U.S. Energy Department Announces $171.5 Million to Support Geothermal Exploration

The U.S. Energy Department on Feb. 25 announced a $171.5 million funding opportunity to support next-generation geothermal field-scale testing and exploration drilling aimed at expanding reliable domestic power supply. The initiative focuses on enhanced geothermal systems and advanced drilling to improve resource characterization and confirm promising geothermal prospects across the country.

The opportunity is designed to advance geothermal technology and innovation while supporting the objectives of President Trump’s Executive Order, Unleashing American Energy. By improving exploration methods and validating new development approaches, the program seeks to unlock geothermal energy’s potential to provide affordable, round-the-clock electricity nationwide.

The funding structure includes six topic areas with varying award levels. The first application round will open two topics focused on field demonstrations of enhanced geothermal systems and drilling to characterize next-generation and hydrothermal resources. These efforts aim to reduce geological uncertainty and technical risk that have historically limited geothermal expansion.

The U.S. currently leads the world in geothermal electricity capacity with about 4 gigawatts installed. However, the department’s analysis indicates the nation could deploy at least 300 gigawatts of flexible, reliable geothermal capacity by 2050. Projects funded through this opportunity are expected to help de-risk development sites, attract private investment, and accelerate industry growth.

Letters of intent are due March 27, and full applications must be submitted by April 30.