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A Global Drilling Fund Could Solve Geothermal’s Catch-22 (Bloomberg New Energy Finance)

The mature and zero-carbon technology of geothermal power is being held back by the cost and uncertainty of drilling wells, but new research suggests a possible answer

The Catch-22 problem that is holding back world investment in geothermal power could be addressed via the establishment of a “global geothermal exploration drilling fund”, with either private investors and banks or government entities and development banks as the capital providers.

A new White Paper (PDF), published today by research firm Bloomberg New Energy Finance and analysis provider Rinova International, examines how a possible $500m fund could help geothermal developers. At present, the industry faces the problem that that even though the sector as a whole can offer attractive returns, it is very difficult to raise the capital to drill individual wells because of the high risk of failure.

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