Alaska: A Strategic Geothermal Hub for the US Indo-Pacific Policy

With its vast geothermal resources, Alaska is positioning itself as a strategic pillar for the US energy policy in the Indo-Pacific, supporting key regions such as Taiwan, Japan, and the Philippines with sustainable and local production.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Alaska, rich in geothermal resources, is emerging as a key player in the US energy strategy for the Indo-Pacific region. By leveraging these resources, the United States can meet the growing energy needs of its allies while reducing their reliance on imported fossil fuels.

The development of geothermal projects in Alaska offers both geopolitical and economic advantages. These initiatives not only diversify the local economy but also strengthen the energy resilience of partner countries in the face of geopolitical tensions.

Geothermal Resources

The volcanic zones of Alaska, such as Mount Makushin and Mount Spurr, have remarkable energy potential. With thermal gradients exceeding those of many other geothermal sites in the United States, Mount Makushin, for example, could power the entire island of Unalaska and its seafood processing industries with temperatures reaching 397 °F. This exploitation would allow for the diversification of the local economy and reduce its dependence on diesel.

Energy and Economic Benefits

The transition to geothermal energy in Alaska offers significant economic benefits. Previous projects, such as Chena Hot Springs, have shown that even low-temperature geothermal resources can be used efficiently through innovative technologies such as PureCycle (low-boiling-point refrigerant). Moreover, the adoption of horizontal drilling and fracturing techniques, developed for the oil sector, increases the number of exploitable sites while reducing financial risks for developers.

Geopolitical Aspects

Strategically, geothermal projects in Alaska strengthen the energy resilience of vulnerable regions facing growing tensions with China. For example, in Taiwan, increasing geothermal capacity could reduce dependence on imported liquefied natural gas (LNG) and mitigate the risks of an energy blockade imposed by China.

Technological and Financial Challenges

However, geothermal development in Alaska is not without challenges. Projects require substantial initial support to de-risk investments. According to the US Department of Energy, the estimated cost for a 30 MW project is around USD 450 million. Public support is essential to align emerging technologies with commercial standards and attract the necessary investments.

Regional Integration

Alaska could also serve as a model for other geothermal-rich regions in the Indo-Pacific, such as Indonesia and the Philippines. By becoming a geothermal energy hub, Alaska would provide replicable development models, thereby strengthening the energy resilience of US allies and consolidating the US geo-economic influence in this strategic region.

Ormat Technologies reported a rise in revenue for the third quarter, supported by solid performances in its Product and Storage segments, and revised its 2025 annual guidance upward.
Mazama Energy has completed the creation of the world’s hottest Enhanced Geothermal System, paving the way for low-cost, high-density baseload power aimed at data centres and heavy industry.
Ormat Technologies and SLB join forces to accelerate the development of integrated geothermal systems, including a pilot EGS project at an existing site for large-scale commercial deployment.
With a 9.3% increase in one year, district heating networks cross a historic threshold, while cooling networks continue expanding in response to intensifying heatwaves.
Dalkia and Paris-Vallée de la Marne launch a project to upgrade the GEOVAL network, aiming to deliver 20 GWh annually with 90% decarbonised energy.
State-owned PT SMI financed 65% of the Ijen geothermal plant, recently inaugurated, while continuing social responsibility programmes in East Java province.
The new GeoMap tool identifies vast geothermal potential in the Middle East, notably for urban cooling, long-duration storage, and large-scale power generation.
Clean Energy Technologies and RPG Energy Group completed the installation of an Organic Rankine Cycle heat recovery system at a major industrial site in Tennessee.
German start-up Factor2 Energy has raised $9.1mn in venture capital to develop a geothermal system based on CO₂ injected into porous geological formations, with the goal of building a pilot power plant in Germany.
Start-up Dig Energy has secured $5mn to launch its first pilot projects for compact geothermal drilling, aiming to cut thermal energy production costs in buildings without relying on conventional oilfield rigs.
Baker Hughes joins the development of the second phase of the Hell’s Kitchen project in California, targeting 500 megawatts of geothermal energy to power energy-intensive data centres.
Baker Hughes will supply Fervo Energy with key equipment for five geothermal ORC plants as part of the Cape Station Phase II project in Utah, United States.
A long-term extension secures continuous baseload geothermal power supply to California’s main utilities while strengthening financial visibility in the energy sector.
The inauguration of the Tanawon geothermal site, with a capacity of 22 megawatts, marks a milestone in the expansion of the Philippines’ energy park with local solutions of low carbon footprint.
The rise in investments and the boom in binary cycle technologies are placing geothermal energy at the heart of global energy strategies, driven by heat pump demand and Asian ambitions.
Daldrup & Söhne AG has won an EU-wide tender for drilling geothermal wells in Pullach, a large-scale project that could enhance the economic appeal of geothermal energy in Germany.
The Bureau of Land Management removes rules deemed obsolete to facilitate the development of geothermal projects, announcing new geothermal lease auctions in California and Idaho.
Geothermal Radar unveils an interactive mapping tool and global thermal model designed to support governments and companies in identifying and developing new geothermal sites internationally.
North America registers record funding of $1.7 billion in the first quarter of 2025, driven by emerging innovative techniques exploiting previously inaccessible geothermal resources, according to recent analysis by Wood Mackenzie.
Globeleq and African Trade & Investment Development Insurance finalise a payment guarantee for the Menengai geothermal project (35 MW), securing financing ahead of its planned operational launch in Kenya.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.