Ormat Technologies Secures Up to $35 Million in US Energy Grants for Geothermal Projects

Ormat Technologies has been selected to receive up to approximately $35 million in funding from the U.S. Department of Energy (DOE) for two distinct geothermal projects. The grants are contingent upon the finalization of negotiations regarding terms with the DOE.

The larger portion, up to $25 million, is allocated for the Dixie Valley project in Nevada. Here, Ormat will collaborate with the University of Utah and energy services company SLB to advance Enhanced Geothermal Systems (EGS) technology. This funding will support the design, drilling, testing, and validation of EGS wells, aiming to demonstrate the feasibility of developing EGS reservoirs adjacent to existing hydrothermal systems. The goal is to ensure continuous water flow, improved rock penetration, and sufficient heat generation for commercial development.

The second project, located at Cove Fort in Utah, will receive up to $9.7 million. This initiative focuses on an operational hydrothermal reservoir, with the funds designated for drilling new wells and characterizing the underground conditions. Ormat and the University of Utah aim to gain a deeper understanding of heat and water distribution within carbonate rock formations, which could facilitate expanded production at the site.

EGS technology seeks to overcome the limitations of conventional geothermal energy, which relies on naturally occurring heat, water, and fluid pathways. By drilling into hot rock and creating or enhancing fractures, EGS allows water to be injected and heated before returning to the surface, potentially expanding the geographic scope of geothermal power generation significantly.

Ormat CEO Doron Blacher expressed gratitude for the DOE's support, highlighting the importance of innovation and collaboration in advancing geothermal development in the U.S. He noted that the Dixie Valley project will support next-generation EGS technologies, while the Cove Fort project will deepen understanding of existing hydrothermal resources and their expansion potential. Blacher also emphasized Ormat's broad approach to geothermal growth, optimizing existing capabilities while investing in technologies that can substantially increase the developable geothermal resource base.

This funding comes at a time of surging demand for stable electricity in the U.S., driven partly by AI data centers. Geothermal energy's 24/7 reliability makes it attractive to technology companies, contrasting with the intermittent nature of solar and wind power. Ormat recently secured an agreement to supply up to 150 megawatts of power to Google's data centers in Nevada. The company's financial performance also shows momentum, with reported revenue growth and a projected increase in revenue for 2026.