Geothermal power is emerging as a favored clean energy source in the United States, receiving bipartisan backing amid the ongoing development of innovative projects. The Trump administration has largely refrained from criticizing this renewable energy sector, which benefits from financial support initiated during the Biden administration. In July 2023, President Trump signed budget legislation that maintained key tax credits vital for the geothermal industry, allowing companies to explore and expand their operations.
Over recent years, energy companies and startups have significantly increased investments in research and development for advanced geothermal technologies. This surge of activity has led to promising advancements that may enhance the future of clean energy production. Historically, societies around the world have harnessed geothermal energy from natural heat sources for centuries. In the last five decades, technological innovations have enabled companies to access deeper geothermal reserves by drilling boreholes that can reach several kilometers underground, where temperatures can reach around 200°C.
The process involves injecting water and sand at high pressure into these boreholes, creating fractures in the surrounding rocks. This technique improves permeability and generates reservoirs of hot water that can be extracted through secondary boreholes for electricity generation. Despite its potential, geothermal energy currently accounts for just 0.4 percent of the U.S. energy mix due to the geographical and technological challenges associated with accessing these geothermal reservoirs.
Innovative Techniques Propel Development
Many existing geothermal plants depend on naturally occurring reservoirs of hot water and steam, primarily located in regions such as Northern California and Nevada. However, innovative companies are now exploring new methods to tap into geothermal resources, utilizing techniques borrowed from oil fracking. For instance, Sage Geothermal has developed a cycle-based heat recovery approach that enhances power generation efficiency.
Cindy Taff, CEO of Sage Geothermal, explained the advantages of their method, stating, “By using the natural elasticity of the rock, we can bring hot water to the surface without pumps. Unlike traditional approaches, we maintain pressure in the system rather than venting it at the surface.” This technique reduces friction and energy losses, resulting in a net power output increase of 25 to 50 percent compared to conventional geothermal technologies.
In August 2023, Sage Geothermal announced a partnership with the international geothermal energy developer, Ormat Technologies, aiming to implement their next-generation technology at an Ormat facility in either Nevada or Utah. This collaboration is expected to accelerate the development timeline for Sage’s first commercial power-generation facility by approximately two years. Taff remarked, “For us, the ability to scale faster with Ormat is huge… But it’s also a great opportunity for Ormat to reach a deeper [geothermal] resource than what they’re targeting now.”
Further advancing the geothermal landscape, Sage signed an agreement with Fervo Energy in September 2023 to combine efforts in geothermal extraction methodologies. Fervo Energy, which recently partnered with tech giant Google to supply clean power, has also been active in advancing geothermal projects. The company received approval from the Department of the Interior to deploy 2 GW of geothermal power in Beaver County, Utah, with plans to commence power generation in 2026.
Strategic Partnerships and Future Outlook
Fervo Energy has developed an Enhanced Geothermal Systems (EGS) proprietary technology that allows horizontal drilling into geothermal reservoirs, enabling access to multiple wells from a single location. This method holds promise for expanding unconventional geothermal energy generation. Recently, Fervo secured a contract with Baker Hughes to supply essential equipment for its Cape Station project in Utah, which is projected to produce 300 MW of electricity, enough to power around 180,000 homes.
Baker Hughes CEO Lorenzo Simonelli expressed optimism about geothermal energy’s potential, stating, “Geothermal power is one of several renewable energy sources expanding globally and proving to be a vital contributor to advancing sustainable energy development.” Collaborations such as these are critical in scaling lower-carbon power solutions, especially as demand for energy continues to grow.
In September, notable figures including Bill Gates visited Fervo Energy’s Cape Station project, where Gates praised the company’s horizontal drilling technique as “a truly innovative approach.” He emphasized the role of companies like Fervo in enhancing America’s energy independence, noting, “Geothermal is one of the most promising ways to deliver clean energy that’s reliable and affordable.”
As the future of renewable energy in the United States faces uncertainty, particularly concerning solar and wind power, the geothermal sector seems to have maintained robust governmental support. The promising investments in innovative extraction technologies signal a bright outlook for the commercial rollout of geothermal energy across the nation.
