Ormat Technologies has secured two 15-year tolling agreements for energy storage facilities in Israel in a significant entry to the country’s utility-scale energy storage market.
The projects will be developed in partnership with Allied Infrastructure, a multi-disciplinary specialist contractor.
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The facilities will have a combined capacity of 300MW/1200 megawatt hours under the tolling agreements.
Ormat Technologies CEO Doron Blachar stated: “We are delighted to announce the award of these two tolling agreements, marking another key strategic milestone for our growing energy storage business.
“These long-term agreements highlight our team’s ability to advance and execute Ormat’s energy storage portfolio expansion strategy. The tolling agreements for these two assets will further enhance the company’s portfolio profitability and add stability to margin performance, each a key element of our growth strategy in our storage business.”
The ownership of the projects will be shared equally between Allied Infrastructure and Ormat.
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By GlobalDataThe partnership aims to expand Ormat’s activity by developing additional energy storage facilities in the region.
Blachar added: “These energy storage contracts mark the company’s first owned project in Israel, and we look forward to continuing to work with Allied as Ormat’s capabilities and assets will now help drive Israel’s efforts to achieve its renewable energy and energy continuity goals.”
The two parties are in the advanced stages of obtaining interconnection and necessary land use permits.
Construction is expected to commence in early 2025, with commercial operations anticipated by 2028.
The tolling agreement also includes an option to terminate the initial contract and transition to the merchant market.
Ormat is a geothermal and renewable energy company that owns, operates, designs, manufactures and sells geothermal and recovered energy generation power plants.
