New IRA Funds Available for Geothermal Energy

The massive amounts of thick, hot orange lava spewing from Iceland’s Reykjanes volcano reflect the vast amounts of heat and energy in the Earth’s core. It’s this heat and energy that geothermal energy systems capture to provide renewable, near-zero-emissions energy for communities around the world. The Energy Information Administration (EIA) reports that geothermal energy emits 99% less CO2 than comparable amounts of fossil fuels. Unlike wind and solar power, geothermal energy can be used as baseload power because it is consistent.

But capturing it is, well, complicated. Fortunately, Iceland has been capturing it for decades, part of how the country became an economy that relies on 85 percent renewable energy. Iceland’s heating, cooling, and some electricity are generated from hydropower, geothermal, solar, and wind. The country’s transportation sector is still moving away from fossil fuels, accounting for the remaining 15 percent, according to the Icelandic National Energy Authority. Iceland also captures a small amount of the CO2 emitted by geothermal energy and stores it underground.

Iceland was therefore a fitting host for the Iceland Geothermal Conference 2024, which took place from 28 to 30 May 2024 in Reykjavík, which I attended. The volcano reminded us of its power that day by erupting again during the conference, where some 600 people from around the world shared resources and best practices up and down the geothermal energy value chain at the Harpa Concert Hall and Conference Centre in central Reykjavík.

During a private meeting on May 29 at a conference with Kristín Jónsdóttir of the Icelandic Meteorological Office (center left in the photo), which monitors the volcano, and Víðir Reynisson, head of the Department of Civil Protection and Emergency Management (similar to US FEMA, center left next to Jónsdóttir in the photo ), their cell phones began to buzz intensely. They told us that the volcano started erupting again at the same moment and calmly apologized to deal with the crisis. This included the evacuation of nearby areas, such as the well-known Blue Lagoon geothermal spa adjacent to the volcano, which my small group had visited the day before.

The dramatic eruption of the Reykjanes volcano has shown the power of geothermal energy, which can play a major role in the world’s transition to a clean energy economy. However, many challenges remain in harnessing this extraordinary power beneath our feet, including high upfront costs, a range of risks, viable business models and community acceptance.

“Next-generation geothermal energy could provide 90 GW by 2050, and up to 300 GW” and power more than 65 million homes

The potential of geothermal energy is enormous and, importantly, it can serve as an extremely important primary energy source, unlike solar and wind energy, which are intermittent.

“In a world where the US grid will need 700-900 GW of additional clean, continuous power by 2050, next-generation geothermal energy can provide 90GW by 2050and to 300 GW depending on developments in storage capabilities and other new technologies,” according to the U.S. Department of Energy’s Liftoff Pathway geothermal energy website. The Department of Energy says the 90 GW of electricity generating capacity is “enough to power the equivalent of more than 65 million American homes.”

That’s why the Inflation Reduction Act and the Infrastructure Investment and Job Creation Act provide billions of dollars for geothermal energy research and development, including tax credits for geothermal heat pumps in homes and businesses.

A new round of US funding has opened for applications for various types of Enhanced Geothermal System (EGS) pilot projects. Letters of intent are due by July 18, 2024, and full applications are due by September 25, 2024. The goal is to accelerate and scale geothermal energy as part of the 2050 strategy to decarbonize the U.S. energy system.

Building on Iceland’s decades of experience in geothermal energy with the new U.S.-Iceland Energy Partnership

The United States has so much to learn from Iceland in the development and deployment of geothermal energy that the Biden administration has created the US-Island Energy Partnership, which includes carbon capture and hydrogen. This partnership was personally launched by US Secretary of Energy Jennifer Granholm and Iceland’s Minister of Environment, Energy and Climate, Gudlaugur Thór Thórdarson, in Reykjavik on March 4, 2024.

According to the meeting summary, this partnership is part of the Partnership for Transatlantic Energy and Climate Cooperation (P-TECC), which includes 22 countries led by the United States.

At the Carbfix factory I visited in Reykjavik, we heard about geothermal power plants in the US that are financed by the Department of Energy (see map).

Six Western states currently produce geothermal energy — California, New Mexico, Nevada, Hawaii, Utah, Oregon and Idaho — with California providing the largest share at 66.6% of the nation’s geothermal energy, or 5.1% of the state’s total electricity, according to Energy Energy. The news agency.

An important benefit is the natural transition of oil and gas workers to geothermal energy

One obstacle to transitioning to a clean energy economy is the potential impact on the fossil fuel workforce, including the risk of being left behind. That’s why the Inflation Control Act provides significant funding and financial incentives for workforce transformation programs.

Because geothermal energy requires excavation similar to the oil and gas industry, many potentially displaced oil and gas workers (or those looking to work in clean fuels) could potentially switch their skills to geothermal. “Next-generation geothermal approaches leverage technologies developed by the oil and gas sector to construct man-made reservoirs from ubiquitous hot rocks, rather than hunting down naturally occurring reservoirs in unique locations,” explains a Department of Energy report on the growth of geothermal energy.

At the conference, I met several people who had transferred their skills from the oil and gas sector to the geothermal sector, from geologists to oil rig operators to executives. However, the wage for geothermal energy is currently not as high as in the oil and gas sector, geothermal experts at the conference told me.

But the glowing orange lava reminds us of the promise of this vast energy beneath our feet. We will see whether this geothermal energy can be harnessed and deployed at scale and in time to mitigate climate change.

(Author’s note: The author was brought to Iceland by Green through Icelanda public-private partnership, described as “a platform for cooperation on climate issues and green solutions between Iceland and its international counterparts”).