Geothermal power is an emerging topic in Clean Technology, marking a 132% increase in mentions in recent months compared to the first half as seen on our ESG Safeguard platform. Our analysis this week looks at what companies are driving development and innovation in the geothermal space.
One emerging topic in Clean Technology has seen more focus on our ESG Safeguard platform in recent months. Geothermal power had a 132% increase in mentions in the later half of the year from the first half. Today we will look at what companies are driving development and innovation in the geothermal arena. Currently, geothermal generates only 0.3% of global electricity. The market landscape is occupied by a few major players, including regional utilities, as well as new players looking to capitalize on this underdeveloped source of renewable energy.
PLDT (TEL:PH) has tapped Energy Development Corp. (EDC:PH) to supply power for six facilities as part of PLDT’s roadmap to reduce GHG emissions 40% by 2030. EDC is the largest geothermal energy provider in the Philippines and second largest in the world. EDC has also started to develop wind and solar power in recent years to become a more well rounded energy provider.
Ormat (ORA:US) signed a deal this week with the government of Taiwan to install 20 MW of geothermal power by 2025. Ormat currently has geothermal power operations in five continents with 933 MW of generating capacity directly managed by the company.
In September, Yokogawa Electric Corporation (6841:JP) installed Internet of Things (IoT) systems for Kenya Electric Generating Co. (KEGNE:KEN). KenGen, as it is sometimes called, is Kenya’s largest geothermal power provider. The IoT systems from Yokogawa will optimize operations and streamline efficiency for KenGen. These IoT systems could be applicable to other geothermal operations as the field grows.
Vulcan Energy Resources (VUL:AU) aims to extract lithium from hot springs in the Rhine using geothermal sources, making them different from other companies on this list due to their mining component. The company already has agreements with Volkswagen to provide lithium for 2026. The lithium brine in the Rhine River is Europe’s largest deposit of lithium according to the company. Vulcan went public in 2018 and received a post-IPO round of funding over the summer from Stellantis.
In September Criterion and Chesapeake Energy (CHK:US) announced a partnership to explore and develop geothermal energy in Texas. Geothermal has great potential in the US. Most of the current development is on the West Coast in the mountainous regions of California and Nevada. Texas and the Midwest are regions with geothermal potential. However, moving eastwards, geothermal is not as applicable as seen in this infographic from the Energy Information Administration.
Geothermal energy is an area that is underdeveloped, currently producing only 0.3% of the world's electricity. Some estimates suggest that geothermal energy could provide up to 8% of the world’s electricity. Just as hydrogen has taken off in the past few years, we can start to see the beginning of a geothermal energy renaissance based on these developments in recent months.
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