Geothermal energy is the quiet, stewing giant of renewable power—deep beneath our feet, ready to be tapped. Unlike the solar panels dotting rooftops or wind turbines whirling off the coast, geothermal energy is an old, almost subterranean secret. It lacks the instant visual appeal of its flashier renewable cousins, but what it does have is consistency. Geothermal is always on, never needing the sun to shine or the wind to blow. The earth, after all, doesn’t stop being hot. This promise of baseload power—electricity available around the clock—could make geothermal a darling of the green energy revolution. In this guide, we’ll explore the top geothermal energy stocks, ranked by their pure-play focus.
The trouble with geothermal is, frankly, in the logistics. To harness it, you need to dig—deep. Unlike wind and solar, which have benefited from falling costs driven by mass production, geothermal energy requires bespoke exploration projects. It’s not unlike drilling for oil, just without the decades of proven paydays. In general, investors hate bespoke. They crave scalability, predictability, the idea that once you’ve figured out how to crack a problem, the solution can be rolled out across continents like an iPhone assembly line. But geothermal doesn’t quite fit that mold; the sites are geologically unique, and the development costs are daunting. The financial markets have, so far, regarded it as the awkward stepchild of renewables.
However, there are signs that this narrative is shifting. Advances in drilling technology—ironically borrowed from the fossil fuel industry—are making geothermal projects more economically feasible. The risk profile is also changing as governments, desperate for dependable, emission-free energy, begin to roll out subsidies and policy incentives to lure in private capital. The most bullish investors see the geothermal market today as akin to where offshore wind was fifteen years ago: a speculative bet, sure, but one that might just be sitting on the edge of an exponential curve.
Note: We make every effort to keep our info accurate and up-to-date. However, emerging tech moves fast and company situations can change overnight. This guide is an intro to the geothermal energy market; but ultimately, do your own due diligence before taking action.
How to Invest in Geothermal Energy
The challenge to investing in geothermal energy companies is that they’re not easy to find. While solar and wind have sprouted entire ecosystems of “pure-play” stocks, geothermal is still struggling to create its own market niche. The companies that are working the hardest in geothermal tend to be either small, high-risk startups or diversified energy players—big firms with geothermal divisions that might be a footnote on their balance sheets.
For example, Ormat is one of the few pure-play geothermal stocks that you can buy on the market. But beyond that, you start to enter a terrain where geothermal is mixed in with other business lines. You might look at Enel Green Power, a subsidiary of the Italian energy giant Enel, which runs a significant geothermal operation—but also has its hands in solar, wind, and hydro. Or even Chevron, an unexpected name, which has invested in geothermal over the years, but hardly as a core venture.
Of course, for those willing to dance around the edges, clean energy ETFs provide another route. But if you’re going this route, it’s important to understand that geothermal is not the centerpiece. You’re buying the whole buffet, and geothermal is just one of the lesser-known dishes. The bulk of these ETFs are in wind and solar, leaving geothermal as a small supporting actor. If you’re looking for exposure specifically to the geothermal energy market, the most reliable way will still be to target pure-play geothermal energy stocks—few as they may be.
Geothermal Energy Stocks Ranked by Pure-Play Focus
Geothermal energy is a niche segment with unique challenges. Here are the top players, ordered by their level of commitment to geothermal. While some are relatively pure-play geothermal energy stocks, others are considerably more diversified.
Ormat Technologies (ORA)
Ormat (ORA) delivers consistent baseload power as the leading pure-play geothermal company.
Founded in 1965, the Nevada-based company has gradually evolved from a small industrial outfit making turbines to a vertically integrated force that develops, builds, owns, and operates geothermal power plants across the globe. This sort of quiet longevity in a niche energy sector has earned Ormat something of a cult status. Among renewable energy aficionados, Ormat represents a dependable, if somewhat unglamorous, stalwart in a sea of fluctuating trends.
Ormat owns and operates around 1.2 gigawatts (GW) of geothermal and recovered energy power assets. This accounts for a significant chunk of the ~16 GW global geothermal market. While wind and solar can measure their output in hundreds of gigawatts, geothermal’s total footprint remains small. But here’s where it gets interesting: geothermal energy operates at a stunningly high capacity factor of around 90%. To put that into perspective, solar generally manages 20-30%, while wind hovers somewhere between 30-40%. Ormat’s power plants produce energy almost continuously, more akin to a traditional fossil fuel plant than a renewable installation.
However, geothermal’s biggest Achilles’ heel is that it’s geographically constrained. You can’t drill for geothermal energy just anywhere; you need fault lines, tectonic activity, and the right geology. That’s why Ormat’s projects are clustered in locations like Nevada, Kenya, and Guatemala — places where the earth itself is eager to oblige. The company has leaned into these geographical limitations by expanding its portfolio to include energy storage, as an alternative avenue for growth.
Ormat’s business is one that wins by not losing. While solar and wind have to worry about cloudy days and windless nights, Ormat’s plants are pumping electrons into the grid, rain or shine. This stability has allowed Ormat to maintain gross margins upwards of 30% over the years, giving it a fortress-like resilience against the price volatility that so often whipsaws the renewable energy industry. Thus, Ormat is a company that investors buy for its defensive attributes rather than its explosive growth.
