Geothermal energy is emerging as one of the few issues capable of attracting strong support from both Democrats and Republicans in the United States, with policymakers increasingly viewing the technology as a key component of the country’s future energy mix.
The growing interest centres on next-generation geothermal systems that can tap into deeper and hotter underground resources than traditional geothermal plants, significantly expanding the areas where the technology can be deployed.
The low-carbon nature of geothermal energy has made it attractive to liberals seeking cleaner power sources, while conservatives have embraced its potential to strengthen US energy independence and utilise drilling expertise already developed in the oil and gas sector.
Several US states are already moving to speed up permits for geothermal projects, and in April, lawmakers from both parties introduced the Next-Generation Geothermal Research and Development Act. The proposed legislation would direct the Department of Energy to support research, development and commercialisation of advanced geothermal technologies.
One of the most promising innovations is known as Enhanced Geothermal Systems (EGS). The technology involves hydraulically fracturing underground rock by injecting pressurised fluid into one well and extracting steam or hot water through another. The process relies on fracking techniques widely used in the oil and gas industry.
Climate economist Gernot Wagner believes the similarities between geothermal and fossil-fuel drilling methods are significant, but says the environmental outcomes are dramatically different. While acknowledging concerns over potential seismic activity from underground fracturing, he argues that the benefits of a renewable, constant and large-scale energy source far outweigh the risks.
Advancements in drilling technology are also helping transform the sector. Companies are developing equipment capable of operating in extremely high temperatures and hard rock formations, while some firms are experimenting with methods that do not rely on traditional drill bits.
Among the industry’s most innovative companies is Quaise Energy, a company that originated from research at the Massachusetts Institute of Technology. The firm is using millimetre-wave drilling technology, which employs electromagnetic waves similar to microwaves to melt and vaporise rock.
According to Quaise communications manager Harry Kelso, the technology could make super-hot geothermal resources accessible in nearly any region of the world. Unlike conventional drills, which wear down rapidly in hard rock and require costly replacement of drill bits, millimetre-wave technology avoids physical contact with the rock entirely.
Water use remains another critical issue for advanced geothermal systems. Some technologies have raised concerns about water consumption and contamination risks, but companies like Quaise say their systems are designed to recycle water continuously after the initial filling process.
Quaise is currently raising additional funding with the goal of bringing its Oregon geothermal project online by 2030. Although the company acknowledges that geothermal remains expensive to develop, it believes access to temperatures ranging from 300°C to 500°C could dramatically improve efficiency and economics.
Kelso said higher temperatures could produce up to ten times more energy from each well, potentially transforming geothermal into a highly competitive power source.
Investor interest in the sector has also accelerated. In May, Fervo Energy became the first next-generation geothermal company to list publicly, achieving an initial valuation of approximately $7.7 billion. Since its market debut, the company’s shares have risen by around 18%.
Fervo estimates that its Utah project costs around $7,000 per kilowatt of electricity capacity, a figure comparable to traditional nuclear energy projects. However, the company points out that geothermal plants avoid the ongoing fuel costs associated with fossil fuel and nuclear generation.
The company has already secured a major customer through an agreement signed in 2021 to supply electricity to Google, whose expanding data centres require vast amounts of power. Fervo also receives backing from Breakthrough Energy, the clean-energy investment initiative founded by Bill Gates.
Despite the growing momentum, challenges remain. The International Energy Agency has warned that customer demand and project costs remain uncertain, while climate organisation Project Drawdown has highlighted the risk of cost overruns for early geothermal projects.
Nevertheless, supporters remain optimistic. Wagner argues that unlike fossil fuels, which are vulnerable to geopolitical disruptions and supply shocks, geothermal energy is fundamentally a technology-driven resource that can become more efficient and affordable over time.
As investment increases and drilling innovations continue to advance, next-generation geothermal energy is increasingly being viewed as a promising solution capable of delivering reliable, low-carbon electricity while strengthening long-term energy security in the United States.
