EB SECURITIES: Geothermal power generation in North America is approaching a technological and policy turning point, and is expected to become an important, stable, and clean energy source in the next decade.

EB SECURITIES released a research report stating that with the rapid development of the American AI industry, the number of projects under construction in American data centers has increased significantly, and the power demand for AIDC is showing a nonlinear growth trend. Based on the increasing power demand for American data center construction, the EIA predicts that US power consumption will reach a new historical high in 2026. Under the AI boom, clusters of data centers in California, Texas, and other areas are exacerbating regional power crises. Research from the International Energy Agency shows that if underground deep geothermal resources are developed on a large scale, the global geothermal power potential corresponding to EGS could reach several hundred terawatts, much higher than the current global installed capacity of the power system, making it expected to play a more important role in the future clean energy system. The main points of EB SECURITIES are as follows: Enhanced Geothermal Systems (EGS): A new generation of stable renewable energy technology An Enhanced Geothermal System (EGS) is an artificial geothermal system built using engineering techniques to exploit hot dry rock geothermal resources or enhance the exploitation of low permeability thermal energy reservoirs. EGS is the main technology for deep geothermal energy extraction and has been at the forefront of international geothermal technology research in recent years. The Massachusetts Institute of Technology Review rated EGS as one of the top ten breakthrough technologies of 2024. Traditionally, geothermal power generation has been constrained to specific geographic areas such as volcanic active zones or plate boundaries, making it difficult to scale up. However, with breakthroughs in shale oil and gas extraction technology, humans have gained the ability to delve deep underground. EGS is a product of this technological dividend. By drilling 3 to 8 kilometers underground, injecting fluid to fracture rocks, and extracting high-temperature fluid for power generation, EGS converts ubiquitous deep-heat energy into stable electricity. From an energy structure perspective, EGS has several advantages: strong stability, low carbon emissions during operation, and enormous resource potential if technically mature, providing long-term stable clean electricity to the energy system. Stanford Geothermal Workshop: Increased policy and industry attention In February 2026, the 51st Stanford Geothermal Workshop was held at Stanford University in the United States, with 450 onsite participants from 26 countries and about 100 online participants. A total of 204 papers and 188 reports were submitted, setting a new record for the largest workshop in history. The focus of this workshop was on major breakthroughs in the field of Enhanced Geothermal Systems (EGS). The latest drilling assessment confirmed a new EGS "sweet spot" where resources with temperatures exceeding 555F (approximately 290C) have gigawatt-level resource potential, meaning that a single geothermal block can support the stable power supply of large data center clusters or regional power grids, marking the transition of EGS from the technology validation stage to the scale development stage. AI-driven drilling and exploration technology have significantly reduced development risks and costs, making previously undevelopable areas commercially viable. This marks a shift in geothermal development from "experience-driven" to "data-driven." Kyle Haustveit, Assistant Secretary of the Department of Oil, Gas, and Geothermal Energy at the US Department of Energy, stated in his opening speech that geothermal energy is becoming an important pillar of America's future energy system. The latest progress of one of the world's most influential EGS experimental platforms, the Utah FORGE project, was also systematically announced at the conference. Supported by the US Department of Energy and managed by the University of Utah, after years of technical accumulation, the project has established a complete EGS technology system. The success of commercial projects is jointly driving the transition of EGS from experimentation to industrialization. This workshop sends a clear signal that Enhanced Geothermal Systems are entering a turning point in scale development. Core factors driving this transformation include significantly reduced development risks through AI and digital technologies, breakthroughs in geological resource constraints, stable electricity demand as a key factor in energy transition, and ongoing policy and capital support. Geothermal energy is gradually moving from "regional energy" to "global foundational energy." Geothermal energy is expected to become one of the most important stable clean energy sources globally in the next decade and is poised to become a cornerstone supporting energy demand in the era of artificial intelligence. Kaishan Group lays out a North American EGS project At the industrial practice level, domestic companies are also actively participating in the global geothermal development market. On March 6, Kaishan Group Co., Ltd., a wholly-owned subsidiary responsible for the North American geothermal new energy development platform OpenMountain Energy, LLC (OME), in Reno, Nevada, signed a cooperation memorandum with Power Planet, Inc (PP), a US EGS development company, to jointly develop the EGS resources in the Humboldt House geothermal resource area of Humboldt County, Nevada. According to the 2011 Volume 35 of the "GRC Journal" of Nevada's Pershing County Humboldt House geothermal resource area concept model restated, the block has 200-500 megawatts of EGS resources, most of which are owned by OME and have already constructed and operated the StarPeak geothermal power station. The collaboration between PP and OME will leverage their respective strengths to develop the EGS resources in this geothermal block. OME not only owns the development rights to the resource area but can also provide power for EGS development, tailwater from the StarPeak power station, grid capacity, and power generation equipment. The PP team has a complete development team, with CEO Mr. Keith Elliott having served in reservoir engineering and leadership positions in the largest private oil and gas company in the United States for over 20 years, team members include drilling and development experts who have successfully drilled hundreds of wells in shale areas, as well as senior experts in geological science and geothermal engineering, and financing experts who have worked for the US Department of Energy. The key terms of the memorandum signed are binding, and both parties agree to sign a contract within the next three months and begin drilling within twelve months after the contract is signed. The company will announce relevant commercial terms after the contract is signed. Risk warning: Risks include technological progress falling short of expectations, local policy uncertainty, project investment and construction progress falling short of expectations, lower-than-expected project returns, and intensified industry competition, among others.