Enhanced Geothermal Systems: Next Big Thing in Renewable Energy Market?
Among many challenges in the 21st century, minimizing the effects of global warming and building a sustainable future is a task that the world leadership strives to achieve. One of the major solutions is replacing the carbon-emitting exhaustible resources with clean and renewable energy.
In addition to renewable sources, enhanced geothermal systems are the new technology that has gained traction in the last few years. The technology has a decent market opportunity, and an ample amount of research has been put into the sector. According to BIS Research, many regions of the world are expected to unleash the potential of the market in the forecast period 2022–2030.
The estimated value of the global enhanced geothermal system market was $1.84 billion in 2020. It is projected to reach a value of $3.67 billion by 2030, at a CAGR of 7.1% during the forecast period 2022–2030.
What is Enhanced Geothermal System (EGS)?
The enhanced geothermal systems are manmade reservoirs developed for renewable energy sources. The technology has evolved from the traditional geothermal power which uses natural steam of very hot water trapped in deep rock formations.
The three key elements of the hydrothermal system are heat, fluid, and permeability at depth. In an EGS, fluid is injected into the subsurface under carefully controlled conditions, which cause pre-existing fractures to re-open, creating permeability.
However, the traditional geothermal process requires these deep rocks to be permeable enough for water to flow through them and into the extraction well.
This article further explores the future market potential and opportunities by comparing the advantages and disadvantages of the enhanced geothermal systems.
Advantages of Enhanced Geothermal Systems
The purpose of developing geothermal power is to maximize the production of clean energy which can contribute to the containment of climate change effects. Here are some of the advantages of enhanced geothermal systems:
• EGS has the potential to be an important contributor as a source of clean and renewable energy.
• EGS emits the least amount of greenhouse gases. Most geothermal power plants use a closed-loop binary cycle power plant that has no greenhouse gas emissions other than water vapor that may be used for cooling.
• EGS could facilitate geothermal development outside of traditional hydrothermal areas, thereby extending geothermal energy production.
• EGS can supply baseload energy with limited to no power breakage, eliminating the need for energy storage technologies.
Disadvantages of Enhanced Geothermal Systems
Establishing an EGS facility comes with its own challenges and risks. Here are some disadvantages listed as follows:
· Risks associated with exploratory drilling- One of the major challenges in setting up the EGS set up are the high risks and costs related to the exploratory drilling. The process of drilling is quite unpredictable as the challenges can not be anticipated. Another major risk warned by scientists is the probable ecological damage near the exploratory well.
· Induced seismicity- While the benefits of EGS technology are promising, the risk of the increased number of earthquakes is high. According to BIS Research, induced earthquakes are a danger in many geo-energy applications, including conventional oil and gas production, improved oil recovery, hydraulic fracturing, wastewater injection, and geological CO2 storage.
Non-geothermal system-generated seismicity is already at record levels in the U.S., Canada, and the Netherlands. This challenge is a huge roadblock in the further development of EGS technology.
· The high gestation period for the plants- Setting up a geothermal power plant takes around two to three years, depending on the challenges encountered while drilling the well on the site. The slow rate of geothermal electricity growth and contribution to the global electricity mix is due to the long gestation period, which hinders the electricity production capacity globally.
· High initial costs- The cost of developing geothermal electricity is impacted by various factors like resource temperature and pressure, reservoir depth and permeability, fluid chemistry, location, drilling market, size of the development, and number and type of plants, etc.
Commodity prices, such as oil, steel, and cement, also have a significant impact on development costs. Such dependability on various factors increases the challenges as well as the cost of setting up an EGS plant.
Conclusion
With the quest of developing innovation in the clean energy sector to conserve the environment, EGS technology has huge potential as a significant contributor. Since the inception of the idea in the early 1970s, the technology has grown significantly and a decent amount of research and investment has been put into the industry.
Owing to the increasing environmental concerns as well as the rise in electricity demand, many developed countries in North America and Europe have established EGS plants. Hence the researchers have predicted substantial growth in the market.
On the other hand, there are significant challenges in the growth of EGS technology which can only be countered by innovation and favorable government policies across the world.
