Skip to main content

WHAT 50 YEARS OF ENHANCED GEOTHERMAL TEACHES US TODAY

POWERING THE FUTURE: WHAT 50 YEARS OF ENHANCED GEOTHERMAL TEACHES US TODAY

In an era where the world grapples with the dual challenges of climate change and energy security, renewable sources are stepping into the spotlight. Among them, geothermal energy stands out for its reliability—it's always on, unlike solar or wind. But what if we could tap into the Earth's heat anywhere, not just in volcanic hotspots? That's the promise of Enhanced Geothermal Systems (EGS), a technology that's been evolving for over five decades. From experimental beginnings in the 1970s to cutting-edge deployments today, EGS is on the cusp of transforming our energy landscape. This article dives deep into that journey, exploring innovations, breakthroughs, cost reductions, and market growth. Drawing from historical projects, recent reports, and global trends up to 2025, we'll see how 50 years of progress positions EGS as a powerhouse for the future.

Tracing Five Decades of Geothermal Innovation and Its Influence on Today’s Energy Landscape

The story of EGS begins in the early 1970s, amid the oil crises that shook global economies. At Los Alamos National Laboratory in New Mexico, scientists launched the Fenton Hill project, the world's first attempt to harness "hot dry rock" geothermal energy. This marked the birth of what we now call EGS: injecting water into deep, hot rocks to create artificial reservoirs, then extracting steam to generate electricity. Unlike traditional hydrothermal systems, which rely on natural hot springs and permeable rock, EGS engineers permeability where it doesn't exist naturally.

The 1970s and 1980s were experimental years. Fenton Hill demonstrated proof-of-concept by drilling two wells and fracturing the rock between them, circulating water to produce heat. Though it only generated small amounts of power, it proved EGS could work. By the 1990s, international efforts ramped up. Projects in Japan (Hijiori), France (Soultz-sous-Forêts), and the UK (Rosemanowes) tested variations, focusing on fracture stimulation and fluid circulation. These early demos faced challenges like low flow rates and seismic risks, but they laid foundational knowledge on reservoir creation.

The 2000s brought a shift toward commercialization. In the U.S., the Department of Energy (DOE) invested heavily, estimating EGS could provide 100 gigawatts electric (GWe) or more within 50 years. Key milestones included the Desert Peak project in Nevada (2010s), where Ormat Technologies stimulated an unproductive well, adding 1.7 MW to an existing plant. At The Geysers in California, Calpine revived abandoned wells, boosting output by 5.8 MW. Globally, Australia's Habanero project and Europe's Soultz plant (now producing 1.7 MW) showed EGS viability in diverse geologies.

The 2010s accelerated with oil and gas tech crossovers. Hydraulic fracturing ("fracking") and horizontal drilling, honed in shale gas booms, were adapted for geothermal. This influenced today's landscape by expanding EGS beyond rift zones to sedimentary basins and crystalline rocks. By 2020, the DOE's FORGE (Frontier Observatory for Research in Geothermal Energy) in Utah became a testbed for next-gen tools, demonstrating faster drilling and better stimulation.

As of 2025, EGS influences the energy sector profoundly. With over 103 projects worldwide across 23 countries, it's no longer fringe tech. Recent demos like Fervo Energy's Project Red in Nevada integrate AI and fiber-optics for real-time monitoring, achieving commercial-scale flow rates. This evolution has made geothermal a "firm" renewable—dispatchable and baseload-capable—complementing intermittents like solar. In policy terms, the U.S. Inflation Reduction Act and EU's REPowerEU plan prioritize EGS for net-zero goals, while countries like Kenya and Indonesia scale it for energy independence. Fifty years on, EGS isn't just powering grids; it's reshaping how we think about sustainable energy, proving that innovation can unlock the Earth's vast heat reserves.

Highlighting Breakthroughs in Drilling, Well Design, and Production That Enable Higher Efficiency

Efficiency is the holy grail of energy tech, and EGS breakthroughs have slashed inefficiencies that once plagued early projects. Let's break it down by category.

Drilling innovations have been game-changers. Traditional geothermal drilling was slow and costly, often taking months per well. Borrowing from oil and gas, companies like Fervo Energy achieved a 70% reduction in drilling time in 2024 campaigns. Advanced bits and mud motors allow horizontal wells up to 3 km long, accessing larger heat volumes. NREL's advanced wells research promises tenfold faster rates, cutting costs by 75% and timelines dramatically. In Germany, projects like Prenzlau hit target depths efficiently using hybrid rigs.

