The U.S. Department of Energy (DOE) is continuing to open up funding opportunities for advanced geothermal technology development.
Through the Geothermal Technologies Office (GTO), the Loan Programs Office (LPO), and Advanced Research Projects Agency-Energy (ARPA-E), potentially hundreds of millions of dollars in non-dilutive grants and loans are available to develop new geothermal projects.
These initiatives are essential for harnessing geothermal energy, a reliable and sustainable energy source that can significantly reduce reliance on fossil fuels. The DOE’s GTO plays a critical role in this endeavor, focusing on both conventional hydrothermal resources and innovative enhanced geothermal systems (EGS). Substantial investments and funding programs are pushing the boundaries of geothermal technology, driving innovation and improving efficiency.
Recently, the DOE’s GTO announced a significant funding opportunity to test the efficacy and scalability of EGS. This second round of funding, amounting to $14.2 million, is part of a broader initiative under the Biden-Harris Administration’s landmark Bipartisan Infrastructure Law (BIL).
The focus is on pilot projects in the eastern United States, where innovative technologies and development techniques will be employed to capture the Earth’s abundant subsurface heat resources. Letters of Intent for this funding round are due by July 18, 2024, with full applications due by September 25, 2024. This effort underscores the administration’s commitment to expanding clean, reliable energy sources across the country.
Beyond the GTO, other DOE offices and programs have been instrumental in supporting geothermal energy development. The LPO is one such entity that provides critical financial support for large-scale energy projects. Over the past three years, the LPO has financed multiple geothermal projects, offering loan guarantees that reduce the financial risks associated with developing new technologies and infrastructure. For instance, the LPO provided significant financial backing to Cyrq Energy for the development of the Patua Geothermal Project in Nevada, and to Ormat Technologies for the expansion of the Steamboat Hills Geothermal Plant, ensuring the scalability and competitiveness of these geothermal technologies.
Fervo Energy has been a notable recipient of DOE funding from several sources. The GTO has funded Fervo Energy for its work on advanced drilling and well completion technologies to enhance geothermal energy extraction. In addition, Fervo Energy has also received financial backing from the LPO to support the development of their innovative EGS projects, helping to mitigate financial risks and attract further private investment.
Another notable program is the DOE’s Advanced Research Projects Agency-Energy (ARPA-E), which funds high-potential, high-impact energy technologies that are too early for private-sector investment. ARPA-E has awarded grants to several innovative geothermal projects over the past three years. GreenFire Energy received funding for its Closed-Loop Geothermal Energy Systems project, while Quaise Energy was awarded grants to develop advanced drilling techniques using millimeter-wave technology. These projects focus on making geothermal energy more sustainable and cost-effective, showcasing the impact of ARPA-E funding in advancing the geothermal sector.
Fervo Energy has also benefited from ARPA-E funding for its pioneering work in leveraging horizontal drilling techniques commonly used in the oil and gas industry to improve the efficiency and output of geothermal wells.
The Office of Energy Efficiency and Renewable Energy (EERE) also plays a significant role in promoting geothermal energy. Through various initiatives and funding programs, EERE supports research, development, and deployment of geothermal technologies. In the past three years, EERE has allocated substantial funds to projects that aim to improve the performance and reduce the costs of geothermal systems.
For example, Sandia National Laboratories received funding to develop high-temperature downhole tools and sensors, and the University of Nevada, Reno was funded for research into geothermal reservoir characterization and management. These projects are crucial in advancing geothermal technology and making it more viable for widespread use. Fervo Energy has been a recipient of EERE funding, supporting its efforts to develop cutting-edge geothermal technologies and enhance resource extraction efficiency.
Additionally, the DOE’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs have provided critical funding for geothermal projects. These programs support small businesses in developing and commercializing innovative energy technologies. Over the past three years, numerous small businesses have received SBIR and STTR grants to advance geothermal technologies. XGS Energy developed a novel geothermal heat exchanger, while ThermoLift worked on a unique thermal compressor for geothermal heat pump systems. These projects highlight the role of small businesses in driving innovation in the geothermal sector.
The broader impact of these funding opportunities is significant. By supporting advanced geothermal projects, the DOE is not only advancing renewable energy technologies but also creating jobs and stimulating economic growth. Geothermal projects require a skilled workforce for drilling, reservoir engineering, and plant operation, among other tasks. As these projects scale up, they will contribute to a more resilient and sustainable energy infrastructure, providing long-term benefits to communities across the country.
The DOE’s commitment to funding advanced and enhanced geothermal projects is a critical component of the United States’ strategy to achieve a clean energy future. The latest $14.2 million funding opportunity for EGS pilot projects in the eastern United States is a testament to this commitment.
By leveraging innovative technologies and development techniques, these projects have the potential to unlock vast geothermal resources, providing clean, reliable energy for generations to come. As the DOE continues to support and expand geothermal initiatives, the future of geothermal energy in the U.S. looks promising and transformative.
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