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Energy enters a new phase with Ormat’s investment in next-generation geothermal technology, testing at an existing plant, and a plan to transform underground heat and storage into a long-term commercial bet
Geothermal energy received a new boost with the announcement from Ormat Technologies, which decided to invest $25 million in the startup Sage Geosystems in a Series B round exceeding $97 million. The operation was announced on January 21, 2026, in Reno, Nevada, marking an important step in the attempt to accelerate solutions capable of extracting heat from dry, hot rocks, taking this model to a new phase of power generation and storage on a commercial scale.
The move is noteworthy because it comes from a company with more than five decades of experience in the geothermal sector, now deciding to expand its bet on more advanced technologies. In addition to the financial investment, Ormat wants to test Sage’s proprietary technology at an existing geothermal plant, aiming to accelerate the launch of next-generation solutions and pave the way for new plants and energy storage projects.
What Ormat announced and why it caught the market’s attention
Ormat announced that it is co-leading, alongside Carbon Direct Capital, Sage Geosystems’ Series B round. The goal is to support the advancement of geothermal generation and energy storage solutions developed by the company, including the construction of its first next-generation commercial geothermal plant.
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In practice, the announcement shows that Ormat does not just want to follow the sector’s evolution but participate directly in the next stage. The company treats the investment as a milestone within its strategy to expand its presence in Enhanced Geothermal Systems, also known as EGS, and accelerate the commercialization of more sophisticated underground energy technologies.
How the new technology aims to extract heat from dry, hot rocks
Sage intends to test its technology called Pressure Geothermal at a geothermal plant already operated by Ormat. The proposal is to use this system to extract heat from dry, hot rocks, a type of resource that can significantly expand the reach of geothermal energy beyond traditionally more favorable areas.
This point is important because it helps explain why the project has gained so much weight. Instead of relying solely on more conventional geothermal conditions, the new technology seeks to open up space for a broader and more adaptable generation of energy, with the potential to supply new plants and also strengthen energy storage.
The numbers that explain the size of the bet
Ormat’s direct investment in Sage was $25 million, within a Series B round that exceeded $97 million. This volume alone shows that the sector sees value in the possibility of transforming advanced geothermal technology into concrete commercial application.
Ormat’s own numbers also help to give dimension to the movement. The company claims to have designed, manufactured, and built plants totaling approximately 3,600 MW of gross capacity worldwide. Its current generation portfolio totals 1,695 MW, with 1,310 MW of geothermal and solar generation and 385 MW of energy storage, concentrated in the United States.
What changes for geothermal and energy storage
If the test of Sage’s technology is successful, Ormat will have the right to develop, build, own, and operate geothermal plants and storage projects using this solution. This changes the game because it connects technical innovation to a clear path of industrial deployment.
In practice, this combination can accelerate a new stage in the sector. Instead of being restricted to the laboratory or isolated demonstrations, the technology now has a direct bridge with an already established company, capable of transforming research into commercial energy projects with scale and international presence.
Why Ormat enters this new phase with such weight
The strength of the movement also comes from Ormat’s history. The company presents itself as a leader in geothermal energy and as the only vertically integrated company operating in geothermal generation and energy recovery. Over more than five decades, it has built a presence in markets such as the United States, Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.
This history makes a difference because it gives the investment more weight than a simple financial investment. When a company with this trajectory puts capital and structure into a new technology, the market tends to read the movement as a sign of long-term confidence in the expansion of advanced geothermal energy.
What the company wants to build from this investment
According to Ormat’s CEO, Doron Blachar, the partnership reinforces the company’s confidence in Sage’s pressure technology and aligns with the strategy to drive geothermal innovation, accelerate the arrival of new products to the market, and expand the deployment of geothermal energy in the global energy landscape.
This shows that the company is not just looking at an isolated project. The ambition is to expand its portfolio, gain new capabilities, and create space for more consistent, renewable energy generation with greater integration between production and storage.
How this investment connects to the energy transition
Geothermal energy has growing appeal because it offers a source of clean energy capable of operating continuously, without directly depending on sun or wind at the same pace as other renewables. When combined with storage systems, it can gain even more relevance within the energy transition.
In this context, the investment by Ormat and Sage draws attention by trying to tackle two points at the same time: expanding geothermal generation capacity and strengthening storage technologies. This combination can help build a more stable energy system, with lower emissions and greater commercial response capacity.
The next steps for Sage’s technology
The next step will be testing the technology at an existing Ormat geothermal plant. This pilot is the decisive point to validate the ability to extract heat from dry, hot rocks and, from there, accelerate the solution’s entry into the market.
If the testing phase confirms the expected potential, Ormat may advance to the development of plants and storage projects based on this technology. It is precisely this possibility that transforms the announcement into something bigger than an investment round and puts advanced geothermal energy under a new spotlight.
In your view, can geothermal energy become one of the major commercial bets of the energy transition in the coming years?
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