Geothermal and renewable energy company Ormat Technologies has signed a $62m hybrid tax equity partnership with Morgan Stanley Renewables for two energy storage facilities: the Lower Rio 60MW/120 megawatt hours (MWh) facility in the US state of Texas and the Arrowleaf 35MW/140MWh storage and 42MW solar project in California.
Both will be commercially operational by the end of 2025.
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Ormat Technologies chief executive officer Doron Blachar stated: “This hybrid tax equity partnership is the first of its kind for our energy storage portfolio and highlights the innovative efforts we are taking to optimise the projects’ economics and the company’s profitability to ensure that we have the funding we need to support our long-term growth, while simultaneously helping advance our explicit goal of monetising $160 million of tax benefits this year [2025].
“By continuing to effectively monetise the benefits of ITCs for our growing energy storage project portfolio through 2026, we are strengthening our ability to further invest in our development pipeline and ensure that we remain well-positioned to support the growing demand for energy storage projects.”
Ormat was represented in the deal by Sheppard Mullin Richter & Hampton. Morgan Stanley Renewables Inc had representation from Willkie Farr & Gallagher.
The company specialises in the ownership, operation, design, manufacture and sale of geothermal and recovered energy generation (REG) power plants.
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By GlobalDataThese plants primarily utilise the Ormat energy converter, a unit that transforms low, medium and high-temperature heat into electricity.
The company has engineered, manufactured, and constructed power plants with a total gross capacity of 3.4GW, which it either owns or has installed for utilities and developers around the world.
Building on its expertise in the geothermal and REG sectors, Ormat has expanded its operations to include energy storage services, solar photovoltaic (PV) systems, and combined energy storage with solar PV.
The company’s current total generating portfolio stands at nearly 1.54GW. This includes a geothermal and solar generation portfolio of almost 1.25GW, distributed across Guadeloupe, Guatemala, Honduras, Indonesia and Kenya, and a 290MW energy storage portfolio located in the US.
Earlier this month, Ormat signed an agreement to buy 20MW Blue Mountain geothermal power facility from Cyrq Energy for $88m. The completion of this deal is expected by the end of the second quarter this year.
The company also reported a 2.5% increase in total revenues for Q1 2025, reaching $229.8m, and a 4.6% growth in net income attributable to the company’s stockholders, totaling $40.4m.
In February 2025, Ormat Technologies secured two 15-year tolling agreements for energy storage facilities in Israel.
The projects will be developed in partnership with Allied Infrastructure, a multi-disciplinary specialist contractor.
