Ormat Technologies: A History of Renewable Energy Innovation
The journey of Ormat Technologies is a testament to the evolution of sustainable power. From its origins as a specialized engineering firm in Israel to its current status as a global leader in renewable energy, the company has spent decades refining the technology used to capture energy from the earth and the sun.
The Foundations of Ormat
Ormat was established in 1965 as Ormat Turbines Ltd. (later renamed Ormat Industries) in Yavne, Israel. The company was founded by engineer Lucien Bronicki, who served as chairman and CTO until 2014, and his wife Yehudit "Dita" Bronicki, who served as CEO until 2014.
The company's technological roots date back to the late 1950s. While working in a government physics laboratory, Lucien Bronicki co-developed the organic Rankine cycle (ORC) with Harry Zvi Tabor. The ORC is a thermodynamic process used to produce electricity from a variety of energy sources, including solar. Driven by a desire to commercialize these ideas, Bronicki left the laboratory to focus on manufacturing power generation equipment.
[ไม่มีภาพประกอบ]Expansion and Technological Evolution
The energy crisis of the 1970s sparked a global surge in interest regarding efficient generation technology. With financial backing from the Israeli government and private investors, Ormat built one of the world's first solar-driven power stations. Although this specific project was abandoned in 1988 due to a lack of economic viability, it provided critical experience for the firm's future endeavors.
During the 1980s, Ormat pivoted toward recovered energy—the process of capturing heat emitted during industrial processes—and began applying its expertise to geothermal sources. This shift marked the beginning of the company's specialization in geothermal energy.
Global Reach and Geothermal Milestones
Ormat's international expansion accelerated in the late 1980s. In 1986, the company designed and supplied geothermal power systems for the Kawerau Power Station in New Zealand, eventually building 13 plants across the country. In 1989, the firm expanded into Iceland, providing geothermal equipment for a regional heating system in Sudurnes that served 20,000 people.
By the 1990s, Ormat evolved its business model. Rather than acting solely as an equipment supplier, the firm began to own and operate its own alternative and renewable energy power stations.
[ไม่มีภาพประกอบ]Corporate Growth and Public Listing
The company's financial structure underwent several significant changes to support its growth. Ormat Industries listed on the Tel Aviv Stock Exchange in 1991. In 1992, it diversified briefly by acquiring a controlling stake in Bet Shemesh Engines, a jet engine parts manufacturer, though these shares were sold in 2005.
In 1994, Ormat Technologies was founded as a US subsidiary. This entity completed an initial public offering (IPO) on the New York Stock Exchange in 2004, raising $100 million. Following the IPO, Ormat Industries was restructured as a holding company, shifting all operational activities to Ormat Technologies.
The company continued to expand its global footprint, notably receiving its first order for a geothermal power plant in Landau, Germany, in 2006.
Leadership Transitions and Ownership
The mid-2010s saw a transition in leadership. In June 2014, Dita Bronicki stepped down as CEO to join the board of directors, while Yoram Bronicki became chairman. Isaac Angel was appointed CEO in July 2014. By November 2015, both Dita and Yoram Bronicki resigned from the board, and Gilon Beck was appointed chairman.
Ownership also shifted during this period. As of May 2016, the FIMI fund and Bronicki Investment Fund were the largest shareholders. However, in May 2017, the Japanese company Orix acquired these shares for $627 million. Most recently, in July 2020, Doron Blachar (CFO since 2013) was appointed CEO, and Isaac Angel transitioned to the role of chairman of the board.
Key Facts
- Founded: 1965 in Yavne, Israel.
- Core Technology: Co-developed the organic Rankine cycle (ORC) for electricity production.
- Geothermal Footprint: Built 13 power plants in New Zealand and provided heating for 20,000 people in Iceland.
- Public Listing: Listed on the Tel Aviv Stock Exchange (1991) and the New York Stock Exchange (2004).
- Major Investment: Orix acquired significant shares in 2017 for $627 million.
| Year | Event | Significance |
|---|---|---|
| 1965 | Company Founded | Established as Ormat Turbines Ltd. |
| 1986 | New Zealand Entry | Supplied Kawerau Power Station. |
| 1991 | Tel Aviv Listing | Became a publicly traded company in Israel. |
| 2004 | NYSE IPO | Raised $100 million via Ormat Technologies. |
| 2017 | Orix Acquisition | Major share purchase for $627 million. |
| 2020 | Leadership Change | Doron Blachar appointed as CEO. |
Frequently Asked Questions
What is the organic Rankine cycle?
The organic Rankine cycle is a thermodynamic process co-developed by Lucien Bronicki and Harry Zvi Tabor to produce electricity from various energy sources, including solar and geothermal heat.
When did Ormat start focusing on geothermal energy?
While the company began with solar and general power equipment, it focused on geothermal sources and recovered industrial energy during the 1980s.
How did Ormat's business model change in the 1990s?
In the 1990s, Ormat transitioned from being solely a supplier of power generation equipment to also owning and operating its own renewable energy power stations.
Who are the current leaders of Ormat Technologies?
As of July 2020, Doron Blachar serves as the CEO and Isaac Angel serves as the chairman of the board.
What was the significance of the 2004 IPO?
The initial public offering on the New York Stock Exchange raised $100 million and led to a restructuring where Ormat Industries became a holding company and Ormat Technologies took over all operations.