The greenest reason to drill: clean geothermal power that's always on
Aug 29, 2024
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Tim Latimer, founder of geothermal startup Fervo and former drilling engineer in the oil and gas sector, shares his journey towards clean energy. He discusses Fervo's recent achievements, including a new power plant in Nevada and ambitious plans for expansion in places like Kenya and Indonesia. The conversation highlights the innovative techniques borrowed from fossil fuel drilling to enhance geothermal energy production. Latimer also touches on the financing complexities of large-scale projects and the evolving role of geothermal in the green energy landscape.
Geothermal energy provides a consistent, near-zero emissions electricity solution, leveraging advanced drilling techniques to unlock untapped heat sources.
The transition from fossil fuels to renewable energy facilitates the integration of skilled oil and gas workers into the geothermal sector, enhancing project development.
Deep dives
The Role of Geothermal Power in the Energy Transition
Geothermal power offers a near-zero emissions solution for electricity generation that is available consistently, in contrast to solar and wind energy, which can be intermittent. This energy source has a long history, yet offers significant untapped potential, particularly when utilizing advancements in technology. The innovative approach of using fracking techniques from the oil and gas sector allows geothermal plants to access additional heat sources that were previously unreachable. Countries like Iceland and Kenya show how geothermal energy can transform economies, indicating a similar potential for other developing nations.
Advancements and Challenges in Geothermal Technology
Fervo's techniques, particularly horizontal drilling, aim to enhance geothermal energy extraction significantly beyond traditional methods. The company has successfully demonstrated this with their first plant in Nevada, which began producing electricity by late 2023, and is now planning additional projects. Despite the promise, geothermal energy still represents a small portion of the U.S. electricity mix, and numerous geographical constraints limit current production. The potential lies in overcoming these geological limitations and proving that geothermal can scale effectively with continued technological advancement.
Navigating Regulatory and Market Dynamics
Successful geothermal projects in the U.S. face extensive regulatory hurdles due to most promising sites being on federal land, which imposes stringent permitting processes. Furthermore, to meet California's aggressive climate goals, recent regulatory shifts have created a favorable procurement environment for clean firm power sources like geothermal. However, the distinct nature of geothermal technology has made it challenging for utilities to engage, as they often lack experience with this energy source compared to solar and wind. Ongoing efforts to educate power buyers and demonstrate reliable operational success are vital for increasing geothermal adoption.
Harnessing Talent from the Oil and Gas Sector
The transition from fossil fuels to renewable energy sources opens opportunities for workers from the oil and gas industry to apply their skills in the geothermal sector. Fervo has capitalized on this talent pool, with many of its employees bringing valuable expertise in drilling and engineering from their previous careers. This influx of skilled labor not only accelerates project development but also builds a workforce that is enthusiastic about contributing to clean energy solutions. Collaboration between industries is crucial to harnessing the capabilities needed for scaling geothermal solutions to meet future energy demands.
Before he founded the geothermal startup Fervo in 2017, Tim Latimer was a drilling engineer for the oil and gas industry — a job he loved. “Honestly, if it wasn't for climate change, I probably wouldn’t have ever changed my career,” he says this week on Zero. Now Latimer is applying his drilling know-how to Fervo’s wells, supercharging their energy production in the process. The company opened its first power plant in Nevada late in 2023, and is now in the process of opening another plant in Utah. Latimer and Akshat Rathi chat about opportunities in geothermal, the infernal permitting process, and why Fervo has its sights on expanding into Kenya, Indonesia, Turkey and the Philippines.
Zero is a production of Bloomberg Green. Our producer is Mythili Rao. Special thanks this week to Kira Bindrim and Monique Mulima. Thoughts or suggestions? Email us at zeropod@bloomberg.net. For more coverage of climate change and solutions, visit https://www.bloomberg.com/green.