Geothermal energy is rapidly emerging as one of the most promising solutions in the global shift towards cleaner, more reliable power.
What was once a niche technology is now gaining serious attention, thanks to its ability to generate steady electricity even from abandoned oil and gas wells. As innovation accelerates, engineers and investors are beginning to recognise the extraordinary value beneath our feet.
With global energy demand climbing, the need for dependable and sustainable power sources has never been more urgent. Unlike solar and wind, which depend on the weather, geothermal energy provides a constant flow of electricity. By tapping into the Earth’s natural heat, it delivers uninterrupted, low-carbon power that can support homes, industries, and national grids around the clock.
Advances in drilling and subsurface engineering are opening the door to wider adoption. In early 2025, geothermal initiatives across North America attracted an impressive US$1.7bn in public funding nearly matching the entire investment made in 2024. This surge highlights growing confidence in next-generation geothermal technologies and their potential to reshape the renewable energy landscape.
A major driver of this momentum is the rise of enhanced geothermal systems (EGS). By adapting idle or abandoned oil and gas wells, developers can dramatically reduce costs and environmental disruption. These systems work by circulating fluid through naturally heated rock layers, creating a closed loop that transfers heat to the surface to generate electricity.
Recent research underscores the sector’s vast untapped potential. The US Geological Survey estimates that the Great Basin alone could supply up to 10% of America’s electricity needs. Meanwhile, the International Energy Agency suggests geothermal could account for 15% of global power generation by 2050.
Real-world projects are already demonstrating what’s possible. Fervo Energy’s Cape Station in Utah, for example, is expected to deliver 500 megawatts of carbon-free power by 2028. As efficiency improves, geothermal energy is becoming increasingly competitive with other renewables.
While upfront investment in drilling and infrastructure remains significant, the long-term benefits are compelling. With countless disused wells available worldwide, geothermal energy offers a powerful route towards cleaner, more resilient power systems and a truly sustainable, low-carbon future.