Enhanced Geothermal Drilling, Fervo Energy gets $44 million DOE support for 24/7 power projects (2024-2025)

The rapid expansion of the digital economy is creating a tectonic shift in clean energy investment, moving capital away from intermittent renewables and toward technologies capable of providing reliable, 24/7 power. This pivot is primarily driven by the soaring electricity demand from data centers and AI, which has made firm, carbon-free power a top priority for corporate and private investors. Amid significant federal budget cuts for solar and wind R&D, next-generation technologies like Enhanced Geothermal Systems (EGS) are gaining significant traction. This is evidenced by the pioneering work of companies like Fervo Energy and targeted government backing, including $44 million in Department of Energy funding for EGS innovation projects. The dominant theme for 2025 and 2026 is this clear divergence: private, application-specific R&D is surging to meet acute energy needs, while broad public funding for legacy clean technologies faces an uncertain future.

1. Total Energies Directs 68% of R&D to New Energies

Company: Total Energies
Activity: In 2024, 68% of the corporate R&D budget was allocated to low-carbon solutions, including renewables, battery storage, and clean hydrogen. This is expected to continue into 2026 to support “Clean Firm Power” offerings.
Source: Sustainability & Climate 2025 Progress Report

2. Siemens Prioritizes Sustainable Tech Investment

Company: Siemens
Activity: An updated financial framework announced for fiscal 2026 prioritizes R&D investments in grid modernization, energy efficiency software, and manufacturing for wind turbines and electrolyzers.
Source: Siemens Report 2025

3. GE Vernova Focuses R&D on Power Generation Portfolio

Company: GE Vernova
Activity: As a newly independent company, its R&D is centered on next-generation wind turbine technology, hydrogen-burning gas turbines, and grid solutions to manage renewable intermittency.
Source: Top 10: Renewable Energy Companies

4. Next Era Energy Drives Applied Innovation at Scale

Company: Next Era Energy
Activity: R&D spending focuses on optimizing plant performance, developing advanced energy storage integration, and pioneering green hydrogen production at its utility-scale renewable sites.
Source: Top 10 Biggest Renewable Energy Companies

5. First Solar Invests in Domestic Module Manufacturing

Company: First Solar
Activity: R&D investment is focused on improving the efficiency, durability, and manufacturing throughput of its cadmium telluride (Cd Te) thin-film solar modules in the U.S.
Source: 5 clean-energy stocks to buy for 2026, according … – Business Insider

6. Bloom Energy Advances Solid Oxide Fuel Cell Tech

Company: Bloom Energy
Activity: R&D is aimed at improving the efficiency and cost-effectiveness of its fuel cells for reliable onsite power at data centers and other industrial applications.
Source: Why These Four Clean Tech Companies Matter in 2026

7. Plug Power Deploys Over 69, 000 Fuel Cell Systems

Company: Plug Power
Activity: Has deployed over 69, 000 fuel cell systems and 250 fueling stations while dedicating its R&D budget to advancing its full hydrogen technology stack, from electrolyzers to cryogenic equipment.
Source: Top 10: Renewable Energy Manufacturers

8. Fervo Energy Pioneers Enhanced Geothermal Systems

Company: Fervo Energy
Activity: The startup is developing EGS using innovations from the oil and gas industry, like horizontal drilling, to provide 24/7 carbon-free power, supported by $44 million in DOE funding for related projects.
Source: US DOE announces $44 million funding for EGS innovation projects

9. Kairos Power Secures Nuclear Agreement with Google

Company: Kairos Power
Activity: Secured a clean energy agreement with Google in October 2024 to advance the commercialization of its fluoride salt-cooled high-temperature reactor (KP-FHR) for powering data centers.
Source: New nuclear clean energy agreement with Kairos Power

10. Microsoft Funds 10.5 GW of New Clean Energy Capacity

Company: Microsoft Corp.
Activity: Signed a historic agreement with Brookfield Renewable in May 2024 to develop 10.5 GW of new clean energy capacity, directly funding innovation in how large-scale renewable projects are financed and built.
Source: Corporate US clean energy purchases near 120 GW, driven by AI …

11. US DOE Slashes Solar and Wind R&D Budgets

Entity: U.S. Department of Energy
Activity: In July 2025, funding for wind power projects was cut from $137 million to $30 million, and solar power R&D was reduced from $318 million to $42 million.
Source: Energy Department to Gut Funding for Solar and Wind Projects

Proposed Budget Slashes Renewable R&D

This chart visualizes the drastic proposed 2026 funding cuts to solar and wind R&D, directly supporting the section’s report on slashed DOE budgets.

