The search for alternative energy sources to meet rising electricity demand from power-hungry data centres and other consumers has thrown the spotlight on geothermal energy – a well-established low-emissions energy source with a limited reach so far, but one that is benefitting from new approaches pioneered in the oil and gas industry. 

Traditionally seen as an interesting but peripheral source of power outside the most geologically active areas of the world, geothermal energy extracted from a wider range of formations will soon be capable of providing large amounts of stable, baseload power across much of the planet, according to proponents. 

This has not gone unnoticed by the big tech companies, which are now partnering with geothermal specialists to harness the energy source to run their voracious data centres and feed the grid.

The most recent partnership to unveil plans is that between Sage Geosystems and Meta, the owner of Facebook, who said  in August 2024 they had agreed to develop a project that would “significantly expand the use of geothermal power in the US”.

The announcement was made at a workshop organised by the US Department of Energy (DOE), underscoring the government’s role in supporting the development of a potentially huge source of clean energy in its formative stage.

Sage CEO Cindy Taff described the agreement as “the perfect example of how the public and private sector can work together to make the clean energy transition a reality” and applauded the DOE for supporting the commercialization of innovation solutions.

This partnership is seen delivering up to 150 megawatts (MW) of new geothermal baseload power to support Meta’s data centre growth. The first phase of the project is expected to be “online and operating” in 2027, though its exact location has not been revealed other than that it would be “the first use of next generation geothermal power east of the Rocky Mountains”.

Abundant resource

Sage’s Geopressured Geothermal System (GGS) technology is capable of extracting enough heat to produce steam to power turbines from hot dry rock, which is a much more abundant resource than the hydrothermal formations traditionally used to capture geothermal energy. 

The company uses drilling and fracking techniques pioneered in the oil industry to pump enough fluid through the rock to tap the heat and then also generates more heat by applying further pressure within the rock. So, it is no surprise that Houston-based Sage’s founders have deep-rooted experience in the hydrocarbons industry – company President Lev Rin was formerly a Weatherford executive and Chief Technical Officer Lance Cook used to be a Chief Scientist at Shell. CEO Cindy Taff also moved from Shell.     

They see geothermal power as an ideal way for oil and gas companies to pivot into lower-carbon energy and be seen as part of the climate change solution rather than a root cause of the problem. Cook has said that if the hydrocarbons industry turned its attention to geothermal power, more than a terawatt of geothermal energy a year could be produced from the technology, meeting a significant part of global energy demand.

Sage is not alone. Other companies are also using new techniques to produce utility-scale geothermal power in the US and are also forging partnerships with tech giants.

For example, Houston-based Fervo Energy is supplying power to Google’s data centres and other infrastructure from a project in Nevada. In June 2024, an agreement was signed between Google and a local utility to increase supply from Fervo to 115 MW from the current 3.5 MW over coming years, if state approval is forthcoming. 

Fervo also said in September 2024 that it had  it had carried out a successful well test at its Cape Station site in Utah, which showed it to be “the most productive enhanced geothermal system in history”. The site is scheduled to begin delivering round-the-clock electricity to the grid in 2026. The company says 400MW of renewable power from Cape Station would be online from 2028 and is fully contracted to buyers.

Exceeding expectations

Fervo CEO Tim Latimer said the company was achieving technical milestones for geothermal development that experts had predicted wouldn’t be reached for decades,

“At a time when 24/7 clean energy is urgently needed, Fervo has shown that the geothermal industry is ready to meet that need with power projects that can come online this decade,” he said.

Pioneering US geothermal projects are generally supported by preferential tariffs and other subsidies at present, but if they scale up and fulfil their potential as  developers hope, the sector could provide an invaluable addition to the green energy sources that the world needs, driven by oil industry know-how.

(Photo: Salton Sea geothermal and lithium plant, California/Shutterstock)