Why You Need Geothermal Energy Solutions

Why Big Oil's Next Gold Rush Could Be Miles Below Your Feet Imagine discovering that beneath every city and town lies enough clean energy to power our entire civilization 150 times over. According to a groundbreaking report just released by the International Energy Agency, that's not science fiction—it's the new reality of geothermal energy. Here's what's happening: While the world focused on wind and solar, scientists quietly revolutionized how we tap Earth's natural heat. The breakthrough? We no longer need to find natural hot springs—we can create them anywhere. Let's break down why this changes everything: 1. The Scale Shock - Previous potential: 15 gigawatts globally - New potential: 600,000 gigawatts (40,000x more) - Could provide 8% of world's electricity by 2050 - Gets better the deeper you go 2. The Economic Reality - Costs dropping 80% by 2035 - $2.1 trillion market opportunity by 2050 - Becoming cheaper than natural gas - Provides reliable 24/7 power unlike wind/solar 3. The Hidden Opportunity 🎯 - Oil & gas expertise perfectly transferable - 80% of skills already exist in energy sector - Only 30 countries have geothermal policies - First movers could dominate new market Here's what makes this fascinating: While most clean energy requires choosing between reliability and sustainability, next-generation geothermal offers both. It's like having a nuclear power plant's reliability with solar's environmental benefits, available almost anywhere. Question for energy leaders: With this technology advancing rapidly, how should companies and governments position themselves to capture the opportunity? What barriers need to be addressed first? #CleanEnergy #Innovation #Geothermal #EnergyTransition

When I used to think of geothermal, I thought of Icelandic hot springs. Not anymore. Thanks to companies like Fervo Energy, Sage Geosystems and XGS Energy (all three based right here in Houston). Traditional geothermal power requires specific reservoir conditions: heat, permeability, and fluid, limiting its geographic potential to just 9,000 MW of identified resources. But today, that's no longer true. The same shale revolution that transformed oil and gas is now unlocking clean energy. Those horizontal drilling techniques and fracking methods we perfected in the Permian are being repurposed to tap heat anywhere, creating a 24/7 renewable energy source that doesn't depend on the sun shining or the wind blowing. Using horizontal drilling expertise, Fervo secured a groundbreaking 15-year agreement with Southern California Edison to deliver 320 MW of competitive clean power. They have raised $244 million from investors like Devon Energy, securing a $25 million DOE grant (the largest ever from the Geothermal Technologies Office), and obtaining $255 million in additional project funding. Just last week, they announced another major milestone: a 15-year agreement with Shell Energy to deliver 31 MW of round-the-clock carbon-free power from Cape Station starting in 2026. What's most exciting is how they're increasing output per well, enabling Cape Station to expand from 400 to 500 MW. Five years ago, nobody was talking about geothermal as a major player. Today, our Houston energy expertise is creating the next big shift in the energy transition. The subsurface knowledge that built this city is now being applied to build a cleaner future. Sometimes the biggest innovations come from reimagining existing technologies rather than inventing something entirely new. That's exactly what's happening with geothermal right now. Tim Latimer #houston #energytech #geothermal #climatetech #VC

Stunning Studies Find Next-Gen Geothermal Capital Costs Will Be 3x LOWER Than Nuclear by 2027, Baseload AND Flexible With a "Built-in Battery" Enhanced Geothermal Systems (EGS) are emerging as the clear winner in the race for baseload and flexibly dispatchable ultra-low-carbon power. This is clear from both major studies and breakthrough test results from Fervo Energy and the Energy Department's FORGE project. In particular, the article "Enhanced geothermal systems for clean firm energy generation," in the January 31 inaugural issue of "Nature Reviews Clean Technology" has this stunning conclusion: "IN THE USA, ENHANCED GEOTHERMAL IS EXPECTED TO ACHIEVE PLANT CAPITAL COSTS (US$4,500/kW) AND A LEVELIZED COST OF ELECTRICITY (US$80/ MWh) THAT ARE COMPETITIVE WITH MARKET ELECTRICITY PRICES BY 2027." https://lnkd.in/eSEvEuFa To be clear, the latest nuclear power plant built in the U.S., the Vogtle plant in Georgia, had a capital cost of $15,000/kW and a total cost of $35 billion. It’s “the most expensive power plant ever built on earth,” explained Power Magazine in 2023, with an “astoundingly high” estimated electricity cost. https://lnkd.in/e8eRvUAd "The EGS approach is distinct from traditional geothermal systems due to its use of horizontal drilling and hydraulic fracturing," explains a September 2024 JPT article that is the source of the headline image. "With optimal well spacing, this combination creates extensive flow paths between injection and production wells. Energy is extracted from the hot water using generators equipped with closed-loop turbines." https://lnkd.in/evmaKEuD The fact that this is in the Journal of Petroleum Technology is exactly why this technology may see support from the new administration. Indeed, the new Secretary of Energy is actually an investor in Fervo. Furthermore, a Princeton news release "Flexible geothermal power approach combines clean energy with a built-in ‘battery’" for a 2024 study explained: "By leveraging the inherent energy storage properties of an emerging technology known as enhanced geothermal, the research team found that flexible geothermal power combined with cost declines in drilling technology could lead to over 100 gigawatts’ worth of geothermal projects in the western U.S. — a capacity greater than that of the existing U.S. nuclear fleet." https://lnkd.in/eJjzDNCA Geothermal advances are coming fast and furious so I will be doing follow up stories in the coming weeks and months—and ultimately a full white paper.

