Geothermal Startup Advances High-Yield Project in Oregon With Federal Support
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Mazama Energy is developing a high-efficiency geothermal project at the Newberry Volcano site in Oregon, with plans for a 15-megawatt demonstration this year. The company's method, which uses supercritical water, could produce significantly more energy with fewer resources than conventional plants. The U.S. Department of Energy is supporting the effort with a $25 million grant as part of a broader push to expand geothermal power, which the agency sees as a major future energy source.
Facts First
- Mazama Energy plans a 15 MW demonstration project in Oregon this year, aiming for a 200 MW output by 2029 from the Newberry Volcano site.
- The company's 'supercritical' water method could yield 5–10 times more energy than conventional geothermal while using 75% less water and 80% fewer wells.
- The U.S. Department of Energy provided a $25 million grant for the Newberry site and announced $171.5 million in February for next-generation geothermal tests.
- The DOE estimates the U.S. has potential for at least 300 gigawatts of geothermal power by 2050, a significant increase from the current 3.9 GW of installed capacity.
- Mazama reports no induced seismicity at its Newberry site, where seismic activity is constantly monitored.
What Happened
Mazama Energy is developing a geothermal project at the Newberry Volcano site in central Oregon. The company's method involves injecting water at high pressure into hot rocks to create 'supercritical' water, with temperatures ranging from 300 to 400 degrees Celsius. At a pilot site last year, Mazama reached a temperature of 331 degrees Celsius (629 degrees Fahrenheit) in a geothermal well. The company plans to complete a 15-megawatt demonstration project on the site this year and aims to have 18 to 24 wells with a 200-megawatt output by 2029. The U.S. Department of Energy (DOE) has provided a $25 million grant to support the Newberry site.
Why this Matters to You
This development could lead to a more reliable and efficient source of clean electricity. If successful, the technology may help diversify the energy grid, potentially contributing to greater energy security and more stable electricity prices over time. For residents in western states, where most U.S. geothermal power is currently generated, this could mean a gradual increase in locally produced, carbon-free power. The method's reduced water and land use could also minimize the environmental footprint of new energy projects.
What's Next
Mazama Energy aims to complete its 15-megawatt demonstration project this year. The company's long-term goal is to develop 18 to 24 wells for a 200-megawatt output by 2029. The broader industry is also advancing, with Fervo Energy set to open a $462 million, 100-megawatt project in Utah in October. The DOE's recent $171.5 million funding announcement for next-generation geothermal field-scale tests suggests continued federal support for expanding this energy source. The technology's scalability may be tested further, as preliminary modeling suggests about 20 percent of the U.S. land surface has exploitable superhot rock resources.