The U.S. government is offering $171.5 million in grants for field tests to generate electricity and conduct exploratory drilling to commercialize geothermal energy.
Spearheading the funding is the U.S. Department of Energy under a Notice of Funding Opportunity called “Next-Generation Geothermal Field Tests and Geothermal Resource Characterization Confirmation.”
Kyle Haustveit, DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, announced the grant opportunity Feb. 25.
“Work under this opportunity will directly support our commitments to advance energy addition, reduce energy costs for American families and businesses, and unleash American energy dominance and innovation,” Haustveit said. “These demonstrations and drilling activities will help us realize the enormous potential of geothermal to spur domestic manufacturing, enable data center growth, and provide affordable, reliable, and secure energy solutions nationwide.”
Geothermal Energy
Geothermal energy is defined as heat energy from the earth using existing natural or artificial reservoirs of hot water at different temperatures and depths below the ground.
“Wells ranging from a few feet to several miles deep can be drilled into underground reservoirs to tap steam and very hot water that can be brought to the surface for use in a variety of applications,” DOE notes.
Producers in Seven States
U.S. geothermal plants generated 17 billion kilowatthours amounting to 0.4% of total utility-scale electricity generated nationally in 2023, according to the U.S. Energy Information Administration.
The following states had geothermal power plants:
- California,
- Nevada,
- Utah,
- Hawaii,
- Oregon,
- Idaho, and
- New Mexico.
Federal Grants to Advance Commercialization
The DOE grants will support six types of projects in different rounds of grant awards.
- Enhanced geothermal system field tests at sites having potential for electricity generation.
- Closed-loop field tests in which new well drilling or additional drilling in an existing well will be required.
- Closed-loop field tests without drilling where existing wells are used.
- Super-hot/supercritical field tests using next-generation approaches at sites where temperatures over 375°C are expected.
- Direct use/thermal field tests involving next-generation approaches for an eventual direct use of thermal energy without generating electricity.
- Drilling for next-generation and hydrothermal resource exploration, characterization, and confirmation to gather data and conduct tests, especially at unexamined geologic formations or sites.
According to the DOE, the U.S. is thought to have untapped energy resources capable of generating at least 300 gigawatts of reliable, flexible geothermal power for the national electric grid by 2050.
The agency’s objective is for the federal government to offer financial assistance resulting in greater geothermal development to “encourage private investment, spur industry growth, and help realize the country’s geothermal potential.”
DOE has set a March 27 deadline to receive letters of intent, with full grant applications due April 30.
