Geothermal Energy and Its Potential

By Forrest Crellin

PARIS (Reuters) – The shale drilling techniques that led to a boom in oil and gas output have also spurred the development of geothermal energy. According to the International Energy Agency (IEA), geothermal energy has the potential to provide a stable power source equal to the combined demand of India and the United States.

Speaking after the publication of the Paris-based agency's first report on geothermal energy, IEA Executive Director Fatih Birol stated that geothermal energy could meet the massive demands of data centers.

> "The new structure of geothermal is very similar to the oil and gas revolution. We see that the new technologies are unlocking the global potential with the so-called horizontal drilling and hydrofracking as used in shale," Birol said.

One key factor driving the interest in geothermal energy is its ability to provide a constant power source, unlike wind and solar energy. However, the industry is still in its infancy and requires government backing and major investment.

Despite the opposition from environmental campaigners regarding shale drilling, Birol highlighted that three quarters of geothermal's global potential is concentrated mainly in the United States, followed by China and India.

While the incoming Trump administration aims to push for more oil and gas drilling and scale back green initiatives, Birol expressed hope that increased geothermal use would not be excluded.

Geothermal heating could potentially rise to as much as 800 gigawatts (GW) globally, which would account for 15% of global demand growth by 2050, with an annual output equal to the current demand of the U.S. and India.

Global investments in geothermal energy would need to exceed $1 trillion by 2035 and $2.8 trillion by 2050, with about 75% of this funding required for electricity generating facilities, according to the IEA report.

(1 euro = $1.0514)

(This story has been corrected to fix the name to International Energy Agency from International Energy Administration, in paragraph 2)