According to the Union of Concerned Scientists, geothermal power has a very low global warming impact (5% of that emitted by a coal- or oil-fired power plant for the same electrical output). Geothermal energy is considered a renewable fuel, although it is not without significant impacts, including the possibility of volcanic activity shifts that may unleash toxic levels of sulfur and other gases. Additionally geothermal energy requires the drilling of wells, significant water use, and potential impacts on sensitive indigenous sites or national treasures. With these issues well recognized, Ormat utilizes closed loop systems for a majority of its facilities—including any new developments. Additionally, Ormat believes in the importance of engagement with Native peoples when a development involves Native lands or interests.
Beyond its focus on geothermal energy, Ormat has also developed products and services related to recovered energy, specifically in the recovery of waste heat in industrial settings. Finally, Ormat has research and development efforts in thermal solar and biomass power and currently has over 50 megawatts of solar photovoltaic projects under development in Israel. Areas for improvement include increased reporting and goal setting related to environmental metrics.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/13 and may not reflect current opinions or subsequent events.