In the Nevada desert, somewhere near Reno, the U.S. Department of Energy is supporting yet another drilling project. This time, however, the goal isn't natural gas, but geothermal heat. Like many geothermal sites around the country, the Desert Peak Facility owned by Ormat Technologies doesn't produce enough power (currently 11 megawatts) to be commercially viable. Enhanced Geothermal Systems (EGS) could change this. By adding pressurized water to natural thermal reservoirs, EGS can make hot rock more porous, effectively boosting the capacity of an energy facility. In Desert Peak's case, EGS could increase capacity to 50 megawatts, enough to produce power profitably. DOE is putting up $1.6 million for the project.

"Ormat anticipates Desert Peak will be the country's first commercial project to tap into an EGS resource and produce substantial levels of electricity providing a rebirth for certain geothermal prospects in the U.S.," said Ormat Chairman and Chief Technology Officer Lucien Bronicki.

A Massachusetts Institute of Technology-led report (pdf) on the prospects of EGS, released in January 2007, estimated that the technology could add 100 gigawatts of base-load generating capacity to the U.S. electricity system. The report also painted an urgent picture of electricity needs, with generating capacity jumping 40% over the last 10 years to over 1 terrawatt, mostly from gas-fired plants. In addition, the study estimates that nearly 100 gigawatts of older coal and nuclear plants will be going offline in the next 15 to 25 years.

EGS technology is seeing increased attention in other countries as well. In the outback of Australia, a company called Geodynamics is using these techniques to coax energy from hot rock that has no natural water at all. The company just completed drilling for the 4,200 meter deep pipe, called Habanero 3, that will pump water out of the 250 degree C thermal reservoir and plans to begin circulating water soon.

It seems like the ultimate irony. Using the technologies and techniques of the oil and gas industry to produce alternative energy.