Why Geothermal Could Be the Energy Breakthrough Everyone Agrees On

Watch on YouTube ↗  |  May 03, 2026 at 12:01  |  11:28  |  Bloomberg Markets
Speakers

Summary

The video explores how next-generation enhanced geothermal systems (EGS), using techniques borrowed from oil and gas fracking, could provide reliable baseload power to meet surging U.S. electricity demand from AI data centers. Companies like Ormat and Sage Geosystems are partnering to bring commercial projects online by 2027, with bipartisan political support and private capital flowing in. However, risks around water availability and grid interconnection remain key concerns for investors.

  • U.S. electricity demand is projected to grow by up to 20% over the next decade, driven largely by AI data centers.
  • Geothermal provides 24/7 baseload power, unlike intermittent wind and solar.
  • Enhanced geothermal systems (EGS) use fracking to create fractures in rock, enabling geothermal development in more locations.
  • Ormat Technologies is a major geothermal company with existing plants in the Southwest.
  • Sage Geosystems is partnering with Ormat to drill adjacent wells and use Ormat's power plant to fast-track commercial production.
  • Private capital has invested over $1.5 billion in next-gen geothermal since 2021.
  • Political support for geothermal is bipartisan, with tax credits and land availability expanding.
  • Water availability and grid interconnection are cited as key risks by TD Cowen analyst Jeff Osborne.
Trade Ideas
Doron Blachar CEO, The Floor 1:07
Geothermal baseload power essential for AI.
Sage Geosystems' partnership with Ormat allows drilling adjacent to Ormat's existing geothermal field and feeding hot water into Ormat's power plant, reducing project timeline by 1.5 years and enabling commercial scale by 2027. This collaboration leverages Ormat's infrastructure to accelerate deployment and drive returns, with a term sheet already in place with Meta for 150 MW.
ORA MED
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This Bloomberg Markets video, published May 03, 2026, features Doron Blachar discussing ORA. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Doron Blachar  · Tickers: ORA