(WO) – SLB and Ormat Technologies have entered a strategic agreement to fast-track the development and commercialization of integrated geothermal assets, including enhanced geothermal systems (EGS). The partnership aims to scale next-generation geothermal solutions capable of delivering clean, reliable baseload energy in regions beyond traditional hydrothermal resources.
As part of the agreement, the two companies will co-develop and deploy integrated geothermal and EGS technologies, leveraging SLB’s subsurface, reservoir, and well-construction expertise alongside Ormat’s experience in geothermal power-plant design and operations. The collaboration includes a pilot EGS project at an existing Ormat facility to demonstrate commercial-scale performance and validate deployment across broader markets.
“There is an urgent need to meet the growing demand for energy driven by AI and other factors. This requires accelerating the path to clean and reliable energy,” said Gavin Rennick, president of New Energy at SLB. “By partnering with Ormat, we will make both traditional hydrothermal and EGS technologies truly competitive and commercially viable systems that can scale quickly to meet global energy demand.”
Following the pilot, SLB and Ormat plan to pursue global commercialization of EGS technologies for independent power producers, utilities, and large-scale energy users such as data-center operators. The partnership will focus on improving system efficiency, reducing drilling and completion costs, and optimizing surface-facility integration for long-term sustainability.
“As the global energy transition progresses and AI-driven demand increases, scalable and sustainable energy solutions are more critical than ever,” said Doron Blachar, CEO of Ormat Technologies. “By combining the world’s leading experts in subsurface and geothermal technologies, we will accelerate the path to rapid deployment of commercial-scale EGS facilities.”
EGS creates engineered thermal reservoirs by circulating water through naturally hot rock, transferring heat to the surface for power generation. The U.S. Department of Energy estimates that next-generation geothermal could supply up to 300 GW of power domestically by 2050 — nearly one-third of total U.S. generating capacity.
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