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Operator
Good morning and welcome to the Allmat Technologies first quarter 2024 earnings conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. You can ask a question by dialing star 1 on your telephone keypad to raise your hand and join the queue. And please note that today's event is being recorded. I would now like to turn the conference over to Josh Carroll with Alpha IR. Please go ahead.
Josh Carroll
Thank you, Operator. Hosting the call today are Duran Blashar, Chief Executive Officer, Ozzie Ginsberg, Chief Financial Officer, and Smadar Lavie, Vice President of Best Relations and ESG Planning and Reporting. Before beginning, we would like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts, and projections of future events that are forward-looking as defined in the private securities litigation format of 1995. These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results, or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, please see risk factors as described in ORMET Technologies and Report on Form 10-K and Core Reports on Form 10-Q that are filed with the SEC. In addition, during the call, the company will present non-GAAP financial measures such as adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures and management reasons for presenting such information is set forth in the press release that was issued last night as well as in the slides posted on the website. Because these measures are not calculated in accordance with GAAP, they should not be considered in isolation from the financial statements prepared in accordance with GAAP. Before I turn the call over to management, I'd like to remind everyone that a slide presentation accompanying this call may be accessed on the company's website at ormat.com under the presentation link that's found on the investor relations tab. With all that said, I would now like to turn the call over to Duran Boshar. Duran, the call is yours.
Duran Boshar
Thank you, Josh, and good morning, everyone. Thank you for joining us today. During the first quarter, ORMAT delivered strong financial results driven by improved operating performance and continued growth across all three segments. This quarter, the company saw a 21% increase in total revenues, a 25.5% rise in earnings per diluted share, and 14.4% increase in adjusted EBITDA when compared to the first quarter of last year. The first quarter results were fueled by organic growth that includes the successful execution of our strategic plan and enhanced operational efficiency at existing facilities, which together contributed more than 50% of the increase in revenues and in EBITDA. In addition, these results were positively impacted by the recent acquisition of assets from Enel Green Power North America. Our electricity segment continues to drive growth. This quarter, record results reflect an impressive improvement in operational performance at Puna and at our IBE-1 facility, which was partially operational during the prior year's quarter. Furthermore, the new capacity we added last year in North Valley and Dixie Valley and the new acquired assets added this year helped grow our electricity segment economics relative to the comparable prior year period and also offset the impact of business interruption insurance income of $6.7 million included in last year's first quarter results. In the storage segment, we experienced a greater degree of stability in revenues from several new projects launched in 2023 that helped improve the segment's gross margin. The East Flemington project that came online in the first quarter also contributed to our results, and we expect the bottleneck project to come online towards the end of the second quarter. In our product segment, our backlog has continued to stay strong due to the growing demand for geothermal products with year-to-date revenues increasing by an impressive 147%. Since the beginning of the year, we added, including the NL assets, 130 megawatts of new generating capacity. Combined with the potential uplift from our successful drilling campaign in Kenya and the macro drivers, we are confident in meeting both our long-term capacity expansion goals and our financial targets for 2024 and beyond. On a macro base, the global demand for renewable energy continues to grow, driven by increasing environmental concerns, supportive government policies, attractive power purchase agreements, and increased renewable demand, including from data centers. Our diverse portfolio of geothermal, solar, and energy storage solutions positions us well to capitalize on these favorable tailwinds. Now, before I provide further updates on our operations and plans, I will turn the call over to Asi to review the financial results. Asi?
