DOE aims to cut costs of geothermal energy
High costs are one of the biggest hurdles for businesses to switch to renewable energy. On September 8, 2022, as a means to encourage the adoption of this robust power source, the Department of Energy (DOE) announced the goal of cutting costs for enhanced geothermal systems (EGS) by 90 percent to $45 per megawatt-hour by 2035.
Presently, geothermal energy generates roughly 3.7 gigawatts of electricity in the U.S, with a larger amount not accessible with existing technology. Since EGS resources are found far underground at 4,000 feet or more, unpredictable conditions of hot temperatures, abrasive rocks, and a corrosive environment cause many unknowns.
Many geothermal jobs are local and relate to well drilling and construction. These actions must be performed by a domestic workforce, providing further benefit to the U.S. economic growth. Improvements in EGS technology and costs could help generate more geothermal jobs and allow further businesses the chance to obtain this energy source.
All this is part of the DOE’s targeted set of initiatives called Energy Earthshots®, which seeks to break down the largest remaining scientific and technical barriers to addressing the climate crisis. Cutting costs on EGS is the fourth initiative. The following are the other initiatives:
- The first was announced on June 7, 2021. It centered on lowering the cost of clean hydrogen by 80 percent to $1 per 1 kilogram in 1 decade.
- The second was announced on July 14, 2021. It centered on decreasing the cost of grid-scale energy storage by 90 percent for systems that deliver 10 or more hours, within the decade.
- The third was announced on November 5, 2021. It centered on capturing carbon dioxide (CO2) from the atmosphere and storing it at gigaton scales for less than $100/net metric ton of CO2-equivalent.
- The fifth was announced on September 15, 2022. It centered on lowering wind technology costs by over 70 percent to $45 per megawatt-hour by 2035 for deep sites far from shore.
Key to remember: Decreasing enhanced geothermal systems costs is one of multiple energy initiatives set by the DOE.