Well design has evolved from vertical pairs to sophisticated networks. Closed-loop systems, like those tested at FORGE, circulate fluid in sealed pipes, minimizing water loss and seismic risks—akin to a giant underground radiator. Retrofitting inactive oil wells is another leap: DOE's Wells of Opportunity program converts unproductive hydrocarbon sites into EGS, reducing new infrastructure needs. Co-production—extracting geothermal from active oil fields—adds efficiency by dual-using wells. Startups like Sage Geosystems use pressure-based designs for "pressure geothermal," enhancing output in low-permeability zones.

Production breakthroughs focus on heat extraction and monitoring. Hydraulic stimulation creates fracture networks for better flow, with fiber-optic sensors providing real-time data on reservoir dynamics. The DOE's Geothermal Geophone Prize developed sensors for extreme conditions (over 200°C), improving efficiency by mapping fractures accurately. Superhot rock systems target >375°C depths, where water becomes supercritical, boosting power density 10x over conventional. Additive manufacturing from the Geothermal Manufacturing Prize created tools like ultra-high-temperature logging devices, tested at The Geysers in 2023, slashing development time from years to months.

These advances collectively hike efficiency: utilization rates over 75% versus <30% for wind. Projects like Berlin in El Salvador use binary cycles for lower-temp resources, maximizing output. As a result, EGS now achieves higher thermal-to-electric conversion, making it competitive with fossils.

Connecting Advancements in Technology with Reduced Costs and Expanding Energy Capacity

Technology doesn't innovate in a vacuum—it drives economics. EGS advancements have plummeted costs while ballooning potential capacity.

Cost reductions stem from drilling efficiencies. Well construction once ate 30-40% of budgets; now, faster rigs and better casing cut that significantly. Fervo's tech, leveraging oil/gas innovations, halves project timelines. The Levelized Cost of Electricity (LCOE) for geothermal dropped in 2024, per IRENA, making EGS viable at scale. Policies like Germany's KfW loans and U.S. tax credits further de-risk investments. Startups like Dig Energy innovate affordable drilling for heating/cooling, expanding applications.

Expanding capacity is equally transformative. DOE forecasts U.S. EGS at 90 GW by 2050, up from 4 GW today. Globally, advanced geothermal could supply 15% of electricity by mid-century if tech continues. Superhot rock unlocks terawatts, with reports outlining de-risking roadmaps. Co-benefits like lithium extraction from brines add value, as in Chevron's expansions. In Asia, Pertamina's Lahendong expansion and Philippines' de-risking facility boost capacity. These tech-cost links make EGS a scalable solution, from district heating (up 17% in 2024-2025) to grid power.

Tracking the Growth of Installed Capacity and the Growing Role of Geothermal in Global Energy Markets

Geothermal's installed capacity has surged, reflecting EGS's maturation. Globally, it hit ~16 GW in 2025, with electricity generation at 101 billion kWh. Growth is projected at 5.3% CAGR to USD 13.56 billion market by 2030. Power market to USD 10.78 billion by 2034. Only 0.4 GW added in 2024, but momentum builds with EGS pilots.

In the U.S., from 15.7 billion kWh in 2024 to 55.9 by 2050. Trump's policies spurred 1.2 GW planned by term end. Europe sees Innargi's permits in Denmark and Strataphy's Saudi deals. Latin America: Brazil's National Program, GeoMap highlighting South America's potential. Africa: Kenya's hosting 2029 World Geothermal Congress.

Geothermal's market role grows as a clean baseload. Industrial segment at 6.9% CAGR for process heat. Investments like Google's $462M in Fervo signal confidence. In markets, it's key for decarbonization, with EGS enabling "50-state" access. Challenges like permitting persist, but growth trajectories point to a starring role in global energy.

Conclusion: Lessons from the Past, Power for Tomorrow

Fifty years of EGS teach resilience: from Fenton Hill's experiments to today's multi-GW potentials, innovation overcomes barriers. Key lessons? Cross-industry tech transfer accelerates progress; policy support de-risks scaling; and sustainability demands addressing seismicity and water use. As we power toward net-zero, EGS offers firm, clean energy everywhere. With continued investment, it could redefine our future—hotter, brighter, and greener.



