Generation RENEW: An Unlikely Pair

“Fracking”. The dirty word that spurred consternation, protests, and innumerable documentaries. In an odd twist “fracking” and renewables, specifically geothermal energy, are in the early stages of forming an unlikely pair. The controversial technique may just be the missing piece toward broadly commercializing geothermal energy, which is both reliable and has energy storage potential. Independent oil and gas producer Devon Energy (DVN) recently invested $10 million into privately held Fervo Energy, a company that seeks to use fracking technology to expand geothermal energy’s reach. Turns out geothermal energy’s obstacles are similar to obstacles oil and gas producers faced 15 years ago, only the former will get the benefit of all the lessons learned by the latter.?

Before we look at Fervo it makes sense to explain a little bit about geothermal energy. Geothermal energy is heat energy from the earth, such as naturally occurring reservoirs of hot water at varying temperatures and depths below the Earth's surface. “Old Faithful”, the famous geyser in Yellowstone National Park, is an example of geothermal energy. The majority of today’s harnessed geothermal energy is found in areas like Yellowstone, where companies drill into hot spots and direct steam through turbines to generate electricity. Unfortunately, these hot spots can be few and far between and as a result geothermal energy has been a rounding error in energy supply.

To date, geothermal energy production has relied on geological formations with high porosity and permeability that forms pockets that can then be exploited, similar to conventional oil and gas production prior to the shale revolution. For oil and gas the combination of horizontal drilling and hydraulic fracturing (“fracking”) made tight rock formations economic, thereby changing the game. In short, horizontal drilling and “fracking” created the necessary pathways allowing molecules to travel into the wellbore.?

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This article first appeared on Eagle Global Advisors' Generation RENEW Blog at eagleglobal.com/generation-renew