Advanced Geothermal

Advanced geothermal energy, including enhanced, closed-loop, and deep geothermal technologies, offers a potential source of emissions-free, dispatchable power and heat. While it faces high upfront costs and a lack of commercial scale, recent innovations and investments—such as the Canadian government's $90 million investment in Eavor Technologies—are moving the sector toward market readiness. The Canadian Climate Institute classifies it as a 'wild card' due to uncertainties regarding performance, reliability, and replicability at scale.

• Advanced geothermal is categorized as a 'wild card' technology because its ability to compete at scale with nuclear, gas, and hydro as an affordable source of dispatchable power remains unproven, and current commercial-scale projects are isolated instances.
• There are three primary advanced geothermal technologies nearing market readiness: enhanced geothermal, which uses hydraulic fracturing to improve rock formations; closed-loop geothermal, which circulates fluid through a network of pipes; and deep geothermal, which targets superheated pockets many kilometres deep.
• The technology faces significant hurdles to becoming a 'safe bet,' including high capital costs, uncertainties regarding long-term reliability and performance, and environmental or permitting concerns related to hydraulic fracturing in enhanced geothermal systems.
• Canada has a strategic opportunity to lead in the sector through companies like the Calgary-based Eavor Technologies, which repurposes oil-and-gas drilling techniques. The Canadian government has supported this via a $90 million investment through the Canada Growth Fund.
• Cost reductions are occurring, with a 22 percent drop from 2021 to 2022, making some hydrothermal systems cheaper than coal and competitive with gas plants. The US Department of Energy aims to reduce enhanced geothermal costs by 90 percent over ten years, targeting a drop from approximately $450 per megawatt to $45 per megawatt.

APA

Canadian Climate Institute (2024). Advanced Geothermal. https://climateinstitute.ca/safe-bets-wild-cards/advanced-geothermal/

Chicago

Canadian Climate Institute. Advanced Geothermal. 2024. https://climateinstitute.ca/safe-bets-wild-cards/advanced-geothermal/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Advanced Geothermal |date=3 December 2024 |url=https://climateinstitute.ca/safe-bets-wild-cards/advanced-geothermal/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2024advanced, author = {{Canadian Climate Institute}}, title = {{Advanced Geothermal}}, institution = {Canadian Climate Institute}, year = {2024}, month = dec, url = {https://climateinstitute.ca/safe-bets-wild-cards/advanced-geothermal/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }