On his first day in office, President Donald Trump began to alter the nation’s energy regulations with a series of directives that primarily benefitted the sectors of oil, gas, and coal. However, one renewable energy source that gained attention was geothermal energy.
Energy professionals highlight that supporting this form of energy is logical due to its ability to generate electricity consistently around the clock. Many in the geothermal sector come from backgrounds in oil and gas, utilizing similar drilling techniques. Trump has strong ties to the oil and gas industries, which may influence his administration, and there is a level of bipartisan agreement in Congress regarding geothermal energy.
According to Alex Kania, managing director at Marathon Capital, the interest in advanced geothermal energy under the new administration has not come as a surprise. He noted its reliability, efficiency, and its connection to traditional energy sources, which may resonate with policymakers.
Geothermal energy generates electricity without harmful emissions by harnessing the Earth’s natural heat to create steam, which powers turbines. This process is an environmentally friendly alternative to conventional power plants that rely on fossil fuels and contribute to climate change.
In a recent announcement, Trump declared an energy emergency and included geothermal heat among the domestic energy resources deemed vital for maintaining a stable, diverse, and affordable energy supply. Notably, solar, wind, and battery storage technologies were not included in these considerations, with additional measures aimed at hindering the expansion of wind energy.
Bryant Jones, executive director of Geothermal Rising, emphasized that the geothermal sector is poised for growth, anticipating support from the Trump administration over the next four years.
Currently, there is an influx of new geothermal companies adapting technologies and methods from the oil and gas industry to generate steam from the abundant geothermal resources found in hot rocks. The Energy Department predicts that the next wave of geothermal projects could yield up to 90 gigawatts of power by 2050, sufficient to supply energy to over 65 million residences. Jennifer Granholm, a previous Energy Secretary, also championed geothermal energy as a solution to climate challenges.
Chris Wright, Trump’s selection for energy secretary, is a prominent figure in the fossil fuel sector and is a proponent of geothermal energy. His company, Liberty Energy, based in Denver, has made investments in Fervo Energy, a geothermal enterprise located in Houston. During his confirmation hearing, Wright expressed enthusiasm for geothermal as a significant and plentiful energy resource.
Wright’s appointment signals a strong likelihood of support for geothermal initiatives from the administration, as noted by Terra Rogers from the Clean Air Task Force.
Despite the United States being a leader in geothermal electricity production, it still represents less than one percent of the nation’s large-scale electricity generation, according to data from the U.S. Energy Information Administration. Key states with significant geothermal resources include California, Nevada, Utah, Hawaii, Oregon, Idaho, and New Mexico, where geothermal reservoirs are located near the surface.
In the initial actions of the new administration, there has also been a clear endorsement of nuclear energy and efforts to ease restrictions on uranium mining for nuclear fuel production. Like geothermal energy, nuclear power is recognized for its low impact on climate change. Moreover, the executive order has shown support for hydropower.
Currently, solar energy is the fastest-expanding source of electricity generation in the country. Trump aims to enhance the production of oil and gas in order to maintain the U.S. as the most cost-effective source of energy and electricity worldwide. He has actively targeted wind energy by pausing leasing sales for offshore wind projects and halting federal permits and funding for both offshore and onshore wind initiatives.
Trump has criticized wind turbines, claiming they only function with government subsidies and are significantly more expensive than natural gas. While offshore wind is indeed costly compared to new power generation options, estimates show that onshore wind can be more economical than the construction of new natural gas power plants.
Jones stated that the geothermal industry expects that backing for geothermal energy will lead to more efficient permitting processes, increased federal research, and tax incentives to foster innovations.
Sage Geosystems, a Houston-based geothermal company founded by former executives from Shell, exemplifies the growing sector. CEO Cindy Taff expressed her optimism regarding the increasing momentum for geothermal energy. She anticipated that this growth would lead to investments in substantial projects aimed at meeting the rising electricity demand from technological hubs, such as data centers and artificial intelligence, as well as ensuring energy resilience for military installations.
If geothermal projects can expand swiftly across the nation, Taff believes it will lead to reduced costs, benefiting everyone. “This could be the decade of geothermal,” she asserted.
