Who Is Really Funding Next-Gen Geothermal in 2026? Next-generation geothermal has moved beyond laboratory research into a capital-intensive commercialization phase. In 2026, the most important financing is no longer coming from one investor category: venture capital funds are financing drilling, subsurface modelling and hardware; strategic energy companies are providing equipment, project access and market credibility; banks are beginning to lend against contracted projects; and governments are absorbing exploration and first-of-a-kind technology risk. The strongest financing activity is concentrated in the United States and Canada, but Europe is becoming increasingly important through Germany-based deployment, European Union grants, UK innovation support, and strategic participation from European energy companies. The central investment question is changing from “Can this technology work?” to “Can the developer deliver repeatable, financeable projects at commercial cost?” The 2026 fun...
In a bold step toward redefining the future of clean energy, Orkuveitan, Iceland’s leading utility company, has announced its next major geothermal milestone — the IDDP-3 superhot drilling project.
Presented by Hera Grímsdóttir, Executive Director of Research and Innovation at Orkuveitan, during the Superhot Summit in Reykjavík’s Harpa Conference Center, this initiative marks the dawn of a new era in geothermal energy utilization.
The event, organized by Iceland’s Minister of Environment, Energy, and Climate Jóhann Páll Jóhannsson in collaboration with the national energy sector, showcased Iceland’s ambition to fast-track the development of next-generation geothermal systems. A joint declaration of intent was signed between the Ministry and three major energy companies — Landsvirkjun, Orkuveitan, and HS Orka — solidifying their cooperation on the Iceland Deep Drilling Project (IDDP-3).
The Next Frontier: Deep Drilling into the Earth’s Core
In her keynote, Hera Grímsdóttir unveiled Orkuveitan’s vision to begin drilling at Nesjavellir in 2026, near the historic NJ-11 well drilled in 1985. Using cutting-edge technology and working alongside global research partners, the project aims to reach depths of 4–5 kilometers, tapping geothermal fluids at temperatures exceeding 400°C.
> “We intend to drill deeper, harness more energy, and create new opportunities for a sustainable future,” said Hera.
“By accessing energy from deeper, hotter layers of the Earth, we can multiply the output of individual wells, reduce costs, and minimize environmental impact.”
This transformative approach — known as superhot geothermal — could generate five to ten times more energy than conventional wells, positioning Iceland as a world leader in high-efficiency renewable power.
A Vision Backed by Strong Political and Scientific Will
Minister Jóhannsson emphasized Iceland’s unique opportunity to become a global leader in superhot geothermal utilization.
> “If we can harness geothermal zones exceeding 400°C, we can redefine the economics of clean and secure energy,” he said. “Superhot geothermal can form the foundation for new industries, innovation, and value creation.”
He also revealed that Iceland is developing its first National Geothermal Roadmap, which will guide geothermal development, research, and innovation through 2050 — ensuring that the nation remains at the forefront of sustainable energy.
Pioneering Over a Century of Geothermal Excellence
For over 100 years, Orkuveitan has been at the heart of Iceland’s energy story. As a pioneer behind the world’s first large-scale district heating system for Reykjavík, the company has continually evolved to meet the demands of a changing planet. The IDDP-3 project is not just another step forward — it’s a quantum leap in geothermal innovation.
> “We’re building on decades of experience, a strong scientific community, and collaboration with technology partners,” Hera said.
“This isn’t just about Iceland’s energy future — it’s about offering the world a solution to one of its greatest challenges: sustainable, limitless energy.”
As drilling preparations begin, the IDDP-3 project stands as a beacon of hope, ingenuity, and resilience, showcasing how innovation in the geothermal sector can drive the world toward a cleaner, more sustainable energy future.
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Iceland’s Orkuveitan Leads the Charge in Superhot Geothermal Development
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In a bold step toward redefining the future of clean energy, Orkuveitan, Iceland’s leading utility company, has announced its next major geothermal milestone — the IDDP-3 superhot drilling project. Presented by Hera Grímsdóttir, Executive Director of Research and Innovation at Orkuveitan, during the Superhot Summit in Reykjavík’s Harpa Conference Center, this initiative marks the dawn of a new era in geothermal energy utilization.
The event, organized by Iceland’s Minister of Environment, Energy, and Climate Jóhann Páll Jóhannsson in collaboration with the national energy sector, showcased Iceland’s ambition to fast-track the development of next-generation geothermal systems. A joint declaration of intent was signed between the Ministry and three major energy companies — Landsvirkjun, Orkuveitan, and HS Orka — solidifying their cooperation on the Iceland Deep Drilling Project (IDDP-3).
The Next Frontier: Deep Drilling into the Earth’s Core
In her keynote, Hera Grímsdóttir unveiled Orkuveitan’s vision to begin drilling at Nesjavellir in 2026, near the historic NJ-11 well drilled in 1985. Using cutting-edge technology and working alongside global research partners, the project aims to reach depths of 4–5 kilometers, tapping geothermal fluids at temperatures exceeding 400°C.
> “We intend to drill deeper, harness more energy, and create new opportunities for a sustainable future,” said Hera.
“By accessing energy from deeper, hotter layers of the Earth, we can multiply the output of individual wells, reduce costs, and minimize environmental impact.”
This transformative approach — known as superhot geothermal — could generate five to ten times more energy than conventional wells, positioning Iceland as a world leader in high-efficiency renewable power.
A Vision Backed by Strong Political and Scientific Will
Minister Jóhannsson emphasized Iceland’s unique opportunity to become a global leader in superhot geothermal utilization.
> “If we can harness geothermal zones exceeding 400°C, we can redefine the economics of clean and secure energy,” he said. “Superhot geothermal can form the foundation for new industries, innovation, and value creation.”
He also revealed that Iceland is developing its first National Geothermal Roadmap, which will guide geothermal development, research, and innovation through 2050 — ensuring that the nation remains at the forefront of sustainable energy.
Pioneering Over a Century of Geothermal Excellence
For over 100 years, Orkuveitan has been at the heart of Iceland’s energy story. As a pioneer behind the world’s first large-scale district heating system for Reykjavík, the company has continually evolved to meet the demands of a changing planet. The IDDP-3 project is not just another step forward — it’s a quantum leap in geothermal innovation.
> “We’re building on decades of experience, a strong scientific community, and collaboration with technology partners,” Hera said.
“This isn’t just about Iceland’s energy future — it’s about offering the world a solution to one of its greatest challenges: sustainable, limitless energy.”
As drilling preparations begin, the IDDP-3 project stands as a beacon of hope, ingenuity, and resilience, showcasing how innovation in the geothermal sector can drive the world toward a cleaner, more sustainable energy future.
Source: Orkuveitan
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