Geothermal energy, an "always-on" renewable resource, currently supplies less than 0.5% of global demand, primarily for heating in geologically active regions. However, there's growing interest in utilizing fracking techniques, pioneered by the oil and gas industry, to make geothermal power more accessible globally. This involves drilling wells, typically 1-3 kilometers deep for large projects, to tap into high-pressure steam or hot water, which can directly heat buildings or generate electricity by turning turbines.
The main advantage of geothermal energy is its constant and stable supply, unlike intermittent wind and solar power. However, it faces significant downsides, including substantial upfront costs for drilling and long lead times for development. Despite these challenges, the International Energy Agency suggests that an investment of $2.8 trillion could enable geothermal to provide up to 8% of global electricity by 2050. Critics, however, argue that such investment might yield better results if directed towards other areas like battery storage for wind and solar.
Technological advancements are expanding geothermal's potential. These include artificially fracturing rocks deep underground to create conditions for water injection and heating, developing closed-loop systems, and drilling deeper to access "super hot" deposits. For instance, a well in central Turkey reached a temperature of 308 degrees Celsius at just under 4 kilometers deep. Despite these innovations, global installed capacity for geothermal electricity is only 17 gigawatts, significantly less than large wind farms, though heating applications are more advanced at an estimated 150-160 gigawatts.
Countries with favorable geology, such as Iceland and those with permeable sedimentary rocks like France, Germany, and Hungary, are poised to benefit. The oil and gas industry's infrastructure providers could also gain, given their expertise in drilling and fracking. However, a significant risk associated with drilling, especially using fracking techniques, is the potential for seismic activity, which could damage local infrastructure. US tech giants like Meta, Google, and Microsoft are investing in geothermal energy through power purchase agreements to meet their green energy targets, with Microsoft partnering with G42 to build a geothermal-powered data center in Kenya.
Fervo Energy, a Houston-based company, is a key player in this space, using oil and gas drilling techniques to tap into geothermal resources. Their Utah project, which drilled nearly 3 miles deep, aims to make next-generation geothermal energy available globally. Fervo's construction cost for its Utah plant is approximately $7,000 per kilowatt of electricity, comparable to traditional nuclear power, but without ongoing fuel costs. The company's goal is to achieve scale and drive down prices to compete with natural gas, and it has already secured a high-profile customer in Google for its data centers.
