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Bipartisan support fuels geothermal growth amid leasing challenges

An article in Semafor describes the evolving circumstance of leasing land for geothermal energy development in the U.S.

Despite geothermal’s potential to provide reliable, low-emission energy, the Utah auction saw only one of three plots receive bids. Ormat Technologies, a Nevada-based energy developer, secured the lease for just $2 per acre. Analysts attribute the lacklustre outcome to the plots’ remote, mountainous location and relatively low geothermal temperatures, which can limit economic viability.

Jeanine Vany, executive vice president of corporate affairs at Eavor, noted that high costs and the need for very hot subsurface temperatures continue to constrain geothermal development, but demonstrates optimism for the future of this process.

“As costs come down, you’ll start to see more regions that are not hot get grabbed quicker at auction,” Vany stated. “But today, geologists are just looking for hotter rocks.”

Eavor is addressing these limitations with its closed-loop geothermal systems, which bypass the geological constraints that hinder conventional technologies. This approach has the potential to expand geothermal power generation into regions previously deemed unsuitable while demonstrating scalability and minimizing risks associated with lower geothermal potential.

The article argues that with rising demand for power, particularly from industries such as data centers, lawmakers are taking steps to support geothermal expansion. Recent bipartisan legislation aims to streamline permitting processes and accelerate development, positioning geothermal as a vital component of the nation’s clean energy strategy.

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