Ormat Technologies Inc. (NYSE: ORA), a leading renewable energy company, today announced the successful deal to transfer investment tax credits (ITCs) from the 80MW/320MWh Bottleneck Project to third party. This transaction, which was facilitated under the Inflation Reduction Act (IRA), represents a significant achievement in our goal to collect up to $152 million in cash tax benefits this year.
The gross proceeds from this transaction were priced at $0.93 per dollar. After deducting the buyer’s broker and legal fees, the net proceeds from the transaction amounted to approximately $46.7 million.
Doron Blachar, Chief Executive Officer of Ormat Technologies, commented, “This successful transaction marks the first large ITC transfer we have completed and underscores our innovative approach to funding our long-term growth. By monetizing the benefits of ITCs, we are able to reinvest in our projects and deliver sustainable energy solutions that meet the evolving needs of our customers and communities. Furthermore, these proceeds, combined with the $14 million of PTCs we have monetized during the third quarter of 2024, will help us fund our growth capex while keeping strong balance sheet.”
Ormat Technologies’ financial advisor for this transaction was Paragon Energy Capital, and our legal counsel was Sheppard Mullin. The cost segregation report was issued by Marshall-Stevens.
