Converting Waste Heat from Oil and Gas into Renewable Power

As the United States administration prioritizes the expansion of large data centers over the next four years, concerns continue to grow over how the current electric grid will handle this increased energy demand. Using 100 megawatts (MW) or more of electricity per year, the energy usage of these centers is equal to hundreds of thousands of electric cars being charged daily.

The current electric grid cannot support this increased power demand without support from alternative energy sources. Among these sources is Gradient Geothermal. Gradient is redefining the geothermal landscape by converting waste heat from existing oil and gas operations into renewable power without the need for any new drilling.

Harnessing energy from oil and gas wells, Gradient uses their proprietary mobile, modular systems to cool produced fluids to meet pipeline specification and generate onsite, emissions-free, geothermal electricity for use on-site or to be net-metered to the grid.

Large data centers also use millions of gallons of water a year to cool the center, further putting a strain on community resources. Gradient also can cool and make power from liquid-cooled data centers thereby reducing the overall electrical load involved in operating the facility. The reuse of water in liquid cooling a datacenter to waste heat recovery can ease water availability concerns at data centers and similarly reduce the operational expense of data centers.

 

Need for renewable baseload energy

Global energy demands are increasing at an unprecedented rate. According to the International Energy Agency, global electricity demand is expected to grow by nearly 60% by 2040. Renewable energy sources are essential to meet this demand while reducing greenhouse gas emissions and combating climate change.

However, many renewable energy sources, including solar and wind, are intermittent. They depend on weather conditions and time of day and cannot provide a constant supply of electricity. This intermittency creates challenges for grid stability and reliability. Baseload energy sources, which provide continuous power, are crucial for balancing the grid and ensuring a steady supply of electricity.

Geothermal energy is a reliable baseload energy source. It harnesses heat from the Earth’s interior to generate electricity, providing a constant and predictable power supply. Unlike solar and wind, geothermal energy is not subject to weather conditions or time of day, making it an ideal complement to intermittent renewable sources.

 

Meeting the challenges in traditional geothermal energy production

Despite its potential, traditional geothermal energy production continues to face several challenges. The cost of exploring and drilling for geothermal resources is high. According to the U.S. Department of Energy, drilling and exploration can account for up to 50% of the total cost of a geothermal project. This high upfront cost makes investment in geothermal energy a long-term proposition which many investors are unwilling to commit.

Additionally, the permitting process for traditional geothermal projects can be lengthy. In the United States, it can take up to seven years to obtain the necessary permits for a geothermal project. This long permitting time delays the start of energy production and adds to the overall cost of the project.

Another challenge is the limited geographical scope of traditional geothermal energy production. Geothermal resources are often located in specific regions with high geothermal activity, such as Iceland, the Philippines, and specific locations within the western United States. This limited geographical scope restricts the widespread adoption of geothermal energy and restricts its ability to meet the load demands of major US cities, particularly on the East coast.

Gradient Geothermal addresses the challenges by leveraging existing infrastructure from oil and gas production, as well as from hydrogen, helium, and lithium extraction operations. These industries often extract large quantities of water that are hot enough to generate electricity. By using this existing infrastructure, Gradient Geothermal eliminates the need for expensive exploration and drilling.

The company employs proprietary modular field generation systems to convert the extracted hot water into electricity. These systems are designed to be flexible and scalable, allowing them to be deployed in various locations with existing infrastructure. This approach significantly reduces the cost and time required to develop geothermal energy projects.

By utilizing existing infrastructure, Gradient Geothermal also expands the geographical reach of geothermal energy. Instead of being limited to regions with high geothermal activity, geothermal energy can now be produced in areas with existing oil, gas, hydrogen, helium, or lithium extraction operations. This broader geographical scope allows geothermal energy to contribute to the electricity grid in more locations.

 

Successful projects

Several case studies demonstrate the effectiveness of Gradient Geothermal’s approach. For example, in Nevada, Gradient Geothermal partnered with an existing oil and gas operation to convert extracted hot water into electricity. The project successfully generated 81 megawatt-hours, providing continuous power during summer and winter, day and night.

Data from these projects show significant cost savings and increased energy output compared to traditional geothermal methods. A study by the Geothermal Energy Association found that utilizing existing infrastructure reduced project costs by up to 40%. Additionally, the modular field generation systems used by Gradient Geothermal achieved power generation at lower fluid temperatures than many industry peers, resulting in greater energy production.

 

Advantages of Gradient Geothermal’s method

Gradient Geothermal’s innovative approach offers several advantages over traditional geothermal energy production:

• Cost reduction: By eliminating the need for exploration and drilling, Gradient Geothermal significantly reduces the upfront costs of geothermal projects. This makes investment in geothermal energy more attractive and financially viable.
• Expanded geographical reach: Utilizing existing infrastructure allows geothermal energy to be produced in a wider range of locations. This expands the availability of renewable baseload power and reduces the dependence on specific geographical regions.
• Reduced permitting times: Since Gradient Geothermal uses existing infrastructure, the permitting process is much shorter. This allows energy production to begin more quickly, reducing delays and associated costs.

 

Key facts and figures

• US Market: 2.9M
• Applicable wells: 500k+
• Potential energy production: 13GW
• Potential market size: $11.4Bn
• CO₂ avoided/year: 18.2M Tons

 

About Gradient Geothermal

Gradient Geothermal, formed by the combined expertise of Transitional Energy and X Machina Sustainable Technologies, is based in Denver, Colorado and was founded to create the world’s premier producer of geothermal energy in the oil and gas sector.