPPC) pays a fixed rate for capacity and energy prices adjusted to specific price indices. G. Soda Lake Geothermal - Soda Lake, Nevada Located in Nevada, this 3.6 MW (gross) power plant is being constructed by Ormat. The financing of the power plant was also arranged by Ormat. The geothermal resource is owned by Chevron and contains proven production and reinjection wells. The power plant incorporates three OECs and 2.75 MW net power will be sold to SPPC under a 30-year Power Purchase Agreement. The project became operational in December 1987 and has been operating fully operational since then.

8 LIST OF OPERATING PROJECTS - USA AUGUST 1988 The following list details the Ormat installations which generate and sell electricity to the utilities. Number of Hours of Operation Project Name OECs (Aggregated) Corrments Reference Wabuska 2 34,855 Second unit start- (1) up in July 1987 Union Carbide 1 19,857 Industrial appli- (2) cation Soda Lake Geothermal 3 13,407 Currently in commer- (3) cial operation. Empire Geothermal 4 3,695 Currently in corrmer- (3) cial operation Cove Fort Geothermal 4 87,845 Low pressure steam (4) with high percentage of non-condensibles Steamboat Geothermal 7 88,888 Air cooled OECs. In (5) commercial operation Ormesa I ,823 Currently in corrmer- (6) cial operation Ormesa II 20 89,374 Currently in corrmer- (7) cia1 operation El Paso Solar Pond - U.S. Bureau of Reclamation Solar Pond: Inter- (8) mittant duty TOTAL ,644

9 For your consideration, we offer the following list of references whom you may contact: 1. Mr. Neil Townsend Chairman of the Board Tad's Enterprises (702) Mr. Dallas Shugart Manager of Operations Union Carbide (714) Mr. William G. Leedy Business Development Manager Constellation Development, Inc. (301) Mr. George Morse Operations Manager Provo City Power Board (801) Mrn Tom Quinn President Far West Capital (801) Mr. Jim Porter Vice President Lease Finance Corporation (215) Mr. Bruce Ambler Constellation Developments, Inc. President (301) Dr. Stan Hightower Coordinator for Advanced Energy Applications Bureau of Reclamation (303)

10 4. PROJECTS UNDER DEVELOPMENT A. Ormesa Geothermal California IE Imperial Valley, Ormesa Geothermal IE, an expansion of the Ormesa I Project, consists of an interconnected array of ten (10) OEC units which will provide Southern California Edison (SCE) with a base load capacity of 8 MW (net). Ormat will lease the $29 million geothermal power plant from institutional investors pursuant to a 20-year leveraged lease and will provide longterm operations and maintenance services to the power plant. Ormat's geothermal resources will provide the project with 2.8 million lbs/hr of fluid at a temperature of F from which the project will generate approximately 69 million kwh per year. Electricity generated by the power plant will be purchased by SCE under a Standard Offer No. 4 Power Sales Agreement. Revenues for the first ten (10) years of operations will be approximately $75 million. B. Stillwater Geothermal I Nevada Churchill County, Ormat has acquired geothermal resource rights in the Stillwater KGRA which are capable of supporting a series of power plants. Stillwater Geothermal I, the first project which Ormat will develop in the Stillwater KGRA, is scheduled for completion in 1988 and will consist of 14 OECs at a total project cost of $36 million. A subsidiary of Ormat will supply the project with geothermal fluid and will provide long-term operation and maintenance services for both the geothermal field and power plant. Ormat will lease the 12 MW power plant form institutional investors pursuant to a 20-year leveraged lease. Projected revenues in the first ten years of operations are approximately $64 million. Stillwater Geothermal I holds a 30-year power purchase agreement with Sierra Pacific Power Company (SPPC) and will supply the utility with over 90 million kwh per year.

