Global Enhanced Geothermal Systems Market

MARKET SCOPE:

The global Enhanced Geothermal Systems market is projected to grow significantly, registering a CAGR of 4.1% during the forecast period (2024 – 2032).

Enhanced Geothermal Systems (EGS) represent an advanced technology in geothermal energy extraction that aims to expand the potential for harnessing the Earth's heat for electricity generation. Unlike traditional geothermal systems that rely on naturally occurring permeable rock formations, EGS is designed to create artificial reservoirs by stimulating subsurface heat exchange. EGS is designed to overcome limitations associated with conventional geothermal systems, such as the need for naturally permeable rock formations. By creating artificial reservoirs through stimulation techniques, EGS aims to unlock geothermal potential in regions where traditional hydrothermal resources may be limited. As the world seeks cleaner and more sustainable energy sources, the demand for technologies like EGS increases. EGS provides a reliable and continuous source of renewable energy with minimal environmental impact. EGS contributes to energy security by providing a domestic source of power. Countries and regions can reduce their dependence on imported energy resources by tapping into their geothermal potential. EGS has the potential to provide baseload power, offering a stable and continuous source of electricity. This is particularly valuable in regions where intermittent renewable sources, such as solar and wind, may not be sufficient to meet demand. EGS technology enables the development of geothermal resources in areas that may not have conventional hydrothermal systems. This expands the geographic reach of geothermal energy production.

MARKET OVERVIEW:

Driver: Growing demand for clean and sustainable energy is driving the market growth.

The increasing global demand for clean and sustainable energy is driven by the imperative to transition away from fossil fuels, which are a significant source of greenhouse gas emissions. EGS contributes to this transition by providing a renewable and low-emission energy source. EGS offers an alternative to traditional fossil fuel-based power generation. By tapping into the Earth's heat, EGS provides a reliable and continuous source of energy without the associated carbon emissions, helping countries reduce their dependence on fossil fuels. Unlike some intermittent renewable sources, such as solar and wind, geothermal energy, including EGS, provides a continuous and reliable energy supply. EGS projects can operate consistently, offering baseload power that complements the variable nature of other renewables. EGS allows for decentralized and localized energy production, reducing the need for long-distance transportation of energy. This can enhance energy security and resilience by providing communities with access to a reliable and sustainable power source. The utilization of EGS for power generation contributes to global efforts to mitigate climate change. By replacing fossil fuel-based electricity generation with geothermal energy, countries can significantly reduce their carbon footprint and achieve climate goals.

Opportunities: Rising innovations and geographic expansion of geothermal resources is expected to pave the way for the market growth in the upcoming years.

EGS technology enables the development of geothermal resources in areas that may not have conventional hydrothermal systems. This expands the geographic reach of geothermal energy production, making it applicable in regions with lower natural permeability. Unlike conventional hydrothermal systems, which rely on naturally permeable rock formations to allow the movement of fluids and the extraction of geothermal energy, EGS is designed to operate in areas with lower natural permeability or where suitable hydrothermal reservoirs are absent. Conventional hydrothermal systems are limited to regions with naturally permeable rock formations that allow the circulation of fluids (water or steam). EGS technology overcomes this limitation by creating artificial reservoirs in areas with lower natural permeability. EGS involves drilling deep wells into hot rock formations. Water is then injected into these wells at high pressure, creating fractures in the rock. This process stimulates the development of a heat exchange reservoir where fluids can circulate and absorb heat. By creating artificial reservoirs, EGS taps into the Earth's natural heat at depth. This allows for the extraction of geothermal energy in regions that may not have access to conventional hydrothermal systems, expanding the potential reach of geothermal power generation. EGS technology provides a more geographically diverse set of locations for potential geothermal projects. This is particularly significant because it allows countries and regions without traditional geothermal resources to harness the Earth's heat for clean and sustainable energy production.

COVID IMPACT:

Many energy projects, including those in the renewable sector, experienced delays, and disruptions due to lockdowns, travel restrictions, and supply chain interruptions. EGS projects, which often involve drilling and construction activities, may have faced similar challenges. The economic uncertainty caused by the pandemic could have led to financial challenges for EGS projects. Funding sources, including government grants, private investments, or project financing, might have been impacted. The geothermal industry relies on specialized equipment, such as drilling rigs and geothermal well components. Disruptions in the supply chain could have affected the availability and delivery of these critical components. Research and development activities related to EGS may have been affected by disruptions in laboratory work, field testing, and collaborative efforts. Restrictions on in-person work and travel could have slowed down advancements in technology. The pandemic prompted shifts in government priorities and resource allocations. Some regions may have redirected resources towards addressing immediate health and economic concerns, potentially affecting support for renewable energy projects, including EGS. Like many industries, the geothermal sector may have faced challenges associated with remote work. Coordination of project teams, regulatory approvals, and stakeholder engagement could have been impacted. Existing EGS projects may have faced operational challenges, including workforce limitations, adjustments to health and safety protocols, and changes in maintenance schedules. Travel restrictions could have affected the movement of personnel and experts. Governments worldwide were occupied with responding to the immediate impacts of the pandemic, which might have led to delays in policy development, regulatory approvals, and permitting processes for EGS projects.

