Innovations in Geothermal Technology: What Maryland Homeowners Should Know

Third Energy Innovation Paving the Way for a New Era: Enhanced Geothermal

Enhanced Geothermal Systems (EGS) represent the third major innovation in the energy transition, alongside LNG and grid-scale battery storage. The oil and gas industry, looking to diversify into emissions-free operations, can embrace this innovation. In 2024, successful field tests by FORGE, a DOE-sponsored EGS research lab, and Fervo have confirmed the viability of EGS technology. Additionally, tech giants like Google are securing deals to purchase EGS electricity, driven by the growing demand for data centers.

In the U.S., multiple factors point to the emergence of a golden age for EGS. The International Energy Agency (IEA) supports this vision but emphasizes the need for collaboration with the oil and gas industry to fully realize its potential.

This new golden age follows the rise of liquefied natural gas (LNG), which took off in the U.S. in 2016, and the increasing adoption of grid batteries for renewable energy storage. Both technologies have already seen rapid growth, with LNG demand expected to double in East and South Asia in the next five years, while solar and grid batteries have become the most affordable energy sources worldwide.

Now, in 2024, EGS stands out as the next major breakthrough. Born from U.S. shale oil and gas innovation, EGS uses existing technologies to access clean geothermal energy. By drilling two horizontal wells in hot granite rock and fracturing them to create a network of tiny fractures, cold water is circulated to harness the heat from the granite. The heated water rises as steam, driving turbines to generate electricity.

EGS is gaining traction across both the energy and climate sectors, offering a promising path to clean, renewable energy.

Is a Golden Age Coming for Geothermal?

It’s increasingly likely that we are on the verge of a golden age for geothermal energy, especially as 2024 marked a significant year for the sector. Here’s why:

1. Corporate Commitments to Carbon-Free Goals: Major companies like Google and Microsoft are committed to becoming carbon-free by 2030, driving demand for clean energy sources like geothermal.

2. Surge in Data Center Demand: The rise of AI and data centers, which require immense amounts of power—equivalent to the energy consumption of 10,000 homes per data center—continues to boost the demand for reliable, around-the-clock power.

3. Transition to Electric Power: Vehicles, homes, and factories are gradually transitioning to electric power, increasing the demand for energy.

4. Oil and Gas Industry’s Shift Toward Renewables: While traditionally hesitant, many oil and gas companies, such as BP and Shell, have started exploring renewable energy sources. Enhanced Geothermal Systems (EGS) present a compelling option, leveraging technology they already use in their shale operations.

5. Bipartisan Support for Geothermal: Geothermal enjoys broad bipartisan backing in the U.S. Congress due to its clean energy credentials and job creation potential, particularly for oil and gas workers.

6. Secretary of Energy's Role: Chris Wright, the new U.S. Secretary of Energy, is also the CEO of Liberty Energy, which invested $10 million in Fervo, signaling a strong government and private sector commitment to geothermal.

7. National Energy Emergency Response: Although President Trump has declared a national energy emergency, the U.S. has been self-sufficient in energy since 2020. His statements imply support for geothermal as an alternative to solar and wind.

8. Projected Growth: In 2024, geothermal provided 3.7 GW of U.S. electricity, with forecasts suggesting it could rise to 90 GW by 2050, an increase of 24 times. Globally, Enhanced Geothermal Systems (EGS) could provide 800 GW by 2050, roughly 50 times current production.

Global Forecasts and Impact on Maryland

The International Energy Agency (IEA) has made compelling projections for geothermal’s potential:

• Geothermal energy is capable of providing reliable, 24/7 electricity generation and heat storage.

• The technical potential of next-generation geothermal systems is immense, second only to solar in renewable technologies, and could meet global electricity demand 140 times over.

• The oil and gas industry’s involvement is key in making geothermal cost-competitive, as it can provide essential expertise and skills, cutting the costs of next-generation geothermal projects.

• Geothermal employment could rise significantly, from 145,000 jobs today to 1 million by the end of the decade, though there is a risk of a skills gap.