Josh
Thank you, Ron. Let me start my review of our financial highlights on slide five. Total revenue for the fourth quarter was $224.2 million, up 21% year-over-year. This was driven by growth across all three segments. OMAD's first quarter of 2024 gross profit was $78.8 million, up by 3.6% versus $76.1 million in the first quarter of 2023, resulting in a consolidated gross margin of 35.2%. Net income attributed to the company's stockholders was $38.6 million or $0.64 per diluted share in the quarter, compared to $29 million or $0.51 per diluted share in the first quarter of the prior year. Excluding one-time M&A expenses related to the NL recent acquisition, our adjusted net income attributable to the company's stockholders was $39.6 million, or $0.65 per diluted share. This represents a significant increase of 36.5% in adjusted net income attributable to the company's stockholders and 27.5% in EPS compared to the same quarter last year. The solid earnings and EPS growth were mainly the results of the new assets added to the portfolio relative to last year's first quarter and a lower tax rate as we continue to capture benefit from the IRA tax credits. Adjusted EBITDA of $141.2 million increased 14.4% in the first quarter, compared to $123.5 million in the prior year period. The year-over-year increase in adjusted EBITDA was driven by growth in all three segments, with the electricity segment leading the increase. largely as a result of better performance of operating assets that led to increased generation, the commercial operation of North Valley last year, the inclusion of the new acquired NL assets in our portfolio, and a larger contribution from tax equity transactions, offset by $6.7 million business interruption insurance income recorded last year related to PUNA. On slide five, we break down the revenue performance at the segment 11. Electricity segment revenues increased 12.3% to $191.3 million. This increase was largely driven by contribution from the new and ill-acquired assets and from Heber One, which was only partially operational in the first quarter of 2023. Improved generation at Puna that is now operating above 30 megawatts the addition of North Valley Power Plant in April 2023. In the product segment, revenue marked a substantial increase, growing by 147.3% to $24.8 million. The growth in our product segment was supported by a higher backlog and the timing of revenue recognition. The current product segment backlog stems approximately $130 million as of May 8, 2024. Energy storage segment revenues increased by 66% to $8.1 million in the first quarter, driven largely by the impact of CODs for storage facilities that the company achieved in the second half of 2023. East Flemington that came online this year and a higher merchant rate in the PGM region. Moving to slide six. The gross margin for the electricity segment was 39% in the first quarter, down from 44.4% from the previous year. The reduction in margin was driven by the absence of business interruption insurance process that flowed through our last year's cost of revenue. In the product segment, gross margin was 14.8% in the first quarter, up 790 basis points compared to the first quarter of 2023. Margin increased due to the increased profitability of our recently signed contract. The energy storage segment reported the first quarter gross margin of 7.5% compared to negative 3.6% in the prior year. The increase in gross margin was driven by the new projects that were launched in 2023, the commercial operation activities, Flemington, and better merchant prices, mainly in PGM. Breaking down adjusted EBITDA, the electricity segment generated 92% of our March total consolidated adjusted EBITDA, in the first quarter of 2024. The product segment generated 5%, and the energy storage segment reported adjusted EBITDA of $3.7 million, almost 3% of total adjusted EBITDA. Reconciliations of EBITDA and adjusted EBITDA are provided in the appendix slide. Moving to slide seven. In the first quarter, we recorded $17.5 million in income related to tax benefits, an increase of $4.9 million compared to last year. The increase is mainly due to $2.5 million higher transferable PTCs and $1.7 million income related to the new North Valley tax equity transaction signed in Q4 of 2023. Also, In the first quarter, we recorded $11.5 million of ITC benefits in the income tax line related to the storage facility, and we expect proportional quarterly amounts to be recorded throughout the year. We anticipate during 2024 to receive approximately $150 million in cash proceeds related to the PTC and ITC benefits that will reduce our capital needs. Expanding our ability to profitably grow our base of generating assets and ultimately lowering the capital intensity of our growth efforts. Looking at slide eight, our net debt as of March 31st, 2024, was approximately $2.1 billion, equivalent to 4.1 times net debt to EBITDA. Cash and cash equivalents and restricted cash and cash equivalents as of March 31st, 2024, was approximately $299 million, compared