The U.S. Department of Energy (DOE) selected 21 U.S. geothermal projects for up to $99 million on September 21, including field-scale tests of enhanced geothermal systems and exploration drilling. The projects are designed to validate technologies, characterize geothermal resources and generate subsurface data for future development across the United States.
Key Takeaways
- DOE selected 21 geothermal projects for up to $99 million in funding for the first budget period of work.
- Five projects will conduct field-scale enhanced geothermal systems tests.
- Sixteen projects will conduct exploration drilling to characterize and confirm geothermal resources.
- Data produced by the projects will be publicly available through DOE’s Geothermal Data Repository.
- Funding remains subject to negotiations, congressional appropriations and successful completion of agreed milestones and performance criteria.
DOE Selects 21 U.S. Geothermal Projects
The U.S. Department of Energy’s Office of Geothermal selected 21 projects to advance geothermal energy development across the country. The selections cover two areas of work: field-scale testing of enhanced geothermal systems and exploration drilling for geothermal resources.
Five of the selected projects will conduct enhanced geothermal systems, or EGS, field tests. The tests will evaluate and validate technologies and methods used to develop EGS reservoirs under field conditions.
The other 16 projects will conduct exploration drilling. Their work will focus on characterizing and confirming promising next-generation and hydrothermal geothermal resources.
DOE said the selected projects are intended to validate technical approaches, address development barriers and generate new subsurface data. The department described the work as supporting geothermal development through field testing and resource characterization.
The announcement was issued September 21, 2026, by DOE in Washington. The department said the projects are expected to support work aimed at developing geothermal resources in multiple locations across the United States.
The federal investment also fits within a broader set of energy infrastructure financing activities. Recent U.S. infrastructure financing plans have included renewable generation and storage among eligible projects, alongside digital and power infrastructure.
Geothermal Projects Receive Up to $99 Million
The selected projects will receive a total of up to $99 million for the first budget period of work. DOE said additional funding will depend on congressional appropriations and successful completion of agreed-upon milestones and performance criteria.
The funding is therefore structured around defined project work rather than representing an unconditional commitment to provide the full amount. DOE and the selected applicants must complete award negotiations before funding can be issued.
DOE also retains the ability to cancel negotiations and rescind a selection during the negotiation process. The department specifically said that selection for award negotiations does not constitute a commitment to issue an award or provide funding.
The first budget period covers both categories of selected work. Five projects are assigned to EGS field testing, while the remaining 16 are assigned to exploration drilling.
The funding structure ties future project support to appropriations and performance. That includes completion of the milestones and criteria agreed upon during the award process.
Five Projects Advance Enhanced Geothermal Systems Testing
The five EGS projects will conduct field-scale tests of enhanced geothermal systems technologies. DOE said the projects will evaluate reservoir development technologies and methods under real-world conditions.
Enhanced geothermal systems involve developing geothermal reservoirs in areas where natural conditions may not provide the characteristics needed for conventional geothermal production. The selected projects are intended to generate field data on the technical approaches being tested.
DOE described the EGS selections as part of an effort to validate technical approaches and address barriers to geothermal development. The field tests will provide information from actual project sites rather than relying solely on laboratory or theoretical assessments.
The department said the projects will help reduce technical and development risk by producing information that can support future commercial projects and investment.
The EGS work will also contribute data to DOE’s Geothermal Data Repository. The repository will provide public access to information generated through the field tests and other geothermal exploration activities.
Exploration Drilling Targets New Geothermal Resources
Sixteen selected projects will conduct exploration drilling to identify, characterize and potentially confirm promising geothermal resources. The projects include work involving next-generation and hydrothermal resources.
Exploration drilling is intended to produce subsurface information about geothermal resources. DOE said the selected work will generate new data that can help characterize resources and inform future geothermal development.
The drilling projects complement the EGS field tests by addressing a different stage of geothermal development. While the EGS projects will evaluate reservoir development technologies and methods, the exploration projects will focus on gathering information about potential geothermal resources.
DOE said the combined projects will provide information needed to support future commercial projects and investment. The department also said the work is intended to reduce technical and development risk associated with geothermal development.
The 16 exploration projects account for the larger share of the 21 selected projects. Together with the five EGS tests, they form the two project categories covered by the September 21 selection announcement.
Energy infrastructure investment extends beyond generation technology itself. U.S. businesses are also assessing financing and development requirements for energy and power projects, including renewable generation and storage facilities.
Project Data Will Support Future Geothermal Development
Data generated through the selected projects will be made publicly available through DOE’s Geothermal Data Repository. The repository is intended to give industry and researchers access to information produced by field tests and geothermal exploration activities.
DOE said making project data available can extend the value of the work beyond individual project sites. The information can be used to inform future technology development and geothermal exploration, according to the department.
The data will include information generated through both EGS field testing and geothermal exploration. This creates a public record of technical and subsurface information produced by the selected projects.
DOE’s announcement also establishes conditions surrounding the funding. Selection for award negotiations does not itself guarantee funding, and applicants must complete negotiations with the department before awards can be issued.
Additional funding beyond the first budget period is subject to congressional appropriations and successful completion of agreed-upon milestones and performance criteria.
Frequently Asked Questions
How much funding did DOE announce for geothermal projects?
DOE selected 21 projects for a total of up to $99 million for the first budget period of work. Additional funding is subject to congressional appropriations and project performance requirements.
How many geothermal projects did DOE select?
DOE selected 21 projects. Five are focused on enhanced geothermal systems field tests, while 16 involve exploration drilling.
What types of geothermal projects will receive funding?
The selections cover field-scale enhanced geothermal systems tests and exploration drilling. The drilling projects will characterize and confirm promising next-generation and hydrothermal geothermal resources.
What is enhanced geothermal systems technology?
The selected EGS projects will evaluate and validate reservoir development technologies and methods through field-scale testing. DOE said the tests are intended to provide technical information under real-world conditions.
Will data from the geothermal projects be publicly available?
Yes. DOE said data generated by the selected projects will be made publicly available through its Geothermal Data Repository, providing industry and researchers with access to field-test and exploration information.
