SLB and Ormat Technologies Partner to Advance Hydrothermal and Enhanced Geothermal Systems

Strategic Insights -

SLB, a global technology company, and Ormat Technologies, a leading geothermal and renewable energy company, have announced a partnership to fast-track the development and commercialization of integrated geothermal assets, including enhanced geothermal systems (EGS). The collaboration aims to unlock geothermal energy in regions beyond where conventional geothermal resources exist, leveraging Ormat's expertise in power plant design, development, and operations, and SLB's strengths in subsurface, reservoir engineering, and well construction. The joint effort will include the design and construction of an EGS pilot at an Ormat site, demonstrating the feasibility of commercial-scale EGS deployment.

Key Takeaways:

  • The partnership between SLB and Ormat Technologies will co-develop and deploy integrated geothermal assets and EGS systems designed for optimal long-term performance.
  • The collaboration will include the design and construction of an EGS pilot at an existing Ormat facility, covering all aspects of the development cycle and validating commercial-scale EGS deployment.
  • The joint project aims to make both traditional hydrothermal and EGS technologies truly competitive and commercially viable, with a focus on large-scale EGS commercialization for independent power producers, utilities, and other customers.
  • The U.S. Department of Energy estimates that next-generation geothermal could provide 90 GW by 2050, and potentially up to 300 GW in the U.S. alone.
  • The pilot project will fast-track the development of a complete set of new technologies and techniques needed for EGS, as well as optimizing integration with surface facilities to maximize production and sustainability.
  • The partnership aims to advance the commercial viability of EGS technologies and represents a significant step forward in the geothermal industry.
  • Ormat expects to expand its development pipeline following a successful pilot and is committed to delivering reliable, sustainable, and efficient energy solutions to meet the demands of AI, data centers, and the broader energy transition.

Statistics:

  • The U.S. Department of Energy estimates that next-generation geothermal could provide 90 GW by 2050.
  • The Department also estimates that potentially up to 300 GW of next-generation geothermal energy could be available in the U.S. alone.
  • SLB has a global footprint in over 100 countries and employees representing almost twice as many nationalities.
  • Ormat Technologies owns, operates, designs, manufactures, and sells geothermal and recovered energy generation power plants.
  • The Company has engineered, manufactured, and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity.
  • Ormat's current total generating portfolio is 1,618 MW with a 1,268 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 350 MW energy storage portfolio that is located in the U.S.

Sources:

  • SLB press release, "SLB and Ormat Technologies Partner to Advance Hydrothermal and Enhanced Geothermal Systems," October 25, 2023.
  • Ormat Technologies press release, "Ormat Technologies, Inc. Completes Significant Milestone in Advancing Commercial-Scale Enhanced Geothermal Systems," March 20, 2020.
  • U.S. Department of Energy, "Next-Generation Geothermal Energy: A Guide to Opportunities and Challenges," January 2022.