Ormat Technologies Inc. and PT Archi Indonesia Tbk announce the signing of an agreement to establish a Joint Venture (“JV”) company, PT Toka Tindung Geothermal (“TTG”). This JV company is designed to explore the potential of geothermal energy prospects in the Bitung area of North Sulawesi region, especially within the Toka Tindung gold mine concession area. This is also in line with the Government's target to expand electricity generation from renewable energy sources.

The shareholding composition of TTG, subject to completion of certain conditions, which fall under a Power Purchase Agreement (“PPA”), are 75% shareholding interest will be entitled to Ormat, while the rest of 25% shareholding interest will be owned by Archi. TTG aims to develop a geothermal power project within the Toka Tindung mining concessions on an exclusive basis. Ormat will execute the exploration drilling program at the Klabat Wineru prospect in the North Sulawesi province and ultimately the field development drilling program, design, engineering, procurement, financing, construction, testing, commissioning, ownership, management, operation and maintenance of the Geothermal Facilities.