Geothermal Stocks Overview
Tom Konrad CFA Geothermal power generation has several advantages over higher profile alternative energy such as wind and solar, but gets much less attention. Part of the lack of recognition for Geothermal power arises from a confusion with the technology variously called Geoexchange, Ground Source Heat Pump, or Geothermal Heat Pumps. Geoexchange uses the near constant temperature of the soil a few feet to a few hundred feet below the ground to heat and cool a building. According to the Environmental Protection Agency, Geoexchange is the most efficient way to heat and cool a building, and...
Three Top Geothermal E&P Companies
Tom Konrad CFA
Last week, I was on a panel at the Inside Commodities Conference, and spent some time talking with Tyler Mordy, director of research at Hahn Investment. He's a top-down analyst (and CFA Charter holder) who had recently grown enthusiastic about Alternative Energy in general because the sector is so beaten down.
We agreed that the most-beaten down sector of alternative is geothermal power stocks, which Tyler finds frustrating because Hahn works with managed ETF portfolios, and there simply is no geothermal ETF. Nor is there likely to be, since one publicly traded company dominates the industry (Ormat Technologies...
Ormat Technologies, Inc. Completes Well Re-drilling at Puna Geothermal Project in Hawaii
Ormat Technologies (ORA) announced that Ormat subsidiary, Puna Geothermal Venture ("PGV"), completed the re-drilling of an existing production well at the Puna Geothermal Project (the "Puna Project") located on the Big Island, Hawaii. The well re-drilling increased net generating capacity of the power plant by approximately 4 MW, bringing total net generating capacity to approximately 29 MW.
Geothermal Power: Business in a Tough Neighborhood
Geothermal power producers use Earth’s internal heat to power electrical generators. It is the quintessential renewable energy source. Most geothermal plants are located adjacent to underground pockets of super hot water. Developers look for locations where these thermal reservoirs are near the earth’s surface, providing availability of the super hot water at a reasonable cost. Unfortunately, those locations are often in tough neighborhoods.
Ring of Fire
The overwhelming majority (85%) of current geothermal power installations in the world are located along the Ring of Fire that circumvents the Pacific Ocean. More a horseshoe than a circle, the Ring of Fire is a geographic anomaly that is...
Polaris Infrastructure: Deleveraged, Derisked
By Tom Konrad, Ph.D., CFA
Geothermal power is a type of renewable electricity that even the most conservative electric utilities find it easy to get behind. Like conventional coal and gas plants, it uses heat to drive a turbine which in turn creates electricity. The main difference is that the heat comes from natural geologic processes, rather than burning fossil fuels, making it renewable and free of greenhouse gas emissions, giving it considerable environmental appeal as well.
Where Geothermal Developers Stumble
The problem lies in the resource. The potential for producing power from solar, wind, and hydropower at any location can be...
Geothermal: The Other Base Load Power
Last Thursday and Friday I attended the Geopowering the West Investors' Forum in Montrose, CO (hosted by the Delta-Montrose Electric Association, Colorado's most progressive Rural Electric Cooperative.) I've long been interested in geothermal stocks, and I first started adding them to managed portfolios in 2003. As a whole, those stocks have more than doubled in the 1-4 years since they were purchased. Fundamental Advantages of Geothermal Electricity Why did I make those first purchases? Geothermal power has some unique advantages over other forms of renewable energy. Geothermal is base load power. Utilities have a strong preference towards...
Can the Geothermal Industry Overcome Challenges to Raising Capital?
By Jane Pater Salmon, Navigant Consulting Geothermal energy presents baseload clean energy at a lower cost than many other renewable energy alternatives. Despite this compelling value proposition, long development horizons and the risks associated with exploration and drilling activities present hurdles to developing the country's rich geothermal potential. Financing projects that use conventional geothermal technology remains challenging in the uncertain economic environment. In the past year, geothermal project developers used alternative strategies to overcome three common challenges to geothermal project finance. While the challenges for raising capital at the project level are consistent with those faced in...
Geothermal Heat Pumps: The Next Generation
Tom Konrad CFA The most efficient way to heat and cool a building just got more efficient. Geothermal heat pump diagram via Bigstock Climatemaster, a division of LSB Industries (NYSE:LXU), recently announced that their new Trilogy 40 geothermal heat pump (GHP) had been certified by the Air Conditioning, Heating, and Refrigeration Institute (AHRI) to exceed 40 Energy Efficiency Ratio (EER) under ground loop conditions. EER is the ratio of effective cooling (heat removed) to the energy used, at maximal load, and is the standard...
