Next-generation geothermal energy is undergoing a resurgence that is addressing significant challenges that have hindered it in the past, which is capturing the heightened interest from policymakers.
According to Canary Media, geothermal deal counts increased significantly between 2021 and 2024, leading to a cumulative capital raise of $250 million. These developments offer a solution to the urgent need for carbon-free energy sources capable of supplying 24/7 power to industries, cities, and data centers.
Among these projects, Eavor launched a demonstration site in Alberta, Canada, utilizing a closed-loop system that extracts heat from the Earth without injecting fluids into the ground. In 2022, Eavor drilled an 18,000-foot well in New Mexico, showcasing its ability to tap into heat from hard granite rock formations.
Although these advances are promising, scaling geothermal energy still presents significant challenges in most countries. According to the article, the U.S. Department of Energy estimates that new next-generation geothermal projects will require around $450 million in capital to develop a 30 MW system. One of the main hurdles is convincing large investors to fund these projects, which are still viewed as risky and unproven.
With continued investment, policy support, and successful pilot projects like those led by Eavor, geothermal energy could eventually contribute significantly to reshaping the global energy mix, offering a sustainable, carbon-free alternative that supports both electricity generation and industrial heating needs.
