Geothermal energy developers will pay less in royalties to the US government

The US Land Management Bureau is cutting the royalty rate for geothermal energy leases on federal land. This means companies developing geothermal power plants will pay less to the government for the energy they produce.

For years, the US government has charged a 1.75% royalty rate on geothermal leases during exploration and a 3.5% rate once power production begins. This rule removes the 1.75% rate entirely and makes the 3.5% rate optional, allowing developers to negotiate lower rates. This change reduces a direct cost for geothermal projects, making them potentially more attractive to investors.