AI Business
2d ago
Ormat Technologies Expands Geothermal Energy Efforts with Enhanced Systems and AI Demand
Aug 22, 2026
AI Summary
Ormat Technologies, the world's largest geothermal operator, is pivoting to enhanced geothermal systems (EGS) to capitalize on the growing demand for clean energy driven by AI data centers. The company is launching pilot projects in Nevada and aims to leverage new drilling technologies to expand its geothermal power capacity significantly.
- Ormat Technologies has been a leader in geothermal energy for 60 years, focusing on locations with high-pressure underground water or steam, particularly around the Pacific Ring of Fire.
- The company is now pursuing enhanced geothermal systems (EGS) to build clean power plants across the Western United States, integrating traditional geothermal methods with advanced oil-drilling techniques.
- Ormat is launching two EGS pilot projects in Nevada, partnering with Sage Geosystems and SLB, to demonstrate the economic viability of EGS against other energy sources.
- CEO Doron Blachar believes that the current demand for electricity from AI data centers positions Ormat favorably for growth, with a market cap of approximately $6.75 billion and a 20% stock increase over the past year.
- The company reported revenues of $662.7 million in the first half of 2026, a 43% increase from the previous year, and a net profit of $71.2 million.
- Ormat's power portfolio currently stands at 1.85 gigawatts, with a target of reaching 2.8 gigawatts by 2028 through traditional geothermal and battery storage, excluding EGS.
- The pilot projects are expected to be operational by late 2027, with the potential for each EGS project to generate 500 megawatts of power.
- Ormat has a strong presence in geothermal energy, with additional growth plans in Indonesia and new land acquisitions in New Mexico, Oregon, and Idaho.
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