How Clean, Next-Gen Geothermal Could Power The World 140 Times Over

WAIRAKEI, NEW ZEALAND – JANUARY 01: Geothermal electrical power station at Wairakei, New Zealand. (Photo by Tim Graham/Getty Images)

Tim Graham/Getty Images

The potential solution for abundant and clean energy could be right under our feet—or more specifically, beneath the Earth’s surface. Geothermal power has long been the forgotten sibling among renewable energies, even though it provides dependable electricity in places like Iceland and California. Now, that is beginning to change.

A recent U.S. pilot set records for heat flow and output, demonstrating that Enhanced Geothermal Systems (EGS) can provide steady, dispatchable power without relying on rare minerals, extensive land use, or the intermittency issues associated with solar and wind. According to the International Energy Agency, the Earth’s accessible heat could technically meet humanity’s electricity needs 140 times over—yet geothermal gets overshadowed in public discussions.

“If geothermal can follow in the footsteps of innovation success stories such as solar PV, wind, EVs, and batteries, it can become a cornerstone of tomorrow’s electricity and heat systems as a dispatchable and clean source of energy,” the agency said.

Currently, geothermal accounts for less than 1% of global electricity generation, mostly concentrated in geographies with natural hot springs or volcanic activity—places like Iceland, the United States, Indonesia, and Kenya. But EGS could transform geothermal from a niche source to a global powerhouse.

Indeed, EGS could become the most transformative — and politically viable — clean energy technology in decades, capable of providing large amounts of baseload power and appealing across partisan lines. In 2023, the global geothermal capacity had an average utilization rate—how often a power plant generates electricity at or near its capacity—above 75%, compared to 30% for wind power and 15% for solar PV.

EGS applies the same incremental drilling improvements that unlocked U.S. shale in the 2000s. Costs there dropped significantly within a decade as early successes attracted investment. And now, Fervo Energy’s test proved its technical viability, achieving commercial-grade flow and temperature for 30 days.

The Hurdles: High Costs And Risk-Averse Investors

A Princeton University study projects EGS could supply up to 20% of U.S. electricity by 2050. This assumes ambitious policies and investment.

“By applying drilling technology from the oil and gas industry, we have proven that we can produce 24/7 carbon-free energy resources in new geographies across the world,” said Tim Latimer, chief executive of Fervo Energy, in a release. Fervo’s landmark 2023 pilot project in Nevada produced a continuous flow rate of 63 liters per second of superheated water for 30 days, enabling 3.5 MW of electricity generation—a record-setting demonstration of EGS’s commercial viability

Yet, this energy source remains obscure, at risk of missing its moment without targeted policy and investment. While the hurdles are decreasing, the up-front capital is high, and returns are long-term, which scares investors without policy support. Drilling into deep rock is expensive—$6 million to $10 million per well. That means some places are better suited for exploration than others. Costs, in fact, must fall dramatically.

Financing is another barrier. Long development timelines and relatively niche market status limit investment appetite. Permitting can be complex and time-consuming, especially in environmentally sensitive areas.

Meanwhile, the MIT Energy Research Council notes that meeting water requirements for geothermal plants may be an issue, particularly in arid regions. Further, the water that is used to create electricity much be kept separate from drinking water supplies to prevent contamination.

Traditional geothermal requires three key conditions: hot underground water or steam (above 300°F), permeable rock formations that allow fluid flow, and a natural water source to replenish the system. EGS removes these geographical limitations by drilling wells into hot, dry rock formations and injecting water at high pressure to create artificial fractures, allowing heat extraction virtually anywhere the Earth’s crust is sufficiently warm.

That heat is captured and utilized to produce electricity. This could turn geothermal from a niche energy source into a worldwide power provider. And generators can run nonstop day and night.

This approach draws heavily on the drilling and hydraulic fracturing expertise from the oil and gas industry—bringing proven techniques to unlock vast clean energy reservoirs.

The Political Appeal In A Polarized Energy Landscape

Google, a key investor, hailed the milestone:

“We partnered with Fervo in 2021 because we see significant potential for their geothermal technology to unlock a critical source of 24/7 carbon-free energy at scale,” Michael Terrell, Google’s senior director for Energy and Climate, told S&P Global, following Fervo’s successful pilot test in 2023.

In a year when many clean energy subsidies are being cut or redirected, geothermal has emerged as a rare bipartisan winner. President Donald Trump’s sweeping “One Big Beautiful Bill” gutted or sharply reduced incentives for solar and wind, but it kept the federal Investment Tax Credit for commercial geothermal projects until the mid-2030s. All the others expire at the end of this year.

Geothermal’s strong connection to oil and gas drilling technology gives it political support across party lines, especially among lawmakers worried about energy reliability and jobs in traditional industries.

Fervo’s Chief Technology Officer, Jack Norbeck, called recent advances the “Mitchell energy moment for geothermal,” referencing George Mitchell, whose innovations sparked the U.S. shale revolution. For many, this analogy highlights how drilling ingenuity can unlock vast new resources. If this concept is applied to clean energy, the ripple effect will be felt worldwide.

The U.S. electricity grid urgently needs more reliable, carbon-free baseload power. As investment in clean energy hits $2.2 trillion globally in 2025, geothermal stands poised to play a leading role—if cost and policy barriers can be overcome. EGS combines mature drilling technology with the promise of continuous, clean energy nearly anywhere on Earth.

The key question now is whether EGS and geothermal can succeed in elevating the technology and energy source to a more prominent position. With the right policies, geothermal energy can emerge from the shadows. While geothermal is sustainable and not weather-dependent, it still heavily relies on policymakers, who have proven they can be more unpredictable than atmospheric conditions.

The heat beneath our feet has long been overlooked, but it could hold the key to fueling a clean, resilient energy future—if leaders and investors keep their eye on the ball.