On March 4, the Citizens for Responsible Energy Solutions (CRES) Forum announced the release of a white paper written by Michael Yancey, Director of Congressional Policy at the CRES Forum. Titled “The Conservative Case for Next Generation Geothermal Energy,” the paper highlights the multiple benefits of this clean energy source and suggests policy proposals that will spur its development.
Heather Reams, President of the CRES Forum, said, “Geothermal energy, especially advanced geothermal technologies, must be a cornerstone of America’s path to energy dominance—delivering baseload power, bolstering our energy supply and cementing our nation’s role as a global energy leader. With our existing expertise, paired with unmatched research and innovation at our national laboratories and universities, there is no question the United States is positioned to dominate the geothermal energy market.”
To celebrate the release of the white paper, the CRES Forum collaborated with Project InnerSpace to host an event called the ‘Geothermal House’ in Washington, D.C., which was attended by Energy Secretary Chris Wright. He delivered a keynote address focused on how the energy source will support data center and manufacturing operations and help meet household electricity needs, in addition to underscoring how the U.S. Department of Energy (DOE) will prioritize advancing the industry.
Photo Courtesy Lisa Nipp for Project InnerSpace
The white paper highlights the potential of geothermal energy and was a focus of the Geothermal House event. One specific example discussed at the event was the Permian Basin, which Rep. August Pfluger (R-TX) represents. Geothermal energy is created by leveraging drilling techniques and technologies from the oil and gas industries to tap into geologic heat stored below the Earth’s surface. According to the National Renewable Energy Laboratory (NREL), by 2050, the U.S. could generate 90.5 gigawatts of electricity (GWe), with the total potential possibly above 5,000 GWe.
Geothermal energy offers a variety of other advantages compared to other energy sources. A 2022 study found that geothermal energy uses 95.5% less surface area than coal, 99.63% less than wind energy, and 99.92% less than crop-based biomass. It is also more environmentally friendly, with 97% fewer sulfur compounds that can cause acid rain and about 99% less carbon emissions than power plants running on fossil fuels, notes the U.S. Energy Information Administration.
Video Courtesy U.S. Department of Energy
Sen. John Curtis (R-UT) opened the event by focusing on the importance of investing in research and development for geothermal energy, which will play a large role in America’s energy future. According to the white paper, geothermal energy offers numerous advantages for national security and defense purposes. Sourced from the ground beneath our feet, the energy can be produced domestically and does not face supply chain constraints in the same way as solar, whose supply chain is 80% dominated by China, according to the International Energy Agency (IEA). Additionally, geothermal facilities can be used to extract lithium from the ground, building out a domestic supply chain that reduces dependence on other countries for the key battery component.
Advancing in geothermal energy also offers another chance to put America first by countering China, which the IEA notes represents 70% of the world’s investments in the energy source. With the next-generation geothermal estimated to hit 800 GW by mid-century, and with China’s plans to deploy 100 GW of capacity by then, the U.S. needs to invest in this resource to remain an energy leader.
Meanwhile, Rep. Randy Weber (R-TX) discussed the reliability of the 24/7 power source that is housed underground and, therefore, less impacted by severe climate events and grid failures. According to the DOE, it is the most reliable energy source other than nuclear power, with a capacity factor of about 71% and with next-generation systems poised to reach at least 90%, compared to 34% for wind and 25% for utility-scale solar. The U.S. Department of Defense’s Defense Innovation Unit has accordingly partnered with a number of geothermal companies to use their technology at military bases and other installations. For example, in 2023, the unit announced that Teverra would be working at Fort Wainwright in Alaska.
Photo Courtesy Teverra
The white paper’s policy recommendations are where it really shines, and Michael Yancey elaborated on them during a panel focused on federal and state policy at the event. First, as Heather Reams noted in a blog post, “Our federal permitting system has long been recognized as ‘broken’ and overly restrictive, deterring private investment and limiting our ability to deploy clean energy projects.” Therefore, the white paper suggests comprehensive permitting reforms to speed up development and shorten timelines, including reforming the process for litigation under the National Environmental Policy Act to avoid prolonged or frivolous suits. In the appendix, it also suggests solutions like increasing the frequency of geothermal lease sales and helping American geothermal drillers and technology manufacturers access international markets.
Second, as Reams elaborates, “Geothermal projects also require significant upfront capital, further deterring private investment. Predictable, yet limited tax incentives can help offset high upfront costs, alleviate market uncertainty and catalyze investments.” The white paper states that Congress should maintain technology-neutral tax credits, including the clean electricity investment tax credit (45Y) and the clean electricity production tax credit (48E), to eliminate any market uncertainty and encourage private investment and deployment. In the appendix, it also suggests providing technical assistance to the sector and encouraging public-private partnerships.
Finally, geothermal faces similar financial and technical barriers, similar to any other technology. “As with any budding technology, we must ensure adequate funding—both private and federal—is allocated to research, development, demonstration and deployment,” Reams says. The white paper states that the federal government in particular, especially the DOE and its national laboratories, should direct resources toward research, early-stage applications, and late-stage demonstrations to drive innovation in the sector and ultimately drive down the cost of these systems.
Photo Courtesy Fervo Energy
“Geothermal can unleash the full potential of our energy sector while creating high-paying jobs and revitalizing local economies,” the report concludes. “It’s time to drill deeper, power smarter, and put American energy first.”
