Ormat Technologies

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Ormat Technologies, Inc. Environmental and Technological Leadership 16 Ormat has developed and manufactured over 1,750 MW of geothermal and Recovered Energy Generation (REG) power plants since our company was established 50 years ago. All operate without fossil fuel consumption and create virtually no air emissions. We are proud of the sustainable focus of our energy generation technologies and the advances we have helped pioneer in the geothermal industry. Ormat’s vertically integrated structure enables our company to supply complete geothermal energy solutions across the entire project spectrum, from the acquisition of land, permitting, geological exploration and drilling to equipment design, manufacturing, construction, and commissioning. The ability to leverage our experience in owning and operating our own geothermal power plants contributes to the overall quality and precision of the solutions we devise on behalf of clients. Geothermal Energy - Harnessing the Earth’s Heat Geothermal energy is heat energy derived from the earth’s molten interior and is transported to the surface by movements of the earth’s crustal plates, intrusion of molten magma and deep circulation of groundwater. Reservoirs of hot water under pressure are the result of these actions - and it is these underground reservoirs that Ormat targets. Drilling wells into geothermal reservoirs enables the steam and high-pressure hot water to be captured and directed to drive turbines in power plants. This converts earth-bound energy into electrical energy. Geothermal energy offers numerous benefits for a world seeking alternatives to fossil fuels. Geothermal is a natural and locally available resource. It provides firm, flexible and reliable base-load electricity. Geothermal is a low carbon alternative that consumes less land, water and exerts much lower impacts on the environment, compared with conventional fossil fuel combustion. Diagram of an Air-Cooled Binary Geothermal Power Plant Recovered Energy Generation – Added Energy Value Ormat has developed unique expertise in the production of electricity from recovered energy – waste heat sources that result as a by-product of many common industrial processes. Cement manufacturing and gas pipeline compression stations are two such examples of processes and equipment that generate residual heat that has value. When captured, it can be used to generate electricity without burning additional fuel or generating GHG emissions. Recovered Energy Generation (REG) System 2012-2013 Sustainability Report Geothermal and Recovered Energy vs. Fossil Fuel-Based Electricity Generation In 2013, Ormat-owned facilities generated approximately 4.3 million MWh of electricity. When compared with other baseload electricity generation methods, all of which are fossil fuel-based, and eliminating the minute emissions generated in a few our own plants, the following is the renewable electricity offset1 that Ormat recorded. All of Ormat’s operating activities, including our power plants, manufacturing facilities, offices, corporate automobile fleet, employee flights, and other contributors created CO2 emissions of approximately 0.15 million tons in 2013, 0.14 million tons of which are from the power plants. This year, for the first time, we did not calculate the emissions from our plants based on the estimation of emission from geothermal plants available in literature, but actually calculated the emission from each of our plants. As expected, based on our advanced technology, the figure was less than the average geothermal power plant would have produced. In addition, these figures represent only what Ormat’s owned power plants mitigated in 2013. The amount of CO2 mitigated by the more than 1,000 MW in power plants Ormat has supplied to other power producers would result in a substantially higher offset figure. Ormat has two power plants registered as a Clean Development Mechanism (CDM) by the Executive Board of the United Nations Framework Convention on Climate Change (UNFCCC). Our Amatilan Geothermal Project in Guatemala has been registered as a CDM since December 2008 and is expected to offset approximately 83,000 tons of CO2 emissions annually. Ormat’s Olkaria III power plant has been registered as a CDM since 2010. With a recent expansion now completed earlier in 2014, Olkaria III is expected to offset approximately 360,000 tons of CO2 emissions per year. Ormat is working to commercialize the certified emission reduction credits earned by both facilities. We hope future power plants will also be registered to such mechanisms. Ormat’s CO2 emissions from the 4.3 million MWh of electricity it generated in 2013 compared to the emission other base load electricity sources would have generated. 4.07 3.38 1.92 1 IEA and OECD report from 2012 “CO2 Emissions from Fuel Combustion” 17 0.14 COAL Oil Gas All figures in million tons of CO2

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