It\u2019s part of a new rush to develop and streamline production of geothermal energy across the West. A report<\/a> published in June said New Mexico is \u201con the cusp of a geothermal boom\u201d with the potential to harness about 160 gigawatts of power.<\/p>\n \u201cThat might be enough to power close to 40 million homes,\u201d Prueher said.<\/p>\n A little help from the oil and gas industry<\/p>\n In seismic areas like Iceland, geothermal energy production is common. In the U.S., a few scattered geothermal plants generate electricity, but it still only accounts for 0.4% of the country\u2019s power supply.<\/p>\n Recently, the industry has gotten a boost from advances in the shale revolution, said University of Utah chemical engineer John McLennan.<\/p>\n The same fracking technology that\u2019s helped fossil-fuel companies bust up underground rocks to find pockets of oil and gas can be used to tap reservoirs of heat deep below the surface. To extract that heat, a well is drilled. Water is then injected into the hot rocks, which generates enough steam to produce electricity.<\/p>\n Fervo is one of the leaders in developing advanced geothermal technology. This week, the company reported raising $462 million dollars<\/a> from investors to finish construction of its Cape Station project in Southern Utah. It’s expected to start producing energy as early as next year.<\/p>\n \u201cThis is a very big deal,\u201d said McLennan. \u201cThis particular geothermal technology has been under development for more than half a century.\u201d<\/p>\n In Western states, more seismic activity means hot rocks are closer to the surface. But drilling is expensive and injecting water deep underground can cause earthquakes that might shut down a power plant, McLennan said.<\/p>\n Producing geothermal power can also use a lot of water. In the drought-strangled West, \u201cit\u2019s definitely an issue,\u201d he said. \u201cMy sense is that this is an engineering problem that can be resolved. And it must be resolved.\u201d<\/p>\n Both political parties want to push the technology forward.<\/p>\n While Congressional Republicans accelerated the phasing out of wind and solar tax credits in their spending bill this summer, incentives for geothermal projects remained.<\/p>\n \u201cI am bullish on the future of geothermal,\u201d Energy Secretary Chris Wright told Nevada Democratic Rep. Susie Lee at a Congressional hearing<\/a> in May. Wright, who ran a fracking company and invested in geothermal before he joined the Trump administration, said faster permitting was essential.<\/p>\n That\u2019s something the federal government has promised to <\/a>do.<\/p>\n A plan for New Mexico<\/p>\n In New Mexico, the No. 2 producer of oil in the United States, lawmakers are eager to leverage that expertise to advance a new industry.<\/p>\n![\"Josh](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/12\/CEO-JOSH-scaled.jpg\")
Josh Prueher is CEO of XGS Energy. The company is developing a geothermal plant in New Mexico. (Peter O’Dowd\/Here & Now)<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/12\/CALDERA-scaled.jpg\")
The remnants of a volcano can be seen in this caldera in Northern New Mexico. The volcanic activity makes geothermal energy attractive in the area. (Peter O’Dowd\/Here & Now)<\/p>\n
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At this site in Northern New Mexico, scientists from the Los Alamos National Lab drilled the first well for geothermal energy in the 1970s. The work has helped pioneer technology in use today. (Courtesy of Los Alamos National Lab)<\/p>\n