U.S. Energy Department to Invest $20 Million in Geothermal Drilling Technology Projects

The U.S. Energy Department on Feb. 4 announced up to $20 million in funding to lower the cost of geothermal energy development through faster drilling technologies that will speed up project development. The agency aims to lower the cost of geothermal drilling by significant amounts, which can account for more than half of a project’s total cost. The funding will support demonstration projects that will encourage more investment in geothermal energy, which can be a reliable, zero-carbon source of energy all year round. By supporting fossil energy communities in their efforts to build upon their existing energy infrastructure, this initiative advances President Biden’s long-term goals of driving innovation and economic growth in zero-carbon industries.

The department’s Geothermal Technologies Office leads the Drilling Demos initiative, which builds on advancements in geothermal drilling technologies that streamline drilling time and enhance penetration rates in laboratories. These demonstrations will speed the advancement of geothermal drilling from the lab to the marketplace. To increase the average daily drilling penetration rate of geothermal wells, the geothermal office is soliciting proposals from drilling services companies, geothermal operators, well service providers, developers, and research institutions. The application process is open to commercial as well as government-sponsored operation companies.

Since geothermal energy does not rely on favorable weather conditions, it has the highest capacity factor of all renewable energy sources. In June 2021, the California Public Utilities Commission set a goal of developing 11,500 megawatts of new capacity by 2026, including 1,000 megawatts of renewable energy at 80% capacity factor or greater with zero emission. There are already two geothermal plants planned: Casa Diablo IV (30 megawatts), part of the Mammoth Geothermal Complex near Mammoth Mountain, and Hell’s Kitchen (50 megawatts) in the Salton Trough of Southern California.

Letters of intent must be submitted by Apr. 4 and full applications must be submitted by June 3.