The U.S. Department of Energy (DOE) is planning up to a $165 million new investment in a geothermal power initiative that would utilize expertise from the oil and gas industry to unlock energy resources and move away from fossil fuels.
Geothermal energy, which taps into heat within the earth, currently makes up less than 1% of the U.S. energy mix. If harnessed, it could generate 8.5% of all U.S. electricity generation by 2050, the department said.
The DOE will initially provide $10 million to fund a consortium to study issues in the geothermal sector and then provide $155 million over the next four years on research for the project, called the Geothermal Energy from Oil and Gas Demonstrated Engineering initiative.
“Leveraging the extensive knowledge, technology, skill and experience of the oil and gas sector is the perfect way to tackle barriers to geothermal deployment while also giving fossil fuel-based communities and workers a role in the transition to clean energy,” said U.S. Secretary of Energy Jennifer M. Granholm in a statement.
The department plans to pick a consortium leader by February, with an anticipated kick off in May.
Oil and gas shares some commonalities with geothermal in terms of equipment used and processes for tapping into the subsurface.
"If we can leverage the more mature oil and gas industry, hopefully we can overcome some of the remaining barriers in the geothermal industry," said George Stutz, a manager in the DOE's Geothermal Technologies Office.
A separate geothermal project underway in Utah has benefited through partnerships with oil and gas, said Doug Blankenship, senior DOE advisor, noting that it has helped speed well drilling rates.
Earlier this week, U.S. hydraulic fracking firm Liberty Oilfield Services, which was contracted to work on the DOE's Utah geothermal project, said it would invest $10 million in geothermal firm Fervo Energy.
"The ability to mine heat is much better today than it was 30 years ago," Liberty's CEO Chris Wright, who worked in geothermal earlier in his career, said of the investment.
Recommended Reading
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
Strike Energy Updates 3D Seismic Acquisition in Perth Basin
2024-04-19 - Strike Energy completed its 3D seismic acquisition of Ocean Hill on schedule and under budget, the company said.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.