By Ted Leinbach
President Barack Obama’s Administration will allocate a significant amount of capital – $150 billion – to America’s renewable energy future over the next four years.
And while many top-tier firms in different sectors of the renewable energy spectrum stand to benefit, there is one company proving to be a prominent recipient why it belongs with the big-boys.
Headquartered in Nevada, a state that is proving to be the linchpin of geothermal energy security, Ormat Technologies, Inc. (NYSE: ORA) is a leading geothermal and recovered-energy power producer.
For more than two decades, ORA has been constructing and designing geothermal plants that utilize local energy sources.
And Ormat’s geothermal optimization strategy is very cost-effective, and at the same time generates huge revenue. How? By tapping unused geothermal energy.
Repowering existing geothermal plants creates additional generating capacity, without any additional resource development costs. ORA owns four recovered energy generation plants here in the United States, and 11 total in the world.
Plus, Ormat recently announced that two more recovered energy generation facilities reached commercial operating status in December 2008 and January 2009. Bottom line, this company is charging full steam ahead, and reducing the emissions from it in the process.
But the company also holds a strong reputation as a major international player. ORA recently secured a $65 million contract for a new geothermal power plant that is to be constructed in Costa Rica.
Even more impressive is that this happens to be a repeat contract from Costa Rica – a true testament to the reliability and effectiveness of Ormat’s renewable energy solutions in the world’s electricity markets.
The stock is simply a steal at current levels. Even after the recent fallout in the markets, this stock is up 107% since 2005. Plus, it stands to benefit handsomely from Obama’s new government-backed green boom.