Connect with us :LinkedInX


Comments

Hot Topics 🔥

Geothermal Power Play: Well Engineering Partners Takes Over Operations as Sproule ERCE Sharpens Advisory Focus

The geothermal energy sector is heating up literally and figuratively and a recent strategic move is set to accelerate progress in sustainable energy production. By: Robert Buluma Effective January 1, 2026, Well Engineering Partners (WEP) acquired the operational and production-focused geothermal activities from Sproule ERC (formerly associated with Veegeo). This acquisition marks a smart realignment of strengths in the booming geothermal market, where clean, reliable baseload energy is increasingly vital for the global energy transition. Imagine harnessing the Earth's natural heat to power homes, industries, and cities without the intermittency of solar or wind. Geothermal energy does exactly that, providing constant output from deep underground reservoirs. But turning that potential into reality requires specialized expertise from initial resource assessment to long-term well maintenance. That's where this deal shines: it allows each company to double down on what they do b...

Inside the Geothermal Startup Mind: The Strategy, Funding & Sacrifices Behind Teverra’s Growth

Inside a Geothermal Startup’s Mind: Strategy, Funding, Ethics, and the Brutal Race to Commercialize This interview was done by Robert Buluma on behalf of Alphaxioms  Image:  The Interviewee, Dr.  Hamed Soroush is the Founder and President at Teverra  There’s a certain kind of silence that exists inside fast-growing startups. Not the quiet of peace, but the quiet of pressure . It’s the silence of teams racing to commercialize before competitors arrive. The silence of founders balancing mission and survival. The silence of a clean energy industry that desperately needs success stories… but is still learning how to measure them. In this one-on-one interview, we explore what it really takes to build a geothermal-driven clean energy company in today’s market, from strategic decisions and funding discipline to leadership, ethics, and the painful sacrifices behind growth. 1)  Vision & Strategy: “Speed Is Everything” Q:   Teverra  has grown rapidly, but co...

KenGen Launches International Tender for Essential Geothermal Wellhead

KenGen Launches International Tender for Essential Geothermal Wellhead Equipment Amid Kenya's Green Energy Push In a significant move to bolster its geothermal energy infrastructure, Kenya Electricity Generating Company PLC (KenGen) has issued an open international tender for the supply of specialized geothermal wellhead equipment. The tender, referenced as KGN-GDD-025-2026, focuses on expanding gate valves and adaptor flanges—critical components used in geothermal wellheads to manage high-pressure steam and ensure safe, efficient energy extraction. Released in January 2026, this procurement opportunity underscores KenGen's ongoing commitment to expanding Kenya's renewable energy capacity, particularly in the geothermal sector, which already accounts for a substantial portion of the country's power generation. Tender Details and Requirements The tender invites sealed bids from eligible candidates worldwide, emphasizing an open competitive process to attract qualified ...

Vallourec-XGS Alliance Unlocks 3-GW Geothermal Buildout in Western US

Vallourec + XGS Energy : The Tubular Alliance That Could Turn Next-Gen Geothermal Into a 3-GW Reality Across the Western U.S. By: Robert Buluma Image:Vallourec-XGS Alliance Unlocks 3-GW Geothermal Buildout in Western US There are moments in the energy transition when a “press release” quietly reveals something far bigger than a partnership. It reveals a  supply chain war being won before the market even realizes the battle has begun. On January 28, 2026, Vallourec one of the world’s most dominant names in premium tubular solutions—announced a strategic supply chain partnership with XGS Energy, the next-generation geothermal developer building what may become one of the most aggressive geothermal project pipelines in North America: a 3-gigawatt commercial pipeline across the western United States. And this isn’t a distant dream. This is happening now—because XGS is preparing to begin construction this year on its headline project: a 150 MW geothermal facility in New Mexico backed ...

The Billion-Dollar Gamble Beneath Our Feet: Why Geothermal Exploration Is the Industry’s Greatest Risk

Exploration Risk: The Billion-Dollar Gamble Beneath Our Feet By:  Robert Buluma Image credit: Kane Watikson on LinkedIn  Geothermal energy is often described as the sleeping giant of the clean energy transition  constant, weather-independent, capable of delivering 24/7 baseload power without the intermittency that defines solar and wind. Yet despite this extraordinary promise, geothermal remains underdeveloped in most parts of the world. The reason is not lack of heat. It is not lack of demand. It is not even lack of technology and not even  FINANCE ,  Whilst many will throw that policy card, but Alphaxioms is already future proofing that .  The real barrier lies several kilometers beneath our feet  in uncertainty. Exploration risk is the defining challenge of geothermal energy. Unlike wind turbines that can measure wind speeds before construction, or solar farms that can predict output from sunlight data, geothermal developers must make multimillion-d...

