Ormat stands to gain from US cleantech plan

Expanding a tax credit by $5 billion was proposed by US Vice President Joe Biden.

Clean energy company Ormat Technologies Inc. (NYSE: ORA) stands to gain from a US initiative to expand a cleantech tax break.

Expanding a tax credit by $5 billion was proposed by US Vice President Joe Biden. According to the New York Times, the proposal is part of US President Obama's battle against unemployment, as well as " encouraging investment in wind, geothermal and solar projects in the United States."

The proposal would raise the cap of the program which was put into place last February, to $7.3 billion from $2.3 billion. A list of companies eligible for the initial phase of the program is set to be released in January. It may very well include Ormat.

Ormat Technologies is the US subsidiary of Israeli firm Ormat Industries Ltd. (TASE: ORMT). Ormat Technologies is a major player in the US geothermal energy sector both by selling equipment for power plants, as well as operating several plants and generating clean electricity on its own.

Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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