At CERAWeek 2024, the U.S. Department of Energy’s (DOE) Geothermal Technologies Office (GTO) Director, Lauren Boyd, took center stage for a panel discussion, drawing a packed audience.
The session titled “Geothermal: How Big is it Going to Get?” featured industry giants like S&P Global, Baker Hughes, and SLB, all set to explore the future potential of geothermal energy.
Lauren, the sole government representative at the Tuesday morning discussion, brought extensive expertise, capturing the attention of an audience keen on exploring the various applications of geothermal energy across industries. The buzz continued throughout the event, with discussions on topics like “What’s New in Geothermal Technology” and “DOE Deploy Dialogue – Next Generation Geothermal” drawing full rooms. This enthusiastic response reflects a promising outlook for geothermal as a sustainable and effective energy solution.
With an estimated 10,000 attendees at CERAWeek in Houston, Texas, this year, geothermal emerged as a highlight alongside the traditional focus on the oil and gas (O&G) industry.
In addition to Lauren’s session, GTO, along with DOE’s Loan Programs Office and Office of Clean Energy Demonstrations, unveiled the Next-Generation Geothermal Power Commercial Liftoff Report. This report generated significant interest across the energy industry, outlining a pathway to commercializing enhanced geothermal systems (EGS) and closed-loop geothermal systems.
A key driver behind this growing interest is the rapid innovation in next-generation geothermal technologies, drawing inspiration from techniques utilized in the oil and gas sector. Challenges such as the time and expense of drilling deep into the earth have hindered geothermal’s commercial potential.
However, initiatives like DOE’s Frontier Observatory for Research in Geothermal Energy (FORGE) in Utah have made remarkable progress, significantly reducing drilling time. Private sector players like Fervo Energy have also achieved notable milestones, indicating the imminent commercialization of EGS.
Furthermore, alongside the improvements in speed and cost, advancements in drilling techniques are propelling geothermal towards widespread deployment. Notably, achievements like FORGE’s highly deviated wells, which successfully connect injection and production wells at significant diagonals, and fully horizontal well concepts from Fervo and another geothermal startup, Eavor, have captured the attention of the oil and gas community.
These innovations, coupled with the pace at which they are realizing them, are enhancing the visibility and viability of next-generation geothermal in the nation’s energy future, prompting key players to take notice.
Additionally, major technology companies made their presence felt at CERAWeek 2024, underscoring the imperative of integrating more reliable power into the grid in an increasingly digitalized world, particularly to support artificial intelligence and data centers.
Several of these companies are acknowledging geothermal’s capacity to provide firm, flexible power suited to these applications. For instance, Google and Fervo are collaborating on the inaugural commercial-scale EGS plant, while Google is partnering with other technology firms to propel renewable energy forward—demonstrating immediate collaboration and opportunities for geothermal to cater to the power needs of technology users.
Moreover, private equity firms emerged as another significant group displaying a keen interest in geothermal as they seek to invest in next-generation energy solutions. With energy demand on the rise for the first time in decades, it’s evident that entities with available capital are seeking to diversify their portfolios by focusing on this sector.
The Inflation Reduction Act, representing the largest-ever investment in clean energy, further incentivizes private equity firms, energy producers and users, and others to explore geothermal by extending clean energy investment and production tax credits.
This support, combined with DOE-funded research, development, and demonstration aimed at enhancing technology and reducing costs, is bolstering the economic appeal of investing in geothermal energy at a crucial juncture for the planet.
The enthusiastic reception of geothermal at the “Super Bowl of the Energy Sector” illustrates the significant strides the technology has made. Once perceived as niche within the energy sector, this firm and adaptable renewable technology is garnering increased attention from various industries due to its innovations, efficiency, and minimal environmental footprint.
It’s becoming increasingly evident to energy industry leaders that geothermal can play a pivotal role in supplying clean, dependable power to the grid, with the understanding that the sooner they engage with it, the better.
“The innovations—and the pace at which they are being realized—are increasing next-generation geothermal’s visibility and viability in the future of energy nationwide, and key players are starting to take notice.”