FRACKING BY ANY OTHER NAME
The AI Boom Is Driving a Massive Geothermal Energy Revival
- Enhanced geothermal energy, a reliable, zero-carbon source, is attracting significant investment from Big Tech and high-powered investors to meet the massive energy demand spurred by the AI boom.
- By borrowing advanced drilling technologies from the oil and gas industry, enhanced geothermal aims to make the energy source abundant and financially feasible in virtually any location on Earth, not just geologically active areas.
- Both US public and international energy forecasts predict a dramatic increase in geothermal's share of the global energy mix, with potential growth of up to 300 gigawatts in the US by 2050 and over 800 gigawatts globally.
Geothermal energy is becoming Big Tech’s newest darling. Silicon Valley is upending its deep pockets into enhanced geothermal startups in a bid to stay one step ahead of the massive energy demand growth trend being spurred by the AI boom. Geothermal boasts key advantages over leading clean energy technologies, most notably the fact that it’s a constant, baseload clean energy source and that it’s one of vanishingly few zero-carbon alternatives with broad bipartisan support in the United States. As a result, this relatively niche and nascent technology may finally be ready for its close-up.
Until very recently, geothermal energy was only viable in geologically anomalous places where heat from the Earth’s core naturally made its way up to the Earth’s crust – such as through hot springs and geysers. As such, thermally active countries like Iceland were able to meaningfully integrate geothermal energy into their national energy mixes, but very few other countries and regions could. As such, geothermal accounts for less than 1% of the world’s energy mix today, and just 0.4% of the United States’ utility-scale energy generation.
But all of that is changing as ‘enhanced geothermal’ exits theoretical modelling and enters the real world. Enhanced geothermal borrows drilling technologies from the oil and gas industry’s hydraulic fracturing sector, and is even exploring borrowing tech from nuclear fusion to essentially melt away layers of rock to reach greater and greater depths. The idea is that if we can dig deeply and cost-effectively enough, geothermal energy could be available, abundant, and financially feasible practically anywhere on Earth.
As a result, enhanced geothermal energy startups are currently generating a lot of buzz. One such venture, Houston-based Fervo Energy, is backed by Bill Gates and Google, among other high-powered investors. Fervo has already secured the largest-ever commercial contract for geothermal power, having inked an agreement to provide 320 megawatts of power to Southern California Edison utility.
The firm has proven the efficacy of its enhanced approach at a pilot plant in Nevada, and is now “dramatically” scaling up its operations at a Utah plant and readying itself for commercial operations in 2026, all while showing a “70% reduction in drilling time year on year (see chart) while achieving high temperatures and flow rates” according to a recent report from The Economist, which proclaims that “geothermal energy looks set to go from niche to necessary.”
The United States’ public sector seems to be just as bullish as the private sector. The Trump administration has backed the sector’s development and refrained from slashing funding for geothermal in the same ways it has for other clean energy technologies. “His administration is embracing geothermal energy, which is primed for a very American boom,” the Atlantic reported earlier this year.
The Department of Energy recently revised its outlook to increase geothermal’s projected share of the national energy mix, predicting that by 2050, geothermal technologies could provide up to 300 gigawatts of energy. That’s a huge figure, clocking in at more than three times the current output of the nation’s nuclear power sector – the most productive nuclear power sector in the world. The scale of that projected growth is hard to overstate – today, geothermal produces less than four gigawatts in the United States.
Global geothermal numbers are also set to rise in a dramatic fashion. The International Energy Agency, too, has revised its long-term forecast to give geothermal a larger slice of the pie, reporting that the technology’s global potential is over 800 gigawatts by 2050, up from 15 gigawatts today. This kind of growth would make a genuine impact in global energy and emissions trends, and could be pivotal to avoiding an AI-driven global energy crunch. A report released earlier this year by New York-based research firm the Rhodium Group estimates that “geothermal could economically meet up to 64% of expected demand growth by the early 2030s.”
By Michael Kern for Oilprice.com
The UK Is Transforming Coal Mines Into Geothermal Hubs
- Flooded coal mines across the U.K. are being converted into geothermal heat sources capable of supplying clean district heating.