The U.S. holds 3,400 GW of geothermal potential accessible with today’s technology—and far more with ongoing innovation. By combining geothermal expertise with proven oil and gas solutions, together, we can enable geothermal development almost anywhere…cost effectively.   A new report from Project InnerSpace and Future Ventures reinforces what we already know: geothermal energy is uniquely positioned to meet the surging power needs of AI-driven data centers. It offers round-the-clock electricity and integrated thermal cooling—that can operate independent of the grid and with minimal environmental impact.   The study shows that a 1 GW geothermal project could deliver power and cooling at costs competitive with natural gas and below nuclear, assuming current tax credits remain in place. With continued investment, those costs could drop to $50/MWh by 2035.   Thanks to the recognition from legislators on both sides of the aisle, last week it was signed into law that the 45Y/45E tax credits for geothermal will remain in place through 2034.   Now, it is up to geothermal service providers, project developers, and financers of clean energy projects to accelerate development, innovation, and creative approaches to realize $50/MWh by 2035.   At SLB, we’re driving the adoption of clean, firm, geothermal through a comprehensive technology portfolio, innovative business models, and leading expertise—from exploration and drilling to subsurface-surface optimization, to plant design.   This is a pivotal moment for clean energy—and we’re ready to scale.

Oil and gas drilling techniques are being repurposed to unlock geothermal energy almost anywhere on Earth. Here's why this could change everything. Companies like Fervo Energy are using horizontal drilling and hydraulic fracturing - the same methods that revolutionized fracking - to create artificial geothermal systems. They drill down 8,000 feet, then horizontally through hot rock, pumping water to create steam that generates clean electricity 24/7. This isn't your typical geothermal that only works in volcanic regions. Enhanced geothermal can tap into heat beneath 95% of the continental US. Fervo's pilot project in Nevada is already powering Google data centers, proving the technology works at commercial scale. We're talking about baseload renewable energy that doesn't depend on sun or wind - just the Earth's constant heat beneath our feet. Check out the full story here: https://lnkd.in/gMdnBmeg

