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DOE Awards $99 Million for Geothermal Pilot Projects

By Drooid · · How we work

Funding Announcement and Project Overview

On September 21, the U.S. Department of Energy announced the selection of 21 projects to receive up to $99 million in federal funding. The grants will support field-scale tests of next-generation geothermal technologies and exploration drilling aimed at identifying promising geothermal resources across the United States. Five of the projects focus on enhanced geothermal systems (EGS), while the remaining sixteen concentrate on exploration drilling.

Participating Companies and Geographic Focus

Recipients include Fervo Energy, which was chosen for two separate efforts—a field-scale EGS demonstration in Idaho and an exploration drilling project in Nevada. Other awardees are Quaise Energy, Zanskar Geothermal, XGS Energy, and Invenergy. The funded work is intended to adapt oil-and-gas drilling techniques for tapping underground heat, a method that has drawn increasing interest from investors and energy firms seeking reliable, round-the-clock power generation.

Official Statements & Responses

DOE officials indicated that the program will generate data that will be placed in the agency’s Geothermal Data Repository, making the results publicly available to guide future technology development and resource exploration. The department framed the initiative as a step toward lowering costs, strengthening U.S. energy dominance, and expanding the use of domestic geothermal resources for affordable electricity.

Verbatim Quote

“These projects will empower American innovators to unlock the tremendous geothermal resources beneath our feet,” — DOE Under Secretary, of Energy Kyle Haustveit

Why It Matters

Geothermal energy is emerging as one of the fastest-growing segments of the U.S. power sector. By funding both EGS demonstrations and exploratory drilling, the Department of Energy aims to accelerate the commercialization of technologies that could provide continuous, low-carbon electricity and diversify the nation’s energy mix.