US Geothermal Sector Grows Through Next-Generation Technology

The United States geothermal energy sector is expanding through the adoption of horizontal drilling, hydraulic fracturing, and the development of enhanced and advanced geothermal systems. To support this growth, U.S. senators introduced the bipartisan Next-Generation Geothermal Research and Development Act in April to accelerate the commercialization of these technologies.

Google partnered with Fervo Energy to launch Project Red, the first commercial enhanced geothermal system facility. This project provides 3.5MW of power to Google data centers in Nevada. The sector is seeing increased interest from technology firms seeking sustainable power for data centers and oil and gas companies diversifying their portfolios.

Florent Rousset, vice-president of geothermal at Baker Hughes, stated that current technological capabilities and incentives make this the optimal moment for growth. While geothermal energy currently meets less than 1% of global demand, the International Energy Agency predicts it could meet up to 15% of electricity demand growth by 2050. The U.S. market is forecast to grow at a compound annual growth rate of 3.3% from 2026 to 2034.