Ormat secures up to $35M DOE funding for geothermal projects

Ormat Technologies Inc., a Nevada-based geothermal and renewable energy company, has been awarded up to $35 million in funding from the U.S. Department of Energy (DOE) for two geothermal projects in Nevada and Utah. The funding, contingent on the successful negotiation of award agreements with DOE, will support operations at Ormat's Dixie Valley facility in Nevada and Cove Fort facility in Utah. These projects will be carried out in collaboration with Schlumberger (SLB) and the University of Utah.

The Dixie Valley project, which has been chosen for up to $25 million in DOE funding, involves design, drilling, testing, and validation of an Enhanced Geothermal Systems (EGS) doublet. This initiative aims to demonstrate the ability to sustain circulation, enhance permeability, and generate commercially relevant thermal output from engineered reservoirs near existing hydrothermal systems.

Meanwhile, the Cove Fort project, selected for up to $9.7 million in DOE funding, will focus on drilling and subsurface characterization of carbonate rock formations to improve understanding of heat and fluid distribution. This collaboration with the University of Utah seeks to enhance knowledge of geothermal potential in these specific geological conditions.

Doron Blachar, Ormat Technologies' Chief Executive Officer, expressed satisfaction with the DOE's recognition of two key projects within Ormat's geothermal portfolio. Ormat currently operates a diverse global energy portfolio of 1,850MW, comprising 1,355MW of geothermal and solar generation in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, alongside a 495MW energy storage capacity in the U.S.