Sonoma Clean Power (SCP), the public power provider for the Sonoma and Mendocino counties in California, has announced the signing by California Governor Gavin Newsom of a final budget agreement for an additional USD 10 million for geothermal exploratory wells. This brings the total state support for SCP’s geothermal initiative to USD 20 million.
The funding commitment follows a sustained advocacy led by SCP and a coalition of clean energy providers, organized labor, business leaders, and climate advocates. It is designed to overcome early-stage exploration risk as SCP works to explore and develop the yet-untapped geothermal potential in California.
Through its GeoZone initiative, SCP is working to develop up to 600 MW of local, next-generation geothermal energy to provide stable, carbon-free power to Sonoma and Mendocino counties. In 2023, SCP approved three cooperation agreements for 20-MW pilot geothermal projects, each to be executed by a different company – Cyrq Energy, Eavor Technologies Inc, and Chevron New Energies.
The program also aims to replicate the Utah FORGE model, where public funding helped to de-risk project development, thus unlocking billions in private investment and creating hundreds of high-quality jobs. California’s investment aims to spur similar development and strengthen the state’s leadership in geothermal innovation. Leveraging a cost sharing model, the private sector will match the state’s USD 20 million investment, for a total of USD 40 million in funding.
“To maintain a reliable, 24/7 grid, California must replace polluting gas plants with clean baseload power. Utility customers are currently paying twice: once to keep old gas plants on standby, and again to fund clean energy. Retiring these facilities eliminates that double charge, protecting ratepayers while improving air quality and health in frontline communities,” said Geof Syphers, CEO of Sonoma Clean Power. “This funding reduces early-stage risk and clears the path for next-generation geothermal right here in California.”
This dedicated state funding builds on SCP’s track record of advancing in-state geothermal, including key legislative support for measures like AB 1359 and AB 531 to streamline project permitting.
“Targeted state investment for early-stage geothermal exploration is essential for bringing more reliable, affordable clean energy onto California’s grid,” commented Terra Rogers, senior director, Superhot Rock Geothermal at Clean Air Task Force. “We applaud the state’s commitment to advancing technologies, like next-generation geothermal, that are needed to drastically reduce the cost of achieving the state’s ambitious clean energy goals.”
RELATED: Report calls on targeted investment to enable next-generation geothermal in California
To secure this latest investment, Sonoma Clean Power assembled a diverse coalition of groups in support of the effort to secure state funding, including:
- Advanced Energy United, American Clean Power – California
- Bay Area Council
- BlueGreen Alliance
- Brightline Defense
- California Chamber of Commerce
- California Community Choice Association
- California Resources Corporation
- California State Pipe Trades Council
- Clean Air Task Force
- Climate Action California
- Climate Reality Project – Silicon Valley
- Coalition of California Utility Employees
- County of Imperial, Data Center Coalition
- Environment California
- Environmental Defense Fund
- Geothermal Rising Action
- Imperial Irrigation District
- Industrious Labs
- International Union of Operating Engineers
- Natural Resources Defense Council
- Pacific Gas and Electric Company
- Récolte Energy
- San Francisco Public Utilities Commission
- San Jose Community Energy Advocates
- Santa Cruz Climate Action Network
- State Building and Construction Trades Council
- The Climate Center, and
- Union of Concerned Scientists.
Source: Email correspondence
