US Geothermal Tax Credits in 2026: What Is Actually Still Alive After OBBBA For an industry that spent more than a decade building financial models around a stable federal incentive structure, 2026 has been a year of whiplash. The 30% federal geothermal tax credit that developers and homeowners built forecasts around is gone in one form and still alive in another, and even the IRS’s own public guidance has been confusing enough to trigger uncertainty across the market. That confusion is not a minor clerical issue. It is shaping investment decisions, contractor sales pitches, homeowner timelines, and project finance assumptions right now. If you work in geothermal, the key question is no longer whether federal incentives exist, but which incentive applies, to which project type, and under what ownership structure. The law that changed the timeline To understand where things stand in 2026, you have to start with the Inflation Reduction Act of 2022, which created a long runway for clean e...
Elemental Energies and Iceland Drilling Join Forces to Revolutionize Global Geothermal Projects
The geothermal energy sector is experiencing a seismic shift, and two industry leaders, Elemental Energies and Iceland Drilling Company, are taking it to the next level. In a groundbreaking move, the two companies have launched a global joint venture that promises to deliver comprehensive geothermal solutions for projects worldwide. The new partnership combines Elemental Energies’ expertise in subsurface and well engineering with Iceland Drilling’s cutting-edge geothermal drilling services, creating a powerful alliance designed to meet the growing demand for clean, renewable energy.
A Bold Step Toward Sustainable Energy Solutions
With over 70 years of experience and hundreds of geothermal wells constructed globally, Iceland Drilling stands at the forefront of geothermal well construction. Meanwhile, Elemental Energies has spent more than 35 years shaping the future of well management and subsurface engineering. By combining their strengths, they are positioning themselves to take advantage of the massive potential within the geothermal energy market, which is poised for unprecedented growth.
As global decarbonization targets and technological advancements drive momentum in geothermal development, this joint venture promises to streamline project delivery and enhance efficiency. It combines well engineering, subsurface expertise, drilling services, and project management into a unified approach that helps developers reduce costs and ensure successful project outcomes.
Why Geothermal Energy?
Geothermal energy has long been touted as one of the most reliable and sustainable energy sources, and its global potential is staggering. According to the International Energy Agency, geothermal energy could account for 15% of the world’s electricity demand growth by 2050. This is equivalent to nearly 6,000 terawatt-hours per year — the combined current electricity demand of the U.S. and India.
As the global community turns toward decarbonization, geothermal energy presents a reliable, low-carbon solution. With cumulative investments in the sector projected to reach $1 trillion by 2035 and $2.5 trillion by 2050, the demand for expert geothermal drilling and engineering services will continue to grow. This is where the Elemental Energies and Iceland Drilling joint venture comes in, offering comprehensive and scalable solutions that reduce risks and accelerate project timelines.
Seamless Integration for Efficient Project Delivery
One of the standout features of this partnership is its integrated approach. The joint venture will offer end-to-end services, from early project planning and feasibility studies to subsurface modeling, detailed engineering, and full-scale drilling and project management. This holistic service offering ensures that clients can access the full spectrum of geothermal expertise under one roof.
Whether developers are looking for fully integrated project delivery or individual services, the joint venture can tailor its offerings to meet the specific needs of each project, no matter the stage. This flexibility allows clients to capitalize on best practices and integrate efficiencies that help reduce overall costs.
Geothermal Expansion: A Global Opportunity
The need for geothermal expertise is not limited to one region. In fact, demand is increasing across the globe, with countries in Europe, Africa, and the Americas leading the charge in harnessing geothermal energy. Iceland Drilling has already made a significant mark on the global geothermal landscape, with projects completed in countries such as Kenya, Italy, the UK, and Australia. The company’s fleet of modern hydraulic drilling rigs, combined with Elemental Energies’ well engineering prowess, provides an exceptional advantage in meeting the increasing demand for geothermal solutions.
Focus on The Azores: A Case in Point
One of the most notable projects currently underway is the geothermal expansion on the Azores Islands, Portugal. Iceland Drilling has been awarded a contract to drill up to nine geothermal wells, with an estimated depth range of 1,000 to 2,300 meters. This project is a part of the islands’ ambitious plan to boost geothermal electricity generation capacity, which currently contributes a significant portion of the islands’ energy supply.
The Azores project marks a pivotal moment for Iceland Drilling, as it is the company’s fifth geothermal drilling operation on the islands. Over the years, Iceland Drilling has successfully drilled wells that now contribute to 25% of the islands' electricity generation, with some islands relying as much as 44% on geothermal energy. The expansion plans aim to increase this capacity further, and the joint venture’s expertise will play a crucial role in ensuring timely and cost-effective execution.
Looking Ahead: A Bright Future for Geothermal Energy
As the world continues to pivot toward cleaner, more sustainable energy sources, the geothermal sector is set to play a vital role in the energy transition. With its vast global experience and cutting-edge capabilities, the Elemental Energies and Iceland Drilling joint venture is ready to lead the charge in delivering innovative, cost-efficient, and scalable geothermal solutions.
From early-stage planning to full-scale project execution, the partnership is well-equipped to address the challenges and opportunities of the rapidly expanding geothermal market. With strategic alignment and complementary expertise, this dynamic venture will play a crucial role in shaping the future of global geothermal energy.
The energy revolution is underway, and geothermal energy is one of its brightest stars. With companies like Elemental Energies and Iceland Drilling at the helm, the future of clean, sustainable energy looks brighter than ever.
Stay tuned as this exciting partnership unfolds and watch as geothermal energy continues to rise as one of the world’s most reliable and eco-friendly energy sources!
Source: Iceland Drilling Company
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