EIG launches geothermal investment fund to advance U.S. power projects

(WO) — EIG has announced the initial closing of a new investment fund aimed at advancing geothermal energy projects across the United States, targeting a critical stage in project development.

The EIG Geothermal Catalyst Partners fund will focus on providing mid-stage capital to help geothermal projects progress through key technical and commercial milestones. The strategy is designed to reduce development risk and support broader institutional investment in the sector.

EIG said the fund builds on its experience investing in subsurface-intensive energy assets, positioning geothermal as an emerging opportunity that leverages capabilities developed in oil and gas exploration and production.

The firm expects geothermal to play a growing role in supplying reliable, low-carbon power as electricity demand increases. Advances in drilling, reservoir characterization and project economics are helping improve the viability of next-generation geothermal developments.

By targeting projects at an intermediate stage, the fund aims to bridge a financing gap that has historically limited geothermal deployment, particularly in the U.S. market.

The move highlights increasing investor interest in subsurface energy technologies that align with energy transition goals while maintaining reliability, drawing on expertise from the oil and gas sector.