Geothermal energy is an alternative to wind and solar. It offers stability and low emissions but it’s still an early-stage market. Read on to discover how you can invest in geothermal energy stocks.
#What is Geothermal Energy?
Geothermal energy refers to heat derived from the Earth's internal thermal energy. Geothermal power is the electricity generated by harnessing this geothermal energy.
The primary technologies for generating geothermal power include:
Dry Steam Power Stations: Utilize steam extracted directly from geothermal reservoirs to drive turbines.
Flash Steam Power Stations: Pull high-pressure hot water from the ground, allowing it to vaporize or "flash" into steam to drive turbines.
Binary Cycle Power Stations: Transfer heat from geothermal water to a secondary fluid with a lower boiling point, which then vaporizes to drive turbines.
As of 20231, geothermal electricity generation is utilized in 32 countries. Geothermal heating applications are in use in 70 countries.
#How Does Geothermal Energy Production Work?
Geothermal power plants harness heat from the Earth by drilling wells into underground reservoirs to access hot water and steam. This steam drives turbines connected to generators, producing electricity. The process emits minimal greenhouse gases, making it a clean energy source.
These plants are typically located in regions with geothermal activity, such as areas near hot springs, geysers, or volcanic regions, where underground heat is closer to the surface.
Top Energy, a New Zealand electricity network provider, owns and operates the Ngāwhā Geothermal Power Station in Northland, New Zealand. The station utilizes geothermal resources from the Ngāwhā Springs area, known for its therapeutic hot water springs. The latest expansion of the plant was commissioned in 2021, adding 32 MW of capacity.
There are many private companies involved in geothermal energy, but the number of publicly listed geothermal-focused companies remains limited. Some notable examples include Ormat Technologies (NYSE: ORA), Polaris Renewable Energy Inc. (TSX: PIF), and Berkshire Hathaway Energy (NYSE: BRK.B).
Here are a selection of geothermal stocks operating today.
#Geothermal Energy Stocks
#Ormat Technologies (NYSE: ORA)
Ormat Technologies, Inc. (NYSE: ORA) is a leading renewable energy company focused on geothermal and recovered energy generation, energy storage, and related equipment manufacturing. Headquartered in Reno, Nevada, it operates under three main business segments:
Electricity Generation: Ormat owns and operates geothermal and recovered energy power plants around the world. It sells the electricity generated to utilities and large customers under long-term power purchase agreements.
Product Manufacturing: The company designs, manufactures, and sells equipment that enables others to produce geothermal and recovered energy. This includes turbines and other power units, with customers ranging from developers to utilities.
Energy Storage: Ormat develops and operates battery energy storage systems, offering services to utilities, retail energy providers, and commercial and industrial clients. This segment supports grid stability and complements intermittent renewable energy sources.
Founded in 1965, Ormat went public on the New York Stock Exchange in 2004 under the ticker symbol ORA. It is one of the few pure-play geothermal stocks listed in the US.
Growth Strategy and Project Pipeline
Ormat continues to expand its geothermal and energy storage footprint through organic development, acquisitions, and international partnerships. Its development pipeline includes projects in the US, Latin America, Asia-Pacific, and East Africa.
Notable activities in recent years include:
Expansion of geothermal operations in Nevada through strategic acquisitions and plant upgrades
A long-term development agreement for a 50MW geothermal facility in New Zealand
A financing agreement to advance geothermal projects in Indonesia
Ongoing growth in battery storage installations, particularly in California and Texas
Challenges and Regulatory Landscape
Like many clean energy developers, Ormat must navigate evolving regulatory environments. In the US, it has encountered both support and opposition. While it received federal approval to explore geothermal opportunities in Nevada, the project has faced legal challenges from environmental and community groups concerned about land use near protected areas.
Despite such headwinds, Ormat continues to engage with regulators and stakeholders to advance its projects in line with environmental standards.
Why It Matters
Ormat plays a critical role in the shift toward zero-emission, baseload renewable power. Geothermal energy offers a high-capacity, 24/7 power solution that complements variable solar and wind resources. With global interest in grid reliability and decarbonization accelerating, Ormat is positioned to benefit from increasing demand for clean, dispatchable energy.
#Berkshire Hathaway Energy (NYSE: BRK.B)
Berkshire Hathaway Energy (NYSE: BRK.B) is the energy and utilities business within Warren Buffett’s Berkshire Hathaway portfolio. Headquartered in Des Moines, Iowa, it operates a diversified mix of regulated utilities and independent power projects across the United States and internationally.
