The United States is moving to expand geothermal energy through new federal funding, even though the current energy policy of President Donald Trump’s administration clearly leans toward fossil fuels and nuclear energy. On September 21, the U.S. Department of Energy announced the allocation of $99 million to support 21 projects testing next-generation geothermal energy technologies.
The move comes as demand for electricity increases because of data centers, while public debate is focused on the role of natural gas in closing the supply gap. Geothermal energy offers a non-fossil alternative that could, in theory, produce electricity steadily, independent of fluctuations in weather and the time of day.
What Does the Program Fund?
The largest portion of the funding will go to 16 projects to explore and assess geothermal energy resources using advanced technologies, while the grant will be allocated to five other projects to test these technologies under actual operating conditions. According to the Department of Energy, the initiative aims to reduce technical and development risks and provide data that will help attract subsequent investments and commercial projects.
The data generated by these projects will not remain exclusive to the implementing entities; the department intends to make it available through the Geothermal Data Repository. This could expand the value of the funding beyond the directly supported sites by helping other companies develop technologies and explore resources.
Obsidian Project Tests Ultra-High-Temperature Heat
Among the selected projects, Quaise Energy could receive up to $25 million to develop Project Obsidian in central Oregon. The company describes the project as the first commercial ultra-hot geothermal energy plant, with the goal of developing a model that can be replicated in different regions.
Quaise’s vision relies on reaching extremely hot rocks and using them to produce clean, stable electricity. However, the source explains that the projects were selected only for funding, while the process of completing the grants and negotiating funding awards is still ongoing.
What Is Changing in Practice?
The program’s importance lies in its attempt to move geothermal energy from geographically limited projects toward resources that can be exploited using modern drilling and exploration technologies. The article refers to an assessment by the U.S. Geological Survey estimating that 135 gigawatts of extractable geothermal energy exist in the Great Basin region, which covers most of Nevada.
The speed of access to electricity is also a prominent factor in another project led by Sage Geosystems in cooperation with Ormat Technologies. In Project Vector in Nevada, Sage will use enhanced geothermal systems technology at the existing Blue Mountain plant, taking advantage of existing generation capacity and transmission lines. The company expects to begin drilling before the end of 2026, produce electricity in 2027, and reach full expansion in 2028, if no regulatory or permitting obstacles arise.
certi.news Analysis
The actual development is not a complete shift of U.S. energy toward geothermal power, but rather the emergence of limited alignment around a technology that serves different objectives: reducing reliance on fossil fuels, providing stable electricity, and strengthening what the U.S. administration calls energy dominance. Advanced geothermal energy benefits from the expertise of the oilfield services sector in drilling, which explains its ability to attract support from entities connected to the traditional energy industry.
Nevertheless, funding alone does not prove commercial viability. Geothermal energy’s share still stands at approximately 1% of utility-scale electricity generation in the United States, and the supported projects have not yet become operating commercial plants. Drilling costs, demonstrating the performance of enhanced geothermal reservoir systems, water losses, permitting, and questions about the ability of experimental models to scale remain factors that will determine whether this momentum turns into broad generating capacity.