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It’s no secret that the fossil energy industry has been lending its skills, methods, and resources to offshore wind developers. That’s small potatoes compared to what’s coming next. New enhanced geothermal energy systems are beginning to catch the eye of oil and gas frackers who are scouting for a new opportunity to do what they do best, minus the carbon emissions. That could have a significant impact on the growth of renewable energy in states throughout the US, not just along the coasts.
Fracker Loves Enhanced Geothermal Energy
Oil and gas fracking has been in the media spotlight of late because Chris Wright, President-elect Trump’s nominee for US Secretary of Energy, is the founder and CEO of the leading US fracking firm Liberty Energy. In terms of the accelerating energy transition that’s not a good beginning, to say the least.
However, searching for a point of light among the muck we find that Liberty Energy laid down a stake of $10 million in the US geothermal startup Fervo Energy back in 2022. That’s significant because Fervo has been making regular appearances on the CleanTechnica radar in recent years, alongside other fresh developments in the up-and-coming field of enhanced geothermal energy. The idea is to extend the boundaries of geothermal energy far beyond the limits of the required naturally occurring rock formations, by creating human-engineered underground rock reservoirs (see more Fervo Energy background here).
In a press statement explaining the investment, Wright emphasized that Liberty plans to apply its extensive fracking know-how and problem-solving skills to Fervo’s enhanced geothermal energy system.
“Unconventional geothermal applications offer a potential pragmatic solution for a reliable source of low-carbon electricity, and we’re excited to be a part of the journey,” Wright said.
More Frackers Pile Onto Enhanced Geothermal Energy
Liberty is not the only fracking firm with a sudden interest in renewable energy. Earlier this year, Fervo announced the successful close of a $244 million funding round spearheaded by another leading US oil and gas fracker, Devon Energy.
Devon EVP David Harris noted that enhanced geothermal energy is a perfect fit for his company’s skill set. “Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades,” he said.
“We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business,” he added.
You can say that again. By the time the funding round closed, Fervo was already hard at work on the 400MW Cape Station, its first major enhanced geothermal energy project, located in Milford, Utah. It broke ground in September of 2023 with an initial grid connection expected to be up and running by 2026, and operation at full capacity to follow in 2028.
Oil & Gas Trader Supports Geothermal Energy, Too
Last month Fervo also announced another new $135 million round of funding, this time lead by Capricorn’s Technology Impact Fund II. Devon also participated along with Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, the “deep tech” venture capital firm DCVC, Galvanize Climate Solutions, Liberty Mutual Investments, the leading oil and gas trader Mercuria, and Sabanci Climate Ventures among others.
Notably, Fervo also announced the receipt of a $120 million letter of credit and term loan facility from Mercuria. A loan facility is a financial instrument that enables developers to borrow for multiple projects without having to undertake a cumbersome new loan application for each project.
“The facility will provide additional liquidity for Fervo to accelerate the deployment of EGS projects across the U.S. as it seeks to meet skyrocketing demand for clean, firm power,” Fervo explained in a press statement.
“We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver,” Mercuria added.
Enhanced Geothermal Energy & The Fracking Revolution
For those of you new to the topic, fracking is short for hydrofracturing, a method of jarring oil and gas loose from shale formations by pumping pressurized fluid underground. It was not particularly common until a relaxation of federal water quality protections during the Bush presidency helped foster a fracking free-for-all in the US along with consequent environmental impacts, leading a number of states to the practice.
As applied to enhanced geothermal energy, the impact situation is quite different. Aside from the obvious absence of fossil energy extraction, Fervo points out that its fluid does not contain the toxic substances needed for oil and gas fracking. The company also works with the US Geological Survey to avoid the kinds of seismic activity associated with oil and gas fracking.
Meanwhile, officials in the state of Utah are not waiting around for the grass to grow under their feet.
In addition to hosting Fervo’s first big project, Utah is the home state of FORGE, a new national research center for enhanced geothermal energy systems funded by the US Department of Energy. Located in Milford, FORGE is adjacent to Fervo’s Cape Station project. FORGE researchers conducted the site investigations leading to the construction of the facility.
As described by the Utah Geological Survey in its latest “Survey Notes” newsletter, FORGE is “actively working to successfully produce geothermal electricity from hot, low-permeability crystalline rock and demonstrate new technologies, many from the oilfield, for enhanced geothermal systems (EGS).”
These innovative new geothermal systems represent a sea change for power generation in Utah and elsewhere. Utah Geological Survey (UGS) notes that geothermal power plants in Utah currently have a combined capacity of 73 megawatts, just a tiny fraction of the estimated 49,400 megawatts’ worth of geothermal potential in the state.
What Comes Next?
If you’re thinking that the Energy Department will continue its vigorous promotion of the US geothermal industry if Wright wins the nomination, drop a note in the comment thread.
That’s a pretty good guess, but apparently the Energy Department is not taking any chances. UGS notes that the Energy Department provided another $80 million in funding to FORGE last year, ensuring that the facility keeps working through 2028.
The UGS newsletter also makes it clear that Utah has a long term interest in working with the Energy Department to expand the reach of enhanced geothermal energy, indicating that its further R&D efforts will long outlast the incoming Trump administration.
UGS notes that electricity generation is just one use case for geothermal energy. In addition to other familiar applications like district heating and heat pumps, UGS takes note of naturally heated geothermal water for use in agricultural greenhouse and fish farming operations, two emerging industries in Utah.
Next steps for UGS include requesting a $5 million appropriation from the Utah State Legislature, aimed at supporting the state’s geothermal industry with new datasets for development.
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Photo (cropped): The emerging field of enhanced geothermal energy is providing oil and gas frackers with an opportunity to use their power for decarbonization, not extraction (courtesy of Fervo Energy).
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