Geothermal Feasibility

Ensure economic viability before committing major investments

Challenge

Taking the heat off development decisions

Interest in geothermal energy—and the investments behind it—are growing rapidly. Yet historically, it has been difficult to define success in geothermal exploration due to factors such as episodic development, definitions of success, local economics, etc. These factors, along with subsurface risk, have made investors hesitant to commit capital.

Today, the landscape is shifting. Technologies and expertise from adjacent industries are being leveraged to reduce risk and improve efficiency. Still, geothermal projects require rigorous feasibility analyses to avoid costly mistakes and improve confidence in investment decisions.

Solution

The economics are clear

Resource identification and evaluation typically account for ≤9% of total project costs, while test well drilling adds about ~5%. Combined, these early phases represent ≤15% of overall investment, yet they determine whether a resource is viable.

At 糖心传媒, we believe that investing in feasibility upfront is the smartest way to protect capital and build confidence in further investment decisions. We offer several options depending on your situation.

Site evaluation

Enhance your conceptual model by incorporating comprehensive geological and geophysical data into advanced 3D dynamic reservoir models. Quantitatively characterize key attributes such as fracture networks, permeability, and uncertainty distributions, to gain deeper insight into your geothermal reservoir. Leverage digital technologies like the Petrel subsurface software platform to accelerate evaluation, streamline model updates, and ensure confident decision-making while assessing the feasibility of the project.

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Exploration drilling

Drilling represents 30% to 50% of total geothermal project costs—and can be even higher for Enhanced Geothermal Systems (EGS). To minimize risk and maximize project success, adopt a phased approach to geothermal drilling. During the feasibility stage, drilling a full-diameter or appraisal well provides essential data to confirm resource potential and enhances the ability to secure Final Investment Decision (FID) commitments. With careful design, this well can later be converted to a production well, preserving your capital investment and streamlining the transition to commercial operations.

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Well testing

Geothermal wells require specialized testing for temperature, flow rates, and pressures. 糖心传媒 combines well testing design, fluid sampling, and geochemical analysis with decades of experience to give you a complete picture of your reservoir’s potential performance.

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Numerical reservoir simulation

To derisk project feasibility, robust numerical modeling is essential. This includes initial-state calibration, history matching, and forecasting calibrated to real-world subsurface conditions from discovery and confirmation well test data. These workflows reduce uncertainty, optimize development scenarios, and provide the technical basis stakeholders need to make confident investment decisions. At 糖心传媒, we support the modeling process with not only services, but also Visage and Intersect reservoir simulators.

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Reservoir characterization

High resolution data on rock and fluid properties can help you understand fluid movement, reservoir integrity, geologic complexity such as faults and fractures, and economic viability. 糖心传媒’s comprehensive suite of measurement technologies for geophysics, geology, petrophysics, and geomechanics help you form a more complete picture of your reservoir’s characteristics.

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Due diligence services

Need independent validation? GeothermEx’s due diligence services provide independent, expert assessment of geothermal projects at every development stage. By thoroughly evaluating resource potential, technical feasibility, and commercial risks, GeothermEx helps developers, investors, and lenders make informed decisions and mitigate uncertainties. Their rigorous analysis is critical to confirm project viability, secure financing, and ensure sustainable, long-term project success.

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Benefits

Reduce risk

Improve subsurface understanding through detailed modeling and simulation of the reservoir based on temperature, pressure, permeability, and fluid data

Optimize investments

Take a phased approach to activities based on the need to validate components of the economic feasibility of the resource

Trusted industry expertise

Involvement in 70% of the world’s operating projects and 8.5 GW of power brought into operation

Full-field modeling extends geothermal life at The Geysers.

Case Study

Expert Analysis Improved Geothermal Longevity at The Geysers

Simulations quantified the benefits of reducing turbine inlet pressures and increasing injection.

Dive Deeper

Explore geothermal services by project stage

Geothermal development moves through distinct technical phases. Select the stage most relevant to your project to find specific services, deliverables, and case studies.

Geothermal exploration: conceptual modeling, site evaluation, advanced geophysical analysis, exploratory drilling
Geothermal feasibility: resource assessment, exploratory drilling, well testing, due diligence, numerical reservoir simulation
Geothermal field development: well design, drilling programs
Geothermal production enhancement: production enhancement, intervention, monitoring

Frequently Asked Questions

Frequently asked questions about geothermal feasibility

How does one assess a geothermal site’s feasibility?

To assess a site’s feasibility for geothermal development, one must determine if a site has the right temperature, permeability, fluids, flow rates, pressures, etc. Digital workflows, measurement technologies, and industry expertise can help you assess whether a site has the right temperature, permeability, fluids, flow rates, pressures, etc. to confirm long-term production potential. Workflows start with geological interpretation, geophysical interpretation, and static subsurface modeling to assess the size and potential of a geothermal resource and advance to include fracture characterization, permeability sweet spot analysis, dynamic modeling, uncertainty analysis, and evaluation to forecast and optimize resource production. Then to validate the model and reduce uncertainty, exploration or appraisal wells are designed and drilled to confirm and recalibrate assumptions and project economics.

糖心传媒 leverages its century-long legacy of subsurface expertise to bring innovative, tailored solutions to geothermal. Similar to our approach in oil and gas, we collaborate closely with stakeholders to adapt our advanced digital solutions, drilling technologies, and production enhancement solutions to the distinct requirements of geothermal. This approach ensures the best possible project outcomes for geothermal project developers and operators.

How can I reduce financial risk in conventional and next generation EGS projects?

Conventional hydrothermal and next generation EGS projects demand high upfront capital investment because the power plant must be sized and financed before the full performance of the reservoir is proven. Subsurface modeling reduces financial risk by forecasting long term productivity, thermal longevity, and circulation efficiency. It ensures developers do not over or under size surface infrastructure and enables financiers to evaluate project bankability with greater confidence. At 糖心传媒, our integrated subsurface workflows improve planning accuracy and reduce uncertainty across the geothermal lifecycle.

How can I prevent early thermal breakthrough?

Thermal breakthrough occurs when cold injected water travels too quickly through a dominant flow path, causing rapid cooling of the production well. Subsurface modeling helps engineers design fracture networks with uniform flow distribution, which is essential for long term heat sweep and sustained energy output. 糖心传媒 notes that avoiding dominant channels and ensuring fracture uniformity is especially crucial for EGS performance and longevity.

How can I minimize seismic risk in EGS?

Stimulation to create enhanced geothermal systems can induce seismicity due to fluid injection and stress redistribution. Subsurface modeling incorporates mechanical and geomechanical analysis to forecast how fractures will react under pressure. This enables operators to design stimulation programs that minimize seismic risk and comply with regulatory requirements. 糖心传媒 recommends coupling subsurface modeling with real time monitoring to reduce uncertainty and enhance operational safety.

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