Baseload Leaders Write to Sec. Kerry; GEA Member News; Save the Date for 2016 GEA Events

In this post:

*Baseload Industry Leaders Urge Secretary Kerry to Promote All Renewables in Upcoming Climate Talks
*Governments to Raise $22 Billion from Carbon Pricing
*GE Acquires Alstom Power, Including Geothermal Portfolio
*Ormat Technologies Reports 2015 Third Quarter Results
*Hold the Date (March 17, 2016) for GEA International Geothermal Showcase
*Ormat Technologies: Ms. Dita Bronicki Retiring from Board of Directors
*BLM Manager Retires; Worked on Fast-Tracking Geo Permitting 
*Imperial Irrigation District: New Salton Sea Program Manager Has Geo Experience

*Geothermal Visual
climatemarketsandinvestmentassn-november2015

The visual above is from a new report by the Climate Markets and Investment Association on global revenues from carbon pricing schemes (PDF). The coverage of California’s program, of interest to the U.S. geothermal market, was new this year. (Read more inside this post).

Click below for this week’s geothermal news.

*Baseload Industry Leaders Urge Secretary Kerry to Promote All Renewables in Upcoming Climate Talks
*Governments to Raise $22 Billion from Carbon Pricing
*GE Acquires Alstom Power, Including Geothermal Portfolio
*Ormat Technologies Reports 2015 Third Quarter Results
*Hold the Date (March 17, 2016) for GEA International Geothermal Showcase
*Ormat Technologies: Ms. Dita Bronicki Retiring from Board of Directors
*BLM Manager Retires; Worked on Fast-Tracking Geo Permitting 
*Imperial Irrigation District: New Salton Sea Program Manager Has Geo Experience

Baseload Industry Leaders Urge Secretary Kerry to Promote All Renewables in Upcoming Climate Talks
Press Release (Washington DC) November 2, 2015–Hydropower, biomass power and geothermal important contributors to meeting future climate goals–Leaders of the U.S. biomass, geothermal and hydropower industries today urged Secretary of State John Kerry to support a “pan-renewable technologies approach at COP-21.” In the letter, the National Hydropower Association, Biomass Power Association and Geothermal Energy Association noted that these three technologies provide 86% of the world’s renewable power today and are expected to grow in the coming decades.

“As baseload renewable power technologies, our industries are particularly critical to reducing carbon dioxide emissions, and we encourage Secretary Kerry to recognize the contributions our industries are making to fight climate change,” said Linda Church Ciocci, Executive Director, National Hydropower Association.

The groups stressed their current contributions:

  • Hydropower was the leading renewable power technology in each of the top five renewable electricity producing countries: China, U.S., Brazil, Canada and Russia.
  • Biomass provides a significant percentage of renewable power around the world, and was the leading renewable electricity source in Germany in 2014, providing 10% of the country’s electricity.
  • Geothermal provides power in 24 countries, including 51% of in-country power supply in Kenya, where these additions are credited with reducing consumer bills by over 30%.

“We are asking for a U.S. approach that recognizes hydropower, biomass power and geothermal power are also important contributors to avoiding fossil fuel emissions today and will be important contributors to meeting future climate goals,” said Karl Gawell, Executive Director of the Geothermal Energy Association.

“Biomass power is recognized the world over for its many environmental and economic benefits,” said Bob Cleaves, President, Biomass Power Association. “As a baseload power source, it’s an essential part of any renewable energy mix that uses low-value materials that often have no other use. Biomass will play an important role in reducing the use of fossil fuels.”

Policies must also address grid modernization, the groups stressed. “. . .[P]ower grids will continue to be a vital means for electricity delivery. Therefore, enhancing the grid and grid-connected technologies is important,” according to the letter.

The letter follows:

Dear Secretary Kerry,

As the Administration approaches COP-21, we hope it will publicly recognize the important contributions being made by all renewable power technologies towards a cleaner, healthier environment. Recently, the White House has spoken about its climate initiatives with an emphasis on off-grid applications and wind and solar technologies. Hydropower, biomass power and geothermal power are also important contributors to avoiding fossil fuel emissions today and will be important contributors to meeting future climate goals.

In 2012, for example, these three technologies provided a combined 86% of the world’s renewable power. A substantial majority of the nations of the world are using hydropower, biomass or geothermal to provide clean power today and even more are looking to expand the use of these technologies in the future. For example, we would note:

Hydropower was the leading renewable power technology in each of the top five renewable electricity producing countries: China, U.S., Brazil, Canada and Russia.

