Amidst the increasing demand for clean energy solutions in the western United States, a recent report from the Clean Air Task Force (CATF) offers a strategic roadmap to advance next-generation geothermal energy. This report serves as a guide for state governments to attract private investment and mitigate project risks, thereby tapping into geothermal energy’s potential to meet the region’s growing electricity needs.
Unlike conventional geothermal systems that depend on naturally occurring hot water reservoirs, next-generation geothermal technology can harness heat from subsurface rocks, making it feasible to generate energy across much of the American West. According to the U.S. Department of Energy, this advanced geothermal technology could supply up to 300 gigawatts of power nationwide by 2050. CATF’s models suggest a potential of up to 4 terawatts of electric capacity in the U.S., contingent on reaching specific innovation benchmarks. Despite legislative progress at the state level, deployment remains limited.
“Technology is no longer the primary barrier to next-generation geothermal deployment,” stated Ann Garth, Policy Manager for Superhot Rock Geothermal at Clean Air Task Force. “Early-stage financing risks, limited subsurface data in new regions, transmission bottlenecks, and slow permitting processes are the obstacles standing between today’s nascent industry and commercial-scale deployment across the West. Thoughtful and targeted state policy can address these barriers, and the first states to act will capture the economic and energy benefits of a transformative new clean firm resource. This report gives states clear, prioritized recommendations to overcome those barriers.”
In formulating its recommendations, CATF engaged with leading geothermal developers throughout the West and reviewed the regulatory and permitting landscape across 14 states. From this research, the report outlines a policy framework based on five critical deployment levers: enhancing data collection and sharing for subsurface resources, establishing clear regulatory frameworks, financing early exploration, building infrastructure, and supporting ongoing research and development. Key interventions identified include:
- Improving transmission access: As next-generation geothermal resources are often situated far from current grid infrastructure, enhancing transmission capabilities is essential. Developers consistently cited transmission access as a top obstacle, with many labeling it the most significant short-term challenge.
- Digitizing historical well logs: Comprehensive subsurface data is crucial for reducing project risks in new areas, yet much of the existing data is not digitized. The estimated costs for digitizing essential well logs range from a few hundred thousand to $1.5 million per state, a cost-effective alternative to new data collection.
- Establishing procurement requirements and milestone-based convertible loans: Early geothermal projects face a funding gap as they are too capital-intensive for venture investors and too risky for large-scale finance. Targeted financial tools can mitigate risks and attract private investment.
- Updating permitting regulations and increasing agency capacity: Slow permitting processes add costs and risks. Enhancing permitting capabilities was the most frequently recommended strategy by developers to efficiently advance geothermal projects.
“Projected electricity demand is growing fast across the West, driven by population growth, electrification, industrial reshoring, and energy-intensive sectors like data centers,” noted Dan West, Senior Western Regional Policy Manager at Clean Air Task Force. “Next-generation geothermal can help meet this moment, and state governments don’t need to wait for costs to come down on their own. Targeted policy interventions now can generate the learnings that drive geothermal cost reductions and position early-mover states to capture the economic competitive edge and energy benefits of a growing industry.”
The report also provides detailed appendices that map out geothermal regulatory frameworks and permitting agencies by state, along with comprehensive policy recommendations categorized by deployment lever.
To explore the full report, click here.
Original Story at www.catf.us