The fundamental economic advantage of SuperHot Geothermal is its very high energy density.

A superhot well can potentially generate substantially more power than a conventional geothermal well. Research has estimated that a 400°C+ well can produce several times the electrical output of a comparable lower-temperature geothermal well at similar flow rates.

Mazama currently states a long-term objective of achieving SuperHot geothermal power at less than $0.05/kWh, while DOE (the U.S. Department of Energy) research highlights the potential for significantly greater power density and lower electricity costs as SuperHot technology matures.

CAPEX

The principal capital cost is expected to be:

• deep drilling;
• well construction and completion;
• subsurface heat-extraction infrastructure;
• surface power/heat-conversion equipment;
• site infrastructure and grid connection.

Drilling depth is therefore an important economic variable.

The deeper the target temperature, the more important drilling productivity and well-lifetime become.

OPEX

Once operational, geothermal systems have a major structural advantage:

There is no fuel cost.

Operating expenditure is primarily associated with pumping/circulation, monitoring, maintenance, well integrity and surface equipment.

Electricity cost

The long-term objective is: competitive, predictable electricity costs without fuel-price exposure.

Concluding summary:
 

The economics of Ultra-Deep Geothermal are highly site-specific. Drilling depth, local geology, geothermal gradient, well design, power output, surface infrastructure and the intended energy application all have a significant impact on CAPEX, OPEX and the resulting cost of energy. For this reason, we do not believe that publishing a generic cost per kWh would be meaningful at this stage.

We would welcome the opportunity to engage with energy-intensive industrial companies to assess the potential for their specific location. Together with specialised engineering partners, Endoria can develop an initial site-specific assessment of the required drilling depth, expected energy output, CAPEX, OPEX and indicative cost of energy.

As an indication of the economic potential of advanced geothermal, we refer to recent research from Stanford University, entitled “Geothermal Energy Could Beat Nuclear, Coal to Meet AI Power, Cut Fossil Fuel Costs by 60%.” The study demonstrates the potential for geothermal energy to materially reduce overall energy-system costs while providing reliable, firm power.

We therefore have strong confidence in the long-term economic potential of Ultra-Deep Geothermal Energy. Although the initial CAPEX for ultra-deep drilling is significant, the combination of high energy density, continuous 24/7 operation, zero fuel costs and long asset life has the potential to generate a rapid return on investment. Importantly, the upfront investment remains fundamentally different from the very long development timelines and capital requirements associated with building new nuclear generation.

The precise economics, however, should be determined on a project-by-project basis — and that is where we would be pleased to engage with prospective industrial customers.


More information on lead-times and costs: see FAQ-18.