Biomass provides a significant percentage of renewable power around the world, and was the leading renewable electricity source in Germany in 2014, providing 10% of the country’s electricity.

Geothermal provides power in 24 countries, including 51% of in-country power supply in Kenya, where these additions are credited with reducing consumer bills by over 30%.

The IEA projects continued growth in hydropower, biomass and geothermal in the decades ahead, and in every scenario published in their World Energy Outlook these technologies continue to provide most of the renewable power worldwide.

We also urge the Administration to recognize that power grids will continue to be a vital means for electricity delivery. Therefore, enhancing the grid and grid-connected technologies is important today and will continue to be important in the future. Even in areas with distributed generation, the grid will continue to provide much needed power supplies and reliability.

We urge the Administration to support a pan-renewable technologies approach at COP-21. We believe this approach will best achieve global and national climate goals in the most expedited and cost-effective fashion. In California, a leader in new technologies, studies have shown that as renewable generation percentages increase both system reliability and supply diversity become important factors to consider. Hydropower, biomass and geothermal are important contributors to both.

Our organizations stand ready to assist you in any way we can to help you prepare for COP-21. Thank you for your support of renewable energy.

The letter is signed by Bob Cleaves, President, Biomass Power Association; Linda Church Ciocci, Executive Director, National Hydropower Association; and Karl Gawell, Executive Director, Geothermal Energy Association.

Governments to Raise $22 Billion from Carbon Pricing
Governments around the world will this year raise around $22 billion from schemes putting a price on carbon dioxide emissions, up from $15 billion in 2014, according to a report by the Climate Markets and Investment Association. The role of carbon pricing has gained prominence this year after several multinational companies including oil majors said such a price is needed to spur investment in low-carbon energy. The coverage of California’s program, of interest to the U.S. geothermal market, was new this year, contributing to a significant increase from 2014 which saw revenues around $15 billion on carbon pricing programs worldwide.

The report notes, “About three quarters of the revenue raised is in Europe. . . The remainder of revenues raised worldwide are from the various North American schemes and the (rather low) carbon tax in Japan. There is no auctioning of allowances under the New Zealand or South Korean schemes, or in China, so they don’t contribute to the total.”

GE Acquires Alstom Power, Including Geothermal Portfolio
General Electric has acquired Alstom Power for $10.6 billion, to join with GE Power & Water as the new GE Power. Alstom’s portfolio includes geothermal energy. The transaction is the largest industrial acquisition in GE’s history and received regulatory approval in more than 20 countries and regions, according to the press release from GE. “The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation,” Jeff Immelt, GE chairman and CEO told press. “The complementary technology, global capability, installed base and talent of Alstom will further our core industrial growth. We are open for business and ready to deliver one of the most comprehensive technology offerings in the energy sector for our customers.” Alstom has had a geothermal division.

Ormat Technologies Reports 2015 Third Quarter Results
Press Release (RENO, Nevada) November 3–Total Revenues increase 16.1% to a quarterly record of $162.9 million; Adjusted EBITDA increased 14.3% to a quarterly record of $79.0 million; Company Increases Full-Year 2015 Total Revenue and Adjusted EBITDA Guidance–Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the third quarter ended September 30, 2015.

Third Quarter Highlights and Recent Developments:

• Total revenues increased 16.1% to a quarterly record of $162.9 million, compared to $140.2 million in the third quarter of 2014;
• Product segment revenues increased 73.9% to $65.6 million, compared to $37.7 million in the third quarter of 2014;
• Electricity revenues of $97.2 million, compared to $102.5 million in the third quarter of 2014; reduction is mainly due to lower oil and natural gas prices offset by higher generation from new projects that came online;
• The Company recorded income tax benefit that includes deferred tax asset and related expenses of $48.7 million relating to a new tax law in Kenya which extended the period of utilizing investment deductions for the Olkaria 3 power plant from five years to 10 years;
• Total book equity exceeded $1 billion;
• Net income attributable to the company’s shareholders of $72.1 million or $1.41 per diluted share; excluding the deferred tax asset and related expenses, net income was $23.4 million or $0.46 per diluted share compares to $16.5 million or $0.36 per diluted share in the third quarter of 2014;
• Adjusted EBITDA increased 14.3% to a quarterly record of $79.0 million, compared to $69.1 million in the third quarter of 2014;
• Declared a quarterly dividend of $0.06 per share for the third quarter of 2015;
• Began commercial operation of Don A. Campbell Phase 2 geothermal power plant in Nevada ahead of schedule; and
• Signed a collaboration agreement with Toshiba Corporation to develop strategic opportunities for collaboration in the areas of geothermal power generation systems and related equipment.

