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Finans

Morgan Stanley: Financing the Geothermal Transition

Morten W. Langer

torsdag 28. november 2024 kl. 10:30

Morgan Stanley

Enhanced Geothermal Systems and Super-Hot Rock companies are two differing geothermal energy solutions each with their own unique scaling challenges. Time is a critical ressource and collaboration is required to displace incumbent energy sources. Private market capital can only go so far and broad engagement is vital. Geothermal energy can supply reliable, sustainable, baseload power by accessing the heat stored below the Earth’s surface. Its potential is significant but commercial deployment has been limited by insufficient financial and technological support. Enhanced Geothermal vs Super-Hot Rock: Geothermal energy is a naturally occurring abundant supply of heat within the Earth’s surface. Accessing this resource at scale is arguably critical to the transition however, when considering the barriers to expansion, it is important to distinguish between the potential solutions. The most prominent new technology being developed is by Enhanced Geothermal Systems (“EGS”) companies. These companies inject fluid into known areas of high temperature rock to create a more permeable system. The subsequent permeability allows more fluid to circulate, bringing heat to the surface for use.”

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Morten W. Langer

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