A state company Geoterma has been created at the year 1991, to develop and deepen the research for geothermal production. We are taking part in investigations of geothermal energy resources how to improve its extraction technology and a comprehensive integrated utilization of human economic activity. At the year 1992 the company was reorganized into the Lithuanian branch of the state's energy system - a company “Geoterma ", which in 1996 reorganized into a JSC “Lithuanian energy” branch “GEOTERMA”.

The first geothermal wells of Lithuania were drilled in Vydmantai at the year 1989, their depth of more than two kilometers. Wells were tested in 1993-1994 year, the geothermal water temperature reached 74° C. The wells belonged to Vydmantai market-garden and it was planned to build geothermal power plant and provide heat for greenhouses and Vydmantai settlement, but the bankruptcy of gardening and destroyed greenhouses, so there were no heat users left and power plant wasn’t build. Vydmantai geothermal wells are conserved and include in JSC “GEOTERMA” balance sheet.

Current conditions of Vydmantai geothermal wells could be used for the installation of fitness - rehabilitation, treatment and recreation complex. Cooperation with experts from the “Petroleum Geology Investigators” (leader Lars Tallbaca) and funding Kingdom of Danish was prepared the Baltic geothermal energy project, which assessed the possibility of geothermal energy in Lithuania, i.e. low temperature (25-80 º C) highly mineralized ground water for heating buildings and the preparation of hot water. According to these studies as the optimal model of geothermal power plant construction was chosen Klaipėda city.

Lithuanian Government has established Joint Stock Company “GEOTERMA” in 22 December of 1995 at resolution No.1609  "For establishment of Joint Stock Company “GEOTERMA" and construction of Klaipėda demonstration geothermal plant”. By this resolution JSC “GEOTERMA” had to build model of Klaipėda demonstration geothermal plant and supply heat to the city of Klaipėda district heating network.

In 1 March of 1996 company registered in Vilnius business register, by address A. Juozapavičiaus Street 13, Vilnius. After building a model of Klaipėda demonstration geothermal plant, the company has changed its location from Vilnius to Klaipėda. In 22 May of 2002 company re-registered in Klaipėda municipality. Register number AB-96. Company address Lypkių str. 53, Klaipėda.