Geothermal
As a renewable energy source, geothermal lags more familiar wind and solar in terms of installed capacity. However, geothermal has advantages of 1) being non-intermittent, and 2) needing a smaller surface footprint per unit of power generation. Challenges include high up-front capital costs (primarily drilling), and local variation of resource intensity*.
Currently, geothermal energy is a niche application, accounting for <0.5% (~3.9 GW) of US electric generating capacity. However, technology is improving, including adoption of oil & gas drilling/completions technology for Enhanced Geothermal Systems (EGS) applications ... such as induced fracturing of hot dry rock, and heat loops. By 2050, geothermal could account for 5+% of US electricity, and capture significant market share for direct/district heating.
Renewable Portfolio Standards at federal and state levels provide a catalyst for geothermal investment in domestic and international markets. Geothermal also offers potential to reduce energy poverty in many developing countries worldwide, where geothermal gradients are high.
Significant parallels exist between project maturation workflows for oil & gas and geothermal energy. These involve analog studies and competitive intelligence at early stages, data collection and integration at intermediate stages, and reservoir simulation at late stages leading into project sanction.
It may not be practical for firms to maintain all technical capabilities full-time.
APEX Subsurface Consulting can help!
The founder is well-connected in professional organizations such as Geothermal Rising, and the Society of Petroleum Engineers … with a network that includes top-notch expertise in geoscience and related disciplines.
*Wind and solar potential varies little over distances of 100s of km; conventional geothermal potential may vary over <1 km, depending on proximity to geologic faults.
Top - Bottom: Mt. St. Helens WA, Volcan Arenal Costa Rica, Yellowstone spring, Yellowstone geyser basin
Unfamiliar with geothermal? Download a summary presentation!
Clients' Subsurface Needs
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Resource assessment at regional/local scales, for 'conventional geothermal' and EGS; where are hotspots in terms of geothermal gradient and permeability?
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Due diligence for financiers
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Heat flow forecasts based on lithology, hydrogeology and geothermal gradient
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Proof-of-concept for ... and implementation of ... EGS, with natural + induced permeability networks
The Offering
✅ Competitive intelligence for 'energy transition' investors unfamiliar with geothermal space
✅ Third-party technical review
✅ Regional and local opportunity screening
✅ Subsurface input for Front-End Engineering and Design (FEED), pre-sanction
Value at Every Stage
Geoscience data acquisition, integration and interpretation are critical to reduce uncertainty and secure financing.
For conventional geothermal, exploration starts with literature search (typically involving surface fault maps) and 'zeroes in' on candidate locations using a combination of commercial datasets including aerial LIDAR surveys, surface soil sampling, Magnetotelluric (MT) data acquisition, and test boreholes to establish geothermal gradient.
For EGS applications, exploration involves targeting lithologies at sufficient depth/temperature with optimal geomechanical properties. Natural hydrothermal systems are not a requirement.
Modeling
If analog and empirical data appear favorable, fit-for-purpose reservoir simulation may be required to improve the robustness of project economics across a full range of uncertainty. Modeling may entail static/geologic modeling and dynamic simulation, to forecast saleable electricity output.
Model output feeds directly into cash flows and economic forecasting. The philosophy is comparable to integrated reservoir modeling in the oil & gas industry, although some variables are different. The founder led an initiative related to integrated reservoir modeling at a 'supermajor' energy firm, focused on workflow streamlining and standardization for uncertainty reduction and development optimization.