Stories

Thu, 25 Jun 2026

Thu, 25 Jun 2026 The abundant but expensive energy source that's under your feet

Start-ups are taking fresh approaches to geothermal energy, but will the economics work?
Companies like Quaise are developing new drilling technologies to access super-hot geothermal resources. Their millimetre-wave drilling technology uses electromagnetic waves to melt and vaporize rock, eliminating the need for traditional drill bits. This technique enables access to hot geothermal locations almost anywhere in the world. Quaise is planning a project in Oregon that aims to tap into temperatures between 300C and 500C, which could increase energy output by up to tenfold. However, early versions of geothermal systems are still expensive due to lower efficiency compared to fossil fuels. Despite this challenge, Quaise hopes its technology will make geothermal energy more viable and attractive for investment. Another company, Fervo Energy, has become the first next-generation geothermal firm to list on the Nasdaq, with a market value of $7.7 billion. It aims to sell electricity from its Utah plant at a cost of around $7,000 per kilowatt, despite being more expensive than solar and wind power. However, companies like Google are willing to pay a premium for geothermal energy due to its reliability and security. The International Energy Agency notes that next-gen geothermal firms face significant capital costs and uncertain customer demand. Nevertheless, researchers believe geothermal has tremendous potential and will become cheaper over time as technology advances.