| Title | How Next-Gen Geothermal Financing is Evolving at the Level of Innovation Clusters, Firms, and Technologies |
|---|---|
| Authors | Torsten Kolind, Soraya Bornaz, Thomas Giehm |
| Year | 2026 |
| Conference | World Geothermal Congress |
| Keywords | |
| Abstract | Underground Ventures has collected investment data, which show how geothermal financing is evolving at the level of innovation clusters, firms, and technologies. 170 funding rounds have been analyzed, covering 55 geothermal companies and 224 investors. In the largest study of its kind, we demonstrate: (1) Capital invested in geothermal tech has grown rapidly, and the type of financing has evolved from grants and equity to debt and infrastructure as startups mature and de-risk. This is mostly driven by tech-enabled project developers, who have more predictable future revenues compared to companies selling technology products. (2) The O&G industry is closely connected to geothermal innovation clusters, both in terms of financing and spinning out alumni-entrepreneurs that go on to found geothermal tech companies. (3) North America is the leader in next-gen geothermal, but, surprisingly, North America is a net importer of capital from the world, particularly from Europe. Capital is invested into technology clusters such as Texas, California, and Alberta, Canada. (4) European corporations invest more in geothermal technologies than North American corporations, but North American investment funds vastly exceed their European counterparts. North American investors account for 60% of capital invested whereas North American geothermal tech companies receive 80% of capital invested. (5) Although investments in drilling and reservoir stimulation technologies have grown significantly, certain technologies such as well casing/completion and downhole tools are severely underinvested, compared to their importance for next-gen geothermal success in hotter temperatures. Our extended abstract shows investment trends for all 9 technology areas that we track. |