Key facts
- Geothermal energy utilizes natural heat from beneath the Earth's surface.
- Next-generation technologies aim to access hotter, deeper, and more varied geothermal locations.
- Enhanced Geothermal Systems (EGS) involve hydraulically fracturing underground rock.
- Millimetre wave drilling technology, developed by Quaise, aims to vaporize rock without physical drill bits.
- Fervo Energy, a geothermal company, anticipates its power will cost approximately $7,000 per kilowatt.
- Google has secured an agreement to purchase energy from Fervo's Utah plant.
Geothermal energy, which harnesses the Earth's natural heat, is emerging as a rare point of bipartisan agreement in the United States, appealing to both environmental concerns and energy independence goals.
Next-generation technologies are expanding the potential of geothermal power, allowing access to hotter and deeper locations than previously possible. Enhanced Geothermal Systems (EGS) utilize hydraulic fracturing, a technique similar to fracking, to create underground fissures through which fluid is pumped to collect steam or hot water. While this method is controversial in the oil and gas industry, climate economists argue the benefits of a renewable, always-on, large-capacity energy source outweigh the risks of seismic activity.
Advances in drilling technology are crucial for accessing these deeper resources. Companies like Quaise, with roots at MIT, are developing millimetre wave drilling, which uses electromagnetic waves to vaporize rock, eliminating the need for traditional drill bits that can break down in hard rock at high temperatures. This technology aims to make geothermal energy accessible almost anywhere in the world, not just in traditional hotspots.
Quaise plans to have its Oregon project operational by 2030, though acknowledges the high initial costs associated with geothermal projects. The company hopes that by targeting temperatures between 300C and 500C, it can significantly improve the economics, potentially yielding ten times more energy per well compared to conventional geothermal systems.
Fervo Energy, another next-generation geothermal firm, recently garnered significant attention by becoming publicly traded, valued at approximately $7.7 billion. The company anticipates its geothermal power will cost around $7,000 per kilowatt, which is more than four times the cost of solar and wind power. Despite the premium, Fervo has secured an agreement to sell its energy to Google, which requires substantial electricity for its data centers. Such investments are vital for next-gen geothermal companies facing enormous capital costs, with the International Energy Agency noting that datacentre projects alone are insufficient to drive widespread adoption.