Press Release

Enhanced Geothermal System Market to Grow with a CAGR of 5.19% through 2028

Increasing demand for renewable energy sources and technological advancements in EGS technology are likely to drive the market in the forecast period.

 

According to TechSci Research report, “Enhanced Geothermal System Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Enhanced Geothermal System Market stood at USD 3.08 billion in 2022 and is anticipated to grow with a CAGR of 5.19% in the forecast period. One of the primary drivers propelling the global Enhanced Geothermal System (EGS) market is the urgent global need for sustainable and reliable renewable energy sources. EGS technology harnesses the Earth's heat from deep within its crust, providing a consistent and baseload supply of clean electricity. Unlike some intermittent renewable sources like wind and solar, EGS power generation is not contingent on weather conditions or time of day, making it a dependable energy source. In an era of climate change concerns and the imperative to reduce greenhouse gas emissions, EGS offers a compelling solution. It produces minimal to no direct emissions during electricity generation, making it a low-carbon alternative to fossil fuels. This aligns with international commitments to combat climate change and transition to greener energy systems, driving increased interest and investments in EGS projects worldwide. The reliability and consistency of EGS also contribute to grid stability, making it an attractive option for countries aiming to integrate more renewable energy into their energy mix. As a result, the pursuit of sustainable and dependable energy sources is a significant driver behind the growth of the global EGS market. 

Energy security and independence are key drivers behind the global Enhanced Geothermal System (EGS) market. Many countries recognize the vulnerabilities associated with reliance on imported fossil fuels, including economic uncertainties, geopolitical tensions, and supply disruptions. EGS presents an opportunity to enhance energy security by providing a domestic and indigenous source of clean power. EGS systems tap into the Earth's geothermal resources, which are often found beneath a nation's own territory. This reduces the reliance on foreign energy sources and mitigates the risks associated with energy imports. EGS projects are not susceptible to the geopolitical tensions that can disrupt fossil fuel supplies, providing countries with a more stable and resilient energy supply. The desire for energy independence is particularly pronounced in regions with limited access to traditional energy sources or in island nations where importing fossil fuels can be cost-prohibitive. EGS technology offers a solution to these energy security challenges by providing a reliable and local source of electricity.

In summary, the pursuit of a sustainable and dependable renewable energy source, coupled with the desire for energy security and independence, are two significant drivers fueling the growth of the global Enhanced Geothermal System (EGS) market. These drivers align with the broader goals of combating climate change, reducing carbon emissions, and ensuring a stable and resilient energy supply for nations around the world.

 

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The Global Enhanced Geothermal System Market is segmented into resource type, depth, simulation method, end user, power station type, and region.

Based on resource type, The Hot Dry Rock segment had the largest market share in 2022 & expected to maintain it in the forecast period. HDR resources are relatively abundant and widely distributed beneath the Earth's crust. Unlike some other geothermal resource types, such as hydrothermal reservoirs, which are confined to specific geological settings, HDR resources can be found in various regions, increasing their accessibility for EGS development. This widespread distribution makes HDR a practical option for many countries seeking to harness geothermal energy. HDR resources offer the potential for high-temperature gradients at depth. As you drill deeper into the Earth's crust, temperatures increase significantly. HDR systems can access these elevated temperatures, enhancing the efficiency and energy output of EGS projects. The availability of high-temperature heat sources makes HDR particularly attractive for power generation and direct heating applications. HDR resources are well-suited for reservoir stimulation techniques, a key component of EGS development. In EGS projects, hydraulic fracturing (or similar methods) is employed to create and enhance fractures in the hot rock, allowing for the circulation of water or heat transfer fluids. HDR formations, with their fractured nature, facilitate effective reservoir stimulation, making them ideal for heat extraction. HDR-based EGS systems are versatile and scalable, accommodating a wide range of energy demands. These systems can be tailored to meet diverse applications, from small-scale district heating projects to large, utility-scale power generation facilities. This adaptability ensures that HDR resources can address various market needs and energy requirements.

Based on depth, The Deep segment had the largest market share in 2022 and is projected to experience rapid growth during the forecast period. Deep EGS projects access significantly higher temperature gradients at greater depths within the Earth's crust. As you drill deeper, temperatures increase due to the Earth's natural geothermal gradient. This results in access to higher-temperature heat sources, which are particularly attractive for electricity generation and industrial applications. The ability to tap into these elevated temperatures enhances the energy output and efficiency of deep EGS projects. The higher temperatures available in deep EGS reservoirs translate into more efficient and productive heat extraction. The greater temperature differential between the reservoir and the surface allows for enhanced energy output, making deep EGS projects well-suited for power generation and large-scale heating applications. This increased energy output is essential for meeting the demands of power grids and industrial processes. Deep EGS systems provide a more consistent and stable source of geothermal heat compared to shallow systems. They are less affected by surface conditions and seasonal temperature variations, offering the potential for consistent and baseload power generation. This reliability aligns with the growing need for stable energy sources to support the grid and meet the continuous demands of industries and households. Advances in drilling technologies and reservoir engineering have significantly improved the feasibility and efficiency of deep EGS projects. Enhanced drilling techniques, including directional drilling and deep drilling technologies, have made it more practical to access geothermal resources at greater depths. These technological advancements have reduced costs and risks associated with deep drilling, accelerating the development of deep EGS projects. Deep EGS resources are often more abundant and widespread beneath the Earth's surface compared to shallow resources. The increased availability of deep geothermal resources provides greater opportunities for exploration and development. Countries and regions seeking to expand their geothermal energy capacity find deep EGS projects appealing due to the larger potential resource base. Deep EGS projects are well-positioned to meet the rising demand for reliable, continuous, and high-capacity energy generation. Industries, utilities, and power producers seek clean and stable power sources to meet their operational and grid reliability needs.

 

Major companies operating in the Global Enhanced Geothermal System Market are:

  • Enel SpA
  • Ormat Technologies, Inc.
  • AltaRock Energy, Inc.
  • Shell Plc
  • Kenya Electricity Generating Company Limited
  • BESTEC GmbH
  • Geothermie Bouillante SA
  • Fuji Electric Co., Ltd.
  • Calpine Corporation
  • Energy Development Corporation

 

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“The Global Enhanced Geothermal System market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The growing demand for renewable energy is a major driver of the global EGS market. EGS is a clean and renewable source of energy that can help to reduce greenhouse gas emissions and combat climate change. Governments around the world are providing financial and regulatory support for EGS development. This support is helping to reduce the costs of EGS projects and make them more competitive with other forms of energy generation. Additionally, Technological advancements in EGS technology are making EGS systems more efficient and cost-effective. This is helping to make EGS a more viable option for commercial deployment. Furthermore, North America is the largest market for EGS, followed by Asia Pacific and Europe. The US is the leading country in the global EGS market, accounting for a significant share of the market in 2022. Other major markets for EGS include Canada, China, Japan, and Australia. Therefore, the market of Enhanced Geothermal System is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Enhanced Geothermal System Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028  Segmented Resource Type (Hot Dry Rock, Sedimentary Basin, Radiogenic, Molten Magma), By Depth (Shallow, Deep), By Simulation Method (Hydraulic, Chemical, Thermal), By End User (Residential, Commercial), By Power Station Type (Dry Steam Power Station, Flash Steam Power Station, Binary Cycle Power Station), By Region, By Competition”, has evaluated the future growth potential of Global Enhanced Geothermal System Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Enhanced Geothermal System Market.


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