The U.S. Department of Energy (DOE) Office of Geothermal (OG) has released Notice of Funding Opportunity (NOFO) DE-FOA-0003472, titled Next-Generation Geothermal Field Tests and Geothermal Resource Characterization and Confirmation. This solicitation represents a significant federal investment in advancing geothermal energy technologies capable of delivering firm, flexible, and domestically sourced power. Grounded in DOE’s GeoVision Roadmap and the Office of Geothermal’s Multi-Year Program Plan, the program seeks to close critical technical gaps that have historically constrained geothermal scale-up. By funding field-scale demonstrations and confirmation drilling, DOE aims to de-risk emerging geothermal approaches and catalyze private-sector deployment.
At its core, this NOFO is designed to move next-generation geothermal systems from promising mid-stage technologies into validated, field-proven solutions. DOE specifically targets field-scale tests at depths and temperatures appropriate for full-scale project development, as well as drilling activities necessary to confirm viable geothermal resources. The program emphasizes a “learning-by-doing” approach to derisk technologies prior to commercialization.
Solicitation Overview and Technical Focus
This NOFO supports multiple Topic Areas, although several are closed for this funding round. Active areas include:
- Topic Area 1: Enhanced Geothermal Systems (EGS) Field Tests
EGS involve engineered reservoir stimulation techniques that increase subsurface permeability, allowing fluids to circulate through hot rock and transport heat to the surface for power generation. Topic Area 1 focuses on validating stimulation technologies, zonal isolation methods, drilling innovations, and reservoir sustainability strategies in real-world geologic environments.
- Topic Area 6: Drilling for Next-Generation and Hydrothermal Resource Exploration, Characterization, and Confirmation
Topic Area 6 supports reservoir-depth exploration and confirmation drilling to expand the national geothermal resource base. Importantly, applications must propose drilling of confirmation wells; shallow thermal gradient-only projects will not be considered. Preference will be given to previously unexamined formations or geographic regions that broaden U.S. geothermal knowledge.
Projects are structured in phased development stages with defined go/no-go decision points after each major phase. Phases include planning and permitting, well development, system development and testing (where applicable), and reservoir sustainability assessment. DOE anticipates awarding cooperative agreements, signaling substantial federal involvement in technical oversight and milestone evaluation.
Across all applicable Topic Areas, awardees must:
- Incorporate induced seismicity mitigation planning (except Topic Area 6)
- Publicly disclose drilling and stimulation fluids
- Upload all data to the DOE Geothermal Data Repository
- Reserve funding for stakeholder engagement and communications
Meet a minimum 20% non-federal cost share requirement
Key Dates
Applicants should plan carefully around the following milestones:
- NOFO Issue Date: February 25, 2026
- Letter of Intent Deadline: March 27, 2026
- Full Application Deadline: April 30, 2026
- Anticipated Selection Notification: July 30, 2026
- Anticipated Award Date: September 30, 2026
While submission of a Letter of Intent is encouraged, it is not required to submit a full application. However, early engagement allows DOE to plan for merit review capacity.
Funding Profile
DOE anticipates approximately $171.5 million in total available funding across Fiscal Years 2023–2025
For active Topic Areas in this round:
- Topic Area 1 (EGS Field Tests):
- Estimated 4–10 awards
- $10 million–$25 million per award
- 36–60 month project periods
- Minimum 20% cost share
- Topic Area 6 (Exploration & Confirmation Drilling):
- Estimated 8–18 awards
- $4 million–$8 million per award
- 12–48 month project periods
- Minimum 20% cost share
All awards will be issued as cooperative agreements with incremental cost share contributions required throughout the life of the project.
Strategic Impact
This solicitation represents more than a drilling program. It is a deliberate strategy to standardize best practices, reduce technical uncertainty, improve drilling performance, and expand the geographic footprint of commercially exploitable geothermal resources in the United States. By validating EGS stimulation methods and confirming new reservoirs, DOE aims to lower the levelized cost of geothermal electricity and enable scalable, firm clean energy deployment nationwide.
Geothermal energy offers reliable baseload power, grid stability, and industrial thermal applications without combustion-related emissions. Expanding this resource strengthens U.S. energy security, supports resilient infrastructure, and reduces reliance on fossil fuels that contribute to air pollution and climate-related health impacts. Advancing next-generation geothermal technologies ultimately contributes to healthier communities through cleaner energy production and reduced environmental exposure.
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