By Peter Massie (Director, Geothermal Energy Office, Cascade Institute)
Two weeks ago, I attended Geothermal Rising’s annual conference in Houston to meet with geothermal advocates, company leaders, and experts to discuss ways to accelerate development of the geothermal industry and de-risk projects.
It was phenomenal to chat with and learn from so many people advancing geothermal energy in North America, and it’s gratifying to see how much energy is being put towards geothermal development. What’s most remarkable is how unified industry participants are in getting this industry up and flourishing.
There’s much going on behind the scenes in the geothermal industry. But here are five themes that stood out to me and reflect the state of the geothermal industry today:
One: Canadians were not only present, but were a substantial component of the conference cohort.
Though the conference was in Houston, Canadians figured among the largest group of attendees. There were Canadian innovators like TerraFerno Geothermal Solutions, who are developing advanced technology to improve flow control. Others are leaders like Calgary-based Rochelle Longval, VP of Innovation at Hephae Energy Technology. Adding to the Canadian presence were geothermal developers like Kirsten Marcia, President & CEO of DEEP Earth Energy Production, and Neil Ethier, leading commercial development at Eavor Technologies Inc.
Canadian geothermal researchers were also in attendance, including leading researcher at FORGE John McLennan (FORGE is catalyzing the current moment in geothermal development). Meanwhile, Canadian companies like RBC are leading the way on investment, which will support this industry as it becomes more prominent and produces more megawatts.
Two: There is widespread recognition that government has a vital role to play.
The U.S. government is playing a catalytic role in advancing geothermal. Lauren Boyd, who heads the Department of Energy’s Office of Geothermal, outlined how her office is unlocking private investment by supporting R&D, addressing exploration, and bridging the gap to commercialization. During the conference, the U.S. Department of Energy announced approximately $100M in funding for over 20 projects. A week later, a bipartisan congressional geothermal caucus was launched to advance the industry.
There is a clear takeaway for Canada: The U.S. geothermal industry is able to move forward due to public-private collaboration and strategic, industrial policy – not just passive, market-led funding. Let’s apply those lessons here.
Three: Geothermal is moving forward, but we still have a long road ahead.
Technologies to advance geothermal projects have seen major breakthroughs and led to progress. Just last month, Fervo Energy announced they’ve achieved first power.
But the industry still has a long way to go. Investors are interested, but a single mistake could shatter the fragile trust that they’ve started to build with the industry. Geothermal developers need to show that emerging technologies can deliver across geologies, and over time. There is still much work to be done to make sure this industry is adequately prepped for investment.
Four: Investors are taking notice
It was encouraging to see so many investors from across the capital stack in attendance at this geothermal conference – it shows they’re paying attention, and they are ready to consider geothermal as a worthwhile investment opportunity.
From venture capital firms like Underground Ventures, which focuses primarily on investing in geothermal energy technologies, to large-scale RBC Capital Partners, the investor appetite is there. Different investors have different risk tolerances and will not be looking for similar prospects. But they all share one thing in common: geothermal energy has captured their attention, and they are looking for opportunities.
Five: There’s a real sense that this is geothermal’s moment.
I’ve been following geothermal for over a decade, but I only jumped in with both feet a few years ago. Talking to industry veterans, they all agree that major progress has been made in the last few years.
The window is open for geothermal, and Canada can be a leader in this industry. But Canada – and particularly the Canadian government – need to take a deliberate and strategic approach to encourage projects in Canada, and to develop the technologies that will supply geothermal projects across the world.
