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  • Region: Europe
  • Topics: Geothermal
  • Date: Jan, 2025

AdobeStock 939886897On his first day in office, President Donald Trump began reshaping the nation’s energy policies with a flurry of executive orders favoring oil, gas, and coal. However, one renewable energy source found unexpected support: geothermal.

Experts argue this backing is logical. Geothermal energy provides round-the-clock electricity, a key advantage over some other renewables. Additionally, much of the geothermal workforce originates from the oil and gas sector, utilising similar drilling technologies. Trump's strong ties to the fossil fuel industry and bipartisan congressional support further bolster geothermal’s prospects.

“The embrace of advanced geothermal under this new administration, I’d say is not a giant surprise,” noted Alex Kania, Managing Director at Marathon Capital. “It’s reliable, it’s efficient, and frankly their ties to the more conventional forms of energy production, I think, is probably not lost on some people.”

Geothermal energy generates electricity cleanly by using the Earth's heat to produce steam, which powers turbines. This process offers a climate-friendly alternative to fossil-fuel-based power plants.

Trump declared an energy emergency earlier this week, identifying geothermal as a key domestic energy resource capable of providing a reliable, affordable, and diversified energy supply. Notably, solar, wind, and battery storage were excluded, with wind energy specifically targeted for delays through separate orders.

“Geothermal is heating up and the Trump administration is going to empower the industry over the next four years to achieve its potential,” said Bryant Jones, Executive Director of the geothermal trade association, Geothermal Rising.

The geothermal industry is evolving, with companies adapting oil and gas technologies to tap into the Earth’s heat more efficiently. This innovation could unlock electricity generation in numerous regions. The U.S. Department of Energy estimates that next-generation geothermal projects could provide up to 90 gigawatts of electricity by 2050, sufficient to power 65 million homes.

Chris Wright, Trump’s nominee for Energy Secretary and a Fossil Fuel Executive, shares this enthusiasm. His company, Denver-based Liberty Energy, has invested in Fervo Energy, a geothermal company. During his confirmation hearing, Wright described geothermal as an “enormous, abundant energy resource below everyone’s feet.”

According to Terra Rogers of the Clean Air Task Force, Wright’s appointment signals strong geothermal advocacy. “He’s well-informed of its risks and opportunities, and continues to be a strong advocate for what it could be,” she said.

Although the United States leads in geothermal electricity production, it accounts for less than 0.5% of the nation’s total large-scale generation. States such as California, Nevada, Utah, Hawaii, Oregon, Idaho, and New Mexico are leading the charge, with accessible reservoirs of steam or hot water near the surface.

In addition to supporting geothermal, the administration indicated support for nuclear power and hydropower, as well as easing restrictions on uranium mining. These energy sources, like geothermal, are climate-friendly as they do not emit greenhouse gases.

Conversely, solar energy, the fastest-growing electricity source in the U.S., and wind energy faced setbacks. Trump paused federal approvals, permits, and loans for both onshore and offshore wind projects, citing wind turbines as expensive and reliant on subsidies. Offshore wind, in particular, remains one of the most costly power generation sources, though onshore wind is cheaper than new natural gas plants, per the U.S. Energy Information Administration.

Despite the challenges facing other renewables, geothermal advocates see this as a turning point. Bryant Jones hopes federal support will translate into streamlined permitting processes, increased research funding, and tax credits to foster innovation.

Sage Geosystems, a Houston-based geothermal company founded by former Shell executives, is optimistic about the sector’s growth. CEO Cindy Taff believes rising momentum could lead to large-scale projects that address surging energy demand, including from data centres and artificial intelligence, while also enhancing energy resilience for military facilities.

“If geothermal projects could multiply fast across the country,” Taff said, “It would bring the cost down, and that would be good for everyone.”