H.R. 8790: Next-Generation Geothermal Research and Development Act

This bill would expand and redirect federal geothermal energy research and development efforts toward what it calls “next-generation geothermal systems,” including enhanced geothermal systems, closed-loop geothermal systems, and geothermal projects in supercritical conditions (extreme heat and pressure underground). It updates existing law to add definitions for these terms and renames parts of the current geothermal program to reflect the broader focus.

What the bill changes

• Expands the Department of Energy’s geothermal work beyond traditional geothermal research to include newer system types and related technologies.
• Allows the use of advanced tools, including machine learning, to help identify and study geothermal resources.
• Broadens the federal geothermal data repository so it can include more publicly available subsurface data, including data from fossil fuel and mining operations.
• Requires the repository to be updated periodically to make data more standardized, easier to use, more map-based, and more useful for regional and site-specific analysis.
• Directs the Department of Energy to coordinate with the Department of the Interior and other agencies to share geothermal-related data, including heat, seismic, geology, protected-area boundaries, and transmission capacity information.
• Allows the Interior Department to commission exploration boreholes in representative geological areas to help map deep underground heat and geology, with the data made public.
• Requires a study of where supercritical geothermal resources may be suitable, including in U.S. territories.

Research, testing, and grants

The bill would create a new federal program for research, development, demonstration, and commercial application of next-generation geothermal technologies. It highlights several focus areas, including:

• Well completion
• Creating and managing permeability underground
• Materials and equipment design for supercritical geothermal systems
• Sensor development
• Water-rock geochemistry
• Rock properties
• Hard-rock and deep drilling

It also directs the Department of Energy to prioritize projects that can produce useful data for deep drilling work in challenging geologic settings. The department could award grants to universities and private-sector entities to carry out this work and would be encouraged to make the results public.

The bill requires at least one FORGE site, which is a federal geothermal field laboratory, to be able to support next-generation geothermal testing, including testing in supercritical conditions.

Center of excellence and commercialization

The bill would authorize a competitive grant program to establish a next-generation geothermal systems center of excellence at a national laboratory, university, partnership, or similar institution. That center would coordinate with existing FORGE sites and federal labs and would be expected to:

• Advance research, testing, demonstration, and commercialization of next-generation geothermal technologies
• Support education and workforce development
• Provide technical assistance to government and industry
• Collect and share best practices for geothermal development

It also creates commercial-readiness innovation grants for technologies that could improve geothermal projects, such as drilling equipment, reservoir characterization, and data analysis tools. Priority would go to applicants with geothermal expertise, projects that could speed near-term commercial deployment, and projects that work in diverse or supercritical geologic conditions. The federal share of these grants could not exceed 80% of project costs.

Reporting and assessment

The bill would require the Energy Department to submit periodic reports on:

• The maximum potential of U.S. geothermal resources
• Results of projects funded under the program
• Barriers to commercializing next-generation geothermal technologies

It would also require a report on water use and water needs for enhanced, closed-loop, and other next-generation geothermal systems, including whether they can use brackish or nonpotable water and how their water use compares with other power technologies.

Separately, it would change the U.S. Geological Survey’s geothermal resource assessment process so it is updated every four years instead of on the current schedule, and the first updated assessment would be due within two years of enactment. The assessment would also need to look at U.S. regions and territories with potential for supercritical geothermal resources.

Funding

The bill authorizes $150 million per year for fiscal years 2027 through 2031 for these activities, drawn from funding otherwise authorized for the Department of Energy’s Office of Energy Efficiency and Renewable Energy.

Relevant Companies

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