For Maryland, the growing demand for clean energy combined with the state’s commitment to renewable energy makes it an ideal location to benefit from the increasing role of geothermal energy. Maryland can expect more investments in geothermal as part of the U.S.’s shift to greener energy sources.

What’s Next for EGS?

• New Opportunities: Following the success of Project FORGE in Utah, the Bureau of Land Management (BLM) will offer 15 geothermal parcels in a lease sale on April 8, 2024, opening up 51,000 acres of public land for geothermal development.

• International Expansion: Schlumberger has partnered with Star Energy Geothermal in Indonesia to improve geothermal drilling and production, further expanding the global geothermal footprint.

The Competitive Advantage of Geothermal

EGS and other geothermal systems stand out due to their high capacity factor and competitive cost of electricity (LCOE) when compared to other renewables. The benefits also include:

• Low carbon emissions

• Small land footprint

• Ability to provide backup for intermittent renewables like wind and solar

In conclusion, the rapid advancements in Enhanced Geothermal Systems, combined with global and local investments, suggest that geothermal energy is poised for a golden age. For Maryland, this presents a significant opportunity to benefit from the growing demand for clean energy and the emerging geothermal market.

Geothermal Energy: A Growing Force with Huge Potential

As of 2024, geothermal energy met less than 1% of global energy demand, with all of it sourced from just a few countries with naturally heated water reservoirs. However, the International Energy Agency’s (IEA) 2024 Report: The Future of Geothermal Energy revealed that geothermal has the potential to cost-effectively meet up to 15% of global electricity demand growth by 2050, driven by continuous technological advancements and cost reductions.

While geothermal’s share of the global energy mix remains small, it’s expanding rapidly. The IEA report highlights that, although the U.S. currently leads in installed geothermal power capacity (both conventional and next-generation), global geothermal power capacity increased by nearly 40% from 2013 to 2023, reaching almost 15 gigawatts (GW). Countries such as Indonesia, the Philippines, and Turkey are now setting ambitious goals to expand their geothermal capacity by over 30%. In 2023 alone, investments in geothermal exceeded $45 billion, representing over 5% of total renewable energy project spending, with China contributing more than 70% of that investment.

However, to meet these ambitions, sustained investments are crucial. This includes expanding beyond conventional geothermal to include next-generation technologies like superhot rock geothermal (SHR), which can harness temperatures exceeding 400°C. These advancements promise lower costs and more geothermal growth.

The Rise of Next-Generation Geothermal

Next-generation geothermal is already experiencing rapid expansion. Innovations in directional drilling and well insulation from the oil and gas industry are propelling geothermal development forward. New technologies such as Enhanced Geothermal Systems (EGS) and Closed-Loop Geothermal Systems (CLGS) are making geothermal energy accessible in regions previously without conventional geothermal resources.

Since the first EGS pilot project in 1974 at Fenton Hill, New Mexico, more than 30 experimental EGS projects have been operated worldwide, including in Australia, Finland, France, Germany, Japan, the UK, Switzerland, and South Korea. Recent breakthroughs in horizontal drilling and multistage stimulation techniques were demonstrated at Fervo's Project Red in Nevada.

While CLGS development has progressed more slowly, notable projects like the Eavor-Lite™ demonstration in Alberta, Canada (2019) and the ongoing Eavor commercial heat and power plant project in Geretsried, Germany, show great promise.

The Enormous Potential of Superhot Rock Geothermal

Next-generation geothermal technology, particularly SHR, could meet global electricity demand many times over. As drilling technology improves and costs decrease, accessing deeper, hotter resources is becoming more feasible. SHR, capable of generating 5-10 times the energy output of a typical commercial geothermal well, stands to play a major role in scaling geothermal capacity.

According to the IEA, next-generation geothermal has the technical potential to generate 42 terawatts (TW) of power from a 5 km depth over 20 years. At 7 km, almost every region in the world has technically suitable resources. At 8 km, EGS could produce nearly 600 TW of power globally at costs below $300 per megawatt-hour (MWh)—an astounding 2,000 times the potential of conventional geothermal.

