Research Note: Ormat Energy Converter (OEC)
Who is Ormat Technologies?
Ormat Technologies Inc. is an international company, based at 6884 Sierra Center Parkway, Reno, Nevada 89511, USA, that serves as the world's only vertically integrated pure-play geothermal company, designing, developing, building, owning, manufacturing, and operating geothermal power plants worldwide. The company was originally established in 1965 in Yavne, Israel, by engineer Lucien Bronicki and his wife Yehudit "Dita" Bronicki, before incorporating as a U.S. entity in 1994 and completing an IPO on the New York Stock Exchange in 2004. Ormat has built over 190 power plants and installed over 3,200 MW of capacity globally, currently owning and operating 933 MW of geothermal and recovered energy based power plants across more than 30 countries. The company operates three primary business segments: electricity generation through owned power plants, product manufacturing and sales of geothermal equipment, and energy storage solutions for grid stability. Ormat reported total revenues of $880 million in 2024, representing a 6.1% increase compared to 2023, while maintaining its position as a global leader in renewable energy solutions.
What is Ormat Energy Converter (OEC)?
The Ormat Energy Converter (OEC) is a proprietary power generation unit that converts low, medium, and high-temperature heat into electrical energy using innovative Organic Rankine Cycle (ORC) technology developed by Ormat Technologies. The OEC system consists of key components including a vaporizer/preheater, turbo-generator, air-cooled or water-cooled condenser, feed pump, and sophisticated control systems that work together as an integrated power generation solution. Ormat's OEC technology is protected by 192 patents and patent applications worldwide, including 58 patents issued in the U.S. and 39 pending, representing decades of research and development in thermal energy conversion. These modular units are designed with capacities ranging from 200 kW to 130 MW and can be combined into larger power plants, utilizing locally available heat sources including geothermal energy, recovered waste heat, and solar energy. The OEC represents a state-of-the-art implementation of closed-loop organic Rankine cycle technology that enables efficient electricity generation from heat sources that would otherwise be considered unsuitable for power generation using conventional steam turbine technology.
Why is Ormat Energy Converter (OEC) uniquely suited as the best solution for Geothermal Projects?
The OEC is uniquely suited for geothermal projects because it utilizes organic working fluids with lower boiling points than water, enabling efficient power generation from relatively low-temperature geothermal resources that conventional steam turbines cannot economically harness. The technology's modular design allows for flexible deployment across diverse geothermal resource types, from high-temperature conventional steam fields to lower-temperature binary cycle applications, with proven reliability demonstrated by installations like the 1984 Wabuska facility that continues operating today after over 40 years. Ormat's OEC systems are specifically optimized for geothermal applications with 100% geothermal fluid reinjection capability, ensuring sustainable reservoir management while producing zero emissions and consuming no water or chemicals during operation. The technology is best suited for binary cycle geothermal projects utilizing medium to low-temperature resources (150-350°F), combined cycle applications that maximize efficiency from high-temperature resources, and recovered energy generation projects that capture waste heat from industrial processes. OEC systems excel in challenging environments and remote locations where traditional power generation would be impractical, making them ideal for geothermal developments in emerging markets, industrial waste heat recovery applications, and distributed renewable energy projects requiring reliable baseload power generation.