The U.S. Department of Energy (DOE) has announced a funding opportunity totaling $171.5 million to support field-scale geothermal energy tests and exploration drilling across the United States. The initiative aims to advance geothermal technology for both electricity generation and resource characterization, with the goal of providing affordable, reliable, and secure domestic energy.
According to DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit, “Work under this opportunity will directly support our commitments to advance energy addition, reduce energy costs for American families and businesses, and unleash American energy dominance and innovation.” Haustveit also credited the current administration’s focus on energy policy: “Thanks to President Trump’s America First Energy Agenda, these demonstrations and drilling activities will help us realize the enormous potential of geothermal to spur domestic manufacturing, enable data center growth, and provide affordable, reliable, and secure energy solutions nationwide.”
The funding is divided into six topics with different levels of anticipated awards. In the first application round, two topics are open: one focused on field tests for enhanced geothermal systems, and another supporting next-generation drilling for hydrothermal resource characterization or confirmation.
While the United States currently leads in global geothermal electricity capacity with about four gigawatts installed, DOE analysis suggests that up to 300 gigawatts could be integrated into the national grid by 2050. This expansion is expected to encourage private investment in geothermal development across various regions.
Letters of Intent for this funding are due March 27, 2026. Full applications must be submitted by April 30, 2026.
In recent years, DOE has increased its investments in clean energy initiatives. For example, a program launched in July 2022 allocated $225 million toward implementing new building energy codes funded through bipartisan legislation (source). Additionally, DOE has supported over 140 programs under President Biden’s Justice40 Initiative aimed at ensuring federal clean energy investments reach disadvantaged communities (source). The department has also made efforts to decarbonize transportation through funding opportunities such as a $96 million announcement in July 2022 focused on electric vehicle infrastructure (source).
More information about the Notice of Funding Opportunity is available on the DOE website.
