Geothermal energy is a valuable source of energy for residential areas, commercial operations, and energy-intensive sectors like data centers and mining.
Despite its enormous potential, geothermal currently accounts for only 0.34% of global energy supply. Expanding its deployment could diversify the energy mix, enhance grid reliability, and complement intermittent renewables such as solar and wind.
Commercial agreements in geothermal energy are playing a critical role in scaling geothermal projects and enabling decarbonization, reducing reliance on fossil fuels, and advancing national and corporate clean energy targets.
This article explores key geothermal agreements shaping the industry, showcasing how strategic collaboration is driving scalable, low-carbon energy solutions worldwide.
Offtake Agreement between Google and Baseload Capital
Challenge
Data centers consume vast amounts of electricity and require uninterrupted supply to operate efficiently. When powered by fossil fuels, they generate significant emissions. With new facilities expanding worldwide, securing reliable clean power is essential to prevent rapid growth in the sector’s carbon footprint.
Solution
Google has signed an offtake agreement with Sweden’s Baseload Capital, a global geothermal developer and investor. The agreement will supply clean baseload power to Google’s Taiwan data center, ensuring uninterrupted power supply while reducing fossil fuel dependency.
Taiwan’s location on the Pacific Ring of Fire offers strong geothermal potential, providing stable electricity that complements solar and wind. The partnership supports Google’s decarbonization strategy in its corporate clean energy procurement.
Outcome
The Baseload Capital project will add 10 megawatts of geothermal capacity to Taiwan’s electricity grid. It contributes to Taiwan’s target of 6 gigawatts of geothermal power by 2050.
Supply Agreement between Lennar and Dandelion Energy
Challenge
Natural gas furnaces are commonly used for residential heating resulting in carbon dioxide emissions and high utility costs.
Solution
Dandelion Energy, a U.S. leader in residential geothermal, has partnered with Lennar Corporation, one of America’s largest homebuilders. Together, they will deploy geothermal heat pumps in more than 1,500 new Colorado homes within two years. These systems deliver efficient heating and cooling while easing demand on the electric grid.
Outcome
The initiative lowers utility bills, cuts emissions, and reduces strain on Colorado’s grid. Geothermal heat pumps offer the lowest monthly energy bills, with expected homeowner savings of $30 million over 20 years. Their efficiency also decreases peak electricity demand, helping align residential energy use with Colorado’s clean energy goals.
Offtake Agreement between Shell and Fervo Energy
Challenge
In 2021, California’s Public Utilities Commission required utilities and large energy retailers to secure 1,000 MW of carbon-free, non-weather-dependent and non-battery, power. The objective is to strengthen grid reliability while supporting the state’s clean energy transition and integrating intermittent renewables like solar and wind.
Solution
To meet this mandate, Shell Energy partnered with U.S.-based Fervo Energy, a next-generation geothermal developer. Fervo will supply 31 MW of 24/7 carbon-free power from its Cape Station project in Utah under a 15-year power purchase agreement. Deliveries to California’s grid will begin in 2026, supporting Shell’s retail and large-customer obligations. The agreement expands Shell’s renewable portfolio, adding firm geothermal to complement existing wind, solar, and battery assets.
Outcome
Cape Station now has 500 MW of fully contracted capacity, reflecting strong demand for firm, zero-emission energy. This partnership demonstrates geothermal’s role in supporting grid reliability, providing continuous clean power, and advancing scalable decarbonization for utilities and corporate energy portfolios.
Strategic Partnership between Quaise Energy and Nevada Gold Mines
Challenge
Barrick-operated Nevada Gold Mines (NGM) aims to cut GHG emissions by 30% at its TS Power Plant by 2030. The target requires reducing fossil fuel use while integrating low-carbon energy sources.
Solution
NGM partnered with Quaise Energy to explore deep geothermal resources beneath its land and subsurface holdings. The initiative retrofits the TS Power Plant to integrate geothermal heat using Quaise’s millimeter-wave drilling technology.
This is the first commercial pilot converting a fossil fuel plant to hybrid geothermal operation. The project demonstrates deep geothermal’s potential to decarbonize heavy industrial sectors like mining.
Outcome
The partnership provides power generation with geothermal heat, advancing NGM’s 2030 GHG reduction roadmap. The project also showcases deep geothermal’s potential for global industrial applications.
Offtake Agreement between EnergieSüdwest and Vulcan Energy Resources
Challenge
The Landau district in Germany seeks to reduce reliance on fossil fuels and expand renewable, low-carbon heating options.
Solution
Vulcan Energy signed a 35-year offtake agreement with German municipal utility company Energie Südwest (ESW) to supply geothermal heat. Heat will come from Vulcan’s existing Landau Süd wells and the upcoming G-LEP Phase One project. The agreement supports expansion of ESW’s district heating network, with additional production wells being drilled to increase supply.
Outcome
The project will deliver clean, renewable heat to households in Landau, ramping from 25 GWh initially to 595 GWh by 2042. It aligns with Germany’s renewable energy targets, reduces CO₂ emissions, and strengthens local energy independence. The agreement also establishes a framework for future municipal heat collaborations.
Scaling geothermal energy adoption through partnerships
The commercial agreements highlighted in this article demonstrate how strategic collaboration can accelerate geothermal adoption and expand its share in the clean energy mix. By leveraging advanced climate technologies and innovative partnerships, these initiatives are driving measurable reductions in fossil fuel emissions.
Scaling geothermal energy is a critical pathway to achieving faster decarbonization and meeting climate commitments. As urbanization and energy demand grow, such partnerships will be essential in shaping a reliable, low-carbon energy future.
Interested in exploring the challenges and opportunities in geothermal energy?
The Net Zero Insights Platform offers exclusive access to a growing collection of offtake agreements, strategic partnerships, and similar collaborations unlocking geothermal’s potential.
Already a customer? Log in here.
New to Net Zero Insights? Request a free trial to access the full research.
