Next-Generation Geothermal Research and Development Act

This bill amends the Energy Independence and Security Act of 2007 to direct research, development, demonstration, and commercial application activities for next-generation geothermal systems, including enhanced geothermal systems, closed-loop geothermal systems, and supercritical geothermal systems.

Sec. 2, Geothermal energy: The bill adds definitions for closed-loop geothermal systems, next-generation geothermal systems, supercritical conditions, and supercritical geothermal. It updates hydrothermal research to include machine learning tools. It expands geothermal research coordination across the Department of Energy and requires a public drilling data repository that includes subsurface data from fossil fuel and mining operations, with periodic updates for standardization and accessibility. The Secretary must enter a memorandum of understanding with the Interior Secretary for data sharing, and the Interior Secretary must commission deep exploration boreholes deeper than 8 kilometers for heat mapping.

The bill expands enhanced geothermal systems research to include closed-loop systems and supercritical conditions. It requires at least one FORGE site to test next-generation geothermal systems in supercritical conditions within one year. It establishes a Next-Generation Research and Development Program for next-generation geothermal systems, including supercritical geothermal research on topics like well completion, reservoir creation, materials, sensors, and drilling. The Secretary must award milestone-based grants for deep drilling projects and submit a report on water use within five years. The bill creates a next-generation geothermal center of excellence through competitive grants to National Laboratories, universities, or partnerships, and establishes commercial-readiness innovation grants and surface facility innovation grants, with cost sharing up to 80 percent federal share. It authorizes $5 million per year from fiscal years 2027 through 2031.

The bill requires progress reports every two years on geothermal resource potential, project results, and commercialization barriers. It reauthorizes programs under the Advanced Geothermal Innovation Leadership subtitle with necessary sums for fiscal years 2026 through 2031. It updates the geothermal resource assessment to include supercritical geothermal and requires initial assessments of conventional and next-generation resources within two years, and methodologies for supercritical geothermal within five years.