Strategic Geothermal Advances Around the U.S.-Iceland Alliance

Geothermal energy, often overshadowed by solar and wind, is nevertheless a key renewable energy source, offering reliable and consistent baseload power. A recent geothermal conference in Iceland highlighted the technological advances and ongoing challenges of this rapidly growing sector.

Strategic partnership

In March 2024, U.S. Secretary of Energy Jennifer Granholm and Iceland’s Minister of Environment, Energy and Climate Gudlaugur Thór Thórdarson announced a strategic partnership. The goal of the collaboration is to leverage Iceland’s geothermal expertise to accelerate implementation in the United States. Iceland, where 85% of its energy comes from renewable sources, primarily geothermal, offers a model for other countries to successfully transition.

Challenges and opportunities

Despite its significant potential, geothermal energy faces significant challenges, including high upfront costs and technical risks. However, new Enhanced Geothermal Systems (EGS) technologies have the potential to transform the sector. According to the U.S. Department of Energy (DOE), these innovations enable the creation of artificial reservoirs of hot rock that could supply up to 300 GW by 2050.

Economic and environmental impact

Geothermal energy emits 99% less CO2 than fossil fuels, according to the Energy Information Agency (EIA). It also offers a natural transition for oil and gas workers, with directly transferable skills in drilling and reservoir management. This transition is supported by significant funding under the U.S. Inflation Reduction and Infrastructure Investment Acts.

Initiatives and financing

The United States has launched several initiatives to support geothermal energy, including tax credits and R&D funding. A new round of funding for EGS pilot projects is now open, with letters of intent due by July 2024 and full applications due by September 2024.

The Icelandic Model

At the conference, participants explored Iceland’s best practices in CO2 capture and storage. Iceland captures and stores CO2 emitted by geothermal power plants, demonstrating an integrated approach to managing emissions. These practices could be adopted by the United States to improve the sustainability of geothermal facilities.
The potential of geothermal energy is enormous, but realizing it requires continued investment, technological innovation, and international cooperation. The U.S.-Iceland partnership is a key step toward a greener, more resilient global energy transition.