Geothermal energy is one clean energy source that has not been under attack by the Trump administration. Traditional geothermal systems tap into underground reservoirs of hot water. Enhanced geothermal systems (EGS) generate electric power by injecting fluid into hot, impermeable rock underground. The rock is fractured, allowing the fluid to circulate after which it is pumped back up where its heat is used to drive turbines.
Enthusiasm for EGS has been on the rise. Fervo Energy, a startup company developing improved EGS technology, had its initial public offering in May and netted $1.9 billion dollars. It is the first next-generation EGS company to go public.
Geothermal energy can deliver clean energy around the clock but has remained a minor source of electricity worldwide because of its geological limitations. Drilling techniques borrowed from the oil-and-gas industry are making geothermal energy practical in far more locations.
The remaining major challenge for EGS is cost. Currently Fervo’s technology can deliver power at $7,000 per kW. This is comparable to the cost of nuclear power. By comparison, solar and wind power come in under $1,500 per kW and continue to come down even further in cost.
Fervo aims to drive costs down to $3,000 per kW, making it far more competitive for an electricity source that is uninterrupted and completely carbon free. The company has already signed purchase agreements with a major utility in Southern California and has an agreement in place with Google giving it the right of first refusal to purchase electricity for certain new projects.