Polaris Renewable Energy (RAMPF)
Polaris (RAMPF) offers high-risk, high-reward exposure to geothermal in Nicaragua.
Among geothermal energy stocks, Polaris represents a relatively high-risk, high-reward play: it’s a small-cap stock that manages to occupy an outsized position in an underdog market. Headquartered in Toronto, Canada, the company’s primary geothermal asset is the San Jacinto-Tizate plant in Nicaragua, which churns out a respectable 72 MW of baseload power. Nicaragua is considered a high-risk, high-reward jurisdiction. It’s off the radar for most Western investors but rich in geothermal potential, thanks to its tectonic activity.
San Jacinto-Tizate is their key revenue driver, and Polaris has a Power Purchase Agreement (PPA) with Nicaraguan utility company Disnorte-Dissur that stretches out until 2039. This fixed-term, inflation-linked PPA is essentially the financial bedrock of the company. There’s stability in the contract, but there’s also vulnerability—dependence on a single asset in a country with political volatility is an obvious risk.
The numbers are telling. In 2023, Polaris reported $78 million in revenue, with much of it coming from the San Jacinto operation. Their cash flows are robust enough for dividends, which is impressive for a renewable energy company of their size, yielding around 5%—enough to keep a few dividend-hunters sniffing around. While Polaris also has hydroelectric assets in Peru and solar in the Dominican Republic, it’s hard to ignore that the company’s heartbeat remains tied to Nicaragua. Any shakeup in that country will send a ripple through Polaris’s prospects.
Enel SpA (ENLAY)
Enel (ENLAY) leverages decades of geothermal expertise as part of its global renewable portfolio.
Enel, Italy’s sprawling energy giant, has a bit of everything. It’s the kind of company that’s hard to fit neatly into any one box—it’s a utility, a grid operator, a renewable energy powerhouse. And, buried within its labyrinthine structure, it’s a geothermal pioneer. Enel Green Power, the subsidiary responsible for renewables, is one of the world’s leaders in geothermal energy, and that gives Enel a unique edge.
They’ve been harnessing geothermal power from Tuscany’s volcanic underbelly for decades—before “renewable” became a buzzword or a political imperative. The Larderello fields, with over 800 MW of installed capacity, make Tuscany a quiet epicenter of European geothermal energy. About 12% of Enel’s revenue is attributed to Enel Green Power. Their geothermal contribution is a small slice of a much larger pie, but it’s not insignificant.
The company has also been expanding its geothermal expertise into other parts of the world—like Chile, where the Cerro Pabellón geothermal plant, the first of its kind in South America, is up and running. Enel’s game is scale. It’s an operator that sees geothermal as part of a diversified renewable arsenal, making it feel particularly “balanced” among geothermal energy stocks.
Innergex Renewable Energy (INGXF)
Innergex (INGXF) targets geothermal and lithium potential in California’s Salton Sea.
The Montreal-based Innergex has long pursued a diversified renewable strategy. Their portfolio has over 3,500 MW of capacity spanning Canada, the United States, France, and Chile. The company’s journey into geothermal started with its acquisition of a stake in the Hell’s Kitchen geothermal project in the Salton Sea, California. It’s a region that has become a crucible for the geothermal faith—one of the hottest potential sites for lithium and geothermal extraction.
The project, in partnership with EnergySource LLC, is set to produce 135 megawatts (MW) of electricity and, interestingly, leverage lithium extraction to meet the growing demand for battery materials. It’s a compelling thesis: let the geothermal well produce not only electrons but also the stuff that makes the batteries to store them.
What makes the geothermal bet particularly interesting is its timing. The Inflation Reduction Act (IRA) in the U.S. has created a new window for geothermal projects. Subsidies are important, as geothermal hasn’t enjoyed the meteoric cost declines that solar and wind have over the past decade. Innergex hopes to capitalize on this regulatory tailwind, knowing full well that the broader market sentiment towards geothermal is still cautious.
Chevron Corporation (CVX)
Chevron (CVX) cautiously explores geothermal as a hedge against its fossil fuel business.
Among all geothermal energy stocks, Chevron’s name might come as a surprise. But it’s a company that straddles an awkward divide: it’s a titan of oil, a champion of the carbon atom, trying to slide into the jeans of a tech company that believes in carbon’s demise. Chevron’s geothermal push has that familiar corporate feel—not reckless optimism, but strategic bets. They’re in the geothermal market not because they’ve had a sudden awakening but because they see what’s on the horizon: a way to future-proof a business model that’s based on energy extraction.
In 2021, Chevron made a splash by announcing its intent to expand its geothermal operations in partnership with other companies, including a collaboration with Baseload Capital, a Swedish investment firm focused on geothermal. And this is very Chevron—partnerships and joint ventures that minimize risk while exploring opportunities. The company isn’t exactly abandoning its offshore rigs, but it is trying to turn its considerable expertise in subsurface exploration toward something more sustainable.
Chevron’s financial firepower allows them to explore these emerging technologies without betting the house. Geothermal, with its promise of consistent baseload energy, feels like a logical sideline play—a hedge. But let’s be clear: Chevron is not leading this market; they are dipping a well-calibrated toe into it. The company may be skilled at drilling—but whether they are willing to scale up their geothermal investments beyond a publicity-friendly pilot phase remains to be seen.