(Source: Medium)

12. Federal Government Rescinds $7.5 Billion in Grants

Entity: U.S. Federal Government
Activity: Rescinded $7.5 billion in federal clean energy grants from primarily blue states, with Colorado alone losing $550 million, creating major uncertainty for project developers.
Source: Colorado losing $550 million in federal clean energy grants

Table: Clean Tech Commercial and R&D Activity (2024-2026)

Firm Power Demand, EGS Adoption for Data Centers

The increasing variety of commercial activities reveals a strategic pivot toward firm, dispatchable clean power. While large integrated firms like Total Energies and Siemens maintain diversified R&D portfolios, the most dynamic investments are aimed at solving the energy needs of the digital economy. The partnerships between technology providers and large energy consumers, such as Kairos Power‘s nuclear agreement with Google, show that demand for 24/7 power is directly funding next-generation R&D. Enhanced Geothermal Systems, as pioneered by Fervo Energy, are moving from a niche geological concept to a strategic energy asset precisely because they can provide this reliable baseload power. This contrasts sharply with the investment profile of intermittent renewables, which now face headwinds from federal budget cuts in the U.S.

Corporate Demand Fuels Clean Energy

This chart quantifies the surging clean energy procurement by U.S. corporations, supporting the section’s point about demand from the digital economy.

(Source: Statista)

USA Leadership, Fervo Energy’s Enhanced Geothermal Projects

The geographic concentration of next-generation energy innovation is firmly in the United States, driven by a combination of private sector demand and targeted, technology-specific public support. The pioneering work in EGS by Fervo Energy is taking place in Utah, leveraging regional expertise in drilling technologies. Similarly, companies like First Solar and Bloom Energy are centering their advanced manufacturing and R&D activities in the U.S. This domestic focus is further amplified by massive corporate procurement deals, like Microsoft‘s 10.5 GW agreement with Brookfield. This trend stands in stark contrast to the widespread rescinding of $7.5 billion in federal grants, which has disproportionately affected projects in certain states and created significant regional uncertainty for technologies reliant on broader public subsidies.

US Solar Manufacturing Capacity Grows

This chart supports the section’s theme of U.S. leadership by illustrating the significant growth in domestic solar module manufacturing capacity.

(Source: Deloitte)

Fervo Energy Proves EGS Commercial Viability (2024-2026)

Recent commercial activities demonstrate a clear bifurcation in technology maturity. On one hand, technologies providing firm power are rapidly accelerating from demonstration to commercial viability. Fervo Energy‘s application of horizontal drilling techniques borrowed from the oil and gas sector has significantly de-risked EGS, moving it closer to scalable deployment. This is a critical step in proving a technology that was once theoretical can become a commercial reality. On the other hand, established renewables like solar and wind, while mature in deployment, are now facing R&D funding cuts in the U.S. that could stifle innovation in fundamental science. The deep cuts to the DOE’s solar budget (from $318 million to $42 million) suggest a policy shift away from funding incremental improvements in mature technologies toward supporting breakthroughs in next-generation firm power.

$44 Million DOE Bet, Fervo Energy’s Enhanced Geothermal Scale-Up

The most critical factor for Enhanced Geothermal in the year ahead will be the successful replication of pilot project performance across diverse geological settings, determining if EGS can become a widespread, scalable solution. Watching for announcements of new drilling sites or partnerships outside of initial test areas will be key.

• Gaining Traction: Demand for firm, clean power from the tech sector is creating a powerful market pull. While Google‘s deal with Kairos Power is for nuclear, it establishes a clear precedent for corporate buyers signing offtake agreements for next-generation 24/7 power, a market Fervo Energy is perfectly positioned to enter.
• Losing Steam: Federal support for intermittent renewables is eroding. The July 2025 DOE budget cuts, which slashed wind R&D from $137 million to just $30 million, signal a clear shift in public funding priorities and create a more favorable environment for non-intermittent alternatives like geothermal.
• Gaining Traction: Technology transfer from mature industries is accelerating EGS development. Fervo Energy’s successful use of oil and gas drilling techniques is a powerful signal that the technology can leverage existing supply chains and expertise, reducing costs and timelines for future projects.
• Gaining Traction: Targeted government support for EGS is solidifying. The $44 million in DOE funding for EGS innovation stands in sharp contrast to cuts elsewhere, indicating a strategic bet on the technology’s potential to provide reliable, domestic energy.

The questions your competitors are already asking

This report covers one angle of the strategic pivot in clean energy R&D spending. The questions that matter most depend on your work.

• Which energy companies are gaining or losing ground in the race to fund next-generation clean power?
• What is the outlook for Enhanced Geothermal (EGS) deployment for data center power by 2026?
• Fervo Energy investments and funding. Is its EGS scale-up on track to meet the demand for 24/7 power?
• Which data center operators are adopting next-generation geothermal and ‘Clean Firm Power’ solutions?

This report does not answer these. Enki Brief Pro does.

Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.

Run your first brief in Enki Brief Pro