Ormat Technologies stock soars after securing 150MW geothermal PPA with Google

Investing.com -- Ormat Technologies Inc. (NYSE: ORA) stock rose 5% Tuesday after the renewable energy company announced a significant long-term geothermal Power Purchase Agreement (PPA) with NV Energy to support Google's data center operations in Nevada.

The agreement, which requires approval from the Public Utilities Commission of Nevada expected in the second half of 2026, will provide up to 150MW of new geothermal capacity. The multi-project portfolio is structured to allow Ormat to develop several new geothermal projects across Nevada, with the first facilities expected to come online as early as 2028 and continue through 2030.

The PPA will extend for 15 years beyond the final project's commercial operations date, providing Ormat with long-term revenue stability. The deal is enabled through NV Energy's Clean Transition Tariff (CTT), creating a pathway for large energy users like Google to invest in clean electricity.

"AI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free power required to support that growth," said Doron Blachar, Chief Executive Officer of Ormat Technologies.

The agreement strengthens Ormat's long-term growth strategy beyond 2028, leveraging the company's expanded exploration and drilling activities of recent years. The favorable terms of the PPA, combined with the extension of the geothermal tax credit provided through the OBBBA framework, support Ormat's growth trajectory in the renewable energy sector.

Google highlighted the agreement as demonstrating a "proven, scalable model" for large customers to partner with utilities and technology providers to bring new clean capacity to the grid while ensuring costs are fully covered without impacting other ratepayers.

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