Geothermal Energy's Golden Moment: Strategic Investments in Underdeveloped Projects and National Security Gains

The U.S. government's emergency permitting blitz for geothermal energy projects marks a pivotal shift in the nation's energy strategy—one that investors cannot afford to overlook. With climate targets, energy independence, and grid resilience rising to the top of national priorities, geothermal's potential as a reliable, baseload clean energy source is finally being unlocked. Now is the time to capitalize on underdeveloped projects poised to deliver outsized returns while bolstering national security.

The Emergency Permitting Catalyst

On May 29, 2025, the Department of the Interior (DOI) launched emergency permitting procedures to fast-track geothermal projects deemed critical to national security. This initiative, part of President Trump's “American Energy Dominance” agenda, slashes environmental review timelines from years to weeks. For projects like Ormat Nevada's Diamond Flat, McGinness Hills, and Pinto Geothermal Projects, this means accelerated timelines for test drilling, resource confirmation, and capacity expansions. The McGinness Hills project, for instance, is set to boost output beyond 193 MW by adding solar integration and advanced heat exchangers—transforming it into a hybrid energy powerhouse.

The offers a glimpse into this momentum. With a 40% surge in 2024 alone, investors are already betting on its leadership in this sector.

Legislative Tailwinds: Bipartisan Momentum Builds

While the DOI's emergency measures are driving immediate action, complementary legislation is laying the groundwork for sustained growth. The Geothermal Energy Optimization Act (GEO Act, S. 3954), backed by bipartisan cosponsors from Nevada, Idaho, and New Mexico, aims to institutionalize permitting reforms. Key provisions include:
- Categorical exclusions under NEPA for exploratory drilling, cutting review times.
- Annual federal lease sales on public lands, doubling current frequency.
- A Geothermal Ombudsman to resolve interagency disputes.

Though stalled in committee, the bill's bipartisan support and alignment with the House's H.R. 301—which mandates 60-day lease approval deadlines—signal inevitable progress. The underscore the urgency of these reforms, with stakeholders citing permitting delays as the top obstacle to scaling geothermal's 90 GW potential by 2050.

National Security: The Overlooked Multiplier

Beyond energy independence, geothermal's baseload reliability makes it a cornerstone of national security. Unlike intermittent renewables, geothermal plants operate 24/7, stabilizing grids and reducing vulnerability to cyberattacks or supply chain shocks. The DOI's focus on Nevada's Great Basin region—estimated to hold 10% of U.S. electricity potential—is no accident. Securing these resources ensures critical infrastructure, from military bases to data centers, remains powered through crises.

For investors, this dual mandate—profit and patriotism—creates a compelling risk/reward profile. Projects like Fervo Energy's Cape Station in Utah (targeting 500 MW by 2026) or Project Red (a record-setting enhanced geothermal system) are prime examples of innovation meeting urgency.

The Investment Playbook: Where to Deploy Capital Now

1. Core Plays: Established Project Developers
2. Ormat Technologies (ORA): Leading operator in Nevada's proven fields, with a diversified portfolio and deep technical expertise.

3. Fervo Energy: Betting on enhanced geothermal systems (EGS), which can unlock deeper, hotter resources.

4. Undervalued Opportunities: Exploration Stages

5. Pinto Geothermal Project: Ormat's Nevada venture, where test drilling could validate a massive resource. Early movers here stand to gain exponentially if permits proceed smoothly.

6. Utah's Central Basin: Overlooked due to past permitting hurdles, but poised to boom if the GEO Act passes.

7. Infrastructure Plays: Transmission and Tech

8. Transmission Companies: Geothermal's remote locations require grid upgrades. Firms like NextEra Energy (NEE) or specialized contractors could benefit from DOE's grid resilience funding.
9. Drilling Tech Firms: Enhanced drilling tools and subsurface imaging tech (e.g., Schlumberger (SLB) spinoffs) are critical to EGS success.

Risks and Mitigation

• Policy Uncertainty: The House's push to phase out geothermal tax credits by 2025 poses a threat. However, the DOI's emergency measures and bipartisan state-level efforts (e.g., Nevada's lease sales) provide a buffer.
• Environmental Opposition: While fast-tracked permits may face legal challenges, the administration's “energy emergency” framing grants broad authority to override delays.

Act Now—The Clock Is Ticking

The confluence of emergency permitting, bipartisan legislation, and strategic national priorities creates a rare alignment for geothermal investors. With projects like McGinness Hills and Cape Station advancing rapidly, and EGS technologies nearing commercial viability, the sector is primed for exponential growth.

shows it's the fastest-growing clean energy segment—yet still underinvested. For those willing to act, the returns on underdeveloped geothermal projects could rival the shale boom of the 2010s.

Final Call: Secure positions in geothermal leaders and exploration-stage ventures before permits unlock their true value. National security demands it—and the market will reward the bold.

This article is for informational purposes only. Investors should conduct thorough due diligence and consult with financial advisors.