For decades, geothermal development was constrained to specific regions with ideal subsurface conditions. That’s changing quickly. Enhanced Geothermal Systems (EGS), Advanced Geothermal Systems (AGS), and Super-Hot Rock technologies now make geothermal accessible in areas previously thought to be unsuitable.
These technologies address the core challenges that once limited the sector—geographic constraints, high upfront costs, and reservoir depletion.
The United States currently operates about 4 GW of installed geothermal capacity, yet has the technical potential to generate over 500 GW. High-resource areas include western states such as Nevada, Utah, Colorado, California, and Oregon, with subsurface temperatures above 150°C and high heat flow densities.
In Canada, geothermal activity is expanding across British Columbia, Alberta, Saskatchewan, Yukon, and Nova Scotia, with new investment focused on AGS deployment and local energy resilience.
Geothermal accounts for less than 1% of global electricity today, but it could provide up to 15% of the world’s power by 2050, with next-generation systems contributing nearly half of that total.
The industry reached a new milestone with Fervo Energy’s 500 MW Cape Station project in Utah, which is producing electricity at $79 per megawatt-hour (MWh)—without subsidies. This cost competes directly with new-build natural gas, proving the commercial potential of EGS at scale.
Momentum is growing fast. In Q1 2025, 47 new wells were announced, representing an 80% year-over-year increase. The U.S. and Turkey led globally in planned activity, while low-carbon heating demand drove growth in Europe.
Geothermal is no longer limited to electricity production. The U.S. Department of Energy recently announced a $1.36 billion conditional loan guarantee for Project ATLiS, which aims to extract lithium from geothermal brines—a key development in aligning geothermal with the battery supply chain.
In Canada, over $36.5 (CA$50) million in public funding was allocated in 2024 to next-gen geothermal projects, including the country’s first closed-loop AGS pilot in Saskatchewan, which is being developed through a public-private partnership.
Federal and state-level policies are actively encouraging development. In the U.S., Executive Order 14154 has driven reforms that streamline geothermal permitting and promote investment. States such as Colorado, Nevada, Utah, and North Dakota are emerging as leaders, with new leasing activity and regulatory frameworks designed to accelerate deployment.
Permitting challenges remain, but industry protocols—such as real-time seismic monitoring and traffic-light systems—are increasingly integrated into EGS projects to mitigate risks from induced seismicity.
Geothermal’s ability to deliver 24/7 baseload electricity sets it apart from intermittent sources like wind and solar. It has a minimal land footprint, integrates well with existing grid infrastructure, and increasingly supports co-location with lithium extraction, direct heating, and hydrogen production.
As grids across North America push toward decarbonization while maintaining reliability, geothermal offers a critical path forward—especially in regions vulnerable to extreme weather or supply volatility.
The Wood Mackenzie Q1 report reveals that geothermal is rapidly transitioning from a niche, location-limited technology to a scalable, commercially viable, and strategically essential energy solution. With 500 GW of untapped U.S. potential, declining costs, and expanding applications, geothermal stands poised to anchor the continent’s clean energy transformation—providing the reliable, clean power required for a resilient, net-zero future.