SEGMENTATION ANALYSIS:

The Residential segment is anticipated to grow significantly during the forecast period

Enhanced Geothermal Systems (EGS), including Shallow (HDR) technology, have primarily been applied on a larger scale for electricity generation rather than residential heating and cooling. However, the principles of EGS can be adapted for residential applications in certain context. Traditional EGS projects often involve drilling deep wells into hot rock formations, which may not be practical for residential applications due to scale and cost considerations. However, variations of EGS, such as shallow geothermal systems, can be designed for residential use. Residential geothermal heat pump systems, a form of shallow geothermal systems, use the relatively constant temperature of the Earth a few feet below the surface to heat and cool homes. While not classified as EGS in the traditional sense, they share the concept of utilizing subsurface temperatures for energy exchange.

The Shallow segment is anticipated to grow significantly during the forecast period

An Enhanced Geothermal System (EGS) is a type of geothermal energy technology designed to extract heat from the Earth's subsurface in areas with low permeability or no natural fluid pathways. Shallow (HDR) is a specific type of EGS that involves creating an artificial geothermal reservoir by fracturing impermeable rock and injecting water to enhance heat extraction. EGS is a technology that seeks to harness geothermal energy from areas with low permeability or insufficient natural fluid pathways. It involves creating or enhancing subsurface reservoirs by injecting water into hot rocks to stimulate fractures and improve heat exchange. Shallow specifically refers to the EGS technique where water is injected into impermeable rocks to create fractures. Unlike traditional hydrothermal geothermal systems that rely on naturally occurring permeable formations, HDR aims to develop geothermal reservoirs in regions without pre-existing fluid pathways. In HDR-EGS, the process involves drilling deep wells into impermeable rock formations. Water is then injected into the wells at high pressure, creating fractures in the rock. The injected water circulates through the fractures, absorbing heat from the surrounding rock, and is subsequently extracted to the surface through a separate set of wells.

REGIONAL ANALYSIS:

The North American region is set to witness significant growth during the forecast period.

Geothermal energy systems in North America have been experiencing growth and interest, driven by environmental concerns, energy security, and the increasing emphasis on renewable energy. Geothermal energy is derived from the heat stored beneath the Earth's surface and can be harnessed for electricity generation and direct heating applications. The installed capacity of geothermal power plants in North America has been increasing. The United States, in particular, has a significant number of geothermal power plants, with projects in states such as California, Nevada, and Oregon. The United States is a leader in geothermal energy development in North America. The country has both conventional hydrothermal resources and enhanced geothermal systems (EGS) potential. Federal and state policies support the growth of geothermal projects. EGS technologies, which involve creating or enhancing geothermal reservoirs, have gained attention for their potential to expand the geographic reach of geothermal energy. Research and development efforts are ongoing to improve the viability and efficiency of EGS projects. Beyond electricity generation, geothermal energy is used for direct heating applications. This includes district heating systems, greenhouses, and industrial processes. Direct use applications contribute to the versatility of geothermal energy. Federal and state-level policies, incentives, and tax credits play a crucial role in fostering the development of geothermal projects. These measures encourage investment and provide financial support to the geothermal industry.

COMPETITIVE ANALYSIS

The global Enhanced Geothermal Systems market is reasonably competitive with mergers, acquisitions, and Application launches. See some of the major key players in the market.

Ormat Technologies

• In 2023, Two Power Purchase Agreements (PPAs) between NV Energy and two of Ormat Technologies, Inc.'s subsidiaries have been executed, the company announced today. Ormat Technologies, Inc. (NYSE: ORA) is a leading provider of energy storage, solar PV, geothermal, and recovered energy power. Under the terms of the first PPA, which was signed in 2021, NV Energy would buy 25 MW of electricity produced over a 25-year period from the North Valley Geothermal Project, a new plant that is anticipated to be operational by early 2024. Furthermore, under a PPA signed this week, NV Energy will buy up to 135 MW of power produced by a portfolio of the Company's new and current geothermal power plants. The Nevada Public Utility Commission must approve both PPAs.

Alta Rock Energy

• In 2021, In partnership with Baker Hughes, an energy technology company, and the University of Oklahoma, AltaRock Energy today unveiled the findings of a ground-breaking, all-encompassing technical and economic feasibility study that shows the superior energy density and competitive economics of an engineered geothermal system (EGS) resource in high temperature (>400 °C) impermeable rock at the Newberry Volcano near Bend, Oregon. This outcome represents a significant advancement toward the development of the nation's first SuperHot Rock (SHR) geothermal resource.

Enel SpA

BESTEC GmBH

SA Geothermie Bouillante

Fuji Electric Co. Ltd.

Calpine Corporation

Energy Development Corporation

Mitsubishi Heavy Industries

Scope of the Report

By Application

• Residential
• Commercial

By Depth

• Shallow
• Deep

By Simulation Method

• Shallow
• Sedimentary Basin
• Radiogenic
• Molten Magma

By Region

• North America (the United States & Canada)
• Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
• Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
• Rest of the World (the Middle East & Africa, and Latin America)

Key reasons to purchase this report

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Enhanced Geothermal Systems market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Enhanced Geothermal Systems submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.