What is geothermal power?
The Earth produces heat—a lot of it. Geothermal power utilizes this heat to produce energy. The steps go: heat generation > steam > propelling turbines > generators. The output of geothermal power is non-stop and not affected by the weather, unlike solar power, which may be impacted on a cloudy day.
Types of geothermal power?
Enhanced Geothermal Systems: Water injected into dry & hot rock > fractures created > extracting the heated water = electricity generated. Geothermal Heat Pumps: Stable temperatures near the Earth's surface > pumped by geothermal heat pumps = energy-efficient heating & cooling for buildings. Advanced Supercritical CO2 Cycles: Supercritical carbon dioxide used as the working fluid > higher heat transfer efficiency > more efficient energy conversion = increased electricity generation. Hydrothermal and Geothermal Hybrid Systems: Geothermal energy combined with hydrothermal resources > enhanced heat extraction > increased steam production > more efficient turbine operation = enhanced overall energy production and system efficiency.
The Market
Market Size: $8B CAGR: 4.2% (2024-2032)The end markets include utility companies using geothermal power to power residential and commercial customers' properties, greenhouses and aquaculture being directly heated by geothermal power, and desalination plants and mining operations being powered by geothermal. Regulatory-wise, five states have recently passed new geothermal bills, with nine others in the pipeline. Many of these bills focus on expanding funding for geothermal projects. Leading Companies: @fervoenergy: A Houston-based company that has raised over $400M from investors such as @billgates, @dcvc, & @jeffbezos. The company is currently running a test site in Northern Nevada, proving the potential for geothermal power plants. Ormat Technologies: The public company based in Reno, Nevada, with a market cap of over $4B. The company has built over 3.2K MWs of geothermal capacity, which could power well over 2M homes per month. @VerneGlobal: Based out of Iceland, was recently acquired by a European PE firm. In 2026, the company plans to drill into a magma chamber of an Icelandic volcano for geothermal energy generation.
Investors:
@Breakthrough Ventures: with a fund 2 of over $1B, the firm invests heavily in the space. @DCVC: The Palo Alto-based firm, with an AUM of over $3B, was a key investor in @fervoenergy. @anzupartners: Out of Boston, with over $1B AUM, has invested in geothermal companies such as XGS Energy.Overall, although growing conservatively, geothermal provides a steady state flow of energy and can be key for providing energy in areas across the world such as the western United States, Iceland, Indonesia, Kenya, and more.