HEADLINE: “geothermal energy is quietly gaining popularity”, By DOUG SHERIDAN

“Traditional geothermal plants, which generate electricity by moving fluid along hot rocks, must be located near natural reservoirs of hot water that exist below the earth’s surface.”

The FT writes, geothermal energy is quietly gaining popularity in the US as new technological advancements may be able to scale this carbon-free, 24/7 power source.

Traditional geothermal plants, which generate electricity by moving fluid along hot rocks, must be located near natural reservoirs of hot water that exist below the earth’s surface. But advances in the technology can utilize techniques from the oil and gas industry to drill wells that can generate energy from man-made reservoirs that can be located anywhere.

“The same skillsets that are used for oil and gas drilling are what allows for next generation geothermal to move forward,” said Drew Nelson, VP of programs, policy and strategy at Project InnerSpace, a non-profit focused on advancing the geothermal industry.

Next-generation geothermal has already attracted support from big tech companies, including Google, which are seeking clean energy for their data centers. It also has the support of the White House. Energy secretary Chris Wright named the power source as an area of interest during his confirmation hearing.

Google has already partnered with Fervo Energy to supply power to its data centers in Nevada. Another geothermal start-up, Sage Geosystems Inc., has agreed to supply Meta with 150MW of capacity to power its data centers starting in 2027.

“The need for power from the AI sector has only increased the interest overall in geothermal,” said Cindy Taff, CEO of Sage Geosystems, adding that there had been “significant interest” from other hyperscalers in the energy source.

The IEA reported geothermal meets less than 1% of global energy demand but with continued project cost reductions and technological improvements, it estimates that it could meet up to 15% of global electricity demand growth to 2050.

Geothermal also fits with the Trump admin’s mantra of “drill baby drill,” as it can leverage fracking and drilling skills from the oil and gas industry. Wood Mackenzie estimates that if geothermal is to grow from 50GW to over 250GW by 2050, the industry needs to drill 35,000 new wells.

Experts warn that the technology still has a long way to go. The Department of Energy said in a report last year that it expects “commercial lift-off” to be attainable as early as 2030 but only if it “can achieve a set of market conditions around cost, demonstrations, value and community engagement”.

It is very expensive to drill. Gregory Keoleian, director at the University of Michigan School for Environment and Sustainability, said that in certain areas of the US, hot rock that isn’t close to the surface will force producers to drill deeper—an increasingly expensive endeavor.

Still, as the technology becomes more advanced it is likely to drive down costs. Last year, Fervo Energy announced it had shown a 70% year-over-year reduction in drilling times for its Cape Station project that has translated into costs falling from $9.4mn to $4.8mn per well.

BOTTOMLINE: “Geothermal also fits with the Trump admin’s mantra of “drill baby drill,” as it can leverage fracking and drilling skills from the oil and gas industry.