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The European Geothermal Energy Council (EGEC) has broadly welcomed the new Clean Energy Investment Strategy announced this month by the European Commission but has urged for both public and private financing to be available for geothermal projects.

The group noted in a statement that it was pleased to see the emphasis on the need to de-risk investments in clean energy projects through the strategic use of public funds.

EGEC’s Secretary General, Philippe Dumas, also flagged the significance of the timing of the strategy, as energy prices spiked amid escalating conflict in Iran and across the Middle East.

“When it comes to energy policy, Europe must avoid the trap of always reacting to external shocks and lurching from crisis to crisis,” he said. “What we need is a strategic, long-term approach to support the transition away from imported fossil fuels towards renewable and decarbonised energy sources – with geothermal solutions playing a key role.”

He added: “Geothermal must be at the heart of Europe’s approach to providing clean electricity as well as heating and cooling, with security of supply and affordable prices for all energy consumers – from households to industries.”

Dumas said that geothermal canhelp to bring down energy costs for people and businesses, thereby strengthening the EU’s competitiveness.

“But, in order to access these benefits, we need a more encouraging environment for investment, with targeted European financial instruments that can leverage private capital."

He also called for a geothermal strategy and action plan at EU level with “ambitious targets” to support the roll-out of geothermal across member states, as well as a an industrial alliance to facilitate the sharing of best practice.

“The EU has a vital role to play when it comes to public funding and financing for geothermal energy projects,” said Dumas. "In this regard, we would like to see the European Commission develop a sectoral tripartite contract for geothermal energy, similar to those already announced in relation to offshore wind and energy storage under the umbrella of the Affordable Energy Action Plan."

The Commission’s proposals also include aCitizens Energy Package, to support the establishment of energy communities at local level and enable them to invest in geothermal heating and cooling networks.

“Reducing heating and cooling costs with secure supplies and stable prices benefits everyone, and is especially vital if we want to tackle energy poverty,” said Dumas.

Geothermal heating and cooling solutions, including district heating and cooling networks that utilise the stable temperatures found underground, can offer benefits including no pollution, zero emissions, extended lifetimes and low costs for operation and maintenance.

“The Citizens Energy Package should also enable fair competition between different energy sources, with an emphasis on long-term costs and affordability for consumers,” added Dumas, calling for a more level playing field.

Heating currently represents 50% of the EU’s overall energy consumption, 80% of the energy consumption for individual buildings, more than 50% of energy for commercial buildings and a large part of the energy consumption for industry and farmers, he noted.

“When installing a new heating and cooling system, consumers – from households and building owners to cities, industry or farmers – should be offered a choice between all heating sources that lets geothermal compete with other solutions on a level playing field that takes emissions and long-term running costs into account,” he added.

EGEC also underlined the importance of strengthening competition between energy technologies in heating and cooling markets, as emphasised in the Citizens Energy Package and to be highlighted in the upcoming Heating and Cooling Strategy.

Project InnerSpace, the non-profit research organisation accelerating geothermal energy, has partnered with the Society of Petroleum Engineers (SPE) to launch the Geothermal Resources Management System (GRMS), designed to unlock capital for the scaling up of geothermal energy.

The new initiative – a standardised framework for classifying, reporting and communicating geothermal resources and reserves – is funded by Project InnerSpace and based along the lines of the Petroleum Resources Management System (PRMS), the global standard for classifying and communicating petroleum resources and reserves which is managed by the SPE and has unlocked significant levels of oil and gas investment. In 2022 the SPE extended this initiative to non-hydrocarbon resources, including geothermal energy.

Despite strong and growing demand for geothermal energy, capital flows into this industry remain very limited in comparison with the US$600bn invested globally in the oil and gas industry. The GRMS is designed to close that gap by giving the financial community the confidence to release capital at the scale required to accelerate geothermal development.

The launch follows a two-year exercise by Project InnerSpace, involving multiple stakeholders, to identify geothermal financing barriers. This concluded that the absence of a standard, publicly accessible and independently verifiable information framework is the biggest barrier to investment, which could be addressed by developing a system that both financial institutions and the oil and gas industry already use and understand to value geothermal resources.

An initial GRMS framework is expected to be developed within a year, which will give geothermal projects the same financial credibility that oil and gas assets have possessed as a result of the PRMS and means that the financial community can use a trusted and familiar system to evaluate geothermal projects, without having to learn a new system. It is expected to unlock other financing mechanisms including reserves-based lending; insurance underwriting; farm-in/farm-out agreements and joint ventures, secondary market liquidity and SEC reporting compliance.

