Ormat Technologies has been selected for up to $35 million in US Department of Energy funding to support two geothermal research projects. The company develops geothermal and energy storage assets, selling firm, carbon-free power to buyers like data centres and industrial customers. The grant is small relative to Ormat's overall capital spending, but it signals federal backing for geothermal as a reliable complement to wind and solar. Shares are trading near $93, down roughly 18% year to date, and the stock's valuation remains a point of debate. Ormat trades around 45 times earnings, far above the global renewable average of about 15 times. Extended production and investment tax credits through at least 2033 improve the project finance picture, but the high multiple and reliance on Chinese batteries are real risks. For now, the DOE grant is a modest catalyst tied to a bigger question about whether growth expectations justify the price.
