Next-generation geothermal technology to provide cheap, carbon-free electricity

By EPN Staff

Texas-based Mazama Energy, Inc. just reported that it created the world’s hottest Enhanced Geothermal System (EGS) at its Newberry, Oregon pilot site. The rock that is deep below the surface heated water to 629°F. The company is working toward a goal of providing dependable, low-cost, carbon-free energy at an unprecedented 5 cents per kilowatt-hour (kWh).   

For comparison, the average national residential retail price of electricity this summer was nearly 18 cents per kWh, according to the U.S. Energy Information Administration. 

Although less than 1 percent of U.S. energy is generated through geothermal systems, next generation carbon-free geothermal could provide as much as 20% of the nation’s electricity a recent report found. 

Why it matters

Although U.S. electricity consumption was stable for a decade, it has begun to soar primarily due to the demands of data centers and industry, according to the U.S. Energy Information Administration. 

A 2025 Princeton University study predicted geothermal plants could supply up to 20% of the electricity needs nationwide by 2050. This potential is made possible by new Enhanced Geothermal Systems (EGS) that do not rely on existing underground water reservoirs. To build an EGS, a company drills into previously impenetrable rock to allow water to circulate and heat. Water is pumped in and surface turbines harvest the energy from the steam that comes out. 

Like nuclear and coal, geothermal power can be used for baseload electricity. A geothermal plant’s average utilization rate — the rate power plants operate at capacity — is substantially higher than it is for intermittent sources like wind and solar. 

The bigger picture 

According to the U.S. Department of Energy, hot water several feet to several miles below the surface can be tapped for several types of energy applications. The energy of superheated subsurface water, whether naturally occurring groundwater or water pumped from the surface, can be harvested by turbines for electricity generation. 

Hot water can also be brought to the surface for hot faucet water or to heat industrial applications like greenhouses or fish farming. 

Alternatively, geothermal heat pumps use subsurface reservoirs to provide heating or cooling directly. Colorado Mesa University in Grand Junction has one of the largest geothermal heat pump systems in North America, according to the U.S. Department of Energy. Water circulates hundreds of feet below the surface to either heat or cool 1.2 million square feet of buildings. The system saves the university $1.5 million a year in energy costs. 

Additional details

A report by the U.S. Geological Survey predicts the geothermal energy in the Great Basin of Nevada and nearby western states alone could produce as much as 10% of the country’s power supply.  

Markets are responding to geothermal breakthroughs. Energy consulting and analytics firm Wood Mackenzie reported earlier this year that “North America's geothermal sector shattered investment records in Q1 2025, attracting US$1.7 billion in public funding — 85% of 2024's entire annual allocation — as breakthrough technologies transform vast untapped resources into commercially viable clean energy projects.”