Ormat signs 150 MW geothermal power deal with NV Energy to supply Google in Nevada

Feb 17 (Reuters) – Renewable energy company Ormat Technologies said on Tuesday that it has entered into a long-term geothermal power ‌purchase agreement with NV Energy to support Google’s operations ‌in Nevada.

The agreement for 150 megawatts of new geothermal capacity would allow Ormat ​to develop a series of new geothermal projects across Nevada, which will come online between 2028 and 2030.

WHY IT’S IMPORTANT

Geothermal is gaining ground as a swift, carbon-free alternative to nuclear. Because it avoids the ‌intermittency issues of wind ⁠and solar, the sector is seeing a massive resurgence, driven largely by Big Tech’s need to fuel ⁠power-hungry AI data centers.

Ormat said the agreement provides a scalable way for utilities and major users such as Google to invest in clean, ​reliable ​power while covering all service costs.

CONTEXT

U.S. ​power consumption is expected ‌to rise through this year and the next, the Energy Information Administration said in its Short-Term Energy Outlook last month, driven by a rapid build-out of data centers for AI and cryptocurrency, alongside a shift by homes and businesses toward electric heating and ‌transport.

Geothermal power producers have found new customers ​in Big Tech as the Silicon ​Valley companies scour for ​the vast amounts of electricity needed for their ‌AI expansion plans.

MARKET REACTION

Shares of Ormat ​surged over 4.7% ​to $1243.54.

KEY QUOTES

“By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that ​fully covers all ‌costs associated with our electric service,” said Briana Kobor, ​Head of Energy Market Innovation, Google.

(Reporting by Varun Sahay in ​Bengaluru; Editing by Tasim Zahid)