The U.S. Department of Energy (DOE) has announced a funding opportunity totaling $171.5 million aimed at advancing geothermal energy in the United States. The initiative is intended to support field-scale tests for electricity generation and exploration drilling, with the goal of improving the understanding and potential confirmation of promising geothermal resources.
According to DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit, "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. 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."
This funding opportunity includes six different topics with various levels of funding anticipated. In its first phase, two topics are open: field tests for enhanced geothermal systems and drilling projects that focus on next-generation hydrothermal resource characterization or confirmation.
The United States currently leads globally in geothermal electricity capacity with about four gigawatts installed. However, DOE analysis suggests there is potential for at least 300 gigawatts of reliable geothermal power on the U.S. grid by 2050. The new projects supported by this funding are expected to reduce risks associated with developing new geothermal sites across the country. This could encourage more private investment in the sector as well as industry expansion.
Interested applicants must submit Letters of Intent by March 27, 2026; full applications are due April 30, 2026.
In recent years, DOE has also launched several other initiatives related to clean energy advancement:
- In July 2022, DOE announced a $225 million program funded by President Biden’s Bipartisan Infrastructure Law to help implement up-to-date building energy codes that aim to improve resilience and efficiency in buildings (more information).
- On July 21, 2022, Secretary Jennifer Granholm released a video inviting international partners to collaborate on clean energy transition efforts at an upcoming global forum (see video).
- Also in July 2022, DOE announced $96 million in funding opportunities focused on decarbonizing transportation through expanded electric vehicle charging access and technology improvements (read more).
- On July 25, 2022, DOE highlighted that it now supports over 140 programs aligned with President Biden’s Justice40 Initiative designed to direct federal investments toward disadvantaged communities (details here).
These combined efforts reflect an ongoing commitment from DOE toward supporting technological innovation across multiple sectors including renewable energy development.
