EGS Could Meet Global Power Demand with Tech and Investment

A Columbia University SIPA webinar on March 18, 2025, spotlighted Enhanced Geothermal Systems (EGS) as a solution to rising global power demand. EGS uses methods like horizontal wells and hydraulic fracturing to improve fracture surface area and connectivity between wells, similar to unconventional oil and gas extraction. Fervo Energy has cut drilling times for 12,000-foot wells from 150 days (pre-2021) to 15 days using advanced drilling rigs. They've also boosted well performance from 3 MW to 10 MW, with further increases expected. The U.S. DOE aims for a capital expense of $3,700/kW by 2035, equivalent to a Levelized Cost of Energy (LCOE) of $45/MWh, making it competitive with solar, wind, and natural gas. Achieving commercial viability by 2030 requires $20-25 billion in investment to validate EGS in 4-6 states, producing 2-5 GW of geothermal power. The International Energy Agency forecasts that next-generation geothermal could attract $1 billion of investment by 2035, potentially meeting 15% of global electricity growth by 2050 in a low-cost scenario. Fervo Energy's Project Cape in Utah, slated for 2026, aims to produce 500 MW with capital expenditures budgeted at $6,000/kW.