The U.S. Department of Energy (DOE) has announced a $171.5 million funding opportunity aimed at advancing geothermal energy in the United States. The initiative will support large-scale field tests for electricity generation and exploration drilling, with the goal of characterizing and potentially confirming promising geothermal sites.
According to DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit, “Work under this opportunity will directly support our commitments to advance energy addition, reduce energy costs for American families and businesses, and unleash American energy dominance and innovation. Thanks to President Trump’s America First Energy Agenda, these demonstrations and drilling activities will help us realize the enormous potential of geothermal to spur domestic manufacturing, enable data center growth, and provide affordable, reliable, and secure energy solutions nationwide.”
The funding is structured around six topics that vary in award amounts. The first round will focus on two areas: field tests for enhanced geothermal systems and drilling projects for next-generation and hydrothermal resource characterization or confirmation.
Currently, the United States leads globally in geothermal electricity capacity with about four gigawatts installed. However, DOE analysis suggests there is potential for at least 300 gigawatts of flexible geothermal power on the U.S. grid by 2050. Projects funded through this opportunity are expected to lower risks associated with developing new geothermal sites across the country, which could encourage private investment and further industry growth.
Letters of Intent must be submitted by March 27, 2026, with full applications due by April 30, 2026.
This announcement follows other recent DOE initiatives supporting clean energy technology development. For example, in July 2022 the department announced a $225 million program funded by President Biden’s Bipartisan Infrastructure Law to help implement modern building energy codes aimed at improving efficiency (https://www.energy.gov/articles/biden-harris-administration-launches-225-million-program-lower-utility-bills-through-more). Additionally, DOE has promoted clean transportation technologies through a $96 million funding opportunity focused on electric vehicle infrastructure (https://www.energy.gov/articles/doe-announces-96-million-advancing-clean-vehicle-technologies-reduce-carbon-emissions), as well as more than 140 programs aligned with President Biden’s Justice40 Initiative to ensure that disadvantaged communities benefit from federal investments in clean energy (https://www.energy.gov/articles/doe-announces-more-140-programs-supporting-president-bidens-justice40-initiative).
More information about the current Notice of Funding Opportunity is available on the DOE website.
