According to a new paper by the think tank, Carnegie Endowment, geothermal energy’s moment is here — and North America is a hotspot for innovation.
“North America, particularly the Western part of the United States, is the optimal environment for next-generation geothermal commercialisation,” the report notes, “because of strong hot dry rock resources, incumbent geothermal and drilling industries, deep expertise in complex drilling techniques from shale production, proximity to equipment (such as rigs and casings), and a dynamic startup culture and venture capital ecosystem.”
The report, Unlocking Global Geothermal Energy: Pathways to Scaling International Deployment of Next-Generation Geothermal, also outlines some the technologies shaping the industry and identifies its global potential.
The paper considers the potential of next‑generation geothermal technologies — particularly Enhanced Geothermal Systems (EGS) and Advanced/Closed‑Loop Geothermal Systems (AGS) — to transform global clean power generation in the years ahead.
These advances leverage oil and gas industry expertise, such as deep and horizontal drilling and hydraulic fracturing, to access superhot rock deep underground.
Again, North America is in a strong position to lead in this regard.
Meteoric electricity demand growth from data centres and Big Tech’s interest in next-generation geothermal only furthers this argument, the report adds.
“The world’s first commercial scale EGS facility is being finalised in Utah, closed-loop systems are under development in California and New Mexico, and other early-stage projects are beginning in the United States and Canada,” the report states.
“The US Air Force has contracted nearly all regional next-generation geothermal firms to develop their technologies on American military installations across Texas and California."
The report also highlights ways in which the US could take the lead in spreading these technologies to other parts of the globe.
It suggests the US International Development Finance Corporation move beyond traditional commercial loans to create risk-sharing instruments tailored to geothermal power’s unique challenges.
It also states that the US could incorporate geothermal into existing bilateral and multilateral energy, economic, and security platforms — a tactic it calls advancing ‘geothermal diplomacy’.
Startup company Geothermal Radar has announced the development of an exclusive global thermal model that enables users to exploit geothermal gradients across areas of interest.
The Organisation of Eastern Caribbean States Commission (OECS) has officially opened the bids for the production drilling phase of the St. Kitts and Nevis geothermal power project, marking another major milestone in the region sustainable energy sector.
A new technoeconomic analysis has demonstrated that geothermal energy has strong potential to supply power and cooling to hyperscale data centers at competitive costs.
The Bureau of Land Management (BLM) will hold a competitive geothermal lease sale on 10 July, 2025 in Malheur County, Oregon, offering two parcels of 5,235 acres each.
Halliburton has won a contract with GeoFrame Energy’s geothermal and direct lithium extraction (DLE) project where the operator will plan and design the first demonstration phase wells in the Smackover Formation in Eastern Texas.
Ormat Technologies has completed its acquisition of the Blue Mountain geothermal power plant in Nevada.
Enertech Global has unveiled its latest innovation in home comfort technology: the WV, a variable-speed hydronic heat pump designed to deliver high performance, installation ease, and outstanding flexibility.
US contractor CTA Construction Managers has landed a flagship job to build a new school fitted with pioneering geothermal heating and cooling systems.
XGS Energy and Meta Platforms have announced an agreement supporting the development of 150MW of next-generation geothermal energy in New Mexico.
Fervo Energy has successfully secured US$206mn of additional capital to continue advancing its Cape Station EGS development project.
The Organisation of Eastern Caribbean States (OECS) has reaffirmed its commitment to advancing geothermal energy in the region at a high-level summit in Florida.
A panel at the 17th Caribbean Renewable Energy Forum (CREF), held in Miami, highlighted the growing viability of geothermal energy as a clean, reliable baseload power source for the Caribbean region.
CREF is the Caribbean’s largest annual gathering for clean energy stakeholders, including government leaders, utilities, investors and private firms.
Key projects highlighted included Grenada’s plans to commence exploration drilling in 2026.
“If successful, the 15-megawatt base load capacity [geothermal plant] will provide 40% of our energy supply needed for all households in Grenada,” said Kerryne James, Grenada’s Minister of Climate Resilience.
“It has been a long journey to get to where we are — two-and-a-half years sometimes feel like 10 — but we are staying the course.”
The need for innovative financing models and enhanced regional collaboration to accelerate deployment and shorten project timelines was also addressed.
James also highlighted the value of regional collaboration and capacity building through the OECS Geothermal Energy Capacity Building for Utilisation, Investment and Local Development (OECS GEOBUILD) programme.
“OECS, in the whole process with the GEOBUILD project, has been giving us the advantage and the environment for us to learn and grow from our regional partners. It has the potential of giving us not only energy security [but] the opportunity to redefine regional integration; redefine how we collaborate amongst ourselves in the region.”
Progress was also highlighted in Dominica’s ongoing development of a geothermal plant, expected to be completed by December, as well as forthcoming drilling in St Kitts and Nevis.
Mark Brantley, Premier of Nevis, stressed the significance of geothermal in enabling small island developing states to establish clean, dependable and sustainable energy infrastructure.
Other participants at the CREF event included clean energy equipment supplier, Exergy International and Dominica Geothermal Development Company.