Geothermal Energy in North America: How They are Developing

In North America, we’re on a journey toward a cleaner, more sustainable energy future. You’ve probably heard about solar and wind power, but have you ever thought about the potential of geothermal energy? It’s a bit of an unsung hero in the renewable energy world, and in this post, we’ll dive into its fascinating history, where it stands today, and the incredible advances on the horizon.

A Look Back: How Geothermal Energy Got Started

Using geothermal for power generation didn’t start until the 20th century, when a place called The Geysers in northern California was transformed into North America’s first geothermal power plant in 1960. This marked a turning point, and geothermal energy has slowly grown from there.

As the demand for renewable energy grows, geothermal power is being increasingly recognized as an essential component of the energy mix. Unlike solar and wind, geothermal energy offers a reliable, 24/7 power source, making it a valuable asset in the transition to sustainable energy.

Even though geothermal power generation has been around for decades, it hasn’t reached the scale of solar or wind. Why? Mainly because geothermal energy requires very specific geological conditions and has a high upfront cost for drilling and infrastructure. A realistic power plant that can produce up to 500 MWh would cost over $200 million to build. 

Geothermal Energy in North America Today

Fast forward to today, and geothermal energy is still primarily found in areas with high volcanic or tectonic activity—think California, Nevada, and Utah. California’s Geysers field is still the world’s largest geothermal site, producing over 1,500 megawatts (MW) of power, enough to supply energy to about 725,000 homes every year. That’s impressive, but here’s the thing: geothermal power makes up less than 1% of the total electricity generated in the United States.

According to the data from IRENA, as of 2021, global geothermal electricity generation capacity reached approximately 15.96 gigawatts (GW). This represents only around 0.5% of the total renewable energy-based installed capacity for electricity generation.

The United States

The U.S. leads the world in geothermal power generation. As of 2023, the U.S. has about 3.8 gigawatts (GW) of geothermal electricity generation capacity. But this accounts for around 0.4% of the total electricity production in the country. It’s still a small fraction of the country’s overall power mix. Besides power generation, there’s also something called geothermal direct use. This involves using hot geothermal water directly for heating buildings, greenhouses, and even for some industrial processes. It’s also still an underdeveloped sector with massive potential.

Canada

Canada’s geothermal journey has been slower. Even though places like British Columbia and Alberta have strong geothermal potential, Canada does not yet produce significant amounts of electricity from geothermal energy. Canada has leaned on hydroelectric power for decades. However, Canada has made strides with geothermal heat pumps (GHPs)—devices that pull heat from the ground for buildings. GHPs have been popular for heating and cooling in Canada, especially with its colder climate, and they’re incredibly efficient.

Mexico

Then there’s Mexico, which is actually one of the world’s leaders in geothermal energy production. Mexico generates over 950 MW of geothermal energy, mainly in areas with active volcanoes like Cerro Prieto in Baja California. Despite the country’s rich geothermal resources, geothermal hasn’t grown as quickly as fossil fuels.

What is the Unique Advantages of Geothermal Energy?

So, what makes geothermal energy worth our attention? It’s got a few unique benefits:

1. It’s reliable: Geothermal energy is one of the only renewable sources that can provide 24/7 power. This point is different from solar or wind energy.
2. Low emissions: Geothermal plants produce minimal carbon emissions compared to fossil fuels.
3. Cost-Effective in the Long Run: While the initial capital costs for geothermal plants are high, the operating costs are generally low once the plant is operational.
4. Small Land Footprint: Geothermal plants have a smaller land footprint than wind or solar, making them well-suited for densely populated or limited-space areas.
5. Local Economic Benefits: Local communities benefit from geothermal energy through both job creation and economic growth, as well as access to local heat and power generation.

While these advantages of geothermal energy are appealing, there are some challenges, too.  Geothermal projects are expensive to start because of the drilling costs. They’re also limited by location—only specific areas with underground heat sources are suitable.

The Future of Geothermal: New Technologies on the Horizon

With some exciting advancements in technology, we could see geothermal energy becoming a far more significant player in North America’s energy landscape. Let’s take a closer look at the latest innovations in geothermal technology. Here’s the examples:

Enhanced Geothermal Systems (EGS):

• EGS technology creates artificial reservoirs by injecting water into hot, dry rock, expanding geothermal potential to areas without natural hot water reservoirs.
• The U.S. Department of Energy is investing in EGS research, with potential for substantial geothermal resource expansion.

Geothermal Heat Pumps (GHPs):

• GHPs utilize the ground’s stable temperature to efficiently heat and cool buildings year-round.
• Popular in North America’s colder regions, GHPs are used in residential and commercial settings.

Deep Direct Use (DDU):

• DDU technology goes deeper than standard systems and can heat large complexes like hospitals or industrial parks.
• This makes geothermal viable in non-volcanic areas, such as the northeastern U.S. and parts of Canada.

Geothermal and Oil & Gas Wells (Co-production):

• Existing oil and gas wells are repurposed for geothermal power, extending their usefulness while transitioning from fossil fuels to renewables.
• This “geothermal co-production” serves as a bridge between traditional and renewable energy sectors.

How Policy and Investment Shape Geothermal’s Future

If there’s one thing that will make or break geothermal’s future, it’s policy and investment. In the U.S., the recent Inflation Reduction Act includes tax credits and incentives for geothermal projects, which could attract more investors and make geothermal projects more financially feasible.

In Canada, the provinces of Alberta and British Columbia are beginning to offer incentives for geothermal projects. There’s growing recognition in Canada that geothermal energy could help reach the country’s carbon neutrality goals, especially as the world shifts towards a low-carbon economy.

Alberta’s Geothermal Resource Development Act (2020) facilitates geothermal project leases and permits, and the province is working to include geothermal in its upcoming 12% incentive program.

Geothermal’s Path Forward in North America

As the global demand for renewable resources grows, governments are making significant investments in clean energy industries. Geothermal energy is emerging as a key focus within these efforts. In the U.S. and Canada, while the number of geothermal projects earning carbon credits remains limited, initiatives like Fervo Energy’s Cape Station, which employs Enhanced Geothermal Systems (EGS), show promising potential for future credit earnings. These projects pave the way for further climate action and innovation in the renewable energy sector. By supporting climate-positive initiatives with carbon credits, we can help drive the development of new technologies. This allows us to play an active role in the transition to a sustainable future.