At present, geothermal supplies less than 1% of global energy demand, with deployment concentrated in a handful of countries. With sustained technological progress and falling project costs, geothermal could meet up to 15% of projected electricity demand growth by 2050.
Breakthrough innovations are now expanding the horizon for geothermal energy making it a more compelling option compared to other renewables. Geothermal offers an abundant, continuous, and largely untapped source of clean power. By addressing the challenges which are outlined in our earlier article and leveraging the Climate Tech solutions discussed below, geothermal energy can play a greater role in the Net Zero transition.
Innovation landscape in geothermal energy
The Climate Tech solutions described below offer promising pathways for expanding geothermal energy into new locations. They focus on making the technology scalable, cost-effective, and competitive with other renewable sources.
These innovations also support the broader Net Zero energy transition by enhancing deployment and improving long-term viability.
The Net Zero Insights Climate Tech Taxonomy showcases these technological advancements through a structured, multi-layered framework that brings clarity to the complex climate innovation landscape.
Geothermal resource exploration
Geothermal resource exploration is the process of locating and assessing subsurface reservoirs to determine their suitability for energy extraction. It combines geological surveys with 3D geospatial models, supported by subsurface monitoring and field testing to evaluate reservoir conditions. Together, these methods provide estimates of reservoir viability and productivity.
Recent advances such as remote sensing, real-time data analysis, and predictive modelling increase accuracy in estimating resource potential. These tools help reduce uncertainty and guide investment decisions before costly drilling begins.
The process involves:
- Identifying regions underlain by hot rock
- Estimating reservoir volume, temperature, and permeability
- Predicting whether the fluid is steam, liquid, or mixed
- Determining fluid chemistry for potential scaling and corrosion risks
- Forecasting the capacity to sustain power output for at least 20 years
The goal of exploration is to reduce technical and commercial uncertainty so developers can decide whether to progress to drilling and project development.
Geothermal energy potential assessment
Assessing geothermal energy potential is essential to predict whether a reservoir can support electricity generation or direct heat applications. Advanced methods now use predictive modelling, simulations, and real-time data to increase accuracy. Artificial intelligence and machine learning are also being applied to refine forecasts and reduce exploration risk.
Geographic Information System (GIS) tools have become central to this process. By integrating multiple geospatial datasets, GIS enables the mapping of favourable zones for geothermal development across wide regions. These maps highlight areas with the highest probability of hosting viable reservoirs, allowing targeted exploration.
Compared with drilling-led approaches, GIS-based assessment provides broader coverage at lower cost and reduces the scale of fieldwork required before wells are sited.
GIS-based assessments are valuable as they lower exploration costs, accelerate project timelines, and help attract investment into geothermal development.
Drilling and well development
Geothermal drilling is the process of creating deep wells to reach reservoirs of heat stored beneath the Earth’s surface. These wells, often drilled to depths of 1,500 to 10,000 feet, provide access to hot water or steam that can be used for power generation, district heating, or industrial applications.
Drilling and well development represent the most critical and capital-intensive stages of geothermal development, as they determine whether a resource can be commercially exploited. The process requires advanced technologies to manage geological uncertainty, extreme temperatures, and abrasive rock formations. Modern rigs, durable drilling materials, and improved mud systems enhance penetration rates while reducing mechanical failure.
Key drilling technologies include:
- Directional drilling – It enables precise steering of the drill bit to targeted depths and zones. Advanced guidance systems, robotics, and real-time monitoring assist in accurate well placement.
- Plasma drilling – The technology uses high-temperature plasma jets to rapidly fracture rock, reducing reliance on mechanical bits while improving penetration rates and lowering equipment wear in hard formations.
- Millimeter-wave drilling – It applies high-frequency electromagnetic waves to heat and break rock. This technology offers faster progress and reliability in extreme environments where traditional methods underperform.
Geothermal seismic monitoring
Another important aspect to consider when drilling wells of such depth is Geothermal Seismic Monitoring. Networks of sensors track ground movement to provide real-time data to optimize drilling strategy and production planning. With AI-driven analytics, seismic monitoring tools deliver higher accuracy in mapping reservoirs and forecasting long-term performance.
Reservoir management
Reservoir management is the management of geothermal reservoirs to ensure stable performance and long-term energy output. It focuses on controlling subsurface conditions such as temperature, pressure, and fluid flow, all of which determine reservoir productivity. Without careful management, reservoirs may cool, lose pressure, or decline prematurely, undermining both project economics and reliability.
Modern geothermal projects apply advanced monitoring tools to track reservoir behavior in real time. This data-driven approach reduces uncertainty, improves heat recovery, and lowers operating costs. By combining monitoring with stimulation, operators can sustain flow rates and extend reservoir life.
Geothermal energy technology
There are various new technologies today to extract heat from the Earth’s interior and convert it into usable energy. The below discussed technologies have different applications like electricity generation, direct heating, and minerals recovery.
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Conventional geothermal technologies
Conventional geothermal systems harness naturally occurring underground steam or hot water to generate electricity or provide direct heating. They are well-established, highly efficient, and most effective in volcanic regions. Heat is extracted from reservoirs, converted into energy, and reinjected to sustain long-term use.
The three primary power plant types are:
- Dry steam plants – They use steam directly from underground reservoirs to drive turbines.
- Flash steam plants – This technology draws hot water, converts it into steam, and channels it through turbines.
- Binary cycle plants – Here, heat is transferred from geothermal fluids to a secondary working fluid with a lower boiling point, enabling electricity generation from lower-temperature resources.
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Organic Rankine Cycle (ORC) systems
ORC systems convert lower-temperature geothermal heat into electricity using organic fluids with low boiling points. They expand geothermal deployment into regions with moderate resources. Recent advances in turbine efficiency, heat exchangers, and system integration improve reliability and cost. ORC also underpins waste heat-to-power applications, increasing total plant output by recovering energy that would otherwise be lost.
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Waste heat-to-power applications
Waste heat-to-power systems recover unused heat from geothermal plants and industrial operations. By applying ORC and advanced heat recovery methods, operators can boost efficiency and maximize energy yield. These solutions increase the economic and environmental value of geothermal projects by reducing waste and expanding electricity output.
Geothermal energy transport and storage
Transport and storage systems are critical to making geothermal energy flexible and scalable. Heat must often travel from remote reservoirs to industrial sites or urban centers. This requires technologies that minimize thermal loss and preserve efficiency during long-distance transfer.
Heat transport
Pre-insulated pipes are designed to move geothermal fluids while maintaining stable temperatures. Advanced insulation materials reduce heat loss and extend transport distances. These systems improve efficiency and make geothermal heat more viable for district heating and industrial applications.
Heat storage
Geothermal energy can be stored as hot water or steam in underground reservoirs. This allows excess heat captured during off-peak periods to be released when demand increases. By balancing supply and demand, geothermal storage strengthens grid reliability and complements intermittent renewables.
Advancing geothermal as a cost competitive power source
Next-generation geothermal innovations are transforming its potential as a renewable resource. Though geothermal is an expensive source currently, innovation and investment can bring the costs down to position geothermal as one of the most cost-effective sources of low-carbon electricity.
By removing technical barriers and leveraging improved reservoir management technologies, geothermal energy can expand capacity and unlock new geographic markets.
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