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As pressure mounts to deliver 24/7 clean electricity amid surging demand, geothermal energy is gaining momentum as a vital piece of the decarbonization puzzle. Long overshadowed by solar, wind, and batteries, geothermal is now emerging as a powerful source of clean firm power—offering round-the-clock reliability without carbon emissions. Its ability to deliver energy from beneath the surface aligns squarely with the broader push for Green Molecules™—zero- and low-carbon fuels and thermal energy sources that complement the intermittency of renewables and fill critical gaps in the energy system.
This article is the first in a three-part series exploring the future of geothermal energy through the lens of Green Molecules™. We’ll start by unpacking why geothermal is gaining traction now—examining the market drivers, reliability advantages, and policy tailwinds bringing it back into the energy conversation. In the next installments, we’ll dive into the technologies pushing geothermal into new frontiers and the investments, incentives, and infrastructure needed to scale it. As momentum builds, utilities, innovators, and investors—including Energy Capital Ventures—are all taking a closer look at what lies beneath our feet.
Today’s clean energy buildout faces a growing challenge: intermittency. While solar and wind have achieved cost declines and deployment milestones, their output depends on weather and time of day, limiting their ability to deliver consistent, around-the-clock power. To maintain grid reliability and meet rising demand, we need clean firm power—resources that are both low-carbon and available when needed.
Historically and currently, natural gas has played a critical role in delivering this reliability, offering dispatchable, affordable baseload energy that keeps the grid stable. As we transition toward a lower-carbon future, the goal is not to replace this reliability, but to expand it—bringing new clean firm resources like geothermal into the mix to complement and strengthen our energy systems. Geothermal offers an opportunity to do just that: a zero-emission, always-on energy source that can work alongside natural gas to ensure affordability and resilience.
In addition to its reliability, geothermal sidesteps some of the infrastructure challenges facing other clean technologies. Batteries, while essential for short-duration needs, typically provide 2–4 hours of storage—insufficient for sustained output. Geothermal, by contrast, operates continuously and has a small land footprint, low visual impact, and high capacity factor—often between 70% and 90%, compared to just 25%–35% for wind and solar. As utilities and grid operators look to balance sustainability with stability, geothermal is becoming an increasingly attractive part of the solution.
A surge in electricity demand is also shifting the energy conversation. The rapid growth of AI data centers, electric vehicles, and building electrification is creating new load growth that utilities haven’t seen in decades. At the same time, delays in interconnection queues and transmission buildouts are slowing the deployment of renewables.
In response, utilities and energy buyers are seeking out clean firm solutions that can plug directly into the grid and deliver stable, 24/7 power. Recent activity underscores this shift:
These developments reflect a growing understanding: the clean energy transition won’t be possible without stable and affordable energy—and geothermal is one of the most scalable, location-flexible solutions available today.
Geothermal energy harnesses the natural heat stored beneath the Earth’s surface and transforms it into usable power. This heat comes from two main sources: the residual energy from Earth’s formation and the ongoing radioactive decay of minerals within the planet’s crust. As a result, thermal energy exists at varying depths all across the globe, from shallow soil layers to deep subsurface reservoirs reaching several kilometers below ground.
What makes geothermal unique is its constant availability—unlike solar and wind, it doesn’t rely on the weather or time of day. That means geothermal can operate around the clock, delivering a clean, stable source of baseload power or direct-use heat. In fact, the U.S. Department of Energy estimates that geothermal resources beneath U.S. soil could provide over 5 terawatts of clean energy—more than enough to meet national electricity needs many times over.
There are four primary categories of geothermal resources:
While traditional geothermal has been limited by geography, new innovations are rapidly expanding where and how this resource can be deployed. From heat pumps in the Midwest to deep drilling rigs in the West, geothermal is being reimagined for modern energy systems.
In our next newsletter, we’ll go deeper into the technologies transforming the geothermal sector—from binary cycle power plants and closed-loop systems to advanced drilling innovations enabling development in entirely new regions. We’ll highlight some of the companies leading the charge and explore why this once-niche energy source is now at the frontier of clean firm power.
In addition to being clean and reliable, geothermal comes with a suite of technical advantages that make it well-suited to the modern grid:
These features make geothermal an ideal partner to intermittent renewables. Rather than compete with wind and solar, geothermal enables their scale by filling the gaps they leave behind.
Despite its advantages, geothermal has long faced barriers that have kept it underutilized relative to its potential. Traditional development has been constrained by a combination of high upfront capital costs, lengthy permitting timelines, and significant exploration risk. Accurately locating viable geothermal resources requires costly drilling and subsurface imaging—processes that carry a high degree of uncertainty and financial risk. These challenges have contributed to the sector’s relatively modest deployment to date: just 3.7 GW of installed geothermal capacity in the U.S., compared to more than 150 GW of solar and 145 GW of wind.
However, the tide is turning. Technological advancements, regulatory shifts, and increased interest from adjacent industries are all working to lower risk, accelerate deployment, and expand access to geothermal resources. For example, Enhanced Geothermal Systems (EGS)—which involve injecting water into engineered fractures in hot, dry rock—can enable geothermal development in regions without natural hydrothermal activity. Similarly, closed-loop geothermal systems use sealed wellbores to circulate heat-exchange fluids, eliminating the need for subsurface permeability or fluid reservoirs altogether. These technologies dramatically expand geothermal’s geographic applicability and reduce environmental and permitting risks.
The oil and gas sector is playing a catalytic role in this transition. Many of the technologies driving geothermal innovation—such as directional drilling, reservoir stimulation, and downhole sensing—are borrowed directly from decades of oilfield experience. Oil and gas service companies are now partnering with geothermal developers to repurpose existing wells and infrastructure, bringing expertise, equipment, and capital into the space. This convergence is helping geothermal scale faster and more efficiently than ever before.
On the policy side, momentum is building but uncertainties remain. The Inflation Reduction Act (IRA) provided long-term certainty through technology-neutral tax credits that allow geothermal to compete on a level playing field with wind and solar. The U.S. Department of Energy has launched several initiatives to de-risk exploration, fund pilot projects, and support workforce development in the geothermal space. And while some aspects of the IRA’s implementation have encountered delays and shifting guidance under the current administration, the overarching policy framework continues to send a strong signal: firm, zero-carbon energy solutions like geothermal are a critical part of the transition. Additionally, permitting reforms at both the state and federal levels are beginning to take shape, aiming to reduce development timelines from 7–10 years down to 2–3 years, especially for modular or distributed systems.
Utilities, too, are taking notice. As clean firm mandates and grid reliability pressures increase, geothermal is being seriously evaluated as part of diversified clean energy portfolios. Power purchase agreements are being signed, pilot projects are being launched, and partnerships with advanced geothermal developers are underway. The industry may still be small today, but the conditions for accelerated scale-up are more aligned than ever before.
In our next article, we’ll take a closer look at the technologies making geothermal more scalable and cost-effective—from traditional hydrothermal plants to frontier innovations like Enhanced Geothermal Systems (EGS), closed-loop wells, and even deep drilling platforms inspired by oil & gas.
We’ll explore how companies like Fervo, Eavor, and Quaise are rewriting the rules on where and how geothermal energy can be tapped—and why the most exciting advances in clean energy may lie not above ground, but beneath it. As part of our broader commitment to investing in Green Molecules™, Energy Capital Ventures is closely watching this space—where innovation, infrastructure, and decarbonization converge to create scalable, long-term solutions.