to $288 million at the end of 2023. Slide 8 breaks down our use of cash for the 12th month, illustrating OMAS' ability to reinvest in the business and service our debt obligation, while also consistently returning capital to our shareholders. Oil, while growing our business. Our total debt as of March 31st, 2024 was approximately $2.4 billion net of deferred financing costs. It's presented on slide 30 in the appendix, which outlined the payment schedule. The average cost of our debt for the company stands at 4.57%. Nearly all of our debt liabilities remain at a fixed rate in nature, which we believe will help continue to position OMAD competitively in a higher and more volatile global interest rate environment. Moving to slide nine, we have approximately $766 million of total liquidity. Our total expected capital expenditure for the remaining of 2024 is approximately $472 million, as detailed in slide 31 in the appendix. We plan to invest approximately $254 million in the electricity segment for construction, drilling, and maintenance capital. and $196 million in our storage assets in the remaining of 2024. Overall, our mud balance sheet and capital resources positioned the company well, facilitating our ability to continue executing our strategic growth plan. We have maintained excellent liquidity, and we have ample access to additional capital. On May 8, 2024, our board of directors declared, approved, and authorized Payment of quarterly dividend of 12 cents per share, payable on June 5, 2024 to shareholders of record as of May 22, 2024. We expect to maintain this dividend level for the remaining of the three quarters of the year. That concludes my financial overview. I would like now to turn the call to Doron to discuss some of our recent developments.
Duran Boshar
Thank you, Asi. Turning to slide 11 for a look at our electricity segment operating portfolio. As previously mentioned, generation growth in our core electricity segment was positively impacted by several CODs that occurred last year after the first quarter and the COD of steamboat solar this year. In addition, generation grew from the contribution of the newly acquired geothermal and solar assets. Our Puna complex also helped drive generation growth during the quarter as its generating capacity continued to ramp up. relative to last year, running at 30 MW over the last two quarters. This was further accomplished by increased generation at Heber 1. In total, we added 110 MW since the beginning of the year to the electricity segment portfolio and grew the generation by 7.9%. Learning to fly it well for an update on our operating footprint. At our Olkaria power plant in Kenya, Our operational teams are continuing to work to increase capacity, and we are currently operating at close to 130 megawatts. Our drilling campaign in Olkaria has continued to show positive results, and we continue to believe that the connection of the new wells will both support generation upside and improve future performance. In Guadeloupe, as announced before, we signed a 30-year PPA with EDF for the development of a new 10-megawatt geothermal power plant, which helps support our capacity growth target and strategically expand our presence in the attractive Caribbean region. The new geothermal plant will be added to our existing 50 MW buoyant. This and the expected 10 MW Dominica power plant, currently under development, will bring our total geothermal capacity in the Caribbean region to 35 MW once the plants become operational in 2025. And on the strategic front, on slide 13, we announced in January that we completed the acquisition of the portfolio of geothermal and solar assets from Enel Green Power North America. The contribution of the new assets to first quarter revenues and EBITDA is aligned with our expectations. We have identified new opportunities to enhance the acquired assets on top of the upgrades that we already initiated, and we are currently evaluating their potential contributions. Turning to slide 14, our product segment backlog stands at $130 million. We are encouraged by the worldwide tailwind for geothermal that should allow us to continue maintaining a strong backlog. Moving to slide 15, the energy storage segment delivered a strong quarter that was supported by new projects which contributed to our results, as well as the long-term toiling agreement for our Pomona II facility in California, which helped create a stable and profitable revenue stream for the energy storage segment. Also, we saw better merchant rates in PGM region that supported Q1 profitability. As Asi mentioned, we have also continued to benefit from ITC with both our East Flemington and bottleneck facilities that are eligible to tax credit, which reduce our tax expense in the quarter. Moving to slides 17 and 18, we continue to see an increase in the demand for electricity and energy storage segments. The successful and steady execution of our growth strategy has given us the confidence to maintain our targets to reach between 2.1 to 2.3 gigawatts of