There are numerous market opportunities available in the geothermal energy market globally. A few important opportunity areas include:
- Emergence of advanced technologies and rise of Geothermal 2.0
Enhanced geothermal systems (EGS) provide a tremendous opportunity for harvesting the vast, untapped heat stored in the shallow continental crust. Enhanced or engineered geothermal systems (EGS) create hydraulic linkages between two or more boreholes to allow fluid circulation. This allows heat stranded in low-permeability rocks to be utilized for geothermal energy production. Technological advancements and cost reduction in deep well drilling, logging, and construction as well as improvements in well casing materials that enable completions in hard-rock and high-temperature formations have increased the accessibility of enhanced geothermal systems, deep enhanced geothermal systems, and advanced geothermal system resources.
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- Co-production and conversion of oil and gas wells for geothermal energy
There are two ways to produce geothermal energy with oil and gas wells. First, the wells can be repurposed for exclusive geothermal production (conversion). Second, the wells can produce hydrocarbons and heat simultaneously (co-production). In both cases, reusing existing wells avoids expensive drilling costs for new wells, and would improve social acceptance of industrial surface installations. From a techno-economic standpoint, deepening or repurposing oil and gas wells for exclusive geothermal energy use (“conversion”) may be more feasible than co-production. Recently, CeraPhi Energy entered into an exclusive drilling and intervention services agreement with Halliburton in exchange for in-kind engineering and project management support. The initial focus of the agreement will be to support CeraPhi’s existing opportunities of repurposing end-of-life oil and gas wells in the UK and the US. Also, the Australian-registered startup Legacy Global Green Energy (LGGE) announced that it would target the repurposing of abandoned oil and gas rigs in the UK North Sea as the infrastructure for geothermal energy.
The increase in the number of abandoned oil & gas wells offers ample opportunity for conversion to geothermal wells. According to the US EPA, there are currently more than 3 million total abandoned or orphaned oil and gas wells in the country, and the number is increasing every year. Canada, on the other hand, has 225,000 inactive and plugged wells. The US DoE is partnering with existing well owners and operators to use their idle or unproductive wells to access untapped geothermal potential.
- Geothermal potential for low- and medium-temperature resources
Low-to-moderate temperature geothermal energy is defined as the heat obtained from the geothermal fluid in the ground at temperatures of 300°F (150°C) or less. These systems represent a significant energy resource for the world but are economically challenging for electric power generation. In addition to the challenges for all geothermal development (exploration, permitting, financing, and operation), low-temperature resources have low exergy and corresponding efficiencies for converting the heat to electricity. A few low-temperature resources can be harnessed to generate electricity using binary cycle electricity generating technology. These resources are typically used in direct-use applications, such as district heating, greenhouses, fisheries, mineral recovery, and industrial process heating. Low-temperature geothermal energy resources can be used by different community customers, including urban centers, rural areas, and remote communities.
INVESTMENTS IN FUTURE TECHNOLOGIES
Investments in geothermal power generation projects are set to boom in the coming years across different technologies. The US Department of Energy Geothermal Technologies Office’s (GTO) GeoVision analysis found that geothermal electricity generation has the potential to increase at least 26-fold by 2050. Producing more geothermal electricity online by using existing oil and gas wells is a critical step to meeting the nation’s goals of a carbon-free electric grid by 2035 and net-zero emissions economy-wide by 2050. Several private companies across the world are increasing their investments in developing new geothermal technologies. For instance, in March 2022, Baker Hughes, an energy technology company, announced an investment in San Francisco-based GreenFire Energy Inc., an innovator in closed-loop geothermal technology. The new combined offering is expected to bring the first integrated Advanced Geothermal Systems (AGS) to the market.
- Enhanced Geothermal Systems
A large part of the geothermal potential is heat stored at depths greater than commonly drilled. Standard hydrothermal technologies depend on permeable aquifers, which allow the flow of water through them, to produce hot water. However, at greater depths, the ground becomes less porous and water flow is restricted. Research and demonstration projects are being developed to overcome this limitation. Instead, artificial fractures are created to connect production and injection wells by hydraulic or chemical stimulation. Enhanced or engineered geothermal systems (EGS) create hydraulic linkages between two or more boreholes to allow fluid circulation.
- Advanced Geothermal Systems
Advanced Geothermal Systems (AGS) generate heat and/or electric power through a closed-loop circuit, after a working fluid, such as water or CO2, extracts thermal energy from rock formations at great depths via conductive heat transfer from the geologic formation to the working fluid in the closed loop through an impermeable zone, such as a pipe wall. The deep rock formations accessed by AGS may be sedimentary rocks or, ideally, even deeper and thus hotter crystalline rock formations. Baker Hughes, an energy technology company, announced an investment in San Francisco-based GreenFire Energy Inc., an innovator in closed-loop geothermal technology. The new combined offering brings the first integrated Advanced Geothermal Systems (AGS) solution to the market
- Closed-Loop Geothermal Energy Systems
Closed-loop geothermal (CLG) energy systems use sealed wells to circulate a heat transport fluid through the subsurface, which eliminates the need for geothermal fluid flow from permeable rock formations. CLG may be able to produce heat and power within a wide range of temperatures and rock conditions, including low-temperature sedimentary zones and high-temperature dry rock formations
