Next-Generation Geothermal Energy Gains Momentum in U.S. as Europe Watches Closely

Unlike solar or wind, geothermal plants run 24/7 by tapping into the Earth's internal heat. This rare mix of clean energy and grid security has helped bridge the political divide: Democrats love the climate benefits, while Republicans see a chance to boost domestic energy using the oil and gas industry’s existing expertise.

This bipartisan vibe is already turning into policy. Several states are fast-tracking permits, and lawmakers recently introduced the Next-Generation Geothermal Research and Development Act. The bill aims to pump more federal funding into research and help push cutting-edge geothermal systems into the commercial market.

Right now, the spotlight is on Enhanced Geothermal Systems (EGS). This technology unlocks geothermal power in areas without natural underground reservoirs by using hydraulic fracturing (fracking) to crack deep rock formations and circulating water through them to capture heat.

While fracking techniques raise eyebrows over seismic risks and environmental impacts, supporters point out a fundamental difference: this process harvests renewable energy rather than pumping out fossil fuels.

"It's the same techniques and up to a point it's the same industry as well," says Gernot Wagner, a climate economist at Columbia Business School. "From a climate perspective, there's a huge difference."

Meanwhile, researchers and startups are racing to drill deeper and hotter. Take Quaise, an MIT spin-off developing millimeter-wave drilling technology. Instead of traditional drill bits, they use electromagnetic waves to literally melt and vaporize rock.

The company believes this method can unlock "super-hot" geothermal resources (between 300°C and 500°C) almost anywhere on Earth. Tapping into these extreme temperatures would massively boost power output per well and cut long-term costs, though the tech is still incredibly pricey and complex.

Quaise aims to launch its first commercial-scale project in Oregon by 2030. While the system needs a massive amount of water to start up, company officials note that most of it gets continuously recycled once the underground loop is running.

Texas-based Fervo Energy is also making waves, becoming the first next-gen geothermal company to go public with a valuation of around $7.7 billion. Even though geothermal power is still way more expensive than wind or solar, Fervo has already locked in big-name clients like Google, whose massive data centers need round-the-clock power. The company also has backing from Bill Gates’ Breakthrough Energy.

Still, industry analysts warn that high upfront costs remain a massive hurdle. The International Energy Agency pointed out that data center demand alone won't trigger a sector-wide revolution, while Project Drawdown notes that early-stage geothermal projects are still notorious for budget overruns.

Over in Europe, the media is watching the U.S. push closely, framing it as a masterclass in balancing climate goals with energy security. European reports point to next-gen drilling, bipartisan U.S. support, and a growing pipeline of commercial projects as proof that geothermal is moving past its niche status.

While people usually associate geothermal with Iceland, Italy actually remains Europe’s top producer of geothermal electricity. The European Geothermal Energy Council notes that underground heat is available pretty much everywhere - it’s just a matter of temperature and economic viability. In fact, geothermal is already quietly heating buildings and powering district networks across the continent, even if the public rarely notices the infrastructure.

Experts believe geothermal could be a game-changer for cutting Europe’s reliance on fossil fuel imports, especially for heating and heavy industry. Because it provides constant baseload power, it serves as the perfect safety net for intermittent sources like wind and solar.

However, the European sector faces the same old roadblocks: high initial investments, low public awareness, and sluggish permitting. EU-backed initiatives like the GEORISK project are trying to ease investor anxiety by creating risk-assessment tools and financial frameworks for new setups.

European analysts argue the continent technically has the potential to add tens of gigawatts of geothermal capacity over the next few decades. But they also warn that bureaucratic red tape could stall growth, risking a scenario where investment and innovation migrate to faster-moving markets abroad.

Source: BBC