BHE Renewables, one of its subsidiaries, focuses on renewable energy projects. It holds ownership interests in nearly 5,000 net megawatts of generating capacity from wind, solar, geothermal, and hydroelectric sources. These assets deliver power under long-term contracts to utilities and other customers across the U.S.
In California’s Imperial Valley, BHE Renewables operates ten geothermal facilities through CalEnergy Operations, with a combined capacity of up to 345 megawatts.
PacifiCorp, another Berkshire Hathaway Energy subsidiary, serves customers across six western states. It operates a broad portfolio of generation assets, including thermal, hydro, wind, and solar facilities. Its thermal power generation includes electricity from coal, natural gas, and geothermal resources, supporting grid reliability during periods of peak demand.
Berkshire Hathaway Energy’s integrated strategy emphasizes long-term infrastructure investment, decarbonization, and grid modernization, while maintaining a strong focus on customer affordability and operational reliability.
#Polaris Renewable Energy Inc (TSX: PIF) (OTCMKTS: RAMPF)
Polaris Renewable Energy Inc (TSX: PIF) (OTCMKTS: RAMPF) is a Canadian company with geothermal and hydroelectric projects across Latin America and the Caribbean. Its diversified portfolio includes geothermal, hydroelectric, solar, and wind power facilities. Its geothermal operations include the San Jacinto-Tizate Geothermal Plant, Nicaragua, located in northwestern Nicaragua. This facility boasts an installed capacity of approximately 82 megawatts (MW), generating between 435 to 500 gigawatt-hours (GWh) annually.
#Eversource Energy (NYSE: ES)
Eversource Energy (NYSE: ES) provides electric service across Connecticut, New Hampshire, and western Massachusetts, and distributes natural gas throughout Connecticut. In recent years, the company has begun exploring low-carbon alternatives to traditional fuels, including geothermal energy.
One of its most notable initiatives is a networked geothermal pilot project in Framingham, Massachusetts. Designed to serve approximately 140 customers across nearly 40 buildings, the system replaces individual HVAC units with a shared, underground loop that provides energy-efficient heating and cooling. Participating buildings range from single-family homes to municipal facilities, including a fire station, the Framingham Housing Authority, a cabinet shop, and a local community college.
As of early 2025, Eversource Energy’s networked geothermal pilot project in Framingham is fully operational, delivering heating and cooling to about 135 residential and commercial customers. The system went live in mid-2024 after nearly a year of construction. HVAC conversions have been completed at key locations including a fire station and a Gulf gas station, with final electrical work underway to bring more properties fully online. Eversource continues to fine-tune equipment and restore affected areas as part of the pilot. In December 2024, the project secured $7.8 million in federal funding to support a proposed expansion, which is currently under regulatory review. The two-year testing phase began in early 2025 and will evaluate the potential for broader adoption of geothermal systems across Eversource’s service territory.
#Alphabet (NASDAQ: GOOGL)
Alphabet continues to deepen its involvement in geothermal energy through its partnership with Fervo Energy, a company developing enhanced geothermal systems. This collaboration focuses on using artificial intelligence and machine learning to improve the efficiency and responsiveness of geothermal plants.
In late 2023, Google and Fervo launched a geothermal facility in Nevada that now supplies carbon-free power to local grids and Google’s data centers. Building on this, Google and NV Energy proposed a new clean energy tariff in 2024 that would allow the utility to source 115 megawatts of geothermal power from Fervo for Google’s operations. Fervo has demonstrated significant technical progress by applying advanced drilling techniques and successfully completing a pilot project in Nevada capable of generating 3.5 megawatts of electricity. These initiatives reflect Alphabet’s broader push to scale reliable, clean energy solutions to support the growing demands of its infrastructure.
Google’s director of energy Michael Terrell said:
“As part of our agreement, Google is partnering with Fervo to develop AI and machine learning that could boost the productivity of next-generation geothermal and make it more effective at responding to demand, while also filling in the gaps left by variable renewable energy sources.”
#Climeon (STO: CLIMBE-B)
Swedish firm Climeon develops modular heat power systems that convert low-temperature heat into electricity, offering a clean energy solution for both geothermal and industrial waste heat applications. Based in Sweden, the company specializes in harnessing temperatures typically considered too low for traditional power generation technologies.