Click here for the full Press Release.

Hold the Date (March 17, 2016) for GEA International Geothermal Showcase
The Geothermal Energy Association will be announcing its 2016 International Geothermal Showcase soon! The event, planned for March 17th 2016 at the Ronald Reagan International Trade Center in Washington, DC. Like the hugely successful event in 2014, the 2016 Showcase is expected to draw presenters and participants from over 30 countries focusing on the ingredients for success of geothermal projects. If you would like to be notified when the announcement is made, please email Rani Chatrath at Rani@geo-energy.org.

Ormat Technologies: Ms. Dita Bronicki Retiring from Board of Directors
Press Release (RENO, Nev.) November 3–Ms. Ravit Barniv appointed by the Board to fill the vacancy–Ormat Technologies, Inc. (NYSE:ORA) announced today that Ms. Dita Bronicki has informed the Company that she will resign from her position as a Director on the Company’s Board of Directors and a member of the Compensation Committee, effective November 15, 2015.

“On behalf of the Board of Directors, we thank Dita for her longstanding service to the Company and its missions. Ms. Bronicki has been a member of the Board of Directors since the Company’s inception and has served as its CEO for 23 years until my appointment on July 1st, 2014.” said Isaac Angel, Chief Executive Officer of the Company. “With her knowledge and experience, Dita has skillfully served the Company, guiding and contributing to its significant accomplishments. We wish Dita the best of luck in all her future endeavors, which we are certain will be successful.”

“I am delighted to have had the opportunity to lead the company and contribute to its impressive growth and achievements over the years in my roles as the previous chief executive officer and a member of the Board of Directors,” said Ms. Bronicki. “Although I will no longer have a formal position with the Company, I intend to be fully available to management and the Board to the extent they wish and find it helpful,” she added.

Acting upon the recommendation of the Board of Directors’ Nominating and Governance Committee, the Board of Directors appointed Ms. Ravit Barniv as a director to fill the vacancy on the board, effective upon Ms. Bronicki’s resignation.

Ms. Barniv holds a BA in Economics and Philosophy (1987) and an MBA in Finance (1996) from Tel-Aviv University. She will join the Board as an independent director. Ms. Barniv recently served as a chairperson of the Board of Directors of Tnuva Group, the largest food group in Israel since 2013. Prior to her position in Tnuva, Ms. Barniv served as chairperson of the Board of Directors of Shikun & Binui Holdings Group Ltd. and as CEO of Netvision Communications.

“The company looks forward to Ms. Barniv joining our Board of Directors” noted Mr. Angel. “Her experience in executive roles in other organizations and specifically in the construction and infrastructure, as well as the renewable energy, sectors will benefit Ormat in its future growth plans” he added.

BLM Manager Retires; Worked on Fast-Tracking Geo Permitting 
Ray Brady, manager of the Bureau of Land Management’s National Renewable Energy Coordination Office in Washington, D.C. is retiring after more than 40 years at BLM and the U.S. Geological Survey (see http://www.eenews.net/stories/1060027213). He has been responsible for a renewables pre-screening and fast-track permitting system that has resulted in approving 57 commercial-scale solar, wind and geothermal power projects since the “New Energy for America” agenda began being implemented in 2009. He was a speaker at the 2015 State of the Geothermal Energy Industry Briefing this past February.

Imperial Irrigation District: New Salton Sea Program Manager Has Geo Experience
Imperial Irrigation District has hired a program manager for its Salton Sea Restoration and Renewable Energy Initiative who has experience in geothermal energy. Graeme Donaldson was formerly CalEnergy President and General Manager and is an electrical engineer whose experience also includes ColGreen Energy and Colmac Energy, Inc.

“Graeme’s arrival corresponds with not only the expansion of California’s renewable portfolio standard for all electric utilities from 33 to 50 percent but with the governor’s just-released Salton Sea action plan that includes a renewable energy component as part of a larger framework for near-term restoration efforts,” Kevin Kelley, IID general manager told press. “He will collaborate with Imperial County to integrate the work product of both agencies at the Salton Sea and develop an IID-land-use plan that will deliver sustained environmental and economic value to the region.”

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