portfolio capacity by year-end 2026. Slides 19 and 20 display the geothermal and hybrid solar PV projects that we currently have underway. We continue to remain on pace to complete three geothermal development projects in 2024, which includes Biwawi Repowering in the U.S., Zunil in Guatemala, and Ije in Indonesia. Combined, these projects will help increase our energy generating capacity by 26 megawatts. In our solar PV portfolio, Steinbert Hill Solar completed COD during the first quarter And during April, we achieved COD for North Valley solar. Slides 21 and 22 highlight the third layer of our growth plan, the energy storage segment. We completed the East Flemington 20 megawatt, 20 megawatt hour facility and currently have six energy storage projects under development that will add 335 megawatts or 1,040 megawatt hour to our storage portfolio by the end of 2025. At our bottleneck facility in California, we are currently in the commissioning stage and we anticipate that the 80 megawatts or 320 megawatt hour storage facility will begin operating towards the end of the second quarter of this year. Please turn to slide 23 for a discussion of our 2024 guidance. We continue to expect total revenues to increase by 7% year over year at the midpoint. and to be between $860 and $910 million, with electricity segment revenues between $710 and $730 million, an increase of 8% compared to 2023 results. We expect between $115 and $135 million in the product segment, and energy storage revenues are expected to be between $35 and $45 million. We expect adjusted EBITDA to increase by approximately 10% at the midpoint to range between $515 and $545 million. We expect annual adjusted EBITDA attributable to minority interest to be approximately $18 million. I will end our prepared remarks on slide 24. We remain on track to achieve our long-term growth target. We believe that our compelling and differentiated portfolio unique growth strategy, and our track record to develop compelling projects with long-term PPAs position us well to improve profitability as demand continues to increase for renewable energy and drive significant shareholder value. Supporting this are the favorable macro drivers, such as the increasing demand for renewable energy from data center, attractive power purchase agreement, and declining battery prices. We look forward to meeting and speaking with our shareholders, analysts, and broader stakeholders at our upcoming Analyst Day in June 20. This concludes our prepared remarks. Now, I would like to open the call for questions. Operators, please.
Operator
Thank you. And as mentioned, the floor is now open for questions. To ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute. Again, that is star 1 to join the queue. And your first question comes from the line of Noah Kay from Oppenheimer. Please go ahead.
Noah Kay
Hi there. You've got Andre Adams on for Noah. So the first question would be, you've seen good performance so far from the E&L assets. Can you give us a little bit more color on how you're proceeding with the previously announced capacity upgrades? And if you could provide any more detail on the new opportunities you're pursuing with those assets, whether they're greenfield or brownfield specifically.
Duran Boshar
Thank you. It is the wrong. The NL, as we said, are performing a little bit better than what we expected as part of the acquisition. The enhancement that we plan to have by the end of 2025 are on track. We actually started already in one of them, the engineering part, and with the other two, we're finalizing our detailed plan and we'll start the engineering and manufacturing immediately afterwards. So things are on track as we expected. The improved enhancement that we see, we actually have spoken with our off-taker in Cofort, and there is a very strong demand for additional megawatts, and we are working with him to see if we can increase the interconnection and the PPA, which is very much in favor. We do believe the existing resource can support more megawatts than what we anticipated originally. So if these three stars will align, we'll be able to do more than what we've expected. It might move the enhancement a few months forward, but it will be more done. So these are brownfields. Since we do see this very strong demand over there, we believe that we might be able to expedite also the green feed, which was forecast a few years down the road, but we might be able to bring it a little bit earlier.
spk01
Great. Thanks. Your next question comes from the line of Justin Clare from Roth MKM. Please go ahead. Justin Clare, your line is open. Justin Clare Yep, good morning.
Justin Clare
Sorry about that. I wanted to start off here, just you had mentioned data centers earlier, and there's obviously pretty strong demand for firm renewable power from data centers. So I'm wondering if you could just speak to the opportunity that you're seeing there for ORMAT to serve that need, whether from the geothermal side of your business or from the storage side of your business.