Estimates suggest that geothermal energy’s potential for electricity generation, even with the 250°C temperature cap, is second only to solar among renewable energy sources. Geothermal can operate 24/7, 365 days a year, offering a technical potential of 4,000 petawatt-hours (PWh) (1,000 TWh) annually, or about 150 times the current global electricity demand.

Geothermal's Bright Future

With its ability to provide reliable, cost-effective energy and to scale up significantly through technological improvements, geothermal energy is poised for major growth. Countries around the world are making significant investments to expand their geothermal capacity, which will be critical for meeting global energy demands in the years ahead. Enhanced Geothermal Systems (EGS), in particular, could play a pivotal role in this transition by unlocking geothermal potential in regions without conventional resources, leading to a new era of clean energy generation.

As the energy landscape continues to evolve, geothermal is positioned to play a key role in the clean energy transition, with its potential to meet a substantial portion of the world's growing electricity demand.

Nearly 20% of the global Enhanced Geothermal Systems (EGS) power potential lies in Africa. Tapping into just 1% of this potential could meet the region’s projected electricity demand for 2050.

The IEA Report reveals that the U.S. has the largest technical geothermal potential, holding 12% of the global total. At a depth of 5 km, the U.S.'s geothermal potential is seven times its current installed power capacity. This immense potential is further supported by the U.S. Department of Energy’s report, outlining the pathway to commercializing next-generation geothermal power.

China, with its vast land area, also ranks highly in geothermal potential, accounting for nearly 8% of the global share. While Europe’s geothermal potential is lower than other regions, it still holds 35 times the continent’s current total installed electricity capacity.

Next-generation geothermal has the potential to become one of the most competitive clean, dispatchable energy technologies.

According to the IEA Report, consistent and robust support for innovation in next-generation geothermal could reduce construction costs by up to 80%. If these cost reductions are achieved, next-generation geothermal could match or even be cheaper than other clean, dispatchable technologies by 2035, including natural gas with carbon capture, hydroelectric, nuclear, coal with carbon capture, bioenergy, concentrating solar power, and hydrogen. Additionally, the high capacity factor of next-generation geothermal could make it competitive with solar and wind energy in regions like the U.S. and Europe by 2035.

Further support is essential to unlocking the full potential of next-generation geothermal.

The IEA Report outlines several key areas where support is needed, beyond financial investment, to drive the growth of next-generation geothermal as one of the few low-emission baseload technologies:

• Publicly Available Data: Open and standardized geothermal data repositories are critical to scaling next-generation geothermal projects.

• Permitting: Geothermal projects often take up to 20 years to secure permits due to the need for approvals from multiple agencies. Streamlining administrative processes and enhancing agency expertise could help accelerate approvals while maintaining necessary safeguards.

• Social Acceptance: Community opposition can delay or even halt projects. Effective community engagement, robust environmental safeguards, and fair benefit-sharing policies can improve project success.

• Standardization: The use of standardized modular equipment can improve efficiency, lower costs, reduce failures, and extend the lifespan of geothermal systems.

• Research & Development: Limited funding for research and development remains a major barrier. The IEA Report emphasizes the need for specialized testing facilities for high-temperature, high-pressure equipment to advance the technology.

Interested in Geothermal Systems?

For expert guidance, cost estimates, and installation services, contact Maryland Geothermal today! Don't hesitate to reach out if you have any questions regarding geothermal installations in Maryland. Contact us by phone (703) 719-8409 or email jake@northamericangeo.com.

Maryland Geothermal proudly serves communities across both Prince George and Montgomery counties, including Bowie, College Park, Greenbelt, Laurel, Hyattsville, Upper Marlboro, Glenarden, New Carrollton, District Heights, Mount Rainier, Riverdale Park, Seat Pleasant, Berwyn Heights, Bladensburg, Brentwood, Capitol Heights, Cheverly, Edmonston, Fairmount Heights, Forest Heights, Landover, Landover Hills, North Brentwood, North Bethesda, Mitchellville, Olney, Fort Washington, Glenn Dale, Bethesda, Clarksburg, Kensignton, Rockville, Gaithersburg, Darnestown, Chevy Chase, and Potomac