Significant reductions in legal and transactional structuring costs as well as deal execution timelines are expected through the use of standardised contractual frameworks through the GRMS, which could save more than US$100mn in annual legal cost savings across the industry within four years, it is estimated.

“The financial community already understands how to use the language of large-scale subsurface energy development through oil and gas,” commented Simon Seaton, CEO of the Society of Petroleum Engineers International. “The creation of a Geothermal Resources Management System (GRMS) is a foundational step toward building the market structures and financing mechanisms needed to accelerate geothermal development.”

“GRMS is the equipment of GAAP for accounting – the shared language that gives the financial world the confidence to engage at scale,” added Jamie Beard, Executive Director of Project InnerSpace. “With it in place, every other financial mechanism we need to scale geothermal becomes viable.”

Valencia is seeking to champion the use of geothermal energy in popular tourist attractions, with a landmark project beneath the Museu de les Ciencies, a well-known science destination in the southern Spanish city.

It has launched a landmark project with the deployment of a large-scale geothermal plant under the iconic museum, within the architectural complex of the Ciutat de les Arts i les Ciencies.

The commissioning of the installation is “imminent”, a statement published on openPR noted, marking what it called “a transformative milestone in the sustainable HVAC decarbonisation of major cultural infrastructure."

The geothermal project is led by Grupo Itecon, through its subsidiary DCL Geoenergia, and drawing on its proprietary DCL GEOENERGIA technology.

According to the statement, the development positions the Museu de les Ciencies as the largest cultural building in Europe to utilise geothermal energy powered by DCL GEOENERGIA technology.

With an installed thermal capacity of 4,050 kW, the plant will also become the largest geothermal installation in Valencia.

The DCL GEOENERGIA geothermal system, engineered and implemented by Grupo Itecon, is based on a high-efficiency field of 32 vertical geothermal boreholes, interconnected through a closed-loop hydraulic circuit.

The system leverages the stable subsurface temperature to provide efficient heating and cooling through ground-source heat exchange.

During the summer months, excess heat from the building is transferred into the ground, while in winter, thermal energy is extracted from the subsurface to supply heating.

“The result is a combustion-free, zero direct-emission HVAC solution, delivering energy stability, operational resilience and a significant reduction in fossil fuel dependency,” the statement added.

The installation is expected to generate annual energy savings over 1,013,000 kWh, while cutting around 335,000 kg of carbon emissions per year.

“These performance indicators position DCL GEOENERGIA technology as a strategic solution for the real decarbonisation of large public buildings and high-demand infrastructures,” the statement noted.

“The imminent commissioning of this geothermal plant represents not only a technical achievement but also a scalable industrial model applicable to airports, hospitals, commercial complexes, and large urban developments across Europe and beyond.”

The Arizona Governor’s Office of Resiliency has announced a US$1mn investment in the Arizona Geological Survey (AZGS) to enhance knowledge of the state’s geothermal potential.

The new funding is part of a range of actions by Arizona’s Governor Katie Hobbs to accelerate the state’s geothermal development and expand its economic and energy future as electricity demand grows.

“Arizona is at a crucial crossroads in its energy story, and we have the key resources needed to be a leader in geothermal energy production,” said Hobbs.

“I am taking the steps to make that happen by investing in the Arizona Geological Survey, proposing funding for new geothermal research in my executive budget, and convening a geothermal working group.”

It represents the next step in Hobbs’ focus on building the future of energy in Arizona.

Earlier this month, Hobbs released her FY2027 executive budget proposal, which includes US$1.5mn for geothermal research to expand knowledge of Arizona’s subsurface.

Additionally, a geothermal working group was also assembled within her Arizona Energy Promise Taskforce to catalyse the deployment of next-generation geothermal technologies across Arizona.

“Arizona is ready to leverage its status as a global leader in technology industries and a strong foundation in subsurface industries like mining,” said Hobbs.

“Geothermal will be a future-defining industry for Arizona, lowering energy costs and strengthening our grid. We are open for business.”

AZGS brings more than 45 years of experience in geothermal research, with expertise in subsurface characterisation and statewide data development, including leading the US Department of Energy’s (DOE) US$23mn project to create a National Geothermal Data System, according to Brian F. Gootee, Senior Research Geologist and Energy Geology Group Chief at AZGS.

“With this rich legacy of geothermal work, AZGS remains committed to advancing Arizona’s geothermal development through rigorous science and close collaboration with the Governor’s Office.”

