Geothermal Energy

Geothermal Energy

Global Geothermal Energy Market to Reach US$10.1 Billion by 2030

The global market for Geothermal Energy estimated at US$7.0 Billion in the year 2023, is expected to reach US$10.1 Billion by 2030, growing at a CAGR of 5.5% over the analysis period 2023-2030. Binary Cycle Power Stations, one of the segments analyzed in the report, is expected to record a 5.3% CAGR and reach US$5.0 Billion by the end of the analysis period. Growth in the Flash Steam Power Stations segment is estimated at 6.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.9 Billion While China is Forecast to Grow at 5.2% CAGR

The Geothermal Energy market in the U.S. is estimated at US$1.9 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.6 Billion by the year 2030 trailing a CAGR of 5.2% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.1% and 4.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.3% CAGR.

Geothermal Energy - Key Trends and Drivers

Geothermal energy is a renewable energy source that harnesses the Earth`s internal heat to generate electricity and provide heating and cooling solutions. This energy originates from the natural radioactive decay of minerals and the residual heat from the Earth`s formation, which is stored in rocks and fluids within the Earth`s crust. Geothermal power plants operate by drilling wells into geothermal reservoirs to access steam and hot water, which are then used to drive turbines connected to electricity generators. These plants are categorized into three main types: dry steam, flash steam, and binary cycle. Dry steam plants directly use steam from geothermal reservoirs to turn turbines, while flash steam plants pull high-pressure hot water into lower-pressure tanks to produce steam. Binary cycle plants, which use organic fluids with lower boiling points than water, allow for the exploitation of lower temperature geothermal resources, significantly broadening the geographical scope of geothermal energy projects. The constant supply of heat from the Earth ensures that geothermal energy is highly reliable and sustainable, providing a stable source of power regardless of weather conditions, unlike solar and wind energy.

Technological advancements have significantly enhanced the efficiency and feasibility of geothermal energy projects. Enhanced Geothermal Systems (EGS), for instance, involve creating artificial reservoirs by injecting water into hot rock formations, thereby expanding the potential for geothermal energy in areas lacking natural reservoirs. Innovations in drilling technologies, such as directional drilling and improved well-casing materials, have reduced costs and increased the depth and precision of geothermal wells. These advancements have made it possible to tap into deeper and hotter geothermal resources, improving the overall efficiency of geothermal energy extraction. Furthermore, binary cycle power plants, which use organic Rankine cycle systems with organic fluids that have lower boiling points than water, have enabled the exploitation of moderate-temperature geothermal resources, further expanding the range of viable geothermal sites. Improvements in resource assessment techniques, including remote sensing, seismic surveys, and geophysical imaging, have enhanced the identification and evaluation of geothermal resources, making it easier to locate and develop new geothermal projects.

The growth in the geothermal energy market is driven by several factors, including increasing demand for renewable energy, government incentives and policies, and continuous advancements in geothermal technology. As global awareness of climate change and the need for sustainable energy sources intensifies, there is a rising demand for low-carbon and renewable energy, positioning geothermal energy as a crucial component of the renewable energy mix. Government policies and incentives, such as tax credits, grants, feed-in tariffs, and renewable energy mandates, are encouraging investment and development in geothermal projects. These incentives reduce the financial risks associated with geothermal development, making it more attractive to investors and developers. The scalability and reliability of geothermal energy make it an attractive option for both grid-connected and off-grid applications, particularly in regions with high geothermal potential such as the Pacific Ring of Fire, the East African Rift Valley, and parts of the western United States. Technological advancements are making geothermal energy more cost-competitive with traditional fossil fuels and other renewable energy sources. The integration of geothermal energy into district heating systems, where it provides heating for residential and commercial buildings, and its potential for direct use applications in agriculture, aquaculture, and industrial processes, are also expanding its market reach. For example, geothermal energy can be used to heat greenhouses, fish farms, and industrial processes, providing a reliable and sustainable source of heat. Overall, the geothermal energy market is poised for significant growth, driven by a combination of environmental imperatives, supportive policies, and technological progress, highlighting its potential to play a key role in the global transition to sustainable energy.

Select Competitors (Total 38 Featured) -

• Aboitiz Power Corporation
• Berkshire Hathaway Energy
• Chevron Corporation
• Enel Green Power North America, Inc.
• Energy Development Corporation
• Hyundai Motor Company
• Mitsubishi Heavy Industries Ltd.
• PT. Pertamina Geothermal Energy
• Toshiba International Corporation (TIC)

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