We’re at a pivotal moment for geothermal energy in Europe, a clean, homegrown source of power, heating, and cooling. The signs are clear: interest from both politicians and investors is rising. In fact, there are numerous signals that now is the time to truly scale up geothermal energy in Europe.

COMMENTARY

Ever since Russia’s full-scale invasion of Ukraine three years ago, European governments have been working to reduce their dependence on fossil fuel imports and strengthen energy security. European Commission President Ursula von der Leyen emphasized this at the World Economic Forum in Davos in January, stating that geothermal energy is one of the clean energy technologies the European Union (EU) must invest in to diversify energy supplies. The EU’s new Commissioner for Energy & Housing, Dan Jørgensen, confirmed during his confirmation hearing in the European Parliament that he will prepare a geothermal strategy for Europe.

The Growing Potential of Geothermal Energy

Using today’s well-established technologies, geothermal energy could supply 25% of the EU’s heating and cooling needs and 10% of its electricity production, according to the European Commission’s Strategic Energy Technology Plan. Next-generation technologies will push these numbers even higher.

A recent International Energy Agency (IEA) report on the future of geothermal energy shows that with continued technological advancements, geothermal could supply 15% of global electricity generation by 2050, compared to less than 1% today. This would mean the cost-effective deployment of as much as 800 GW of geothermal power capacity worldwide.

One of the biggest drivers of this growth is innovation and collaboration with the oil and gas industry. Since 80% of their skills are transferable to geothermal, this presents a significant diversification opportunity for oil and gas companies.

The IEA also highlights a key advantage of geothermal energy. Because it provides continuous power, geothermal plants can operate at their maximum capacity 24/7, all year round.

What Exactly Is Geothermal Energy?

Geothermal energy is the world’s largest untapped source of renewable energy. It comes from the Earth’s natural heat, stored in its interior. This heat beneath our feet can be harnessed for electricity production, heating and cooling, agricultural and industry applications, and even mineral extraction.

The word “geothermal” comes from the Greek words geo (earth) and therme (heat). This heat is residual energy from the formation of the planet as well as the decay of radioactive elements in the Earth’s crust. It continuously flows from the Earth’s core to the surface and will remain available for billions of years.

Geothermal energy is not new. People have used naturally occurring hot springs for heating, cooking, and bathing for thousands of years. But the first time this heat was used in a geothermal power plant to generate electricity was in Larderello, Italy, in 1904.

Uses of Geothermal Energy

Heating and Cooling. Heating and cooling buildings is the most common use of geothermal energy. This can occur directly, when underground temperatures are high enough, or with the help of geothermal heat pumps, which make use of the stable ground temperatures to provide heating during winter and cooling during summer. With geothermal district heating and cooling systems, whole blocks or communities can use this underground, renewable heat to adjust indoor temperatures.

Electricity Generation. Geothermal power plants harness underground heat to produce steam, which drives turbines that generate electricity. Additionally, combined heat and power plants produce both electricity and hot water for district heating.

Industrial Applications. The heat from geothermal wells is also used for industrial processes in greenhouses and fish farms, and to dry agricultural products as well as paper, timber, and cement. It is an excellent source of clean energy for future production of green hydrogen and green ammonia, and there are opportunities to integrate geothermal wells with carbon capture and storage. Geothermal energy has also become sought after to supply data centers with clean energy and for extraction of minerals such as lithium and silica. The diversity of uses for geothermal energy is wide and growing.

Accelerated Interest in Geothermal

The ongoing climate crisis, and the need to transition to clean energy, combined with geopolitical instability, starting with Russia’s full-scale invasion of Ukraine in 2022, has placed a new focus on energy security and independence. Geothermal energy is a homegrown, reliable, and clean energy source that reduces reliance on fossil fuel imports while providing a stable supply of electricity, heating, and cooling.

At Baseload Capital, we recognize this pivotal moment for geothermal energy in Europe. As governments, investors, and industries rally behind clean energy, we are committed to scaling up this reliable, 24/7 power source to secure a sustainable future for Europe and beyond. The time to act is now. Let’s unlock the heat beneath our feet.

—Boel Stier is regional marketing director for Europe with Baseload Capital.