New York to rely more on renewable power
New York will dramatically boost its reliance on renewable energy sources like wind and water over the next nine years under a policy approved by state regulators Wednesday. Clean energy advocates and state officials said the action by the state Public Service Commission places New York among the leaders nationwide in the development of renewable energy. It comes 20 months after Gov. George Pataki first called for a statewide standard that would encourage the production of environmentally friendly energy.
FPL Group in Talks to Buy Constellation Energy Group
FPL Group Inc (FPL) is currently in the advanced stages of negotiations to acquire Constellation Energy Group (CEG). An FPL-Constellation merger would create a giant East Coast-based utility with a market capitalization, based on Tuesday's closing stock prices, of $26.97 billion - $16.93 billion for FPL and $10.04 billion for Constellation. Constellation Energy Group is based out of Baltimore Maryland and is the holding company for Baltimore Gas and Electric. They also have an extensive presence in the wholesale power supply and generation business. The Power Generation Division currently uses 4.6% alternative sources for power generation. ...
Nevada Geothermal Power Inc.: Drilling Resumes at Blue Mountain Geothermal Site
Nevada Geothermal Power Inc. (NGLPF) reported that the next phase of development is underway at its Blue Mountain Geothermal site, with drilling to deepen the Deep Blue 2 (DB2) well by an additional 700 metres (2,300 feet). "We are investigating a potential deep - hotter production zone that would make Blue Mountain's economics extremely robust," said Brian Fairbank President and CEO. "A deep high temperature resource would allow us to use more efficient and cost effective 'dual-flash' technology similar to the 60MW power plant at the Dixie Valley high temperature field in Nevada. A Monte Carlo simulation...
Nevada Geothermal Power Inc.: Blue Mountain Drilling Results DB-2 Test Indicate Potential Shallow Geothermal...
Nevada Geothermal Power Inc. (NGLPF) is pleased to report on recent flow and injection testing of Deep Blue No.2 (DB-2) which penetrated the upper reaches of the geothermal resource, and an eight-hole temperature gradient drilling program at the Blue Mountain project in Nevada. The program has provided positive information on production capability of the inferred resource and expanded the known extent of the thermal anomaly.
Oil Money Needed for Geothermal Projects
By Dana Blankenhorn Despite America's leadership in geothermal the industry remains in the “and” category. As in, “solar, wind, tidal, biofuels AND geothermal.” It's an afterthought. (Picture from Evergreen State University.) Why are geothermal companies having to organize politically to gain crumbs from the capital table? The answer is pretty obvious, but no one seems willing to state it plainly. The oil industry is holding back. A recent Time Magazine article on renewables and oil investment makes it pretty plain. Total's bought into solar, Shell and BP into biofuels. Chile's state oil-and-gas company sold-out its geothermal interests...
List of Geothermal Stocks
Geothermal stocks are publicly traded companies whose business involves using the earth's heat energy for productive use, such as generating electricity and space and process heat.
This list was last updated on 10/27/2020.
Calpine Corp. (CPN) Bought out. No longer publicly traded.
Climeon AB (CLIME-B.ST)
Contact Energy Limited (CEN.NZ, COENF)
Enel SpA (ENEL.MI, ESOCF)
Energy Development Corporation (EGDCY)
Innergex Renewable Energy Inc. (INE.TO, INGXF)
Mercury NZ Limited (MCY.NZ)
NIBE Industrier AB (NIBE-B.ST, NDRBF)
Ormat (ORA)
Ormat Industries (ORMT.TA)
Polaris Infrastructure Inc. (PIF.TO, RAMPF)
If you know of any geothermal stock that is not listed here and should be, please let us know by leaving a comment. Also for stocks in the...
Colorado Voters Approve Amendment 37
Colorado voters have approved an amendment requiring utilities to get part of their electricity from the sun, wind or plant and animal waste. The amendment requires the state's seven largest utilities to get a portion of their retail electricity sales from renewables, beginning with 3 percent in 2007 and climbing to 10 percent by 2015. Four percent of the renewables should be solar sources.
Drill for Geothermal Power in Developing Countries and on King Street
Tom Konrad CFA Hezy Ram Geothermal industry veteran Hezy Ram has worked in the industry for over three decades. His career began with 28 years of experience at Ormat (ORA), where he was Executive Vice President of Business Development, after which he founded Ram Power Corp. (RPG.TO/RAMPF.PK) in 2009. In February, he resigned as CEO of Ram Power shortly after the company warned of significant delays and cost overruns at a key Nicaraguan project, a move he says was motivated by irreconcilable differences with other board members and major shareholders regarding the company's strategy. Today,...
