A remarkably reliable source of clean energy has spent decades being constrained by the rocks beneath our feet. But next-generation geothermal is getting a second look after new technologies begin to break through barriers. In 2025, geothermal power plants produced 16 billion kilowatt hours, or about 0.4% of total electricity in the United States, compared to 6.6% for solar photovoltaics and 10.5% for wind power. This is surprising given that geothermal energy produces on average around 37 grams of CO2-equivalent emissions per kilowatt hour over its life cycle. This figure is higher than that of wind energy with only 13 grams, but lower than that of solar photovoltaics (43 grams), natural gas (486 grams) and coal (1,001 grams). More importantly, geothermal plants operate with a capacity factor nearly twice that of wind power and nearly three times that of solar photovoltaic power. Geothermal energy seems to be an essential source of energy. The problem is finding the right place.
In the past, geothermal energy required a location with hot rocks, underground fluid, and enough cracks and passages for the fluid to flow. It’s rare to find all three of these elements together, which is why only seven states have geothermal power plants in 2026. Once a site is discovered, it’s difficult to reach the deep, hot rock. And it’s expensive. Drilling can eat up half the budget of a geothermal project. As you can imagine, investors and municipalities don’t rush to spend millions on drilling before they know the rocks are hot and permeable enough. New advances have reduced the risk, however, potentially helping geothermal rival wind and solar as the best and most efficient energy source.
Next-generation technologies are reshaping geothermal energy
Geography has hampered geothermal energy since the first power plant was built in Italy in 1904. Traditional geothermal energy relies on natural water or steam trapped underground, such as geysers or hot springs. Steam can directly drive a turbine, while hot water can heat a second fluid that drives the turbine. Once cooled, the water is reinjected underground to continue the cycle. The challenge is to find a place with ideal conditions. There’s a reason Yellowstone National Park is famous. Its hydrothermal features are rare.
Houston-based Sage Geosystems is taking a new approach. Founded by oil and gas industry veterans, Sage uses hydraulic fracturing techniques for geothermal energy. Engineers drill into hot rock, then pump water at high pressure to create a lung fracture, which expands and contracts as water is injected and released. The process does not extract hydrocarbons like hydraulic fracturing, which can cause serious environmental damage. It can also use non-potable water, unlike data centers, which use billions of gallons of fresh water per year. There is a concern. The USGS warns that high-pressure injection can trigger seismic activity. Sage plans to open its first commercial geothermal power plant in Nevada in 2027.
Another new generation approach is getting creative with the drill. Researchers at Utah FORGE, a laboratory funded by the Department of Energy, have adapted drill bits equipped with lab-grown diamond burs for geothermal granite. Smaller cutting size and redesigned tip configuration reduce vibration. Combined with physics-based drilling, the work goes much faster. FORGE has reduced the time required to drill the equivalent of 6,000 feet from 440 hours to just 60 hours. Other researchers are getting more radical with next-generation geothermal, including a company vaporizing rock with millimeter-wave beams to drill deeper into the Earth’s crust, potentially discovering the secret to unlimited energy.
