How does geothermal energy work step by step

The future of geothermal energy

Geothermal energy has the potential to play a significant role in moving the United States (and other regions of the world) toward a cleaner, more sustainable energy system. It is one of the few renewable energy technologies that can supply continuous, baseload power. Additionally, unlike coal and nuclear plants, binary geothermal plants can be used a flexible source of energy to balance the variable supply of renewable resources such as wind and solar. Binary plants have the capability to ramp production up and down multiple times each day, from 100 percent of nominal power down to a minimum of 10 percent [1].

The costs for electricity from geothermal facilities are also becoming increasingly competitive. The U.S. Energy Information Administration (EIA) projected that the levelized cost of energy (LCOE) for new geothermal plants (coming online in 2019) will be less than 5 cents per kilowatt hour (kWh), as opposed to more than 6 cents for new natural gas plants and more than 9 cents for new conventional coal [12]. There is also a bright future for the direct use of geothermal resources as a heating source for homes and businesses in any location.

However, in order to tap into the full potential of geothermal energy, two emerging technologies require further development: Enhanced Geothermal Systems (EGS) and co-production of geothermal electricity in oil and gas wells.

Enhanced geothermal systems. Geothermal heat occurs everywhere under the surface of the earth, but the conditions that make water circulate to the surface are found in less than 10 percent of Earth's land area. An approach to capturing the heat in dry areas is known as enhanced geothermal systems (EGS) or "hot dry rock". The hot rock reservoirs, typically at greater depths below the surface than conventional sources, are first broken up by pumping high-pressure water through them. The plants then pump more water through the broken hot rocks, where it heats up, returns to the surface as steam, and powers turbines to generate electricity. The water is then returned to the reservoir through injection wells to complete the circulation loop. Plants that use a closed-loop binary cycle release no fluids or heat-trapping emissions other than water vapor, which may be used for cooling [13].  

A 2006 study by MIT found that EGS technology could provide 100 gigawatts of electricity by 2050 [14]. The Department of Energy, several universities, the geothermal industry, and venture capital firms (including Google) are collaborating on research and demonstration projects to harness the potential of EGS. The Newberry Geothermal Project in Bend, Oregon has recently made significant progress in reducing EGS project costs and eliminating risks to future development [15]. The DOE hopes to have EGS ready for commercial development by 2015. Australia, France, Germany, and Japan also have R&D programs to make EGS commercially viable.

One cause for careful consideration with EGS is the possibility of induced seismic activity that might occur from hot dry rock drilling and development. This risk is similar to that associated with hydraulic fracturing, an increasingly used method of oil and gas drilling, and with carbon dioxide capture and storage in deep saline aquifers. Though a potentially serious concern, the risk of an induced EGS-related seismic event that can be felt by the surrounding population or that might cause significant damage currently appears very low when projects are located an appropriate distance away from major fault lines and properly monitored. Appropriate site selection, assessment and monitoring of rock fracturing and seismic activity during and after construction, and open, transparent communication with local communities are also critical.

Low-temperature and co-production of geothermal electricity in oil and gas wells. Low-temperature geothermal energy is derived from geothermal fluid found in the ground at temperatures of 150ºC (300ºF) or less. These resources are typically utilized in direct-use applications, such as heating buildings, but can also be used to produce electricity through binary cycle geothermal processes. Oil and gas fields already under production represent a large potential source of this type of geothermal energy. In many existing oil and gas reservoirs, a significant amount of high-temperature water or suitable high-pressure conditions are present, which could allow for the co-production of geothermal electricity along with the extraction of oil and gas resources. In some cases, exploiting these geothermal resources could even enhance the extraction of the oil and gas.

An MIT study estimated that the United States has the potential to develop 44,000 MWs of geothermal capacity by 2050 by coproducing geothermal electricity at oil and gas fields—primarily in the Southeast and southern Plains states. The study projected that such advanced geothermal systems could supply 10 percent of U.S. baseload electricity by 2050, given R&D and deployment over the next 10 years [17].

According to DOE, an average of 25 billion barrels of hot water is produced in United States oil and gas wells each year. This water, which has historically been viewed as an inconvenience to well operators, could be harnessed to produce up to 3 gigawatts of clean, reliable baseload energy [16]. This energy could not only reduce greenhouse gas emissions, it could also increase profitability and extend the economic life of existing oil and gas field infrastructure. The DOE’s Geothermal Technologies Office is working toward a goal of achieving widespread production of low-temperature geothermal power by 2020.

These exciting new developments in geothermal will be supported by unprecedented levels of federal R&D funding. Under, the American Recovery and Reinvestment Act of 2009, $400 million of new funding was allocated to the DOE’s Geothermal Technologies Program. Of this $90 million went to fund seven demonstration projects to prove the feasibility of EGS technology. Another $50 million funded 17 demonstration projects for other new technologies, including co-production with oil and gas and low temperature geothermal. The remaining funds went towards exploration technologies, expanding the deployment of geothermal heat pumps, and other uses. These investments are already beginning to expand the horizons of geothermal energy production and will likely continue to produce significant net benefits in the future [17].

References:

[1] Geothermal Energy Association (GEA). 2013. Geothermal: International Market Overview Report. 

[2] U.S. Energy Information Administration (EIA). 2012. International Energy Statistics. Renewables: Electricity Generation: Geothermal. 

[3] Geothermal Energy Association (GEA). 2013. 2013 Annual US Geothermal Power Production and Development Report. SNL data.

[4] National Renewable Energy Laboratory (NREL). 2012. U.S. Renewable Energy Technical Potentials: A GIS-Based Analysis. 

[5] National Renewable Energy Laboratory (NREL). 2010. Energy Technology Cost and Performance DataEnergy Technology Cost and Performance Data. 

[6] Calpine. The Geysers.

[7] City of Santa Rosa, CA. Geysers Expansion.  

[8] Virginia Tech. Hot Springs in the Southeastern United States.

[9] National Energy Authority and Iceland Ministry of Industries and Commerce. 2006. Energy In Iceland: Historical Perspective, Present Status, Future Outlook, Second edition.

[10] Department of Energy – Oak Ridge National Laboratory (ORNL). 2008. Geothermal (Ground-Source) Heat Pumps: Market Status, Barriers to Adoption, and Actions to Overcome Barriers. Report ORNL/TM-2008/232.

[11] Energy Star. Federal Tax Credits for Energy Efficiency. 

[12] U.S. Energy Information Administration (EIA). 2014. Annual Energy Outlook 2014. 

[13] Office of Energy Efficiency and Renewable Energy (EERE). 2008a. An evaluation of enhanced geothermal systems technology. Washington, DC: U.S. Department of Energy.

[14] Tester, J. et al. 2006. The Future of Geothermal Energy: Impact of Enhanced Geothermal Systems (EGS) on the United States in the 21st Century. Massachussetts Institute of Technology and Idaho National Laboratory.  

[15] Geothermal Energy Association (GEA). 2013. Annual US Geothermal Power Production and Development Report. 

[16] U.S. Department of Energy,. 2012. Geothermal Technologies Program: Coproduction Fact Sheet

[17] Geothermal Energy Association (GEA). 2012. Annual US Geothermal Power Production and Development Report.

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