Ormat Technologies Secures Up to $35 Million in US Energy Department Grants

Ormat Technologies announced on Friday that it has been selected to receive up to approximately $35 million in funding from the U.S. Department of Energy (DOE). The grants are contingent upon the finalization of negotiations with the DOE.

The funding will support two key geothermal projects. The Dixie Valley project in Nevada will receive up to $25 million to advance Enhanced Geothermal Systems (EGS) technology. This initiative aims to demonstrate the feasibility of developing EGS reservoirs adjacent to existing hydrothermal systems, ensuring continuous water flow, improving water-rock interaction, and generating heat suitable for commercial development. The project involves the design, drilling, testing, and validation of a pair of EGS wells.

The Cove Fort project in Utah is slated to receive up to $9.7 million. This funding will be used for drilling wells and characterizing the subsurface, with the goal of deepening the understanding of heat and water distribution within carbonate rock formations. Both projects are being undertaken in collaboration with the University of Utah and SLB.

Ormat CEO Doron Blachar expressed gratitude for the DOE's selection, highlighting the significance of innovation and collaboration in advancing geothermal development in the United States. He stated that the Dixie Valley project will bolster efforts to promote next-generation EGS technologies, while the Cove Fort project will enhance understanding of existing hydrothermal resources and their development potential. Blachar also emphasized Ormat's growth strategy in the geothermal sector and thanked the University of Utah for its partnership.

This funding news comes as Ormat's stock has experienced a decline, falling 4.93% in the past week, 12.90% over the last month, and 22.90% in the last three months. In the second quarter of 2026, the company reported revenues of approximately $258.8 million, a 10.6% increase year-over-year. Gross profit rose by 20.8%, and adjusted EBITDA increased by 6.9% to $143.9 million. However, net income under accounting rules slightly decreased by 3.4% due to a $6.6 million write-off related to energy storage projects the company decided not to pursue, while adjusted net income grew by 6.5%.