The US Department of Energy unveiled a new round of federal funding on September 21, allocating $99 million to advance geothermal energy technologies. The initiative distributes resources across 21 selected projects, with the majority focused on exploring and assessing geothermal resources suitable for next-generation systems, while an additional set of projects will conduct real-world validation testing. DOE officials emphasized the program’s alignment with broader energy policy objectives centered on strengthening domestic energy production and developing reliable, cost-effective power sources.
Geothermal energy currently represents approximately 1% of utility-scale power generation in the United States. The funded initiatives aim to reduce technical and development risks while generating publicly accessible data through the DOE Geothermal Data Repository, allowing findings from individual projects to inform industry-wide exploration and technology advancement efforts. Among the selected projects is Quaise Energy’s Project Obsidian in central Oregon, which received up to $25 million to develop what the company describes as a commercial superhot geothermal facility capable of accessing subsurface heat resources across diverse geographic locations.
Private investment has also supported geothermal development, with Sage Geosystems securing $100 million in Series B funding earlier this year through a partnership with Ormat Technologies. The companies announced plans to deploy enhanced geothermal systems technology at Ormat’s Blue Mountain facility in Nevada under Project Vector, with drilling expected to commence before the end of this year and electricity generation anticipated to begin next year. Sage’s approach utilizes a two-well system designed to demonstrate higher power output with reduced water consumption compared to other enhanced geothermal methodologies.
Geothermal energy’s inclusion in the Trump administration’s energy policy framework represents a notable exception within a platform predominantly emphasizing fossil fuel and nuclear development. While solar and wind resources have faced policy headwinds, the administration’s “American Energy Dominance” strategy extends support to geothermal, hydropower, and biomass as domestic renewable alternatives. The geothermal sector’s potential to provide firm, dispatchable power has garnered renewed attention alongside continued efforts to address the technical and regulatory hurdles facing broader industry scale-up.
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