Duran Boshar
Well, as you said, the market today is in very strong demand from the utilities, but also from the data centers. We've been approached already by a few data centers that are looking for green and basal renewable energy. We are discussing with them. Geothermal is a specific site, so we're discussing with them exactly how we can connect to them and to make sure that they can get the green energy that they are looking for. And I hope that in the next few months we'll have some more updates to you, but we are in discussion with some of them. And the pricing over there are very high. The pricing, you know, that we see in the PTA from the utilities, you know, if we talk in the past, in the 80s, I can say today the discussions for geothermal are in the 90s and above that even. So there's a lot of demand, and we're trying to see how we can generate more and more electricity from our facilities.
Justin Clare
Okay, great. And then maybe shifting over, you did mention that you've had success in the drilling campaign with your Olkaria facility, and there's potential upside to the generation there. I was wondering if you could just speak to the timeframe at which we could potentially anticipate more capacity coming online. And then can you remind us, do you need to update the PPA as you increase capacity there? And then is there any potential change to the PPA pricing, either for the existing capacity or for the new capacity?
Duran Boshar
Thank you. I'll start with the old PPA for 150 megawatts with the existing pricing. This is what we have signed, and that's what we can reach. About 150, we'll obviously need to negotiate an additional PPA. The drilling campaign was very, very successful. We were able to drill to the deep reservoir, which is effectively a new reservoir for us. We see on occasional days a very, very high generation, close to 140 megawatts, but it's not yet stable. We expect that towards the end of the year, We will be able to make some adjustment to the power plant and hopefully by that time we'll be able to generate closer to 140 megawatts. But we're very, very encouraged with the campaign that we did. It went to a totally new reservoir and it was very successful. Okay, got it.
Justin Clare
And then just one more. On storage, you know, we've heard the pricing for batteries continues to trend lower here. So just wondering if you could update us on what you're seeing. We've also heard that there's potentially more favorable terms being offered from suppliers and wondering, you know, could this affect your CapEx expectations moving forward here? And, you know, I guess maybe could you also comment on the project returns? for storage and how attractive those might be.
Duran Boshar
So we definitely see the price of batteries going down. It will help us to release more projects with higher returns. We're able to see a low double-digit returns on our project IRR on the storage. We do see between the battery suppliers, although most of them are from China, competition between them without trying to get more market share between one another. But we definitely see, we feel more comfortable today with securing batteries. Contracts, the delivery times of batteries has become much faster than in the past. In the past, it would have been 18 months, sometimes even more than today. You can get between 12 to 18 months delivery time. So definitely the market on the battery side has changed significantly. And we hope and expect it to continue.
spk01
Okay. Thanks very much. Thank you. Your next question comes from the line of Ryan Levine from Citi.
Operator
Please go ahead.
spk09
Thank you for taking my question. To follow up on some of the earlier comments, you mentioned opportunities to pursue development with some of these data center customers at about $10 per megawatt above previous pricing. What markets are you targeting for that customer base? Is this some of the western U.S. states or other parts of the world?
Duran Boshar
At this stage, we are targeting purely the western part of the U.S., We had some discussions about, you know, supplying somebody that will build a data center someplace, you know, the international front. But we see this is very early. But if somebody will decide to develop, you know, a data center in Guatemala or Kenya, we'll be very happy to supply him with green energy from our facility over there.
spk09
Great. And in the slide deck, it was highlighted the successful campaign in Kenya. Can you provide a little more color around the markers of that success or what you're seeing from that drilling campaign?
