U.S. Department of Energy Awards $200 Million for Enhanced Geothermal Systems in 5 States

WASHINGTON, DC — The United States Department of Energy (DOE) Geothermal Technologies Office announced $200 million in demonstration grant awards under the Enhanced Geothermal Shot initiative, funding four commercial-scale Enhanced Geothermal Systems (EGS) power plants across the Western United States.

Unlocking Terawatts of Baseload Clean Power from the Earth's Core

The funding packages provide matching capital to clean tech drilling ventures—including Fervo Energy and Sage Geosystems—to drill multi-well horizontal geothermal loops 10,000 feet into hot crystalline rock formations in Utah, Nevada, California, and Oregon. Utilizing precision hydraulic stimulation techniques adapted from the oil and gas industry, the EGS facilities circulate pressurized water to extract geothermal heat and generate 400 megawatts of constant, weather-independent clean baseload electricity.

Energy Secretary Jennifer Granholm emphasized that enhanced geothermal energy has the potential to power millions of American homes and data centers 24/7 with zero carbon emissions.

Geothermal Innovators and Oilfield Labor Endorse

The Geothermal Rising association praised the cost-share grants, projecting that commercial EGS costs will decline below $45 per megawatt-hour by 2030.

Petroleum equipment and drilling contractors welcomed the expansion, transitioning specialized oilfield drilling rigs and union roughneck crews into clean baseload power development.

Groundbreaking Milestones

Horizontal multi-stage stimulation drilling at the Utah FORGE commercial site will commence in October 2026.