Geothermal energy is on the verge of becoming a significant player in renewable energy. Heat from the Earth’s core offers a clean, reliable, and potentially limitless energy source. The challenge lies in developing the right technology to tap into this resource.
Traditionally, geothermal energy has only been viable in regions where heat naturally reaches the surface, like geysers and hot springs. For instance, Iceland generates a quarter of its energy from geothermal sources, but this is a unique geological situation. Globally, geothermal energy accounts for just 0.5% of renewable energy. However, advancements in fracking technology from the oil and gas industry could change this, making geothermal energy accessible in many locations.
With the right technology, geothermal energy can be harnessed anywhere. Enhanced geothermal systems (EGS) could enable access to heat deep underground at an economically feasible scale. According to a 2023 report from Esquire, this technology could “exploit the energy underfoot across the country” with minimal carbon impact compared to current energy sources. EGS involves drilling deep wells to extract hot water, which can be used to generate energy before being returned underground.
The potential for enhanced geothermal energy is significant. The Economist suggests it could outperform nuclear energy while providing similar benefits. Both geothermal and nuclear offer proven technologies, base-load energy, and produce zero carbon emissions. The U.S. Department of Energy (DoE) estimates that geothermal could power up to 260 million homes by 2050.
Bipartisan support for geothermal energy is another advantage, which is crucial for securing funding from both government and private sectors. The DoE predicts that an investment of $25 billion by 2030 could help the geothermal sector achieve commercial viability by mid-century. The federal government is already funding research to advance early-stage geothermal technologies.
Recently, a summit in Houston brought together representatives from major oil companies, tech startups, scientists, and climate groups. They discussed leveraging oil and gas expertise to create a new cornerstone of the American power sector. Texas is witnessing a surge in geothermal startups, indicating strong potential for growth in this area.
Despite the growing enthusiasm and support for enhanced geothermal technologies, challenges remain. The geothermal sector still faces issues typical of emerging industries, particularly in securing funding for projects that are promising but unproven.
If successful, commercial-scale geothermal energy could transform the energy landscape. It would add a reliable, zero-carbon power source, addressing some pressing energy security challenges. Experts believe geothermal could meet the energy demands of emerging technologies like artificial intelligence and support the production of green hydrogen, vital for decarbonizing hard-to-abate sectors such as heavy-duty trucking, shipping, aviation, and petrochemicals.