Arizona also recently joined the DOE and the National Association of State Energy Officials’ Geothermal Power Accelerator, a new collaboration among 13 states to rapidly expand geothermal power development in partnership with the private sector.

According to the DOE and the National Laboratory of the Rockies, next-generation geothermal energy potential in the USA is at least 26.5 terawatts, with a large concentration of resources in the Mountain West.

A 2025 Princeton University study assesses that geothermal energy could meet 20% of US electricity demand by 2050.Across various scenarios modelled by Princeton, the deployment of enhanced geothermal within the energy mix reduced wholesale electricity costs by 22–55%.

“An all-of-the-above approach to electric generation is essential to maintaining grid reliability while keeping rates just and reasonable for Arizona’s families and businesses,” said Arizona Corporation Commission Chair Nick Myers.

“Technological advancements in geothermal energy show significant promise in Arizona and could become a valuable addition to our energy mix. If these technologies prove to be cost-effective, ratepayers stand to benefit from Arizona’s untapped geothermal resources.”

Arizona utilities estimate significant growing energy needs over the next 15 years, with some utilities projecting a 40% increase in peak demand.

Electricity demand in Arizona is rising fast due to several factors, including the state’s expanding population as well as economic growth.

US-based Teverra has announced a new partnership with Spain’s Earth Energy Explorers to support the development of the Melilla geothermal project in the Spanish autonomous city of Melilla.

Teverra is a leading subsurface solutions provider specialising in geothermal and subsurface energy technologies.

It will work alongside its Spanish partner at the project site in Melilla, an area situated on the North African coast, surrounded by Morocco and bordering the Mediterranean Sea.

Under the collaboration, Earth Energy Explorers serves as the project developer, while Teverra will provide technical support, including subsurface characterisation, resource assessment, risk-reduction planning and technical advisory services to support geothermal exploration and development.

“We are excited to partner with Earth Energy Explorers on the Melilla Geothermal Project,” said Randal Wichuk, CEO of Teverra.

“Geothermal presents a powerful opportunity to deliver secure and dispatchable baseload power while occupying minimal land and supporting grid stability. Our team is proud to support this important initiative through advanced subsurface analysis and de-risking approaches that improve predictability and success across the project lifecycle.”

The successful development of geothermal energy in Melilla could play a strategic role in the territory by strengthening energy security and independence, reducing reliance on imported fuels, and enabling a stable baseload renewable energy source.

A Teverra statement noted that the region’s geologic setting and subsurface heat conditions provide “promising potential” for geothermal exploration and a low-carbon energy resource that can serve both power, heating and cooling needs.

The project also reflects a growing momentum across Europe and the Mediterranean to accelerate geothermal as a scalable and reliable renewable energy resource.

“We are pleased to collaborate with Teverra as our consulting partner,” said Carlos Diaz, Partner and Technical Director of Earth Energy Explorers.

“Teverra brings deep technical expertise in subsurface geomechanics and geothermal development. Their support strengthens our ability to systematically evaluate the resource, reduce drilling and development risk, and accelerate the pathway toward a successful geothermal project in Melilla.”

The statement added that the partnership supports “a shared commitment to enabling the energy transition through cutting-edge subsurface technology, data-driven decision-making, and robust engineering workflows that reduce uncertainty and enhance project bankability.”

Maritime Geothermal Ltd., a long-established Canadian provider of heating solutions with more than four decades of experience, has secured a US$1.64 million investment from the Atlantic Canada Opportunities Agency (ACOA).

KS Orka Renewables Pte. Ltd. has announced a strategic partnership with Halliburton to support geothermal project development across its project sites in Indonesia, including PT Sorik Marapi Geothermal Power (SMGP) in North Sumatra and PT Sokoria Geothermal Indonesia (SGI) in East Nusa Tenggara.

Reykjavík University and Iceland’s national power company Landsvirkjun have taken a major step forward in clean energy innovation by jointly filing a patent application with the European Patent Office for a breakthrough geothermal technology.

Vallourec and XGS Energy have announced a strategic supply chain partnership to support XGS’s 3 GW pipeline of commercial geothermal projects across the western United States

The US geothermal developer Controlled Thermal Resources has announced its subsidiary, American Data Power, will deliver a utility-scale energy complex to support data centres, advanced manufacturing and critical digital infrastructure in the US.

A new European Union funded initiative is set to transform the way industry produces heat by placing geothermal energy at the centre of large scale heat pump solutions.

ABB has entered into an agreement with Fervo Energy, a Texas-based leader in enhanced geothermal systems, to supply advanced motor control solutions for the Cape Station geothermal project in Southwest Utah, USA.