The U.S. Department of Energy (DOE) has announced a funding opportunity totaling $171.5 million to support field-scale tests and exploration drilling for geothermal energy in the United States. The funding aims to advance both electricity generation and resource characterization, supporting the development of affordable and reliable geothermal energy for homes and businesses.
DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit stated, “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 opportunity is divided into six topics with varying levels of awards expected. In the first round, two topics are open: field tests for enhanced geothermal systems and drilling for next-generation hydrothermal resource characterization or confirmation.
Currently, the United States leads globally in geothermal electricity capacity with about four gigawatts installed. However, DOE analysis suggests that by 2050 there could be at least 300 gigawatts of reliable geothermal power on the national grid. The projects funded through this initiative are intended to reduce risks associated with geothermal development across different locations in the country. This 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 aimed at advancing clean energy technologies. For example, on July 21, 2022, DOE announced a Notice of Intent for a $225 million program funded by President Biden’s Bipartisan Infrastructure Law to implement updated building energy codes designed to improve resilience and efficiency (more information). Additionally, DOE has supported technology development through national laboratories for environmental management missions (read more), as well as innovative passive processes at cleanup sites like Savannah River (details here).
Further information about the Notice of Funding Opportunity topic areas can be found on the DOE website.
