Why Geothermal Matters Now

IRENA reports that global installed geothermal power capacity reached 15.4 GW by the end of 2024, up from ~13.0 GW at the end of 2020. This underscores that geothermal remains a relatively small capacity segment globally, but one with high strategic value due to its firm.

Public funding is accelerating de-risking – USD 14.2M for EGS pilots and USD 31M for high-temperature tools and reservoirs in recent US DOE programs. This signals where technology readiness is improving.

State of the Market: Why Geothermal Remains Critical

The geothermal energy market is projected to reach USD 13.56 billion by 2030. It is expected to grow at a compound annual rate of 5.3% during the forecast period, 2025 to 2030.

 

 

As per our platform data, the geothermal energy ecosystem includes more than 420 startups and 8400 companies. The industry recorded a -0.7% yearly growth rate.

This contraction reflects slower investment cycles, extended permitting timelines, and shifting national priorities that influence how geothermal assets move from exploration to commercial deployment.

As of 2024, global geothermal power generation capacity reached 16873 MW. Thirty-five countries now produce geothermal power.

The United States leads with 3937 MW of installed capacity. Indonesia follows with 2653 MW, the Philippines with 1984 MW, Turkey with 1734 MW, and New Zealand with 1207 MW.

IRENA reports that global installed geothermal power capacity reached 15.4 GW by the end of 2024, up from ~13.0 GW at the end of 2020. This underscores that geothermal remains a relatively small capacity segment globally.

Further, the IEA’s geothermal outlook finds that geothermal could meet up to 15% of global electricity demand growth to 2050. This implies up to ~800 GW of cost-effective geothermal power capacity and almost 6000 TWh/year of generation potential. This positions next-gen geothermal as a scale option.

 

 

Five Companies Tackling Geothermal’s Technical Constraints

Factor2 Energy advances CO2-based Geothermal Power

German startup Factor2 Energy develops a CO2-based geothermal power technology that uses carbon dioxide as a working fluid to generate continuous, emission-free electricity.

The system injects CO2 into deep porous formations. There, it absorbs geothermal heat, becomes buoyant, and rises naturally to the surface without subsurface pumps.

It then drives a CO2 turbine through a thermosiphon effect. The fluid is cooled, condensed, and reinjected to complete a closed-loop cycle.

The technology improves cycle efficiency, reduces component complexity, and expands site eligibility by using CO2’s low viscosity and natural circulation properties.

In addition, Factor2 Energy avoids fracking, water-intensive processes, and deep drilling to lower environmental impact while enabling the reuse of existing infrastructure.

Also, the startup raised EUR 7.7 million in September 2025.

Genesys offers Geothermal for Building

US-based startup Genesys creates a closed-loop geothermal heating and cooling technology that uses its Closed-Loop Advection Device (CLAD) to transfer thermal energy between buildings and subsurface groundwater.

The system directs groundwater through interconnected underground loops. Heat transfers via advection before the water passes a well heat exchanger that delivers stable entering-water temperatures to heat pumps.

It leverages groundwater’s heat-transfer properties, reduces thermal buildup, and maintains consistent performance across different building sizes and load profiles.

Additionally, the technology operates without depleting groundwater, avoids fossil-fuel heat generation, and integrates with existing hydronic infrastructure.

Evolved Thermal Energy manufactures Geothermal Heat Pumps

Canadian startup Evolved Thermal Energy creates renewable thermal systems that use ground and air sources to provide heating, cooling, and hot water for residential properties.

The startup installs geothermal heat pumps that draw stable underground temperatures through buried loop systems. It also installs air source heat pumps that extract thermal energy from outdoor air and transfer it indoors through compressors and heat exchangers.

Its approach includes pre-qualification, system modeling, and contractor-led site assessments to ensure accurate project specifications and reliable installation outcomes.

Further, geothermal systems deliver efficient performance with zero on-site emissions. Air source systems offer flexible deployment for properties with limited land or geological constraints.

Green Therma makes Geothermal Well Technology

Danish startup Green Therma develops a geothermal heating solution that uses engineered subsurface systems to extract thermal energy for buildings, districts, and industrial sites.

The startup deploys its Heat4Ever system and DualVac technology to harvest heat from deep geological formations. The subsurface setup transfers naturally available energy to surface infrastructure through controlled circulation and efficient heat exchange.