Duran Boshar
The campaign basically we did was split into two. On one hand, we drilled into our existing reservoir, which is relatively shallow, which was okay to support the existing generation. But we also drilled to the deep reservoir, deep I mean around 10,000 feet, which is the deepest that we've drilled or much has drilled so far. And here we hit a very good reservoir. It has potential to increase generation to the area of the 140 megawatts. We've seen that for a short period of time, but we need to make some adjustments to the power plant in order to be able to accept this strong resource. And we expect that to happen towards the end of the year.
spk09
Okay. And last quarter you had highlighted some trade route redirection away from the Suez Canal. Is that still going on? Is there a way to quantify the impact to your business from margins or outlook?
Duran Boshar
Now, the change of route that we mentioned happened. And once it happened, you know, it doesn't change. You take it into account. So the shipping time is extended by two weeks. And once you align all your projects, all your manufacturing and delivery times to that, then it doesn't impact anymore.
Operator
Great. Thanks for taking my question.
spk01
Thank you.
Operator
And as a reminder, if you would like to join the queue and ask a question, or if you have a follow-up question, please press star 1 on your telephone keypad now. And your next question comes from the line of Derek Puthevia from Barclays. Please go ahead.
Flemington
Hey, good morning. Maybe just to continue the conversation on Kenya, could you provide us an update on the collections progress and whether you're collecting in USD or not?
Josh
Good morning. As we mentioned last year, we do expect improvement in the collection in Kenya. Over the quarter, we will see it in our cash flow. Our operation cash flow was probably the strongest ever in OMAT history. I think it was close to $120 million. You'll see it on the presentation. And it was supported by a very good collection in Kenya. We collected in the last four months, in addition to the current billing, over $25 million. So almost $60 million in four-month collection. I don't think we've seen as much in the last few years. The dollar in Kenya, we do see a shift. They had a very successful bond offering for the government. And as a result, the currency in a much better situation. And I can tell you that we are very pleased with the situation in Kenya these days.
Flemington
Great. Appreciate the color. Maybe just expand on the $150 million you're expecting in cash payments from the PTC ITC. We saw $29 million first quarter. So maybe walk us through how that will step up for the remainder of the year, just as you see it today.
Josh
So just to explain, the $150 million is a cash item. Not all of it will flow through the P&L. The two largest items in that are two tax equity transactions that we plan to make this year, one for the Hedo power plant that is already operating, and one for the Biwawi power plant that is basically, as we speak, starting to operate. So those combined will bring close to $100 million of GAS 150. In addition to that, we have two storage assets that are coming online this year. One that already came online, which is this Flemington. And the second one, which is Pomona, which is very close to start operating in the next few weeks. So between those two, we expect to get roughly $35 to $40 million of cash. So when you combine those, this is almost all of the $150 million. The remaining is PTC transfer, mostly for the Heber power plant that we generated last year and this year. We're generating around $4 million a quarter of PTCs over there. So when you think about it, some of it will flow to the PNL. All of the ITC storage will flow to the PNL. All of the PTCs transfer will flow to the PNL. And then the tax equity transactions on the geothermal, which is roughly $100 billion, will flow to the P&L over the next eight, nine years evenly. But the most important thing is that we're expecting $150 billion in cash. When you combine it with our very strong EBITDA this year, it gets us to a point that OMAT almost is fully covering all of its needs, including all the growth cap, which we haven't been in that situation for years.
Flemington
Right, and I appreciate that. And then maybe just lastly on the CapEx, I noticed in the deck it was revised up 550 to 570 for 24. It looks like it's all in storage, so maybe some color on that. What's driving the increase to your CapEx budget for the year?
Josh
What we see on storage is two things that are really helping us pre-releasing projects that you don't see their name yet. The first thing is, as mentioned on the call before by Doron, battery prices. are down close to 50% versus two years ago. So this has enabled us to release more projects. So that's one thing that we are already producing projects. And second, PPA prices are almost at the level that they were before the IRA came in. So we are in a very strong demand for PPAs on one hand. And then battery prices are coming down, so we are pre-releasing more projects. Some of it includes buying some batteries for those projects, and therefore you see some increase. But what will happen next, in the next few quarters, you will see us bringing more projects to you guys, maybe even as early as between now and year end. Maybe we'll talk about it in the analyst day. But there are more projects that are coming online, and therefore we're increasing. We don't see an increase. In the current project CAPEX, actually we see a decrease. So it's coming from new projects.
spk01
Great. Appreciate all the color. I'll turn it back.