CTR Launches American Data Power: 600 MW Geothermal Complex to Fuel America’s AI & Hyperscale Data Boom at Salton Sea

The recent announcement from  Controlled Thermal Resources Holdings Inc. (CTR) marks a significant step in addressing one of the most pressing challenges in the U.S. energy landscape:  providing reliable, clean, baseload power for the explosive growth of hyperscale data centers and AI infrastructure. On January 29, 2026, CTR launched American Data Power, a new subsidiary dedicated to delivering a utility-scale 600 MW energy complex in California's Salton Sea Geothermal Field. This initiative advances the next phase of CTR's flagship Hell’s Kitchen development, positioning it as one of the largest baseload renewable energy projects in the country. Geothermal energy stands out in the renewable mix because it delivers continuous, 24/7 power unlike solar or wind, which depend on weather conditions. The proposed complex targets a capacity factor exceeding 95%, ensuring high operational reliability. This makes it ideal for the constant, high-load demands of hyperscale data centers...

Zanskar Secures $115 Million to Redefine Geothermal Discovery with AI

Zanskar Secures $115 Million to Redefine Geothermal Discovery with AI By: Robert Buluma Image: Zanskar Secures $115 Million to Redefine Geothermal Discovery with AI The geothermal sector just crossed another psychological milestone. Zanskar , a U.S.-based geothermal developer blending hard geoscience with artificial intelligence, has raised $115 million in Series C financing, marking one of the most significant capital injections yet into AI-driven geothermal exploration. The raise propels the company into a new phase,moving decisively from discovery to grid-scale power generation across the Western United States. This latest round pushes Zanskar’s total equity funding to $180 million, a clear signal that investors now see geothermal not as a niche renewable, but as critical baseload infrastructure for the decades ahead. Big Capital Bets on AI-Native Geothermal The funding round was led by Spring Lane Capital , with continued backing from Obvious Ventures, Union Square Ventures , and...

How to Start a Geothermal Energy Company: Entrepreneur’s Guide

How to Start a Geothermal Energy Company: Entrepreneur’s Guide By:  Robert Buluma Geothermal energy is emerging as one of the most reliable and sustainable renewable energy sources in the world. Unlike solar or wind, geothermal provides a stable, 24/7 energy supply, making it a highly attractive sector for entrepreneurs looking to enter the renewable energy market. If you’ve ever wondered how to start a geothermal energy company, this comprehensive guide walks you through everything—from understanding the technology to securing permits, funding, and scaling operations. Why Start a Geothermal Energy Company? The demand for renewable energy is skyrocketing, driven by climate change concerns, government incentives, and rising electricity costs. Geothermal energy is uniquely positioned because it is: Reliable and Consistent:  Provides baseload power 24/7. Environmentally Friendly:  Minimal greenhouse gas emissions and a small land footprint. Profitable:  With proper plan...

7,000 Feet Deep, 338°F: The Game-Changing Sensor Revolutionizing Enhanced Geothermal Systems

Breakthrough in Geothermal Monitoring: Berkeley Lab's High-Temperature Seismometer Powers the Future of Enhanced Geothermal Systems By: Robert Buluma Image: Cape Station, Fervo Owned Geothermal Station  Geothermal energy has long been valued as a reliable, clean, and renewable source of power. It draws heat from deep within the Earth to generate electricity with virtually no greenhouse gas emissions during operation. Traditional geothermal plants rely on naturally occurring hot water or steam reservoirs, which restricts development to specific volcanic or tectonically active regions. Enhanced Geothermal Systems (EGS), however, represent a game-changing evolution. EGS engineers artificial reservoirs in hot, otherwise impermeable rock formations found almost anywhere with sufficient subsurface heat. By injecting fluid under pressure to create and propagate fractures, EGS dramatically expands the geographic reach and scalability of geothermal power, offering the potential for 24/7, c...

ORC and Next-Gen: Advantages and Opportunities in Design and Execution

ORC and Next-Gen: Advantages and Opportunities in Design and Execution By:  Robert Buluma In the rapidly evolving landscape of renewable energy, the Organic Rankine Cycle (ORC) stands out as a versatile and efficient technology for harnessing low-grade heat sources, particularly in geothermal applications. Unlike traditional steam-based Rankine cycles, ORC uses organic fluids with lower boiling points, enabling power generation from temperatures as low as 80-150°C. This makes it ideal for geothermal energy, waste heat recovery, and even solar thermal systems. As we push toward a net-zero future in late 2025, next-generation enhancements to ORC systems are unlocking new advantages in design and execution. These innovations address key challenges like fluctuating energy demands, resource variability, and scalability, paving the way for more reliable and cost-effective clean energy solutions. This article explores the advantages and opportunities in ORC and next-gen technologies. We'l...