The White House in Washington, DC (source: flickr/ Tom Lohdan, creative commons)
The US geothermal sector stands to benefit from the Energy Emergency Policy recently signed by newly inaugurated President Donald Trump.
One of the major concerns upon the start of the Trump administration in the United States was the curtailment of the momentum of renewable energy growth in the US. Recent developments, however, may indicate that the US government support for geothermal may continue.
On January 20, 2025, the newly inaugurated US President signed a declaration of a National Energy Emergency, stating the urgent need for a reliable, diversified, and affordable energy supply for the country. For the geothermal industry, the most important part of this declaration is the identification of “geothermal heat” as one of the domestic energy sources considered under the energy emergency statement. This category also includes crude oil, natural gas, coal, refined petroleum products, biofuels, hydropower, and critical minerals.
Interestingly, the list of recognized energy sources does not include solar or wind power, which raises questions about the administration’s priorities and strategies.
The provisions included in this energy emergency declaration could significantly benefit the listed energy sources. For instance:
- The execution of lawful emergency measures to facilitate the identification, leasing, siting, production, and generation of domestic energy resources, including federal lands.
- Expediting the completion of all authorized and appropriate energy infrastructure, with special emphasis on regions like the West Coast, Northeast, and Alaska.
- Activation of emergency procedures aimed at fast-tracking lawful permits and applications in accordance with the Clean Water Act (CWA) and the Endangered Species Act (ESA).
- An order to the Department of Defense to assess vulnerabilities in the country’s energy infrastructure, focusing primarily on the Northeast and West Coast to identify resources necessary to rectify such vulnerabilities.
Another encouraging sign for the US geothermal sector is the nomination of Chris Wright as the head of the Department of Energy. Wright, who is the founder of oilfield services company Liberty Energy, is known for his involvement with Fervo Energy, a player in the Enhanced Geothermal Systems (EGS) field working on projects in Utah and Nevada. During his Senate confirmation, Wright expressed his belief in geothermal as a “tremendous potential energy source” and affirmed his intention to champion its development.
Geothermal energy has garnered strong bipartisan support in recent years. A range of pro-geothermal policies have been proposed and passed at both state and federal levels, showcasing a unified recognition of its importance in the renewable energy landscape. The US Department of Energy has also boosted its support for the geothermal sector, enhancing public awareness for geothermal heating and cooling solutions, while providing funding for research initiatives focusing on geothermal exploration, EGS, scale inhibition, and critical minerals research.
Source: The White House and The Financial Times (1 and 2)