DOE Announces $171.5M for Next-Gen Geothermal Energy Development
WASHINGTON – The U.S. Department of Energy (DOE) announced $171.5 million in funding on Wednesday to support the advancement of geothermal energy, with a focus on next-generation field-scale tests and exploration drilling. The initiative, unveiled February 25, 2026, aims to bolster domestic energy production and reduce reliance on traditional fuel sources, aligning with President Trump’s “Unleashing American Energy” executive order.
According to the DOE, the funding will be allocated across six topics, with the initial round of applications focusing on enhanced geothermal systems and characterization of hydrothermal resources. The goal is to de-risk geothermal development and attract private investment, ultimately increasing the amount of geothermal power on the U.S. Grid.
“Operate 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,” said Kyle Haustveit, Assistant Secretary of the Hydrocarbons and Geothermal Energy Office. He added that the demonstrations and drilling activities are intended to unlock the potential of geothermal energy to support domestic manufacturing, data center growth, and provide reliable energy solutions nationwide.
While the United States currently leads the world in installed geothermal electricity capacity, with approximately four gigawatts, DOE analysis indicates a potential for at least 300 gigawatts of geothermal power by 2050. This represents a significant expansion of current capacity and underscores the administration’s commitment to geothermal energy as a key component of the nation’s energy portfolio.
The 2025 U.S. Geothermal Market Report, developed by the National Laboratory of the Rockies and Geothermal Rising, highlights a steady growth in geothermal power production since 2020, with a current installed capacity of 3.97 gigawatts-electric. The report notes the signing of 26 new power purchase agreements as of June 2025, signaling increasing industry confidence and investment.
The International Energy Agency (IEA) predicts that, if project costs continue to decline, geothermal energy could meet 15% of the growth in global electricity demand between 2024 and 2050. This potential is driving renewed interest and investment in geothermal technologies, including next-generation systems that tap into deeper, hotter rock formations.
Letters of Intent for the funding opportunity are due March 27, 2026, with full applications expected by April 30, 2026. The DOE has not yet indicated how it will prioritize applications or what criteria will be used to evaluate proposals.