Full Steam Ahead: Financing Geothermal 2.0

Among renewable resources, few offer the benefits of geothermal –reliable, firm power that provides a stable base for intermittent resources like solar and wind and that is produced from an abundant domestic resource accessed using well-established equipment and methodologies. Although geothermal exploration, like oil and gas, has long been a hit-and-miss game, where a few bad guesses and dry wells could sink a project, a new generation of geothermal developers is using AI and other cutting-edge technology to optimize the search for geothermal deposits, increasing the likelihood that any given well will be productive and thus reducing the overall capex of a project.

In many ways, financing for geothermal projects follows the same path as solar, wind and other renewables, with site control, permitting, interconnection and offtake the key factors affecting viability. Traditional lenders and federal tax credit investors, though relatively new to geothermal, don't have to look far for