Cost-efficient utilization of deep geothermal wells is now a reality

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The technology company QHeat has developed a solution that makes geothermal energy more accessible to those who need it. Wells drilled to a depth of 2000 meters can now be used not only as an inexhaustible source of energy but also as energy storage in a cost-effective way.

“For decades, the oil and gas sector has been drilling down to kilometers of depth,” explains Erika Salmenvaara, CEO of QHeat. “There’s nothing particularly new about drilling deep wells, but what is new is how we can now extract geothermal heat cost-efficiently from these wells.”

Between 2016 and 2020, a well-drilling project was underway in Espoo, Finland but it was ultimately discontinued. “The project in Espoo drilled to a depth of about 6 kilometers. Our company’s founder, Rami Niemi, was involved and realized that the method used at the time was not economically viable. To smartly extract energy from bedrock that was compressed during the ice ages, a new type of solution needed to be developed.”

2000 meters is enough with the right technology

QHeat realized that drilling to a depth of 2000 meters was sufficient to achieve an optimal input-output ratio. “The deeper you drill, the greater the well’s heat production potential becomes, but the drilling costs also increase. When comparing the costs and the value of heat production at different depths, the best cost-efficiency ratio is found at 2000 meters.”

QHeat’s solution collects heat in a completely new way. “Our innovation is based on creating a coaxial flow in the well. An insulated central pipe is installed in the well, allowing energy to be brought from the depths to the surface without heat loss. Previously, the deeper the well was drilled, the greater the heat loss became.”

Installing the central pipe in the geothermal well also offers another excellent benefit. “By reversing the flow direction of the well, it can be turned into a heat storage unit, releasing energy when needed.”

By drilling to 2000 meters, heat production can also be brought closer to its end users. “Traditionally, heat energy has been produced by burning fossil fuels in centralized heat production plants, far from the end user. Deep geothermal is suitable for the needs of a decentralized district heating network, as it can be produced and stored close to those who need it.”

Impressive also in terms of facts

To convert different forms of energy into heating energy, heat pumps are required, and their efficiency varies depending on the energy source used. Heat pump efficiency is measured by the COP (Coefficient of Performance). It indicates how many units of heat energy a heat pump can produce with one unit of electricity. “In district heating networks using air-to-water heat pumps, the COP is 2.5,” says Erika Salmenvaara. “If the energy source is a geothermal well 200–300 meters deep, the pump’s efficiency is 3.5. By using our technology and a 2000-meter deep well, we can achieve a COP of up to 4.5. This means that despite the initial investment, a deep well is the most cost-effective energy source.”

Drilling deep geothermal wells is also smart beyond just economic factors. “A 2000-meter deep well produces emission-free, clean energy. It takes up 97% less land area than traditional wells, making it possible to implement in densely built urban environments. Overall economic efficiency is also improved as the well serves as both an inexhaustible energy source and an energy storage unit.”

Geothermal energy’s positive effects are also societal. “This energy form improves the country’s energy production self-sufficiency. It shortens the energy production supply chain and ensures its responsibility.”

Multiple applications, many beneficiaries

The most significant beneficiaries of deep well drilling are those who generate waste heat. “For example, deep energy storage is a smart solution for waste incineration plants. When the waste heat produced by the plant is stored in the well, it can be released into the district heating network when consumption is high.”

Storing waste heat would also benefit cities aiming for energy circularity. “Urban planning should make better use of waste heat by storing it in deep geothermal wells. Energy could be retrieved from the wells when demand for heat is highest.”

Real estate investors also benefit from geothermal energy. “If you’re looking to increase the value of your property, self-sufficient, clean energy is one of the most important investments. There is a lot of research showing that utilizing self-sufficient renewable energy positively impacts property value. Current knowledge suggests it can increase the value by up to 10%.”

Development continues, with the user’s benefit at the core

QHeat’s development of geothermal technology continues. “So far, we’ve mainly focused on the properties and costs of well components. In the future, our product development will focus on the intelligent control of the technology and enabling market integration.”

The energy market of tomorrow requires even more flexibility. “The solution to the need for flexibility is the smarter use of energy through deep geothermal wells. Energy can be produced stably from bedrock, as geothermal energy is not dependent on weather conditions. By storing energy in deep wells, it can be released for use when needed.”

Procrastination benefits no one

Erika Salmenvaara reminds us that the right time to start a geothermal energy project is today. “Climate change is a growing concern, and the situation needs to be addressed in a timely manner. Energy users should understand that if the goal is to operate carbon neutrally by 2030, investments aimed at that goal need to be made now.”

If you’re interested in geothermal energy, it’s worth contacting QHeat or Geomachine. “Share your thoughts with us. Let’s determine together what would be the most sensible way for you to adopt this energy form. We will carry out the project with the help of our network and also assist in securing funding and maintaining the well. By starting the project now, you could benefit from a deep geothermal well in about a year.”

Interested? Contact Geomachine or QHeat!