I have been accused of being anti-alternative energy by a number of readers, but this is simply not true.
I think the charge into biofuels will damage the planet (as well as make food prices go through the roof) and that wind power is just wishful thinking, but I love the prospects for hydrogen fuel cells and solar panels… and I think that one technology is going to make it really big in the next few years – and that’s geothermal… it even has the potential in the UK, with areas such as Southampton leading the way.
Places like California have so much energy under their feet that it seems silly not to use it. It’s in the form of geothermal energy: hot rocks and heated water.
I remember some extremely pleasant evenings I had in a redwood forest near Napa Valley in California a few years back, which involved sipping various local wines while lounging in a bubbling hot tub.
The outside tub was positioned at the edge of the redwoods, with sweeping scenic views on one side. It’s only source of power was bubbling hot, sulphurous water that came from deep underground.
Well this geothermal energy can be used to make electricity. In fact, I like the potential of this technology so much that I have kept the shares of one of the industry leaders in my Outstanding Investments portfolio, even though it is a US-listed stock. That appeared to have been a good move as new US legislation has given the stock a significant boost.
Last week, the US Senate passed an energy bill, which included the Advanced Geothermal Energy Research and Development Act of 2007.
This followed on from recent reports by the Massachusetts Institute of Technology (MIT) and National Renewable Energy Laboratory (NREL) that predicted geothermal energy would be a major energy source in the future with continued federal support for market and technology advances.
According to industry body the Geothermal Energy Association (GEA), several key areas are addressed in the energy bill:
– Geopressured and oil and gas field co-produced resource production: clean, renewable geothermal energy can be produced with existing natural gas and oil and gas fields. The GEA argued that these uses could revolutionise both the geothermal and the fossil fuel industry.
– Industry-coupled drilling: this program pairs the federal government with geothermal developers to reduce drilling risks and improve drilling precision. Exploration and drilling pose some of the most difficult risks for new geothermal projects and can add significantly to project costs.
– Enhanced geothermal systems (EGS): The MIT and NREL reports suggest that 100,000 megawatts (MW) or more of geothermal power could be produced using advanced technology. The GEA is calling for sustained research and development effort is needed to move towards this goal.
– A centre for geothermal technology transfer: such a centre, which currently does not exist, is critical to developers seeking information about geothermal prospects and technology advances.
– International Geothermal Collaboration: The Department of Energy and US AID are directed to support international geothermal development, particularly related to the African Rift Geothermal Development Facility, Australia, China, France, the Republic of Iceland, India, Japan, and the United Kingdom.
Geothermal has great potential… I am definitely a fan…
This article is taken from Garry White’s free daily email ‘Garry Writes’.