The Department of Energy this week released the latest iteration in a series of reports on the potential of next-generation geothermal energy.
The DOE said the report, Pathways to Commercial Liftoff: Next-Generation Geothermal Power, shows how advanced geothermal technology could increase the United States’ geothermal energy production by a factor of 20. The report is the ninth installment in the DOE’s Liftoff series that was introduced in March 2023.
In a world where the United States will need between 700 and 900 gigawatts of additional clean firm capacity by 2050, next generation geothermal could provide 90 GW by 2050, and up to 300 GW, depending on the development of storage capabilities and other emerging technologies, the DOE report said.
Next generation geothermal power uses technologies developed by the oil and gas industries to engineer human-made reservoirs from ubiquitous hot rock, rather than hunting for naturally occurring reservoirs in unique locations.
The report said that geothermal technology can now engineer geothermal resources in hot rock formations, eliminating the need for subsurface human-made reservoirs or systems, making heat resources accessible nationwide.
The report also noted that recent technical advances, particularly in drilling technology, indicate that the geothermal industry is on track to an average cost of $60 to $70 per megawatt hour by 2030 and on the way to the target set by the DOE’s Enhanced Geothermal Shot target of $45/MWh by 2035.
The report also details potential solutions to some of the challenges geothermal energy development faces, such as high upfront costs, perceived and actual operability risks, and long and unpredictable project development lifecycles.
In February, The DOE announced a funding opportunity of up to $74 million under the Bipartisan Infrastructure Law for as many as seven pilot projects that will test the efficacy and scalability of enhanced geothermal systems.
The DOE said the aim of pilot projects is to capture the Earth’s heat resources in diverse geologic settings to demonstrate the growth and ultimate potential for geothermal energy to provide reliable, around-the-clock electricity to homes across the country.
Separately, members of the Senate Energy and Natural Resources Committee recently introduced the Geothermal Energy Optimization Act that aims to accelerate the adoption of geothermal energy nationwide.
The legislation was introduced by senators Mike Lee (R-UT), Martin Heinrich (D-NM), James Risch (R-ID), and Catherine Cortez Masto (D-NV).
The sponsors of the bill said the GEO Act would put geothermal projects on an equal footing with oil and gas projects on public land, and direct the Bureau of Land Management and Forest Service to develop a streamlined process for geothermal observation well permits on public land.
The bill would also create a Geothermal Ombudsman and Strike Team to provide additional resources for field offices. And the bill would set new geothermal lease targets on federal lands and requires the Bureau of Land Management and Forest Service to hold auctions more frequently than every two years.
