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The US allocates US$171.5 million to promote geothermal energy

The DOE will fund field tests and drilling to develop and evaluate geothermal resources for electricity generation.
Trabajadores operan una plataforma de perforación para proyectos de geothermal energy y caracterización de recursos del subsuelo.

The Department of Energy will finance field tests and drilling aimed at evaluating geothermal resources for electricity generation in the United States.

DOE promotes new geothermal energy testing

He United States Department of Energy (DOE) announced a financing opportunity of up to US$171.5 million aimed at the development of geothermal energy next generation and to the evaluation of hydrothermal resources.

The call for proposals includes field-scale geothermal testing and drilling work to explore, characterize, and potentially confirm resources capable of supporting future power generation projects.

According to the DOE, the tests must be conducted at appropriate depths and temperatures to evaluate technologies under real-world conditions and move towards commercial-scale projects.

Up to 28 geothermal projects may receive funding

Furthermore, the Geothermal Energy Office plans to carry out up to 28 awards during the first round each project will be able to receive between US$4 million and US$25 million.

The call for proposals may remain open for a maximum of 72 months, during that period, evaluation cycles are planned approximately every 12 months as long as funds are available and subject to the budgetary allocations of Congress.

The program currently divides resources between two open areas, the Thematic Area 1 it has up to US$100 million available for testing improved geothermal systems, while the Thematic Area 6 it includes up to US$71.5 million for drilling, exploration, characterization and confirmation of resources.

Improved geothermal systems enter field testing

A central part of the call is dedicated to the enhanced geothermal systems (EGS) this technology seeks to harness the heat available in underground formations through techniques that allow the development of resources suitable for producing electricity.

The selected projects will have to test technologies and methods under on-site conditions, in this way, the DOE intends to obtain information about their behavior before moving on to larger-scale developments.

In addition, the tests will allow the collection of technical data on the subsoil and the determination of which approaches offer the best conditions for further development.

Drilling to confirm geothermal resources

The second focus is on drilling wells for the exploration, characterization and confirmation of geothermal resources. Up to are reserved for this area US$71.5 million and are expected between 8 and 18 awards the wells must reach target formations where there is sufficient prior data to indicate potential for geothermal energy production.

Drilling will allow direct information to be obtained about subsurface conditions, this data can help determine if a resource has suitable characteristics to continue to later stages of development.

DOE seeks to reduce the risk of geothermal exploration

Furthermore, the initiative is part of the Geothermal Energy Office’s research, development and demonstration activities in EGS systems and hydrothermal resources.

The organization seeks to validate technologies, reduce costs, and improve the performance of geothermal systems. Another objective is to expand knowledge of the subsurface to facilitate the use of available thermal resources USA.

Field testing and exploratory drilling will also generate data under real-world conditions, with this information, the DOE hopes to guide future research priorities and reduce the technological and geological uncertainty the industry faces during the early stages of projects.

Geothermal call for proposals keeps two areas open

For the first round, two of the six areas planned in the call are open, areas 2, 3, 4 and 5 remain closed during this cycle. Within the program, the DOE uses the term next generation geothermal energy to encompass both enhanced geothermal systems and closed-loop geothermal technologies.

The call for applications also establishes the March 27, 2026 as a deadline for letters of intent and the May 14, 2026 for complete applications. Selections are scheduled for September 2026.

Source: U.S. Department of Energy

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