BAKU, Azerbaijan, Sept.17
By Leman Zeynalova – Trend:
The number of wells power generation in the geothermal sector will exceed 200 in 2021 for the first time, Trend reports with reference to Rystad Energy, an independent energy research and business intelligence company based in Norway.
The company believes that spending on geothermal activity will go beyond $1 billion this year, continuing upward trend by 2026 with $3 billion, f government targets worldwide are to be met.
Rystad Energy estimates that around 1,100 geothermal wells were drilled for power generation between 2015 and 2020, while 500 wells are expected to be drilled in 2025 alone.
Some countries in Europe have already outlined their ambitions for geothermal district heating out to 2050. The Austrian Energy Agency expects to spend around $1.2 billion on geothermal district heating – comprising wells and infrastructure – between 2020 and 2050, with $215 million lined up for the period to 2030.
“We believe this will translate into around 40 wells being drilled between 2020 and 2030. In its heat masterplan, the Netherlands has provided an even more ambitious outlook for its geothermal district heating industry, with 20 wells per annum planned to be drilled between 2020 and 2025, and 40 each year between 2026 and 2030. Further growth is then expected towards 2050.
Additional interest in geothermal may be generated by the repurposing of existing oil and gas infrastructure as well as the extraction of lithium. The abandonment of oil and gas wells is predominantly a zero-return activity in economic terms, meaning geothermal could offer a life-extension opportunity to operators. In Europe, there are multiple examples of this, including the Zsana-Kiskunhalas project in Hungary that started up earlier this year. Lithium extraction from geothermal wells has also made headlines as it has a higher return compared to traditional uses of geothermal,” said Rystad Enrergy.
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