Hot rocks might be the next big thing in energy.
Global investment in geothermal energy is growing quickly — and it’s expected to keep climbing in the years to come, per new data from research firm Rystad Energy.
At the start of the 2020s, less than $2 billion flowed each year toward projects that harness the Earth’s natural underground heat to either produce electricity or directly warm buildings. By 2030, that figure could hit nearly $9 billion, Rystad predicts.
Geothermal systems have been around for decades in places where the Earth’s warmth sits close to the planet’s surface — think regions with lots of hot springs, for example. But decarbonization goals and rising power demand are fueling renewed enthusiasm for the always-available clean energy source, and emerging technologies mean companies can tap into it in areas with more challenging terrain.
Geothermal heating is most popular in Europe, where there’s growing interest in using the energy source for thermal networks that can warm up multiple buildings. Iceland, which has long leveraged its volcanic geology to keep homes toasty, is the famous example here.
When it comes to electricity, geothermal makes up less than 1% of the world’s supply. The U.S. is the global leader in terms of geothermal power capacity, with much of it located in California’s steamy Geysers region. It’s no surprise, then, that America is among the countries investing the most in the energy source, topping the chart this year and last.
Rystad doesn’t expect the U.S. to be No. 1 for much longer, predicting that volcano-laden Indonesia will steal the top spot for investment starting in 2027. Even so, geothermal could have a bright future in the U.S. It’s something of a unicorn: a clean energy source that has broad support among both Democrats and Republicans.
