Geothermal is one of the few renewable energy sectors that President Donald Trump has not tried to quash in favour of fossil fuels in the United States. There is significant promise for the future of geothermal power in the United States, even though most projects are still in the nascent stage of development. Both public and private funding are expected to bolster the sector in the coming years. 

According to the European Commission, geothermal energy is a renewable energy source harnessed from the thermal energy stored in rocks and fluids deep within the Earth’s crust. Drilled wells connect the fluid to the earth’s surface, allowing it to be used for a range of purposes such as to generate electricity or provide direct heat for district heating, water heating or industrial processes. 

Countries with easily accessible geothermal reserves have been harvesting power from these sources for centuries. Meanwhile, countries with harder-to-reach reserves can now use enhanced geothermal systems (EGS) to access vast, clean power sources. EGS is based on technology used in fracking operations, which emerged over the last century. Unlike solar and wind that depend on the weather, geothermal power can run at all hours of the day, making it a highly attractive renewable energy source.

In May, the U.S. Department of the Interior announced plans to implement emergency permitting procedures to accelerate assessments of geothermal energy projects across the country, in line with President Trump’s energy agenda. Projects selected for fast-tracking included three in Nevada, operated by Ormat, which received funding during President Trump’s first term in office in 2020. The move is expected to reduce approval times from months or even years to a maximum of just 28 days for energy or mining projects on federal lands that are deemed urgent.

“Geothermal energy is a reliable energy source that can power critical infrastructure for national security and help advance energy independence,” Interior Secretary Doug Burgum said at the time. “We’re fast-tracking reliable energy projects while strengthening national security and supporting American workers.”

In December, U.S. geothermal energy leader Fervo Energy announced it had raised $462 million in its Series E funding round to accelerate growth and support the ongoing construction of Cape Station and early development of several other projects. Cape Station in Utah is expected to deliver 100 MW of geothermal power to the grid starting in 2026, before expanding to 500 MW by 2028. 

“Fervo is setting the pace for the next era of clean, affordable, and reliable power in the U.S.,” said Jeff Johnson, General Partner at B Capital. “With surging demand from AI and electrification, the grid urgently needs scalable, always-on solutions, and we believe enhanced geothermal energy is uniquely positioned to deliver.”

In New Haven, Connecticut, works have commenced on a geothermal energy network that will offer clean heating and cooling to the city’s Union Station and a new public housing development. It is the start of a project aimed at decarbonising all municipal buildings and transportation by the end of 2030.

“At the end of the day, you’re going to have the most efficient heating and cooling system available for our historic train station as well as roughly 1,000 units of housing,” said New Haven’s executive director of climate and sustainability, Steven Winter. ?“Anything we can help do to improve health outcomes and reduce climate change–causing emissions is really valuable.”

Nearby, at Yale University, development has started on a geothermal loop serving several science buildings. An energy bill that passed earlier this year and established a grant and loan programme is expected to spur the development of more thermal energy networks in the state. 

However, it was in Framingham, Massachusetts, where the first utility-owned geothermal network in the United States came online in June 2024. In December, the Boston-based non-profit, the Home Energy Efficiency Team (HEET), announced that it had been awarded an $8.6 million grant by the U.S. Department of Energy’s Geothermal Technologies Office. The funding will contribute to the expansion of an existing networked geothermal system. HEET’s existing project provides clean heating and cooling to around 140 residential and commercial customers. 

“This award is an opportunity and a responsibility to clearly demonstrate and quantify the growth potential of geothermal network technology,” said HEET’s Executive Director Zeyneb Magavi, “Which we will do, together with our partners and colleagues on the project team and at GTO. This project also represents the continuation of a collaboration that began when HEET first pitched our idea of geothermal networks to gas utilities in 2017.”

There are high hopes for the United States geothermal energy industry, particularly as it is continuing to garner federal support under the Trump administration. The expansion of geothermal power projects across the country are expected to support decarbonisation aims and help reduce reliance on fossil fuels in the coming years.

By Felicity Bradstock for Oilprice.com

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