Google.org made big headlines recently with a 10M USD investment into Enhanced Geothermal Systems. In 2006, MIT estimated that 100GW of EGS could be developed within the US over the next 50 years. The future for EGS looks bright, especially when you consider some of the other factors currently in play.

Whats the difference between normal geothermal and enhanced geothermal? Water. In traditional geothermal systems, the system relies on hot water coming out of the ground that was already in the ground. Meanwhile, enhanced geothermal relies on pumping water back into the ground at high pressures over hot, dry rock (which there is more of than hot, wet rock), and reclaiming that heated water through other wells and using that water to transfer that heat into energy.

One of the interesting side effects of the stark decline in the price of oil and the subsequent demand reduction is that the same type of equipment that you need to drill wells for oil is the same equipment you need to drill for geothermal wells. So if the oil company equipment suppliers have been ramping supply for drilling equipment the past few months as prices crossed $90, $100, $125, and up to $147, they’ll now be left with excess inventory after the price per barrel dropped in half. This makes a great time for geothermal companies to acquire the drilling equipment necessary to start drilling due to the dynamics of the oil market.

To get off the ground, companies can start in areas near existing traditional geothermal systems. This would allow for low risk projects - nearby access to roads, powerlines and other necessary equipment will allow them to test a few wells. Most of the land suitable for EGS is concentrated on the western US - states like Nevada, Oregon, Idaho, Utah and Colorado.

In Google’s recent report, they had estimated 80GW of geothermal - 65GW of which was enhanced geothermal. Because of the very high capacity factors however, that 80GW of geothermal outproduced solar and wind in terms of annual GWh.