Operator
And your next question is from the line of Jeff Osborne from TT Cowan. Please go ahead.
Jeff Osborne
Hey, good morning. Just two quick ones. I might have missed it, but did you provide an update or could you provide an update on the domestic storage battery supply that you were aiming to achieve? I think that was later this year or early next?
Josh
At this point, it looks like the best route is to focus and buy Chinese manufactured batteries. Of course, we're talking to many manufacturers to see who will be the first one that will start producing in the U.S. to try to tie to it. We also see that there's many ways to get the domestic content, even with buying Chinese batteries. It is still very preliminary, but for example, it looks like Tesla that does buy outside the U.S. battery cells are eligible or at least potentially eligible for the domestic content. So there are two routes, just to be clear. One, to buy U.S.-manufactured batteries. They don't exist yet. And it will be probably slightly more expensive. And the second route is to see is there a way to buy Chinese-manufactured batteries and to make enough work on them to make them eligible for the extra 10%. But I will say one thing. We did see a few weeks ago that there were new maps of areas that will be eligible for energy community, additional 10%. And it might be, this is an indication that some of our projects that we have on the books today, that we thought that will have a 30% BRAC actually going to get to 40% because of the area that they are. So there are positive things on both sides. I just want to make a comment. I responded earlier, and I said that the ITC is related to Pomona. I would just say the ITC is related to bottleneck, which is a project that cost us likely over 100 million and has a 40% ITC percentage eligible for it. That's helpful.
Jeff Osborne
And the last one I had is just, can you remind us, is there any renewals that you have coming up in the next two to three years? Certainly there's a lot of demand for green baseload power like you offer. It just was unclear to me with the existing assets, do you have any renewals that would be up for potentially signing at a much higher price?
Duran Boshar
So we have a list of the projects on the presentation that are coming online in the coming years. We have some renewals that are coming on, as well as new contracts. I believe the renewals, Biwawi is one of them, which is an enhancement and a change of a contract. We have a hybrid that is changing in 2026. We have Galena and Stimbo that are also expected to change end of PPA and go to the new PPA towards the 26th, 27th.
Jeff Osborne
Just to be clear, Duran, I thought many of those weren't those for the 150 megawatts combined. I think it was that you signed a couple of years ago for LEDWP or the Southern California Basin or no?
Duran Boshar
Some of them are for LWP. Some of them are for energy. Some of them we are negotiating. The Hebrew one is none. None of them. So we are negotiating today a PPA. It has a PPA with a SCAPA that ends at the end of 2025. And we are now negotiating a new PPA for the extension. We have quite a lot of D-matrix. So I think we have all of them going into existing projects. portfolio PPAs and some for new ones. We're also looking to see how we can optimize the existing PPAs that we've signed to make sure that it's a win-win situation for both parties.
Jeff Osborne
Perfect. That's all I have. Thank you.
Operator
And that concludes the Q&A session for today. I will now turn the conference back over to Doran for closing remarks.
Duran Boshar
Thank you, everyone, for joining us. The quarter was a very good quarter. The demand that we see in the U.S. from utilities and data centers is very, very strong and increasing and obviously is pushing PPA pricing up. We see the improved operations in Pune that is done in the quarter over 30 megawatts and is continuing like that. and the success of the campaign in Orkaria. So we're very encouraged for this year and for the coming years. And we look forward to see all of you in New York at our Investors and Analyst Day in June. Thank you.
Operator
This concludes today's conference call. Thank you all for joining us. Enjoy the rest of your day. You may now disconnect.
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