Plum Acquisition Corp. IV and Controlled Thermal Resources Outline a Large-Scale Geothermal and Critical Minerals Platform Plum Acquisition Corp. IV (“Plum IV”) and Controlled Thermal Resources Holdings Inc. (“CTR”) are moving toward a proposed business combination that would create a public company focused on one of the most ambitious geothermal and critical minerals developments in the United States. The combined entity is expected to trade on Nasdaq under the pro forma ticker CTRH, reflecting a platform built around clean baseload power, lithium recovery, and broader critical minerals production. The investor presentation dated August 2026 frames the transaction around CTR’s Hell’s Kitchen project in Imperial County, California, which is presented as a strategically positioned resource opportunity with energy, minerals, infrastructure, and permitting advantages. At the center of the presentation is a clear message: this is not just a power project, and it is not j...
Geothermal Policies Around the World: A Comparative Analysis
Introduction to Geothermal Energy and Its Global Significance
Geothermal energy harnesses the Earth's internal heat to generate electricity, provide heating, and support industrial processes. Unlike solar or wind, it offers a stable, baseload power source unaffected by weather, making it a cornerstone for renewable energy transitions. Globally, geothermal power capacity stands at around 15-16 GW, contributing significantly in regions with volcanic activity or tectonic plates. Countries like Iceland, where geothermal meets 25% of electricity needs, exemplify its potential. The International Energy Agency notes that while over 100 nations have policies for solar and wind, fewer than 30 support geothermal, highlighting a policy gap. This article explores geothermal policies in key countries: the United States, Iceland, New Zealand, Indonesia, the Philippines, Kenya, Italy, Japan, and Turkey. By examining incentives, regulations, and challenges, we uncover how diverse approaches drive development.
Geothermal's role in achieving net-zero goals is pivotal. The technical potential could meet all electricity and heat demands in regions like Africa, China, Europe, and Southeast Asia. However, barriers such as high upfront costs, exploration risks, and environmental concerns persist. Policies worldwide aim to mitigate these through subsidies, tax credits, and streamlined permitting. Leading nations like Iceland, the US, Indonesia, Turkey, and New Zealand employ varied strategies for sustainable exploitation. This analysis highlights successes and lessons for global adoption.
United States: Incentives Driving Expansion
The United States ranks among the top geothermal producers, with about 3.7 GW installed capacity, tapping only 0.7% of its potential. Federal policies, bolstered by the Inflation Reduction Act (IRA) of 2022, provide substantial incentives. The IRA offers a 30% investment tax credit (ITC) for geothermal projects, extendable with bonuses for meeting labor and domestic content requirements. This scales down to 5.2% by 2033 but includes bonuses up to 30% for compliant projects. The Energy Policy Act of 2005 further promotes renewables by diversifying energy portfolios.
State-level incentives complement federal efforts. For instance, states like California and Nevada offer tax abatements and grants, heating up project development. The bipartisan Geothermal Tax Parity Act of 2025, introduced by Reps. Garamendi and Maloy, seeks to align geothermal tax benefits with those for oil and gas, extending deductions for intangible drilling costs. This aims to de-risk investments and spur growth.
Challenges include regulatory hurdles on federal lands, where most resources lie. Emergency permitting procedures under recent acts streamline approvals. The US contributes 0.4% of national power from geothermal, with policies pushing for more amid political shifts. Future plans target enhanced geothermal systems (EGS) to unlock untapped potential, supported by IRA subsidies.
Iceland: A Model of Comprehensive Utilization
Iceland leads globally, with geothermal generating 25% of electricity and heating 90% of homes. Its policy framework emphasizes sustainability and competitiveness. The 2021 Energy Compact commits to 100% renewables, with 85% of total energy from sustainable sources. In 2025, Iceland launched a policy initiative to advance geothermal through expert working groups, focusing on regulatory reforms.
The Master Plan for Nature Protection and Energy Utilization balances development with environmental safeguards. Landowners can use up to 3.5 MW without permits for small-scale needs. Iceland's 20th-century shift from fossil fuels was driven by policies post-1970s oil crises, including loans for district heating. Today, it pioneers circular economies, reusing geothermal fluids for spas and greenhouses.
