Project to use Field-Proven Ormat Organic Rankine Cycle Power System RENO, Nev., Jan. 25 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. today announced it has signed a shared-cost Cooperative Research and Development Agreement (CRADA) with the US Department of Energy (DOE) to validate the feasibility of proven technology already used in Geothermal and Recovered Energy Generation for the production of commercial electricity using hot water produced during the process of oilfield production. The project will be conducted at the DOE Rocky Mountain Oil Test Center (RMOTC), near Casper Wyoming, and will use an Ormat Organic Rankine Cycle (ORC) power generation system to produce commercial electricity. (Photo: http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-a http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-b http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-c http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-d ) (Logo: http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO ) The test will use a commercial air-cooled, skid mounted standard design Ormat Organic Rankine Cycle system. Ormat will supply the ORC power unit at its own expense while the DOE will install and operate the facility for a 12- month period. Ormat and the DOE will share the total cost of the test and the study, with Ormat bearing approximately two thirds of the less than $1M total investment. Presently there are two large unutilized sources of hot water at the RMOTC Naval Petroleum Reserve No. 3, which produces water in excess of degrees Fahrenheit and at flow rates sufficient for generation of approximately 200 kW. The project will consist of the installation, testing and evaluation of a binary geothermal power unit in the field near these hot water sources. The ORC power unit will be interconnected into the field electrical system and the energy produced will be used by RMOTC and monitored for reliability quality. The Ormat ORC unit that will be used in the study is similar to the 250 kW air-cooled unit that has been producing electricity from 210 degrees Fahrenheit geothermal water for more than six years at an Austrian resort. Additionally, there are similar units in Nevada and Thailand that have been in continuous commercial operation and without overhaul, since 1984 and 1989, respectively. A 70 kW Ormat ORC power system was also used in a project co-sponsored by the US Bureau of Reclamation, Ormat and others. This ORC unit operated for 16 years using water with temperatures as low as 154 degrees Fahrenheit to produce electricity. Some 8,000 similar wells were identified in Texas, by Prof Richard Erdlac of the University of Texas of the Permian Basin, and the US DOE Geothermal Research Project Office. Ormat is now assessing the feasibility of utilizing some of these wells to support on site power generation by employing Ormat's factory integrated sub megawatt geothermal power units, based on the Company's proprietary ORC technology, which has been field proven in installations totaling 900 MW world wide. About Ormat Technologies Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal power plants. Ormat is a pioneer in Organic Rankine Cycle (ORC) technology and a leader in the manufacture of ORC power equipment. It also designs, develops and builds, and owns and operates, recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by approximately 70 patents. Ormat currently operates the following geothermal power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines -- Leyte; in Guatemala -- Zunil; in Kenya -- Olkaria; and in Nicaragua -- Momotombo. In the U.S., Ormat owns and operates four OREG1 Recovered Energy Generation plants. Safe Harbor Statement Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2006 and the Prospectus Supplements filed with the Securities and Exchange Commission on April 5 and December 14, 2006. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Ormat Technologies Contact: Investor Relations Contact: Dita Bronicki Todd Fromer / Marybeth Csaby CEO and President KCSA Worldwide +1-775-356-9029 +212-896-1215 / +212-896-1236 / http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-a http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-b http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-c http://www.newscom.com/cgi-bin/prnh/20070125/NYTH082-d http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO DATASOURCE: Ormat Technologies, Inc. CONTACT: Dita Bronicki, CEO and President, Ormat Technologies, +1-775-356-9029, ; or Investor Relations Contact: Todd Fromer, +1-212-896-1215, , or Marybeth Csaby, +1-212-896-1236, , both of KCSA Worldwide Web site: http://www.ormat.com/

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