After nearly a decade of stagnant growth, geothermal energy may be poised for a period of growth again. New technologies, new investors, and technological innovations for geothermal systems including enhanced geothermal systems (EGS), supercritical geothermal, and advanced geothermal systems (AGS). A discussion of these systems can be found here.
Changing Landscape
One of the biggest reasons geothermal has not advanced much is likely due to its historical lack of funding. Exhibit 1 shows that renewables overall receive less funding, with geothermal being one of the lowest funded areas of research for the U.S. DOE (Department of Energy). Around 2010, there was a flurry of activity associated with Obama era stimulus money that quickly faded. By the time drilling technology from the oil and gas industry crossed over, funding had dried up.
Exhibit 1: Cumulative DOE funding (in billions) from 2004-2019 for various energy research (Source: The Breakthrough, ADI Analytics)
In 2014, the DOE opened its Utah FORGE (Frontier Observatory for Research in Geothermal Energy) facility, a dedicated underground laboratory for developing EGS. The federal government plans to provide $200 million from 2014 to 2024 at the facility, with half the funds supporting research by external groups and the rest for operational costs, including drilling wells and running tests. In September 2022, the DOE announced their “Enhanced Geothermal Shot” initiative aimed at reducing the cost of EGS by 90% to $45 per MWh by 2035.
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