Ormat and Invenergy top US geothermal lease auction in Nevada

what happened

The US government sold geothermal energy leases in Nevada on Tuesday, with winning bids totaling nearly $4.5 million. Bids were placed on 60 of 83 parcels offered by the Bureau of Land Management, leaving 69 leases covering 186,641 acres, according to results posted on a government website, Reuters reports.

Ormat took eight parcels on about 20,000 acres for $2.29 million and placed the highest bid of the auction, $201 per acre for a 3,841-acre parcel in White Pine County. Invenergy won nine parcels on 37,000 acres for $694,947, making it the largest winner by acreage. Some parcels overlap with planned solar projects, including NextEra Energy's Sawtooth project.

This was the fourth of six federal geothermal auctions in 2026 and the first this year in Nevada. The administration presents geothermal power as a steady source of electricity for demand linked to artificial intelligence.

why it matters

For markets, the sale signals growing interest in geothermal power as a steady source of electricity for data centers. Competition was concentrated in a few parcels, and more than a third of leases sold at the $2 minimum, so the price impact is likely limited.

market impact

US power sector: rising interest in geothermal projects for data center demand, no direct effect on oil and gas

tags

instruments