Expansion of geothermal energy: prospects and challenges for EGS

Geothermal energy is evolving, with advanced geothermal systems (EGS) at the heart of new strategies for clean, sustainable energy.

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Expansion mondiale Géothermie EGS

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Enhanced Geothermal Systems (EGS) are shaping up to be a revolution in the renewable energy sector. Thanks to the ability of these systems to harness heat from deep within the Earth, EGS presents itself as a viable solution for a global energy transition to cleaner sources. These technologies provide access to geothermal resources in areas with no natural hydrothermal phenomena. What’s more, they could transform our approach to sustainable energy. The EGS could extend the reach of traditional geothermal energy and redefine the capabilities of the renewable energy sector. All with financial backing and engineering advances.

EGS Transforming Potential

The EGS opens up new horizons by enabling geothermal exploitation outside traditional areas of obvious volcanic or geothermal activity. By injecting water under pressure, EGS systems create fractures in hot, non-permeable rock. This facilitates water circulation and the efficient capture of underground heat. This technology has the potential to extend geothermal energy almost everywhere. It offers constant, predictable energy production, unaffected by climatic variations. Recently, pilot projects initiated by entities such as Chevron New Energies and Fervo Energy. They are funded by initiatives such as the Bipartisan Infrastructure Act, and have demonstrated a growing interest in this technology.

Technical Challenges and Innovative Solutions

One of the major challenges of EGS is the cost and technical difficulties associated with drilling at great depths and managing extreme temperatures. Standard equipment is often inadequate to withstand the intense conditions encountered several kilometers below the earth’s surface. In response to these challenges, our engineers are adapting advances in horizontal drilling and magnetic detection technologies, originally developed for the oil and gas industry, to improve the efficiency and feasibility of EGS installations. In addition, projects such as the Frontier Observatory for Geothermal Energy Research (FORGE) in Utah have begun testing tools capable of withstanding these extreme conditions, paving the way for significant advances in the field.

Regulatory Complexity and Management Approaches

The development of EGS is not only a technical challenge, but also a regulatory one.
Legislators need to adapt legal frameworks designed for traditional natural resources to support innovation in the geothermal sector. Mineral and groundwater rights are governed by laws such as the Mining Law of 1872 and the Mineral Leasing Act of 1920. Today, they play a crucial but complex role in the implementation of EGS projects. Developers have to navigate between permit requirements and environmental regulations. These may vary from state to state in the United States. Simplifying these regulatory processes and harmonizing policies could accelerate the deployment of EGS technologies and, consequently, their contribution to a sustainable energy grid.

Economic and environmental implications

Despite its challenges, EGS represents a promising avenue for clean energy.
The EGS could increase geothermal energy’s share of the global energy mix. It could also stimulate the local economy by creating new jobs. Moreover, the ability of EGS to provide constant baseload power is attractive to regions seeking to reduce their dependence on fossil fuels. It also helps stabilize power grids in the face of growing demand, making the technology essential for the future of energy. Advanced geothermal systems are a turning point for the renewable energy industry. It offers immense potential for a sustainable energy future. Technological advances and continued investment in EGS could well be the key to the transition to a carbon-free energy grid.

State-owned PT SMI financed 65% of the Ijen geothermal plant, recently inaugurated, while continuing social responsibility programmes in East Java province.
The new GeoMap tool identifies vast geothermal potential in the Middle East, notably for urban cooling, long-duration storage, and large-scale power generation.
Clean Energy Technologies and RPG Energy Group completed the installation of an Organic Rankine Cycle heat recovery system at a major industrial site in Tennessee.
German start-up Factor2 Energy has raised $9.1mn in venture capital to develop a geothermal system based on CO₂ injected into porous geological formations, with the goal of building a pilot power plant in Germany.
Start-up Dig Energy has secured $5mn to launch its first pilot projects for compact geothermal drilling, aiming to cut thermal energy production costs in buildings without relying on conventional oilfield rigs.
Baker Hughes joins the development of the second phase of the Hell’s Kitchen project in California, targeting 500 megawatts of geothermal energy to power energy-intensive data centres.
Baker Hughes will supply Fervo Energy with key equipment for five geothermal ORC plants as part of the Cape Station Phase II project in Utah, United States.
A long-term extension secures continuous baseload geothermal power supply to California’s main utilities while strengthening financial visibility in the energy sector.
The inauguration of the Tanawon geothermal site, with a capacity of 22 megawatts, marks a milestone in the expansion of the Philippines’ energy park with local solutions of low carbon footprint.
The rise in investments and the boom in binary cycle technologies are placing geothermal energy at the heart of global energy strategies, driven by heat pump demand and Asian ambitions.
Daldrup & Söhne AG has won an EU-wide tender for drilling geothermal wells in Pullach, a large-scale project that could enhance the economic appeal of geothermal energy in Germany.
The Bureau of Land Management removes rules deemed obsolete to facilitate the development of geothermal projects, announcing new geothermal lease auctions in California and Idaho.
Geothermal Radar unveils an interactive mapping tool and global thermal model designed to support governments and companies in identifying and developing new geothermal sites internationally.
North America registers record funding of $1.7 billion in the first quarter of 2025, driven by emerging innovative techniques exploiting previously inaccessible geothermal resources, according to recent analysis by Wood Mackenzie.
Globeleq and African Trade & Investment Development Insurance finalise a payment guarantee for the Menengai geothermal project (35 MW), securing financing ahead of its planned operational launch in Kenya.
Ignis Energy closes its $13.6mn Series A funding round, gathering international players to finance geothermal projects in the United States and Türkiye, now entering the technical maturity phase.
Austrian oil group OMV announces a seismic campaign starting in December 2025 in the Graz region, aiming to identify potential deep geothermal reservoirs suitable for local energy production.
Saint-Nazaire Agglo and Dalkia officially sign a Public Service Delegation contract for a 37-kilometre urban heating network, primarily fuelled by thermal recovery and local biomass, operational from 2030.
Ormat Technologies acquires the Blue Mountain geothermal power plant in Nevada from Cyrq Energy, enhancing its energy generation capacity to 1,268 MW, with potential expansion through technical upgrades planned in the short term.
Unit 2 of the Lumut Balai geothermal plant, with a capacity of 55 MW, has successfully synchronized to the Indonesian national grid, paving the way for full commercial operation scheduled by the end of June 2025.

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