Geothermal energy, despite its significant advantages, remains underutilized in the United States and Europe as the world shifts towards clean energy sources. In 2019, the U.S. generated only 0.4% of its power from geothermal sources, while Europe had just 1.5 GW of geothermal electricity capacity out of 209 GW. This underutilization is largely due to high drilling and production costs compared to other clean energy sources.
Geothermal energy offers several benefits, including high reliability, low emissions, and vast energy potential. Unlike solar and wind, which are intermittent, geothermal has a high capacity factor of 74.3%. Moreover, geothermal power plants emit significantly fewer greenhouse gases and pollutants compared to fossil fuel plants.
The U.S. Department of Energy estimates that the continental U.S. has over 100 GW of geothermal electric capacity, potentially supplying 10% of the country’s power needs. In Europe, there is an estimated potential of 80-100 GW for geothermal energy utilization. However, development costs have hindered the sector’s growth.
Enhanced geothermal systems (EGS) show promise in expanding geothermal energy’s reach. EGS involves creating subsurface fracture systems, similar to shale drilling, to increase rock permeability and facilitate the injection of heat transfer fluids. The U.S. Department of Energy is investing $165 million in geothermal research, aiming to lower EGS project costs to $45 per MWh by 2035.
In Europe, the GEORISK project is working to attract private investment into the geothermal industry by mitigating risks associated with new projects. European governments are increasingly looking to reduce dependence on gas and embrace renewable resources like geothermal due to the current energy crisis.
The private sector is also showing interest in geothermal energy, with startups raising significant capital. Chevron, BP, and other major players have invested in geothermal projects, recognizing its potential as costs decrease and technology improves.
As geothermal energy gains momentum, it has the potential to become a mainstream clean energy source, benefiting from the transfer of skills and personnel from the oil and gas industry, where many technologies are similar. Geothermal’s reliability, low emissions, and vast untapped potential make it a promising contributor to the global clean energy transition.
https://oilprice.com/Energy/Energy-General/Europe-And-The-US-Gear-Up-For-A-Geothermal-Boom.html