But geothermal might be about to smash conventional growth forecasts, with the backing of a powerful ally: the oil and gas industry.
Along with the fact that Exxon pioneered lithium-ion battery research in the 1970s, it is one of the sweeter ironies of the environmental movement that oil and gas companies prepared geothermal technology for economic viability at scale.
Over the course of the last decade’s shale boom, oil field drilling companies led a revolution in directional drilling and hydraulic fracturing (“fracking”) techniques. They perfected long, spindly pipes and fine-tuned self-adjusting diamond-cutter drill bits.
Those technologies, which can endure high temperatures and shoot water through rock, have already solved engineering challenges for geothermal. Rather than relying on places where there is a naturally occurring confluence of water, heat, and porous rock, geothermal developers now have the ability to drill into solid rock, inject water at high pressure, and collect the heated water.
Geothermal isn’t just a freak offshoot of the fossil fuel industry, however. They could be ongoing allies. Oil and gas companies, from oil field services firms to investor-owned utilities, are considering the advantages of a geothermal boom. Utilities could potentially retool gas pipelinesas clean geothermal networks, and the oil field services industry could see reason to sell its proprietary technology to geothermal developers.
Dry oil fields could be repurposed as geothermal wells, and those oil fields, like many geothermal sites, are rich in prized minerals like lithium and manganese. That could help solve the up-front cost problem, as companies seeking those minerals will offer advance market guarantees.
Through know-how and existing technology transfer alone, shale-oil drilling technology could reduce geothermal costs by 20 to 43 percent, according to a new study published by the University of Texas at Austin. That study finds that current projections of geothermal growth, which linger in the single or low double digits, undershoot dramatically.
“Much like the rise of unconventionals in oil and gas, whose meteoric ascent largely took the world by surprise, geothermal is poised for similar, exponential growth, should technology development and transfer follow the footsteps of the shale boom,” the authors predict. Even at current prices, the study finds, geothermal is poised to grow substantially as a share of Texas’s energy mix.