Ormat Technologies Inc. has completed a deal to transfer investment tax credits (ITCs) from its 80-MW/320-MWh Bottleneck battery energy storage system (BESS) project in California. The credits were transferred to an undisclosed third-party investor, generating net proceeds of USD 46.7 million (EUR 43.9 million), Ormat announced on Tuesday.
The transaction is part of Ormat's strategy to secure up to USD 152 million in cash tax benefits in 2024. The funds raised through this deal, combined with proceeds from a USD 14-million production tax credit (PTC) monetisation in the third quarter, will help the company reinvest in its sustainable energy initiatives, strengthen its balance sheet, and support capital expenditure growth.
“This successful transaction marks the first large ITC transfer we have completed and underscores our innovative approach to funding our long-term growth,” said Doron Blachar, CEO of Ormat Technologies.
The Bottleneck BESS, located in California's Central Valley, is Ormat's largest energy storage facility, and it began operations in October.
