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The geothermal energy potential is largely untapped in the European Union as well as the rest of the world. The Council of the EU called on the European Commission and member states to unlock financing, streamline regulations and give equipment manufacturers a boost. Officials count on geothermal energy for decarbonization and business competitiveness.
The so-called Energy Council is split when it comes to nuclear energy, but it appears to be in unison in the geothermal sphere. Ministers of energy came out of their Council of the EU meeting with a call for a comprehensive boost to the sector. Notably, European Commissioner for Energy and Housing Dan Jørgensen earlier promised to produce a geothermal energy strategy.
The conclusions point to the potential as a local renewable energy source. It can decarbonize energy consumption in buildings and make industries more competitive and sustainable, the EU body said. Lowering energy bills and costs is one of the main tasks of President Ursula von der Leyen’s new European Commission.
World could add 800 GW of capacity by 2050
The energy ministers adopted a set of recommendations after the International Energy Agency’s Executive Director Fatih Birol presented a new global report – The Future of Geothermal Energy. It is the natural heat of the Earth’s interior and it can be used for heating and cooling or electricity production.
Global technical potential is estimated at 600 TW, though only 10.5 TW is available between half a kilometer and three kilometers below ground
With continued technology improvements and reductions in project costs, geothermal could meet up to 15% of global electricity demand growth until 2050, according to the report. It implies deploying as much as 800 GW of geothermal power capacity worldwide, producing almost 6 PWh per year. It would be equivalent to the current electricity demand today of the United States and India combined.
The technical potential amounts to a whopping 600 TW. However, only 10.5 TW is available at depths between half a kilometer and three kilometers. Another 31.8 TW is estimated for the layers between three and five kilometers.
Geothermal energy is complementary with lithium production
The enhanced development of shallow and deep geothermal energy can lead to significant emissions savings, the Energy Council said. It highlighted the synergies with critical raw materials production. It means that where the chemical composition of geothermal fluids allows, geothermal energy exploitation can contribute to meeting the EU’s demand for lithium and other raw materials, it added. However, the ministers underscored the need to protect the environment at the same time.
Despite the relatively low operating cost, the commercial viability of deep geothermal investments is unlikely to increase without measures to address high upfront investment costs, and risks related to exploration, capital and drilling, they warned.
Deployment could be accelerated with easier access to finance, workforce enhancement and stronger cooperation in research.
The council called on the European Commission and member states to assemble a forum, a European geothermal alliance, bringing together policymakers, the industry, investors and other relevant stakeholders throughout the entire value chain.
It said deployment could be accelerated with easier access to finance, workforce enhancement and stronger cooperation in research.
“Geothermal energy is a long-lasting and always available renewable source, since it does not depend on weather events and can provide around-the-clock electricity generation and heat production. Today’s conclusions aim to boost this sustainable energy source, which can help us ensure a smooth transition to a carbon-free Europe, strengthen our competitiveness, and secure our energy sovereignty,” said Hungarian Minister for Energy Csaba Lantos.
Equipment, supply chain are essential in development acceleration
Member states should streamline their rules and issue permits faster, the document reads. The conclusions list measures to increase the capacity of European industries in drilling, construction and equipment manufacturing.
The EU’s Net Zero Industry Act (NZIA) came into force in June. It aims to ensure access to a secure and sustainable supply of net zero technologies by enhancing their manufacturing capacity and supply chain.
Geothermal energy is a mature net-zero technology, but its potential remains untapped. Overall, it made up only 2.8% of renewables in primary energy production in the EU in 2021. Geothermal meets less than 1% of global energy demand.
The top ten consuming countries are China, the United States, Turkey, Sweden, Indonesia, Iceland, Japan, New Zealand, Germany and the Philippines, in that order. Importantly, only a small share is electricity. Iceland is the strongest by far with the share of geothermal in its total final energy consumption at 40%. Turkey, Indonesia and Kenya grew the fastest from 2013 to 2023, though Indonesia has been in the lead in recent years.
As for Turkey, two facilities of 35 MW each were recently put into operation, lifting the country’s total geothermal electricity production capacity to 1.73 GW, Anadolu reported.
Chairman of the Geothermal Power Plant Investors Association (JESDER) Ufuk Sentürk said the country’s potential is 5 GW. In other news, Exergy International recently agreed to manufacture and supply two geothermal power plants to Maren Maras in Turkey. The projects called Emir (33 MW) and Nezihe Beren (13 MW) are expected to be commissioned next November. |
