Geothermal
Geothermal energy is a low-polluting, autonomous energy resource which provides base-load power. Electricity has been generated from it since 1910 and newer plants run at over 90% capacity. Although the resource is not available everywhere, a 1999 United States study approximated that geothermal power could meet the electricity demand of about 17% of the global population, whereby 39 countries could be wholly geothermal powered. Many of these countries are developing economies in Africa, Central and South America and on the Pacific Rim. Low temperature geothermal energy, suitable for direct use such as space heating and in industrial and agricultural processing, is even more widely available than the higher temperatures required for electricity generation.
Financing barriers include relatively high up-front investment costs as well as high drilling and exploratory risks. Geothermal projects are often small and located in rural areas, increasing transaction costs but yielding considerable economic benefits. As with other renewable energy technologies, the high capital costs provide a lifetime supply of fuel and frees up foreign currency otherwise used for fuel. Geothermal energy’s lifecycle cost is low and sustainably managed reservoirs can yield harnessable energy for many decades. Unfortunately, fossil fuels are still often subsidised and this technology has to compete against unsustainable practices in a distorted marketplace.
Because this geothermal resource is capital intensive and requires cross-disciplinary expertise, the two greatest barriers to increased use are a lack of sufficient know-how and finance. Geysir Green Energy, however, has access to both.
