Google Turns Up the Heat | Ormat’s Acreage Advantage Comes Into Focus

Ormat Technologies (ORA) is the latest beneficiary to emerge from a rising trend toward contracted geothermal power. On Feb. 17, ORA said it signed a portfolio power purchase agreement (PPA) for up to 150 MW with NV Energy to support GOOGL’s data centers in Nevada under the utility’s Clean Transition Tariff. The multisite projects that leverage ORA’s established expertise in conventional geothermal development are scheduled to come online from 2028-30.

According to Enverus Intelligence^® Research (EIR) analysis, ORA leads all operators in federal geothermal leasing with roughly 182,000 acres secured, giving it optionality as premiums rise in selective lease sales.
Its largest position is paired with an average bid of about $47 per acre, more than double the long-term historical average of $20.49. In a market where premiums are rising, ORA has already locked in at scale.

Our research determined that proximity to high-voltage transmission and growing data center load have become the strongest drivers of bid pricing, even ahead of geothermal gradient. Nevada, which accounts for roughly 80% of the Bureau of Land Management’s geothermal acreage, sits at the intersection of resource quality and western U.S. data center demand.

The most recent GOOGL agreement validates ORA’s strategy. The company is not scrambling for late-cycle leases at $400 per acre as it controls a deep inventory of prospective acres in the most active state. That gives ORA flexibility to phase development as hyperscalers’ appetite for power grows.

Research Highlights

• Pine Gate in Flux – Nofar and AMZN Pricing Risk and Scale – This report presents our valuation of the assets acquired by Nofar USA and AMZN in Pine Gate’s Chapter 11 bankruptcy process.

• Constellation Energy – One Small Step – This report presents EIR’s view on the valuation of CEG’s equity following the announcement of their offtake agreement with CyrusOne at Freestone Energy Center.

• Unpacking Power Generation Trends – NRG Portfolio Deep Dive – We demonstrate how the new power generation table in Enverus PRISM^® provides an overview of NRG’s portfolio and its recent asset performance.

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• Roadshow | Power Assets, ET Investment | Feb. 26 | Dallas