DOE Bets $99M on Next‑Gen Geothermal as Federal Policy Swings Back Toward Heat Beneath Our Feet

# What changed and why it matters The U.S. Department of Energy announced a new $99 million funding round focused on next‑generation geothermal systems. The awards are targeted at two aims: assessing and mapping geothermal resources that could be unlocked by advanced technologies, and testing those technologies in real‑world conditions. DOE says the intention is to lower technical and development risks so commercial projects and investment can follow.

The move comes amid a broader federal policy shift. The article highlights that the White House under President Trump has emphasized turning domestic geothermal resources into "reliable and affordable power." That political backing is one reason the DOE program is moving forward now.

# Who the funding goes to The $99 million will be split across 21 projects. Sixteen projects focus on exploration and resource assessment for next‑gen approaches. Five projects are directed at field demonstrations to validate technologies under actual operating conditions. Selected projects will enter a formal award negotiation process before funds are disbursed.

# Notable projects and private activity

The private sector is also active. Sage Geosystems entered a strategic agreement with Ormat Technologies in 2025. Ormat later co‑led a $100 million Series B for Sage. Sage announced plans to apply its enhanced geothermal system (EGS) technology at Ormat's Blue Mountain plant in Nevada under the name Project Vector. That effort leverages existing plant assets and transmission access to speed demonstration and deployment.

Other industry moves referenced in related reporting include Fervo Energy bringing a next‑generation project (Cape Station, Utah) into commercial operation and funding rounds for superhot‑rock developer Mazama Energy. These items show funding and operational milestones unfolding both in government and private channels.

# Scale and the gap to cover Geothermal currently provides about 1% of U.S. utility‑scale electricity generation. DOE's framing emphasizes the resource's potential to supply "vast" and "reliable" firm power if next‑generation technologies can lower costs and be deployed more widely. The program aims to address two bottlenecks: limited mapped resources that are economically accessible today, and technical risks associated with drilling, reservoir management, and plant integration for advanced systems.

# What to watch next

• Which of the 21 projects secure final awards and how much funding each receives.
• Results published to the DOE Geothermal Data Repository and whether those data enable repeatable site assessments.
• Progress on Quaise's Project Obsidian and Sage's Project Vector as near‑term demonstrations of superhot and enhanced geothermal approaches.

If the funded projects deliver transparent, usable data and field validation, public and private developers will have clearer pathways to scale geothermal beyond its current niche contribution to the grid.