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OPTI Canada Inc. to Pilot New Field Based Upgrader on Suncor Heavy Oil Property

August 4, 1999

Calgary, Alberta - An agreement between OPTI Canada Inc. (OPTI), the Canadian subsidiary of Ormat, and Suncor Energy Inc. (Suncor) will provide Suncor with access to OPTI's upgrading technology in return for an option on interests in Suncor's Cheecham oil sands lease and a commitment by OPTI to complete a drilling program to evaluate that lease.

OPTI will first build a pilot plant on a Suncor property to field test this new method of upgrading bitumen. OPTI plans to build the pilot upgrader at Suncor Energy's Burnt Lake heavy oil facility, subject to obtaining necessary approvals. Construction is expected to start in 2000, with completion targeted for 2001.

OPTI has developed its proprietary heavy oil processing technology for small field based upgraders as an alternative to the large-scale, capital intensive upgrading facilities in use today.

"We have been looking for an opportunity to field test this process in North America. This agreement with Suncor gives us a site with a steady supply of feedstock to allow us to proceed," says Phil Rettger, spokesman for OPTI. "Our next step is to begin the regulatory approval process and start discussions with neighboring landowners and the community."

Suncor's Burnt Lake Project, near Cold Lake in Northern Alberta, produces heavy oil using steam assisted gravity drainage technology and is designed to gather information on the SAGD technology for potential future application on Suncor heavy oil properties.

Under the agreement, OPTI will finance the full cost of the pilot plant. Suncor will acquire rights to use OPTI's upgrading process, which is currently being patented. Suncor will also have the option to participate in a first full-scale commercial plant. OPTI will earn a 50 per cent interest in Suncor's Cheecham heavy oil property in Northern Alberta by completing evaluation drilling.

According to Barry Stewart Suncor's group executive vice-president of Exploration and Production, "The OPTI technology creates options for Suncor. If the test is conclusive this process has the potential to be used in the development of heavy oil assets where integration with our oil sands plant is not feasible."

Suncor Energy Inc. is a Canada based international integrated energy company with more than 30 years experience in the development of Alberta's oil sands. OPTI's corporate parent is Ormat, and manufacturing company that has become a world leader in design, engineering, construction, and operation of geothermal power plants and the production of power from industrial waste heat, solar energy and low-grade fuels.

For more information on the Long Lake Project, visit www.opticanada.com or contact:

Phil Rettger 1-800-793-8903

This news release is not for dissemination in the United States or to any U.S. news services. The securities of OPTI Canada Inc. have not been registered under the United States Securities Act of 1933 or the securities laws of any state in the United States and may not be offered or sold in the United States unless an exemption from registration is available.