US DOE Awards $99 Million to Advance Geothermal Drilling and Technology

The U.S. Department of Energy announced on Monday it has selected 21 projects to receive up to $99 million in funding to accelerate the development of geothermal energy. The initiative is designed to advance next-generation technologies and identify new resources for this source of continuous, carbon-free power.

Project Breakdown and Recipients

The funding will support field-scale tests and exploration drilling across the United States. The projects are divided into two main categories:

• Enhanced Geothermal Systems (EGS): Five projects will conduct field tests of EGS technologies, which aim to create geothermal reservoirs in hot rock that lacks the natural permeability to produce energy.
• Exploration Drilling: Sixteen projects will focus on drilling to identify and confirm the viability of promising new geothermal resources.

According to the DOE announcement, recipients include several prominent companies in the sector. Fervo Energy was selected for two projects, an EGS demonstration in Idaho and exploration drilling in Nevada. Other companies awarded funding include Quaise Energy, Zanskar Geothermal, XGS Energy, and Invenergy.

Strategic Goals and Data Sharing

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The DOE stated that all data generated by the funded projects will be made publicly available through its Geothermal Data Repository. This open-access approach is intended to reduce risk and guide future technology development and private-sector exploration efforts.

"These projects will empower American innovators to unlock the tremendous geothermal resources beneath our feet," DOE Under Secretary of Energy Kyle Haustveit said in a statement. "Under President Trump’s leadership, we’re advancing next-generation geothermal technologies that can lower costs, strengthen American energy dominance, and turn more of our vast domestic geothermal resources into reliable and affordable power."

Market Context and Investor Interest

This federal investment comes as geothermal energy gains significant traction with investors and energy companies. Unlike intermittent renewables like solar and wind, geothermal provides a source of around-the-clock baseload power, making it a critical component for grid stability.

The sector is also benefiting from technological crossover from the fossil fuel industry. Developers are increasingly adapting advanced drilling techniques pioneered in oil and gas to more effectively and economically tap underground heat for electricity generation.