Latest report from International Energy Agency (IEA) on #geothermal energy came in. 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧? Probably many, but here is one: ⭕ This is the decade of change. Plenty of work and areas of development for low and high enthalpy domains. This is a time for unity of the #energy world to propel geothermal forward instead of 'My geothermal is better than your geothermal' attitude. We can do it. 𝐇𝐢𝐠𝐡 𝐥𝐞𝐯𝐞𝐥 𝐬𝐮𝐦𝐦𝐚𝐫𝐲: ✔️ 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐆𝐞𝐨𝐭𝐡𝐞𝐫𝐦𝐚𝐥 𝐄𝐧𝐞𝐫𝐠𝐲: Technological breakthroughs such as horizontal drilling and hydraulic fracturing are unlocking significant potential for geothermal energy, with the capacity to meet up to 15% of global electricity demand growth by 2050. ✔️ 𝐆𝐞𝐨𝐭𝐡𝐞𝐫𝐦𝐚𝐥 𝐄𝐧𝐞𝐫𝐠𝐲 𝐂𝐡𝐚𝐫𝐚𝐜𝐭𝐞𝐫𝐢𝐬𝐭𝐢𝐜𝐬: It is a clean, secure, and versatile source of energy capable of providing 24/7 electricity, heat production, and energy storage with high utilization rates compared to solar and wind energy. ✔️ 𝐆𝐥𝐨𝐛𝐚𝐥 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥: Geothermal resources, accessible at greater depths through new technologies, offer the potential to meet global electricity demand many times over. The energy can be used for heating, cooling, and direct applications in residential, industrial, and district heating systems. ❤️ 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐎𝐢𝐥 𝐚𝐧𝐝 𝐆𝐚𝐬 𝐒𝐞𝐜𝐭𝐨𝐫: Expertise and infrastructure from the oil and gas industry can significantly reduce costs and accelerate geothermal project development, diversifying energy portfolios. ✔️ 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: High upfront costs, long project timelines, permitting, environmental concerns, and public acceptance are major barriers to scaling geothermal energy. ✔️ 𝐏𝐨𝐥𝐢𝐜𝐲 𝐚𝐧𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐍𝐞𝐞𝐝𝐬: Policy support and risk mitigation schemes are essential for early-stage project development. Geothermal-specific roadmaps and financial incentives are underdeveloped compared to solar and wind energy. Investment could reach $1 trillion by 2035, growing to $2.5 trillion by 2050, if costs are reduced and innovation accelerates. ✔️ 𝐌𝐚𝐫𝐤𝐞𝐭 𝐓𝐫𝐞𝐧𝐝𝐬: Conventional geothermal capacity is expected to grow significantly, particularly in regions like Africa and Southeast Asia, but it remains underutilized compared to its technical potential. ✔️ 𝐖𝐨𝐫𝐤𝐟𝐨𝐫𝐜𝐞 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭: The industry may need a sixfold increase in its workforce by 2030, highlighting the importance of skill-building initiatives and academic programs. The role of #oilandgas is crucial at this time for knowledge, technology and experience transfer to amplify geothermal! Report link: https://lnkd.in/dNMwCY4Y #geothermalenergy #oilandgas #EGS #energytransition #renewables #heat #power

Next-generation geothermal energy could generate enough electricity to meet global demand 140 times over—second only to the technical potential of solar PV among renewable technologies. New drilling technologies are allowing developers to tap into hotter resources at greater depths, unlocking geothermal potential in nearly every country. Beyond electricity, geothermal can supply continuous low- and medium-temperature heat for buildings, industry, and district heating. The economic upside is clear: geothermal energy has massive untapped potential, offering reliable power, lower emissions, and the opportunity to decarbonize global industries. International Energy Agency (IEA) https://lnkd.in/edT3sQEC

Weekly Monday Sustainability Post: Major growth potential with geothermal energy, and we need greater emission reductions in the hard-to-abate sectors to reach net zero by 2050. A new International Energy Agency (IEA) analysis finds that today geothermal provides 1% of global energy but that it could satisfy 15% of global power demand through 2050. First, it needs to get cheaper. With the "right support," IEA finds next-generation geothermal could get 80% cheaper by 2035. That could bring costs to roughly $50 per megawatt hour, "on a par or below hydro, nuclear and bioenergy." In addition to cost reductions, growth in geothermal will require specialized labor (many of the same skills oil and gas requires), simpler permitting processes, new drilling technologies to go deeper (see the graphic with this post on how the further we drill, the more potential for geothermal), and government support. Interestingly, more than 100 countries have policies in place for solar PV and/or onshore wind, but less than 30 have implemented policies for geothermal. Hopefully geothermal grows since beyond being renewable, geothermal has the advantage of not being intermittent.  On average, global geothermal capacity had a utilization rate over 75% in 2023, compared with less than 30% for wind power and less than 15% for solar PV.  World Economic Forum's Net Zero Industry Tracker says across eight hard-to-abate sectors (aluminum, steel, cement, primary chemicals, oil and gas, aviation, shipping, and trucking) that account for 40% of emissions, emissions declined 0.9% from 2022 to 2023. This is notable given they are hard-to-abate and that globally emissions unfortunately rose 1.3% during that same time period. Meeting the net zero targets by 2050 will require $30 trillion in investment. Nearly half of the required GHG emission reductions can be achieved with commercially viable technologies already available so there are ready investments. Still, key barriers to reducing emissions in these sectors including high interest rates, political uncertainties, trade restrictions and limited availability of new clean energy technologies. There's a lot more in the WEF article in the comments. #geothermal #energy #emissions #netzero