Amidst continued optimism from the Trump Administration on geothermal energy as compared to other renewable energy sources, some private companies are looking to achieve their stated clean energy goals by turning to geothermal projects, including for large-scale heating and cooling.
In an Earth Day statement, Mastercard announced its plans to implement a geothermal heating and cooling system at its headquarters in Purchase, New York, alongside plans to construct a new solar array at its O'Fallon, Missouri tech hub. The company's investment in geothermal energy is of particular interest given the changing regulatory landscape around geothermal well drilling in New York.
Mastercard's headquarters, where natural gas is responsible for more than half of the company's direct combustion of fossil fuels, will be replacing its natural gas-powered heating and cooling systems by drilling 160 boreholes, each 600 feet deep, to support a geothermal system powered by renewable energy sources. The new "closed-loop" system will transfer heat from the building in summer and store it for use in winter. In its April 22 statement, the company emphasized that its new investment in "state-of-the-art geothermal technology" will help the company reduce demand peaks and maintain critical operations in the face of increasing extreme weather events.
The New York State Department of Environmental Conservation (DEC)'s Division of Mineral Resources regulates the drilling, installation, operation, and plugging of open loop and standing column geothermal wells drilled deeper than 500 feet, and DEC's Division of Water regulates geothermal wells at depths less than 500 feet. As part of a larger effort to increase access to geothermal heating and cooling and meet state building decarbonization goals, Governor Kathy Hochul signed a law in 2023 exempting closed loop geothermal drilling deeper than 500 feet "installed for the purpose of facilitating a geothermal heating or cooling system" from certain regulatory requirements applicable to oil and gas drilling. In February 2024, another piece of legislation directed DEC to promulgate new regulations for closed-loop geothermal boreholes by December 31, 2024. That rulemaking process has yet to kick off; as a result, Mastercard's new project – and comparable heating and cooling geothermal projects involving closed-loop boreholes dug deeper than 500 feet – are currently exempt from DEC regulations applicable to standing column and open-loop geothermal projects deeper than 500 feet.
Mastercard's project suggests that private companies may turn to geothermal energy more and more to meet clean energy targets and honor climate commitments amidst general hostility from the federal government against other forms of renewables like wind and solar. The geothermal industry continues to build momentum in the U.S., not only for heating and cooling, but also for energy generation resulting from increased investment, research, and development of so-called "enhanced geothermal" technologies. Geothermal has been featured prominently in the Trump Administration's campaign for American "energy dominance":
- U.S. Secretary of Energy Chris Wright has publicly supported the expansion of geothermal energy due to its potential for clean, around-the-clock, on-demand power.
- In an April 8, 2025 executive order, "Protecting American Energy From State Overreach," President Trump declared his Administration's commitment to "unleashing American energy, especially through the removal of all illegitimate impediments to the identification, development, siting, production, investment in, or use of domestic energy resources — particularly oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources."
- Also on Earth Day, the White House proclaimed President Trump's support for "cutting-edge technologies like carbon capture and storage, nuclear energy, and next-generation geothermal" as one of several key actions the Trump Administration has taken on the environment.
- On April 23, 2025, the Department of the Interior announced plans to implement emergency permitting procedures to expedite the review and approval of certain identification, leasing, siting, production, transportation, refining, and generation projects. The new procedures will apply to a wide range of energy sources, including geothermal and hydropower, as well as fossil fuels such as oil, coal, and natural gas.
Geothermal energy in all its forms could continue to gain traction as private companies such as Mastercard look to the technology to help achieve their climate resiliency and clean energy goals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
