Shares of electric motor maker Raser Technologies Inc. soared Thursday after the company said it reached a deal to work with industrial giant United Technologies Corp. on power plants that that use the earth’s heat to generate electricity.

Financial terms of the deal were not disclosed, but the companies said the agreement could lead to a “long-term relationship.”

A United Technologies (nyse: UTX – news – people ) subsidiary, UTC Power, is to provide Raser with up to 135 power systems for geothermal plants that draw heat from deep within the Earth’s crust to drive turbines that produce electricity.

Raser has announced lease deals to develop geothermal plants on properties in Utah and Nevada.

The systems built by United Technologies subsidiary UTC Power are able to generate about 30 megawatts of electricity and will be used on three of Raser’s plants. Delivery is scheduled to start in the fourth quarter.

Jan van Dokkum, president of UTC Power, said in a prepared statement that the system will enable geothermal plants to be developed at locations with lower underground temperatures than has been possible in the past.

Raser said earlier this month that it raised $12.5 million from a private placement of 2.7 million shares of restricted common stock priced at $4.65 per share. The company plans to use the proceeds to accelerate its geothermal drilling program.

Shares of Raser closed up $1.85, or 25.7 percent, to $9.05 on the New York Stock Exchange’s Arca trading platform. Over the past year, the stock has traded between $3.11 and $19.50, and is up nearly 18 percent year-to-date.

Shares of United Technologies rose 66 cents to finish at $64.74 on the New York Stock Exchange.