US Geothermal Gets a Policy Lift — and Big New Deals to Match

Geothermal power is gaining unusual momentum in Washington. The Trump administration has made the sector a quiet priority under its energy dominance agenda, and the industry is beginning to show concrete signs of growth — even as it remains a marginal source, accounting for just one percent of total US electricity generation capacity.

Energy Secretary Chris Wright, who previously led oilfield services firm Liberty Energy, has framed geothermal as a natural extension of the drilling industry. His former company put $10 million into startup Fervo Energy in 2022, and Devon Energy joined a separate $462 million financing round for the sector in 2025. In early September, the Department of Energy established a new Geothermal Center of Excellence in Colorado, aimed at accelerating projects to gigawatt scale.

The technology has historically been confined to regions west of the Rocky Mountains, where underground steam is accessible. New DOE-backed systems — including a research facility in Utah — are working to break that geographic constraint and make geothermal viable as a competitive baseload source.

Commercial activity is following the policy signals:

• Fervo Energy announced a 396 MW power purchase agreement with Google for a Utah project expected online in 2028.
• Hexagon Energy signed a development deal with Weyerhaeuser covering sites in Washington and Oregon.
• Startup Mazama Energy said it has developed a more efficient drilling system and plans to break ground on a commercial-scale project before the end of the year.

Analysts note a tension at the heart of the administration’s energy policy: the same office tasked with reviving coal is also positioning geothermal as a long-term baseload competitor — a dynamic that could complicate the future of both industries.

Source: CleanTechnica