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- 🌋 Geothermal Energy 👉 Powering buildings with the heat beneath your feet!
🌋 Geothermal Energy 👉 Powering buildings with the heat beneath your feet!
Ben Apple
June 02, 2023
Hi friends - welcome to the new readers and thank you to all for your continued support.
If you have any feedback, comments, or ideas for future trend reports, please drop a reply to this email or click the feedback form at the bottom to help me better meet the needs of this growing community!
Okay, on to this week's trend breakdown.
Here’s what you will learn in today’s email:
What is geothermal power and why is it getting attention?
How much does it cost?
What tax incentives are available?
What are some examples of buildings that have used geothermal?
What companies are building geothermal technology?
And more!
👉 Problem
The real estate industry is responsible for around 40% of global carbon emissions. In order to reduce dependency on fossil fuels, alternative renewable energy sources are needed.
⚡ Big Idea
Geothermal energy takes advantage of the earth’s heat below the surface. It is estimated that 0.1% of the earth’s heat could fuel our planet for 2 million years.
Geothermal power is a sustainable and renewable resource that is largely untapped and fewer than 1% of homes use it.
It has been estimated that geothermal could contribute up to 5% of the world’s power by 2050. It has gained popularity because it is reliable, environmentally friendly, and long-term cost effective.
📊 Charts and Data
The US has the most geothermal activity of any other country, with about 25% of the world’s commercial use.
Geothermal power market size is estimated at about $5B, growing to an estimated $7B market by 2030.
🔥 Opportunities
Save on energy costs with sustainable geothermal heat pumps
Estimated annual energy savings are between 30%-70%, or between $400 and $1500 per year.
Increase home value with geothermal
Decreasing monthly utility costs and upgrading your home’s HVAC will likely lead to a more desirable home and increased property valuation. These homes cost about $10k more with thousands per year in utility savings.
Take advantage of financing opportunities
Many financial incentives are available for developers and property owners to subsidize the upfront costs.
The Inflation Reduction Act allows companies and consumers who invest in geothermal heat pumps to claim credits equal to 30% of installation costs.
Dandelion Energy list of federal, state, and utility incentives for geothermal heat pumps.
💼 Case Studies
Cornell University drills 2 miles deep into the earth for geothermal power
Master planned community near Austin, TX built on geothermal grid saves homeowners thousands of dollars in energy bills.
NYC’s first geothermal multifamily building in Coney Island
CORE Development Group, in Canada, is bringing 2.65M SF of development to market, all utilizing geothermal energy.
🤝 Players
Fervo Energy has raised $138M for the creation and operation of geothermal power plants.
Quaise Energy has raised $63M to scale geothermal with emerging drilling and conduction technologies.
LendLease is developing the largest geothermal project in New York. Brooklyn project.
Eavor announced a $40M raise, led by oil giants BP and Chevron.
Greenfire Energy is developing a closed loop geothermal technology.
Sage Geosystems was recently featured in a Wired piece on geothermal technology.
✨ Predictions
Technology innovation will create advancements in drilling techniques and systems and become more cost effective, such as Quaise Energy, which uses a new deep drilling technique that can help convert any power plant into a geothermal plant.
Integration with energy management systems will make it easy to manage, monitor, and control energy usage.
Government incentives and favorable regulation continue to promote geothermal adoption, such as New York agency NYSERDA investing $450M in heat pump incentives.
Geothermal retrofits will become more common as older structures look to incorporate geothermal technology to improve energy efficiency.
⚠️ Risks
Upfront investment can be high with long payback periods.
Regulatory and permitting challenges for digging to depths required for geothermal systems.
Suitable geological conditions required. Site assessments are needed to determine viability, such as this 10,000 foot drilling project at Cornell.
✅ Key Takeaways
Geothermal energy is renewable and sustainable. It is also constant, unlike other renewable energy sources, such as wind and solar.
Using the earth’s temperatures to heat and cool buildings result in lower operational costs and high energy efficiency.
🔎 FAQ
How does geothermal work?
Heat stored beneath the earth’s surface can be used to generate electricity to heat and cool buildings.
Put simply, geothermal systems use a series of pipes to harness the heat stored in the ground.
How much does it cost?
Geothermal heat pump systems are typically more costly than natural gas systems for homes, between $10,000 and $25,000 for a home installation.
For the new NYC geothermal project at 1 Java St, their geothermal system is estimated to cost about 6% more and reduce greenhouse emissions by 53%.
Tax credits of 30% are also available for home or business owners.
🔗 Additional Resources
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