Enhanced Geothermal System Market Size & Share, by Power Station Type (Dry Steam Power Stations, Flash Steam Power Stations, Binary Cycle Power Stations); End-User (Commercial, Industrial, Residential) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

Growth Drivers

• Surge in Number of Start-Ups in Geothermal- Technology businesses are investing in and developing innovative geothermal energy applications as a result of favorable market conditions, with the goal of significantly expanding this niche renewable energy subsector. Also, number of startups are investigating new geothermal energy applications, including the recovery of minerals from geothermal brines, boosting hydrogen production synergies, enhancing the effectiveness of electricity generation from medium-temperature geothermal resources, hybrid configurations, and carbon capture. For instance, in APAC currently, there are about 57 geothermal energy startups.
• Development of Deep EGS - Deep geothermal energy has the capacity to produce large amounts of energy and is a clean, sustainable source of both thermal and electrical power. Deep geothermal energy is essential strategically for growing the energy sector as a result of these advantages, and several nations have already started using it for electricity and heating.
• Growing Use of Enhanced Geothermal System in Building Sector - Recently, geothermal energy has been used as an alternative for new furnaces and air conditioner in homes and buildings. A geothermal heat pump employs a network of interconnected pipes buried in the ground close to a building to utilize the earth as a heat source and sink (thermal storage). The loop can be situated embedded either vertically or horizontally. Contingent on whether the ambient (outside) air is cooler or warmer than the soil, it circulates a fluid that either absorbs or deposits heat to the nearby soil. Consequently, the enhanced geothermal system market is set to rise further the improve this process.
• Rising Funding for Renewable Energy Deployment - There has been growing concern about the emission of greenhouse gases from the energy sector. The combustion of fossil fuels for the production of electricity is responsible for more than 39% of energy-related carbon dioxide (CO2) emissions. Hence, the amount of fuel required to generate and utilize power more efficiently decreases, as does the quantity of greenhouse gases and other air pollution that is released as a result. Therefore, there has been growth in funding for renewable energy, especially geothermal energy and also enhancing the operation of already existing plants. For instance, the Frontier Observatory for Research in Geothermal Energy (FORGE), a significant EGS experiment in Milford, Utah, is currently funded by the U.S. Department of Energy (DOE). Researchers have already shown appreciable advancements in drilling rates and effective rock stimulation at the site.

Challenges

• Risk of Induced Seismicity - Induced seismicity is a risk event that might be brought on by a variety of factors, including drilling-related perturbations, fluid circulation-related stress changes, geochemical phenomena-related variations in fracture resistance, and others. These factors could result in negative effects on the environment and the public, as well as the potential to endanger a geothermal project, which would have serious economic repercussions. Hence, this factor is projected to hinder enhanced geothermal system market expansion.
• Complex Drilling Process for Geothermal - In order to derive heat from deeper resources, EGS's long-term goal, drilling requirements ought to be greatly increased above what is now required. Deepening a well can complicate drilling operations and well design to a great degree. Longer drilling at high temperatures, more formation variability, high formation fluid pressure, borehole integrity issues, and more challenging controls over rock reduction and borehole trajectory are just a few of the drilling obstacles that may arise. Owing of the telescoping effect, which requires more and wider casing intervals to properly achieve terminal depth, deeper depths also tend to boost design complexity. These elements are behind the market's growth limitations.
• Lack of funding for Surface Exploration