Its approach relies on established drilling practices, scalable configurations, and quiet underground operations. These methods deliver predictable output without emissions or disruption to the surrounding environments.

Additionally, Green Therma’s system supports long-term reliability. It remains unaffected by weather conditions, fuel prices, or surface-level disturbances.

CoilRig builds Coiled Tubing Drilling Rigs

Australian startup CoilRig manufactures coiled tubing geothermal drilling rigs that enable the construction of shallow and mid-depth boreholes for renewable heat projects.

The startup applies advanced software, precision machinery, and engineered tubing systems to drill ~4-5-inch boreholes through soft and consolidated formations. These rigs maintain continuous circulation and stable drilling performance.

Its CTEnergy series features compact crawler-mounted rigs with integrated mud pumps, Tier 4 engines, and surface-start capabilities. These elements improve maneuverability and allow drilling in dense urban areas.

Moreover, the rigs remain positioned over the borehole during loop installation. They reduce operator fatigue compared to conventional tubing systems and lower overall operational complexity.

Technology Shifts Unlocking Geothermal at Scale

Patent activity reached 38 700 filings from 16 200 applicants. This highlights ongoing research in well integrity, subsurface imaging, and thermal-exchange technologies that support long-term operational stability. Further, the yearly patent growth reached 5.42%.

Discover the emerging trends in the geothermal energy market along with their firmographic details:

The Underground Thermal Energy Storage segment involves 37 companies employing 370+ workers. It added at least one employee last year, showing minimal workforce expansion. The five-year trend growth rate of -33.33% reflects contraction. High upfront design requirements, evolving regulations, and integration challenges linked to large-scale storage infrastructure influence this slowdown. Nevertheless, the segment continues contributing to long-duration heat storage, district-energy applications, and seasonal balancing, even as deployment slows in markets adjusting to shifting energy priorities.

The Groundwater Heat Pumps segment includes more than 1600 companies with 61 800 employees. The segment added 20 workers last year, reflecting stable staffing for installation, maintenance, and building-system integration roles. Besides, its five-year trend growth rate of -58.30% highlights a slowdown shaped by cost sensitivities, retrofit complexities, and uneven policy support across regions. Despite this decline, the segment continues to support energy-efficiency upgrades in markets focused on long-term decarbonization.

The Geothermal Heating segment includes 930+ companies with 34 400 employees. The sector added 16 workers last year, showing steady participation across district-heating networks, building-scale systems, and commercial deployment models. Its five-year trend growth rate of 16.77% indicates rising interest in low-carbon heating solutions. This trend benefits from stronger policy alignment, expanded urban-energy planning, and more supportive financing approaches for district-level geothermal heating infrastructure.

Funding Geothermal: Risk, Infrastructure & Public Support

The geothermal energy investment landscape records an average investment value of USD 130.4 million per round. This figure shows that project development and subsurface engineering remain capital-intensive across global markets.

The sector includes more than 1490 investors. Their participation reflects a mix of strategic, financial, and infrastructure-focused stakeholders who support exploration programs, drilling operations, and geothermal plant construction.

For instance, GIC invested USD 240 million in 2021 in Arctic Green Energy to support its expansion in Asia and Europe. The US Department of Energy awarded USD 46 million for 17 geothermal projects.

The combined value invested by top geothermal energy investors exceeds USD 8.26 billion. This concentration indicates that large institutions continue supporting capital-intensive project development across global markets.

 

 

DOE also announced a geothermal funding notice with up to USD 31 million available to support high-temperature tools, wellbore construction, and reservoir-related advances. These areas are directly tied to geothermal’s cost curve and failure modes (drilling time, downhole survivability, reservoir performance).

Further, Wood Mackenzie reports that North America’s geothermal sector attracted USD 1.7 billion in public funding in Q1 2025.

Research Method and Data

This geothermal energy outlook leverages the StartUs Insights Discovery Platform to analyze 9M+ companies, 25K+ technologies and trends, and 190M+ patents, alongside funding activity and project-level market signals. The analysis concentrates on enhanced geothermal systems, advanced drilling and completion technologies, reservoir stimulation and monitoring, subsurface modeling, and power-plant efficiency optimization.

Using five years of data, the report tracks how oil-and-gas technology transfer, drilling cost reduction, closed-loop and deep geothermal architectures, and data-driven reservoir management are moving from pilot deployments to commercially viable, grid-scale assets under tightening energy security and firm-capacity requirements.