US holds Nevada geothermal auction amid soaring industry interest

By Reuters News

Oct 20 (Reuters) - The Trump administration will hold a sale of geothermal energy leases over 265,000 acres in Nevada on Tuesday, the latest in a string of federal auctions that have drawn record interest this year.

The Interior Department's Bureau of Land Management will offer 83 parcels through the Efficient Markets online platform starting at 10 a.m. EDT (1400 GMT). Some of the acreage overlaps with major solar energy projects, according to sale documents.

It is the fourth of six government sales held in 2026 and the first this year in Nevada, which boasts substantial geothermal resources. It is one of the most active states for development thanks to companies including Ormat ORA.N and Fervo FRVO.O.

President Donald Trump's administration has promoted geothermal energy as a promising new source of always-on electricity that can help meet the nation's soaring demand for electricity tied to the expansion of artificial intelligence.

Geothermal energy has been produced in the United States since the mid-1900s, but it has recently emerged as one of the fastest-growing areas of the power sector as companies have adapted oil-and-gas drilling techniques to tap heat deep underground.

Auction bidding will start at the federal minimum of $2 an acre. Lease prices have soared this year, with the average price per acre for winning bids at a single sale hitting a record $339 at a Utah auction in August, according to market research firm Currence. Prior to 2025, the record was just $63 an acre.

A geothermal lease sale in Nevada a year ago commanded an average price per acre for winning bids of $32.

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