Ormat Aims for Growth with Geothermal Energy and AI
Geothermal energy giant Ormat focuses on producing clean energy for AI data centers.
1Ormat's Geothermal History
Ormat Technologies has been building geothermal power plants worldwide for 60 years. Operating across the Pacific 'Ring of Fire' from Asia to the Americas, Ormat has become the largest geothermal operator globally. The company is developing future projects by combining traditional geothermal technologies with new oil drilling techniques.
2EGS Technology
Ormat is focusing on a new technology called Enhanced Geothermal Systems (EGS). EGS facilitates access to deeper, higher-temperature underground reservoirs, allowing geothermal power plants to be built almost anywhere. Ormat is competing with rivals to prove that EGS can be implemented economically and efficiently.
3AI Data Centers and Clean Energy
Ormat plans to build clean energy plants to meet the growing energy demands of AI data centers. The company is constructing these plants in the Western U.S., combining traditional geothermal with new technologies. These projects aim to address the demand for sustainable energy sources from AI and data centers.
4Pilot Projects and Partnerships
Ormat is conducting two separate EGS pilot projects with companies like Sage Geosystems and SLB. With Sage, they are working at the Blue Mountain plant in Nevada, and with SLB at the Desert Peak plant. These projects are expected to be completed by 2027. Ormat aims to develop multiple EGS projects if these pilots succeed.
5Financial Performance and Growth
Ormat reported revenues of $662.7 million in the first half of 2026, a 43% increase from the previous year. The company's net profit was $71.2 million. Ormat remains profitable outside its pilot projects. On Wall Street, Ormat is compared to EGS startup Fervo.
6Global Expansion
Ormat is focusing on expansion in countries like Indonesia, Turkey, and New Zealand, in addition to the U.S. Indonesia is one of the company's largest target growth areas. Ormat notes that processes in these countries take longer and require more caution, while in the U.S., they are willing to take more risks.
7Political Support and Future
Geothermal energy is supported by both Democrats and Republicans. Democrats advocate for clean energy, while Republicans support the expansion of oil and gas companies into geothermal business. This political backing allows Ormat to advance its projects with fewer obstacles.
8Ormat's Future Vision
Ormat CEO Doron Blachar emphasizes the company's significant growth potential with EGS technology. Blachar highlights Ormat's leadership in the geothermal energy sector and its ability to successfully execute EGS projects. The company plans to develop multiple EGS projects following the success of its pilots.
Original article: Fortune | FORTUNE — Ormat, Jeotermal Enerji ve AI ile Büyüme Hedefliyor