Ormat Technologies Secures $35 Million DOE Funding for U.S. Geothermal Projects
Ormat Technologies secured up to $35 million in funding from the U.S. Department of Energy to advance geothermal projects in Nevada and Utah, despite recent downward pressure on its stock.
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 will advance the EGS project at the Dixie Valley geothermal site in Nevada, in partnership with the University of Utah and SLB, and support hydrothermal geothermal development at the Cove Fort project site in Utah, also alongside the University of Utah. The grants remain subject to the completion of negotiations regarding their terms with the U.S. Department of Energy.
The Dixie Valley project was selected to receive up to $25 million, which will support the design, drilling, testing, and validation of a pair of EGS wells. The project aims to demonstrate that EGS reservoirs can be developed adjacent to existing hydrothermal systems, enabling continuous water flow, improved fluid pathways in rock, and heat production at levels supporting commercial development.
Cove Fort Development and Executive Commentary
The Cove Fort project was selected to receive up to $9.7 million to support well drilling and subsurface characterization. The activity aims to deepen understanding of how heat and water disperse within carbonate rock formations.
"We are pleased and grateful for the U.S. Department of Energy's selection to support two significant projects in Ormat's geothermal portfolio. These grants reinforce the importance of innovation and collaboration in advancing geothermal development in the United States," said Doron Blachar, CEO of Ormat Technologies.
Blachar added that the Dixie Valley initiative will support efforts to advance next-generation EGS technologies, while Cove Fort will help deepen familiarity with the existing hydrothermal resource and its further development potential.
Financial Performance and Market Trends
The company noted that both projects reflect Ormat's growth approach in the geothermal sector, emphasizing continuous optimization and expansion of corporate capabilities. Recently, however, the company's stock experienced a negative trend, dropping by 4.93% over the past week, plunging 12.90% over the past month, and falling 22.90% over the last three months.
In August, Ormat published its financial results for the second quarter and the first half of 2026. Company revenues for the second quarter totaled approximately $258.8 million, marking a 10.6% increase compared to the same period last year. Gross profit surged by a significant 20.8%, and adjusted EBITDA rose by 6.9% to reach $143.9 million.
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