11 C. Puna Geothermal - Island of Hawaii Ormat has acquired development rights for a geothermal project on the Island of Hawaii in the Puna District, approximately 21 miles southeast of the City of Hilo. The Puna District contains proven geothermal reserves and offers tremendous development potential. The State of Hawaii has identified the development of this resource as essential to achieving the State's goal of decreasing energy dependence and has passed legislation designed to encourage the development of the Puna reserves. Ormat's first power plant will have a total project cost of approximately $90 million and will be designed to use two-phase geothermal steam and water to drive a hybrid steam/binary turbine generator with a gross capacity rating of 30 megawatts. The electrical output will be sold to Hawaiian Electric Light Company (HELCO) pursuant to the terms of a 35-year power purchase agreement. Power plant operations of the first phase of the Puna Geothermal development will begin in Ormat will pursue the development of additional power plants on the acreage which it controls in the Puna District during 1989, and will benefit from its position of being the first developer to gain access to this resource to produce commercial quantities of electricity. Due to the unique development opportunities in the Puna District, a number of financing options will be available to Ormat and this resource area will provide the greatest growth opportunities for the company.

12 5. ENGINEERING An Ormat Modular Power Plant is comprised of a number of Ormat Energy Converter (OEC) modules which operate on a subcritical organic Rankine cycle. The subcritical cycle results in lower parasitic losses and internal pressures within the power plant. This means that the equipment may be designed with greater simplicity and higher reliability due to lower stresses on the components. In addition. a proprietary cascading principle is used in the interconnection of the modules so to maximize the overall efficiency of the power plant. With the cascading principle implemented, should one module of the power plant be shut down for maintenance, the remaining modules will utilize nearly the full geothermal fluid flow to operate at increased power levels. The result is that nearly full capacity may be maintained even during periods when major maintenance is being performed on the modules. Because factory integrated power plant modules are generally employed to construct the full plant, a shorter project implementation period may be anticipated. In fact, it is only the use of the factory integrated module OEC units which allows Ormat to propose the execution of projects within a relatively short time frame. with a high degree of confidence. In summary, the Ormat module approach is characterized by: (a) flexibility in terms of matching a power plant to a resource; (b) rapid implementation with shorter design and construction periods; (c) lower on-site construction costs thus making the overall project costs more predictable; and (d) operating unit redundancy to maintain project revenues with a high degree of confidence. Ormat uses conservative design criteria for redundancy in both equipment and well production capacity in order to maintain maximum power generation capacity throughout the life of the project.

13 6. PROJECT MANAGEMENT PLAN Objective The Project objectives: Management Plan fulfills two major 1. It provides a baseline for the Project in terms of cost. schedule and technical milestones ( scope); and 2. It explains the plans. organizations and systems that will be utilized in managing the Project. Project M~agement Plan Guidelines The Project Management Plan (PMP) sets forth the plans. organization and systems that those responsible for managing the Project will utilize and is the detailed Project baseline and execution document. The PMP may serve as a reference from which "Contractor Management Plans" are developed describing the management methods. control systems. and procedures that will be used by contractors to perform the contract effort. The content and extent of detail of the Project Management Plan will vary in accordance with the actual size and type of Project and stage of Project execution. Generally the PMP will be written to reflect planning based on'the Project Summary Work Breakdown Structure. The PMP shall be developed by the managing organization. As a general rule. the PMP shall be completed and approved prior to starting the Project. The PMP shall be kept current as the Project progresses and review of the Plan. with appropriate updating of sections. shall be made by the managing organization to ensure that it is current. The Project Management Plan will include: a. Introduction b. Objectives c. Management Organization and Responsibilities d. Work Plan e. Work Breakdown Structure f. Schedule g. Performance Criteria h. Cost and Manpower Estimates i. Project Functional Support Requirements. j. Project Management. Measurement. and Planning and Control Systems k. Information and Reporting 1. Procurement Plan m. Test and Evaluation Plan n. Environmental. Safety and Health Protection Implementation Plan

14 CORPORATE RESUMES