Geothermal: the next North American goldrush?

Geothermal energy is clean, reliable and available 24/7, 365 days of the year, but despite its potential the planets vast geothermal resources remain largely untapped. Yet while geothermal power currently supplies less than 1% of the world’s energy needs, it could provide 15% of global power by 2050. 

Our experts recently delivered a presentation at Geoconvention 2025 in Calgary, Canada, highlighting the significant market opportunity for next-generation geothermal power in North America. Fill out the form to download the full slide deck from that presentation, or read on to for answers to five key questions. 

1. Hasn’t geothermal technology been around for a while? 

Geothermal energy is nothing new, but traditionally the industry has been limited to areas with abundant hydrothermal resources – characterised by high temperatures along with good porosity and permeability.  Conventional geothermal technology exploits these heat sources; temperatures below 100oC can be used directly for heating or hot water supply, while higher temperatures of 100-180oC are suitable for electricity generation. The US geothermal industry in particular saw significant growth in the 1980s, with around 1.6 gigawatts (GW) of power installed over the decade. However, until recently growth in the sector had stalled. 

2. How is next-generation geothermal different? 

After a long period of stagnation, the industry is now expanding again thanks to the development of new technologies that can potentially make geothermal energy available almost anywhere: 

• Enhanced geothermal systems (EGS) access geothermal energy from hot dry rock using stimulation techniques like hydraulic fracturing. 
• Advanced geothermal systems (AGS) employ geo-exchange technology, whereby fluids recirculate through a closed loop and are heated via conduction, without being extracted from the formation. 
• Geopressured Geothermal Systems harvest both heat and pressure from geothermal wells. 
• Super-hot rocks (SHR) technology targets hot dry rocks at temperatures greater than 374°C, typically found at depths exceeding five kilometres. 

Under a net-zero scenario, we estimate these next generation technologies could account for 46% of total geothermal output by 2050 (see chart below). 

3. Where are the hotspots for geothermal in North America? 

Although the US is already the world’s largest geothermal power producer, its 4 GW of installed capacity leaves a vast resource still untapped. In fact, total potential US geothermal potential for power generation has been estimated at well over 500 GW. The best sites are mainly located in the western states, with temperatures higher than 150oC and heat flow rates above 80 milliwatts per square metre (mW/m2). Canada also has potential for geothermal power generation, mainly in the Western Canada provinces of British Columbia, Alberta, Saskatchewan and Yukon, as well as in Nova Scotia in the east.  

4. Who are the key players in next-generation geothermal? 

Currently, the next-gen market is dominated by US and Canadian firms. EGS market leader Fervo has raised US$786 million to date and has already successfully piloted a 3.5-megawatt (MW) project to power Google data centres in Nevada. It is now upping output capacity there to 115 MW, while also developing the Cape Station EGS project in Utah – which at 500 MW is the world’s largest by power capacity. Meanwhile, Canadian firm Eavor is emerging as the key player in the AGS subsector; having raised US$724 million, it is progressing with its first commercial project in Geretsried, Germany. Together these two companies represent 77% of the capital raised to date. However, while the number of EGS and AGS projects are nearly the same, the installed capacity for AGS is considerably smaller. 

5. How are the barriers to geothermal growth being addressed? 

Next-generation geothermal technologies are helping to overcome the four key barriers to uptake for geothermal energy: 

• Cost: High upfront costs, risks during the exploration phase and lead times of up to ten years mean government support has historically been crucial for geothermal energy projects; however, next generation technologies (and EGS in particular) are lowering costs – and economies of scale will kick in as more projects come online. 

• Location and resource availability: Conventional geothermal remains limited to specific areas, but AGS, EGS and SHR are showing the potential to unlock geothermal energy anywhere. Although many projects still begin in brownfield sites near known resources, the growing commercial and technical viability of these next-generation solutions is paving the way for broader exploration and development opportunities. 

• Technological breakthroughs: Continuous improvements in drilling efficiency and techniques aimed at accessing deeper resources can significantly improve project economics; higher temperatures at depths greater than five kilometres reduce the number of wells needed to generate the same amount of energy. 

• Policy support: Geothermal received less than US$200 million in US Government funding in 2024, compared to over US$10 billion for other low-carbon technologies like carbon capture, utilisation and storage (CCUS) and hydrogen.Geothermal energy enjoys bipartisan support in the U.S., with current Energy Secretary Chris Wright among the vocal advocates for next-generation technologies. Federal initiatives are underway to streamline permitting, accelerate drilling, and increase geothermal lease sales. States like Colorado, Nevada, Utah, and North Dakota are emerging as leaders in geothermal development. In Canada, government backing is gradually increasing, with over CA $50 million allocated in 2024. However, significant policy reforms are still needed to unlock the sector’s full potential. 

Don’t forget to fill out the form to download the full slide deck from our presentation at Geoconvention 2025. This contains a wide range of charts together with in-depth coverage of the market landscape, including the surge in strategic partnerships to power data centres with geothermal energy.