What five key trends in Enhanced Geothermal mean for the EU

Enhanced Geothermal Systems (EGS) have evolved dramatically since the first artificial geothermal reservoir was created in the 1970s. In the decades since, more than 100 EGS projects have been launched worldwide, including several in Europe, which has hosted some of the most influential EGS test sites, collectively advancing the technology, techniques, and economics needed to tap vast geothermal resources previously out of reach. For the EU, EGS represents not only a climate solution but a strategic domestic energy resource to strengthen industrial competitiveness and reduce reliance on imports.

A new analysis from Clean Air Task Force (CATF) compiles data from 103 historical and current EGS projects in 23 countries — creating one of the most comprehensive public records of EGS development to date. The findings show that steady incremental improvements, combined with recent transformative breakthroughs, have brought EGS to the threshold of large-scale commercialization.

Here are five takeaways from 50 years of EGS progress, and what they mean for scaling this source of firm, low-carbon power in Europe.

1. Drilling is faster, deeper, and less costly 

Average drilling rates in commercial EGS wells have more than doubled compared to earlier projects, with record-breaking penetration speeds in research wells. At the same time, modern projects are routinely drilling deeper than 4 kilometers, with horizontal well segments often over a kilometer long to maximize heat transfer. These advances have cut drilling costs to less than 20% of historical averages in some cases — a critical step toward making EGS competitive in more markets. Lower-cost drilling strengthens Europe’s ability to develop homegrown energy resources, reducing exposure to imported fuels while building up its drilling services sector.

2. Output is climbing toward, and past, commercial benchmarks 

Production temperatures for EGS projects have risen from an average of about 100°C before 2000 to more than 150°C in recent decades, with some approaching the high-grade EGS benchmark of 200°C. Flow rates are also improving, with certain projects exceeding the widely cited 80 liters per second commercial threshold. These performance gains translate directly into more power per well and lower project-level costs.

3. Projects are scaling up to hundreds of megawatts 

Historically, most EGS projects consisted of a single well pair producing 5 MWe or less. Today, developers are building projects planned for hundreds of wells with project capacities approaching 500 MWe. Since 2022, EGS power purchase agreements (PPAs) have totaled more than ten times the combined capacity of all previous projects, signaling unprecedented market confidence.

4. New revenue streams are strengthening commercial viability 

Many EGS projects are now designed to deliver more than electricity. Co-production of direct heat for industrial or district heating systems is increasingly common, and some projects are extracting valuable minerals like lithium from geothermal brines. In certain European projects, lithium sales are projected to account for a significant share of revenue, improving the overall investment case. These innovations also reinforce Europe’s industrial competitiveness by creating local supply chains for clean heat, power, and critical minerals. Europe’s past projects — from Soultz-sous-Forêts in France to Groß Schönebeck in Germany — already demonstrated technical advances and market potential, showing that Europe is well-positioned if it chooses to act decisively now.

5. Emerging superhot rock systems could multiply output per well 

Looking ahead, the next leap for EGS could come from tapping supercritical reservoirs above 375°C. These “superhot rock” systems could deliver 20-50 MWe per well, vastly increasing energy density and reducing the number of wells needed for large-scale generation. Continued research and demonstration will be key to unlocking this potential. For the EU, integrating superhot rock research and demonstration into the Geothermal Action Plan could ensure leadership in the next frontier of geothermal development.

Turning progress into deployment: Why the EU needs a Geothermal Action Plan

The report makes clear that EGS is no longer confined to the lab. Technical and economic performance has advanced to the point where large-scale projects are being developed in competitive markets. But continued progress will require stable policy support, sustained public and private investment, and expanded deployment in new geographies and geological settings. For Europe, this means following through on the proposed Geothermal Action Plan — ensuring that the region capitalizes on its head start rather than watching others seize the market window. Without clear policy direction or sufficient focus on innovation and demonstration, the EU risks losing the opportunity it helped to create.

With 50 years of lessons learned — and a wave of modern projects already underway — EGS is positioned to become a cornerstone of Europe’s low-carbon energy mix, delivering reliable, around-the-clock power with new economic opportunities. Europe has the experience and technical know-how; now it needs the Geothermal Action Plan to focus on next-generation geothermal—EGS, closed loop systems, and superhot rock geothermal— securing competitive domestic energy for decades to come.