DOE Announces $171MM to Expand USA Geothermal Energy

The U.S. Department of Energy (DOE) announced Wednesday $171.5 million “to expand U.S. geothermal energy”.

In a statement posted on its website, the DOE announced the funding opportunity “to support next generation geothermal field scale tests for both electricity generation and exploration drilling to support characterization and potential confirmation of promising geothermal prospects”.

“The activities enabled by this opportunity will help deliver on President Trump’s Executive Order, Unleashing American Energy, by advancing geothermal technology, innovation, and exploration, in turn supporting the potential for geothermal energy to provide affordable, reliable, around the clock domestic electricity to Americans nationwide,” the DOE added.

The funding opportunity of $171.5 million includes six topics, “with varied levels of funding and awards anticipated”, the statement highlighted. It noted that, for the first round of applications, two of the six topics will be open, “seeking field tests for enhanced geothermal systems and drilling for next-generation and hydrothermal resource characterization/confirmation”.

Letters of Intent for the opportunity are due March 27 and full applications are due April 30, the DOE said.

“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,” DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit said in the statement.

“Thanks to President Trump’s America First Energy Agenda, 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,” he added.

In the statement, the DOE said the U.S. leads the world in geothermal electricity capacity with about four gigawatts but noted that DOE analysis “shows the potential for at least 300 gigawatts of reliable, flexible geothermal power on the U.S. grid by 2050”.

“Projects under this opportunity are expected to help derisk geothermal development approaches and locations nationwide, which can encourage private investment, spur industry growth, and help realize the country’s geothermal potential,” the DOE pointed out.

Last month, the DOE announced that its Geothermal Technologies Office (GTO) had launched a new, 13 state effort to expand the use of firm, flexible geothermal power on the nation’s grid.

“Led by the National Association of State Energy Officials (NASEO), the Geothermal Power Accelerator will work with participating states to set statewide geothermal goals, strengthen resource mapping, and advance policies and programs that reduce project costs and address regulatory barriers,” a statement posted on the DOE’s site in January noted.

“State Energy Offices from Arizona, California, Colorado, Hawai’i, Idaho, Louisiana, Montana, Nevada, New Mexico, Oregon, Pennsylvania, Utah, and West Virginia will collaborate with federal partners and industry leaders to identify solutions that drive geothermal investment and deployment,” it added.

“Work will start with a series of strategy sessions and policy discussions in partnership with federal agencies and private-sector experts to shape targeted state actions in 2026,” the statement continued.

An explainer page on the U.S. Energy Information Administration (EIA) website states that geothermal energy is heat within the earth.

“Geothermal energy is a renewable energy source because heat is continuously produced inside the earth,” the explainer page states.

“People use geothermal heat for bathing, for heating buildings, and for generating electricity,” it adds.

In a release sent to Rigzone in November 2025, Rystad Energy stated that global geothermal investment is entering a period of accelerated growth. The company outlined in that release that, according to Rystad’s latest geothermal economics model at the time, capital expenditure was expected to climb about 20 percent annually through 2030.

“This momentum comes as geothermal energy, produced by tapping heat from deep within the earth, is no longer defined only by mature hubs in Southeast Asia and the United States,” the company said.

“Interest in regions such as Africa and Europe has been building at a measured pace, contributing to a steady broadening of activity worldwide,” it added.

“Meanwhile, the distribution of spending remains relatively stable across development categories due to consistent cost structures in drilling, surface facilities and steamfield infrastructure,” it continued.

To contact the author, email andreas.exarheas@rigzone.com