Economics of low temperature, direct use applications of geothermal energy

Abstract

An analysis of 20 processes utilizing low temperature geothermal energy was performed to determine the cost of delivered energy to the process. The analysis indicates that the portion of the cost associated with producing and reinjecting geothermal fluids dominate the cost of direct use applications of low temperature geothermal energy. As a result, the cost of delivered energy correlates with degree of utilization of the resource rather than the type of application. Low temperature geothermal resources can be expected to provide a competitive energy source when reinjection temperatures are low and seasonal peak demands are minimal, thus yielding high utilization rates. The cost of geothermal energy was found to be competitive with fuel-oil-based energy sources at energy utilization levels above 20% of the maximum available.