- Early projects in Wales and County Durham show promise but require regulatory reform and government incentives to scale.
- Supporters say mine-water geothermal could cut emissions, lower heating costs, and revive former mining communities with new energy jobs.
Coal mines are finding a second life as companies invest in repurposing huge, disused coal sites into geothermal power projects. In the U.K., the government and energy companies have been discussing the idea for several years, and it seems to be gaining momentum with the launch of the first geothermal mine projects this year.
Energy companies have realised the potential of flooding abandoned coal mines to provide vast quantities of geothermal power, as water in coal mines can reach a temperature of up to 20 degrees Celsius. Mine water geothermal heat (MWGH) systems use the water from flooded coal mines, which is heated through a natural process, to supply clean heat to houses and businesses in the surrounding area. This works by using heat exchangers and pumps to recover the heat and distribute it to buildings via district heating networks.
Heating currently contributes around 40 percent of energy use in the U.K. The country’s building heating is a major contributor to emissions, accounting for between 17 and 18 percent of total greenhouse gases, primarily from burning natural gas. Therefore, developing cleaner heat production methods is key to decarbonising the U.K. in line with government climate targets.
A recent report suggests that around a quarter of U.K. homes sit on top of sites where MWGH could be used to provide low-cost, low-carbon heat. “With the right support in place, MWGH could be built out at scale within five years. It’s not technologically complex, relatively speaking, but it takes some governance and social organisation,” Simone Abram, the co-author of the report, explained. Abram used Denmark as an example of where the technology has already been successfully rolled out.
In addition to providing clean energy, the redevelopment of coal mines could bring energy jobs back to former mining areas, with the need for specialists in drilling, engineering, and operations. This could help reinvigorate struggling economies across the country. The authors of the report also highlight the importance of community consultation to gain support for development. Community engagement will help demonstrate how MWGH projects can bring economic growth back to disadvantaged towns and cities, as well as provide clean heating and new job opportunities.
Despite the ongoing discussion between energy companies and the U.K. government about the potential for MWGH, the U.K. has been slow to develop its first geothermal projects of this type. This is largely due to the high set-up cost and the complex regulatory environment. To support development, the U.K. government must update its energy regulations to allow companies to develop this type of geothermal project. The provision of grants and low-interest loans by the state could also help to encourage higher levels of private investment in the sector.
Earlier in the year, the Mining Remediation Authority (MRA), formerly known as the Coal Authority, launched the U.K.’s first MWGH project near Ammanford in Wales. The project uses floodwater from an abandoned mine as a renewable source of heating for a warehouse. Roughly 25 litres of water per second is pumped from the Lindsay pit each day, before being treated and filtered through natural waterways.
The MRA hopes to develop several other MWGH projects in south and north-east Wales to develop it into a geothermal energy hub. However, some projects have been hard to get off the ground due to the lack of familiarity with the energy source. For example, a similar heat scheme was halted by Bridgend council in 2021 over concerns of rising costs. However, the Welsh government has acknowledged the “significant role mine water heat can play in our journey to net zero.”
The MRA also commenced construction works in March on the Dawdon mine in County Durham, in the north of England. The MWGH project is expected to provide heating for a new housing development, a new primary school, a village centre, and innovation hubs once complete. Vital Energi has been appointed to design, build, and operate the system, which is expected to provide clean heat for the next 40 years.
The authority also launched the Gateshead Mine Water Heat Living Laboratory this year to study thermal and hydrogeological behaviour across operational MWGH projects. It is thought to be the first project of its kind globally.
Fiona Todd from the MRA explained, “Our Living Laboratory will provide invaluable insights into the behaviour of mine water heat systems and help us understand how multiple schemes co-exist within the same region… This research is crucial for maximising the opportunity presented by mine water heat and supporting its development as a reliable, low-carbon heat source across the U.K.”
The U.K. sees significant potential in the repurposing of coal mines to develop geothermal energy projects, to provide clean heating for up to 25 percent of the country’s population. However, to accelerate the growth of the sector, the government must revise its energy regulations to simplify the framework for developing such projects. The introduction of financial incentives from the state could also help to attract more private investment to the sector.
By Felicity Bradstock for Oilprice.com
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