Its flagship technology, the Climeon Heat Power system, taps into geothermal heat and residual heat from engines and industrial processes to produce electricity with minimal environmental impact. This system has found early traction in markets with active geothermal development, particularly in Iceland and Japan.
Climeon is currently advancing the next generation of its Heat Power technology, with an initial focus on marine applications. It has collaborated with shipping companies such as Maersk, Virgin Voyages, and Havila Voyages to evaluate and integrate waste heat recovery solutions on board vessels, supporting the maritime industry's shift toward lower carbon emissions.
In Iceland, the Heat Power system continues to operate with high availability at Varmaorka’s Flúðir geothermal plant. Meanwhile, new installations are underway in Japan, underscoring the company's presence in two of the world’s most geothermal-friendly regions.
Though not yet profitable, Climeon continues to invest in technology development, system optimization, and market expansion. In a strategic move to strengthen its financial position, it completed a directed share issue in 2021 to investor Peter Lindell, who became its second-largest shareholder through his company Cidro Förvaltning AB.
Climeon’s long-term goal is to make low-temperature heat a scalable and economically viable source of clean electricity across industries and geographies.
Lena Sundquist, CEO Climeon said:
“Every day, our Heat Power modules deliver renewable electricity to our customers. But that is not enough, we need to go even further, we need to create a product that is more cost-effective and generates more electricity at a lower cost, in order to meet our customers' expectations.”
#Contact Energy Limited (NZX: CEN)
Contact Energy Limited (NZX: CEN) is a leading New Zealand-based energy provider that generates and retails electricity, natural gas, and liquefied petroleum gas. It operates a diversified portfolio of 11 power stations across hydro, geothermal, and gas-fired technologies.
The company continues to expand its geothermal footprint. In 2024, it commissioned the 174MW Tauhara geothermal power station near Taupō—one of the largest geothermal developments in New Zealand. Tauhara now supplies around 3.5% of the country's electricity and powers approximately 200,000 homes. Contact is also constructing an additional 51.4MW geothermal unit at Te Huka, expected to be operational by late 2024.
Geothermal generation plays a central role in Contact Energy’s goal to source 95% of its electricity from renewable sources by 2027. The company complements its baseload geothermal output with solar initiatives like Kōwhai Park, a large-scale solar project under development.
With growing capacity in geothermal and solar, Contact Energy offers investors exposure to a low-emissions electricity market and a resilient, dividend-paying utility positioned for long-term growth.
#What’s the Downside to Geothermal Energy?
Geothermal energy offers clean, reliable, and low-emissions power—but it’s not without its challenges. Despite its advantages, geothermal currently accounts for less than 1% of global electricity generation.
One major barrier is geography. Geothermal energy depends on accessing underground heat reservoirs, which are more easily tapped in regions with high volcanic activity or tectonic movement. This limits viable development to specific areas such as New Zealand, Iceland, parts of the U.S., and the Pacific Ring of Fire. Outside of these zones, exploration and drilling become significantly more expensive and technically complex.
The upfront capital costs for geothermal projects are high. Drilling deep into the earth requires specialized equipment and carries geological risk, especially in unexplored regions. Compared to wind and solar, which benefit from faster installation and more modular deployment, geothermal often faces longer timelines and higher financial hurdles. In many cases, geothermal also remains more expensive per megawatt-hour than utility-scale solar or onshore wind.
That said, geothermal energy does not involve the same environmental concerns as fracking. Hydraulic fracturing involves injecting high-pressure fluids into shale rock formations to extract oil or gas. Geothermal systems typically circulate water through natural or enhanced geothermal reservoirs, transferring heat through a closed loop or flash steam system without breaking apart rock structures in the same way.
Geothermal power has key advantages. It runs 24/7 without dependence on weather, making it one of the few renewable sources capable of providing consistent baseload power. It uses less surface land than wind or solar farms and can be co-located with industrial or residential infrastructure. On the residential side, geothermal heat pumps remain highly efficient, using up to 75% less energy than conventional heating systems.
In the broader market, geothermal and other renewable energy stocks have faced investor headwinds. High interest rates, commodity price pressures, and project delays tied to supply chain disruptions have contributed to near-term weakness—even as long-term demand for clean energy continues to grow. For long-term investors, this could present opportunities in undervalued names focused on scalable, dispatchable green power.