basis) to no greenhouse gas (on an operating basis), nor particulate matter emissions. Outside of electricity generation, it also has applications in temperature control (heating and cooling), industrial processes, manufacturing functions, and agricultural activity (e.g., greenhouses). Just as importantly, geothermal technology is already very advanced and continues to develop at a rapid pace, which puts it way ahead of any form of hydrogen- based energy.
It also has a huge advantage over wind and solar given that it is not ‘intermittent’, and the footprint of production is much smaller than fields of wind turbines or solar panels a very steady and low price profile in terms of the Weighted Average Levelized Cost of Electricity (LCOE: the average cost over the lifespan of an energy facility) generated. Per se, it is potentially a valuable source of ‘baseload power’, particularly as it offers a great deal of flexibility relative to some other sources, in so far as it is fairly easy to increase or reduce output contingent on demand.
UPFRONT CAPITAL COSTS That said, the upfront capital costs are high (ca. $2,500 per Kilowatt Hour), above all vs. Natural Gas (ca. $1,000), and also Wind and Solar ($1,200- $1,700), though the latter includes substantial government incentives, which are rarely if ever available to Geothermal developers, though should be if governments are serious about developing this as a renewable energy resource. However, seen from a plant life cycle perspective, the operational and maintenance costs of geothermal are minimal, and therefore it can be competitive over the longer run. There are two notable further constraints on geothermal: a) the availability of hydrothermal resources, with countries like Iceland blessed with abundant resources, while some other countries have limited access; b) Earthquake risks, above all related to Enhanced Geothermal Systems (EGS), which was seen in South Korea in 2017, where
IT ALSO HAS A HUGE ADVANTAGE OVER WIND AND SOLAR GIVEN THAT IT IS NOT ‘INTERMITTENT’, AND THE FOOTPRINT OF PRODUCTION IS MUCH SMALLER THAN FIELDS OF WIND TURBINES OR SOLAR PANELS.
the development of an EGS system triggered a 5.5 magnitude earthquake. But with strict safety regulations, and what is termed a ‘robust induced seismicity management protocol’ in the regulatory framework, earthquakes have not been a problem.
IMPORTANT SYNERGIES The latter aspect also highlights an important further point, namely that there are many important synergies between the Geothermal and Oil & Gas sectors, most notably in terms of technology and labour skill sets. This is doubtless a major reason for the inclusion of geothermal in Trump’s energy agenda. What is needed is a roadmap for deployment across countries and regions, far more efficient permitting processes, and massive upscaling projects. As with all energy transition/ renewable power projects, this must above all deal with the greatest obstacle to mass electrification of power: a huge upgrade to power grids, which in pretty much all countries and continents are simply not ‘fit for purpose’.
For a more detailed overview of Geothermal Energy, visit ‘IEA (2024), The Future of Geothermal Energy’, IEA, Paris and the synergies with oil and gas sectors
Marc Ostwald E:
marc.ostwald@admisi.com T: +44(0) 20 7716 8534
37 | ADMISI - The Ghost In The Machine | Q1 Edition 2025
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
