Ormat Geothermal Plant Receives GOE Tax Incentive


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Carson City, NV - March 18, 2014

More of Nevada’s extensive geothermal energy potential is being tapped after the Governor’s Office of Energy (GOE) granted a tax incentive for construction of a geothermal power plant in Mineral County.

Ormat Technologies, Inc. received the incentive for its Don A. Campbell geothermal power plant after undergoing a rigorous screening process that included meeting State and local statutes requiring the project provide employment for Nevadans, major capital investment in the State; and providing a living wage with comprehensive health benefits.

 “The construction of this power plant is a result of Nevada’s commitment to the development and exportation of renewable energy,” said Governor Brian Sandoval.  “The streamlined permitting and enhanced incentives are allowing projects like this to move forward, create jobs, and show energy developers that Nevada is a great place to do business.” 

According to Ormat’s tax incentive application, the Don A. Campbell geothermal power plant is expected to create 138 full-time construction jobs with an average hourly wage of $41 per hour, and seven full-time operational jobs with an average wage of $25 per hour. 

The tax incentive amount granted to Ormat is $12.6 million over 20 years. The total amount Nevada is projected to gain from the power plant during that time is $102 million, which includes employee wages, a capital investment worth $84 million dollars, and $8 million combined from property taxes and school support taxes. This represents an 8-to-1 return on Nevada’s investment, far exceeding the loss of revenue from the tax incentive.

Once completed, the power plant will be capable of generating 20 megawatts of electricity, which will be sold to Southern California Public Power Authority under a 20 year contract. It will utilize 13,800 acres of public land in Mineral County.

“The GOE tax incentive is a good example of government and industry working together in the development of clean, renewable energy in Nevada,” said Bob Sullivan, Vice President of Business Development at Ormat. “With the support of tax incentives, both from Nevada and federally, Ormat successfully completed many projects providing quality jobs and economic development to the State.  We’ve seen great success with our geothermal power plants in rural Nevada, including the Don A. Campbell plant in Mineral County, and look forward to this opportunity for continued growth.”

According to the Geothermal Energy Association, Nevada remains second only to California in existing geothermal power capacity. Ormat’s Mineral County power plant will be the 13th the company has built in Nevada since 2005. 

The GOE decision to approve Ormat’s tax incentive request highlights the GOE staff’s ability to facilitate cooperation among stakeholders, lead initiatives to stimulate economic development, and attract energy related business ventures that include site development, generation and production, and the transmission and transportation of energy.  

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About the Governor’s Office of Energy

The mission of the Governor's Office of Energy (GOE) is to ensure the wise development of Nevada's energy resources in harmony with local economic needs and to position Nevada to lead the nation in renewable energy production, energy efficiency, conservation, and the exportation of energy. GOE implements the laws of the State as defined in Nevada Revised Statutes 701 and 701A; manages energy-related programs; facilitates cooperation between key stakeholders; advises the Governor on energy policy; and collaborates with our local, regional, and federal partners to ensure a reliable and sustainable energy system. For more information about GOE, please visit www.energy.nv.gov.  

About Ormat Technologies, Inc.
With over four decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low, medium, and high temperature heat into electricity. With over 82 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has over 500 employees in the United States and about 600 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for a vast range of resource characteristics. The company has engineered, manufactured, and constructed power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling over 1750 MW of gross capacity. Ormat’s current generating portfolio is spread globally, in the U.S., Guatemala, and Kenya. For more information about Ormat, please visit www.ormat.com.