Ormat closes ITC transfer deal for 80-MW BESS in California

Global renewables company Ormat Technologies Inc (NYSE:ORA) has closed a deal to transfer investment tax credits (ITCs) from its 80-MW/320-MWh Bottleneck battery energy storage system (BESS) project in California.

The ITCs were transferred to an unnamed third party investor for net proceeds of USD 46.7 million (EUR 43.9m), Ormat said on Tuesday. The company explained that the transaction supports its goal to raise up to USD 152 million in cash tax benefits this year.

The funds raised from the deal will enable Ormat to reinvest and deliver sustainable energy solutions for the needs of its customers. The money, along with proceeds collected from a USD-14-million production tax credit (PTC) monetisation deal in the third quarter, will allow the Reno, Nevada-based company to enhance its balance sheet and support capex growth.

“This successful transaction marks the first large ITC transfer we have completed and underscores our innovative approach to funding our long-term growth,” said Ormat’s CEO Doron Blachar.

The Bottleneck battery in the Central Valley of California is Ormat’s largest energy storage facility. It kicked off operations in October.

(USD 1.0 = EUR 0.940)

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