Western Governors Form Geothermal Consortium

Why this is here: Fervo Energy alone estimates it has the potential to develop over 42 gigawatts of geothermal capacity across nearly 600,000 acres it’s leasing in Western states.

Arizona, Colorado, New Mexico, and Utah launched the Mountain West Geothermal Consortium on Wednesday to unlock an estimated 200 gigawatts of geothermal energy. This initiative aims to increase the nation’s geothermal electricity capacity by fifty times its current level. The states will coordinate permitting, share data, and seek financing to overcome challenges in geothermal deployment.

Fervo Energy, a geothermal startup valued at over $10 billion, estimates it can develop 42 gigawatts across roughly 600,000 acres in the West. Utah is already testing new geothermal technologies at the Utah Forge project, using horizontal drilling to create artificial underground reservoirs.

Currently, Utah has four geothermal plants totaling 88 megawatts, while New Mexico has one at 14 megawatts. Arizona and Colorado do not have any.

The Center for Public Enterprise leads the consortium, identifying a financing bottleneck—the need for costly exploratory drilling—as a major obstacle. The states hope to replicate successful projects like Utah Forge and attract private investment through public loans and prepayment structures. The work to secure federal funding and streamline permitting on federally managed lands, where over 90% of U.S. geothermal resources reside, will continue.