Foreign policy extends expertise abroad, investing in global renewables. Challenges like resource depletion are addressed through reinjection mandates. The 2050 policy aims for carbon neutrality, leveraging geothermal's baseload reliability.
New Zealand: Doubling Down on Geothermal Growth
New Zealand derives 18% of electricity from geothermal, with 1 GW capacity. The 2025 draft strategy "From the Ground Up" targets doubling production by 2040, emphasizing resilience and heat applications. This aligns with climate goals, highlighting geothermal's role in emissions reduction.
The National Policy Statement for Renewable Electricity Generation promotes consents for renewables. IEA recommendations urge managing transformations for net-zero by 2050. Māori partnerships ensure cultural considerations in resource management.
Global expertise export bolsters the sector. Challenges include seismic risks, mitigated by monitoring. The strategy focuses on direct-use heat for industry, aiming for 40-50% renewables by 2040.
Indonesia: Regulatory Reforms for Massive Potential
Indonesia boasts 23 GW geothermal potential but has installed only 2.3 GW. Law No. 21/2014 separates geothermal from mining, enabling forest development. The 2023 book on policies outlines commitments to low-carbon via Energy Law and GR 79/2014.
Government Regulation 79/2014 sets national energy policy, targeting 7.2 GW by 2025. 2025 initiatives at IIGCE focus on growth-enabling environments. Incentives include tax holidays and feed-in tariffs.
Community empowerment is key for net-zero by 2060, adding 5.2 GW. Challenges: permitting delays, addressed by streamlined regulations.
## Philippines: Reclaiming Leadership Through Deregulation
The Philippines, second globally with 1.9 GW, sources 10-15% electricity from geothermal. The Renewable Energy Act of 2008 offers incentives like 7-year tax holidays and duty-free imports.
The 2023-2050 Philippine Energy Plan targets 50% renewables by 2040. 2025 policies allow 100% foreign ownership for large projects. The Geothermal Resource Derisking Facility covers 50% drilling costs from 2026.
Exploration extended to 7 years addresses risks. Aims to reignite growth amid competition.
Kenya: Policy-Driven African Leader
Kenya's 1 GW geothermal contributes 45% to electricity. The 2025-2034 National Energy Policy accelerates development via GDC for de-risking.
Updated policies and auctions transform the sector. 100% clean energy by 2030 pledge includes geothermal expansion. IEA praises leadership in renewables.
Health impacts are monitored. Economic growth ties to sustainable power.
Italy: Reviving Historic Roots with EU Support
Italy's 0.9 GW provides 1.6-1.8% electricity. PNIEC targets +1 GW by 2030, including zero-emission tech.
EU-approved aid via CfDs supports renewables. 2016 IEA review notes climate ambitions. Coal phase-out by 2025 boosts geothermal.
Public engagement addresses local concerns. Projections to 2050 eye growth.
Japan: Overcoming Barriers for Net-Zero
Japan's 0.6 GW taps minimal potential; targets 1.5 GW by 2030. Post-Fukushima policies accelerate via feed-in tariffs.
METI's 2024 measures support development for 1% power mix. FITs at 26-40 yen/kWh aid projects. 2040 plan: 40-50% renewables.
National park restrictions eased.
Turkey: Rapid Growth with Localization
Turkey's 1.7 GW generates 3% electricity. 2007 Law sets exploration rules. 2023 target: 1 GW, achieved early.
YEKA auctions and 55% domestic equipment boost industry. Feed-in tariffs up to $0.073/kWh for 10 years. 2021 policy diversifies sources.
Potential: 4.5 GW; public finance de-risks.
Comparative Analysis and Global Challenges
Policies vary: Tax credits dominate in the US, while Indonesia and Philippines emphasize deregulation. Iceland and New Zealand integrate cultural aspects; Kenya and Turkey focus on de-risking. Common incentives include FITs and tax holidays, but exploration risks hinder progress. EU directives aid Italy, contrasting Japan's post-disaster push.
Globally, only four countries account for 87% of direct use. Challenges: Environmental impacts, financing. Opportunities: Next-gen tech for broader deployment.
Conclusion: Toward a Geothermal Future
Geothermal policies are evolving to meet climate goals. From Iceland's holistic model to Indonesia's ambitious targets, diverse strategies offer blueprints. Enhanced international cooperation can scale adoption. By addressing gaps, geothermal can power a sustainable world.
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