- Sage Geosystems and Chiyoda have signed an MOU to jointly study high-pressure geothermal power generation systems.
- EGS technology can operate in areas not suitable for traditional development, improving geothermal power generation efficiency.
- The companies will evaluate equipment configurations and power generation costs to ensure economic viability.
- The collaboration aims to accelerate commercial-scale deployment, providing a reliable low-carbon power source.
US enhanced geothermal systems (EGS) developer Sage Geosystems and Japanese engineering firm Chiyoda Corporation have signed a memorandum of understanding (MOU) to jointly study methods of converting deep underground heat and pressure into a stable power supply. The collaboration will focus on evaluating the surface equipment needed for commercial-scale EGS, particularly the configuration of facilities capable of handling high-pressure, high-temperature fluids that will be extracted from artificially engineered underground reservoirs to the surface.
Sage Geosystems' EGS technology begins with drilling down to deep, hot rock formations and creating artificial reservoirs within the rock. Water is then injected underground, where it absorbs heat from the rock, increases in temperature, and creates pressure before flowing back to the surface. The system is designed to retain more pressure and water resources, thereby improving the efficiency and economic viability of geothermal power generation. Unlike traditional geothermal power plants that rely on natural underground resources, EGS employs drilling and reservoir management techniques developed by the oil and gas industry, enabling geothermal projects to operate in areas traditionally considered unsuitable for geothermal resource development.
Evaluating Equipment Configuration and Economic Viability
The joint research will explore how to connect underground resources with surface power generation systems. Chiyoda will assess the primary equipment configuration, energy balance, and expected costs based on information provided by Sage Geosystems, including wellhead pressure, temperature, fluid characteristics, and operating conditions. The companies will also estimate capital and operating expenses, as well as power generation costs. These calculations are crucial because the technical ability to extract heat from hot rock does not automatically translate into an economically viable power plant.
Sage Geosystems' system is also being developed for energy storage purposes. In addition to using underground reservoirs for power generation, excess electricity can be used to store pressure energy underground, which can be released and recovered when electricity demand rises. Shayne Dustin, Senior Vice President of Engineering and Development at Sage Geosystems, stated that Chiyoda's expertise in the engineering of complex, high-pressure industrial facilities makes it an ideal partner for commercializing Sage's proprietary EGS technology. This collaboration is an important step in demonstrating the surface infrastructure needed to translate underground innovation into gigawatt-scale power generation and long-duration energy storage.
The Potential and Applications of Geothermal Power
Geothermal power generation can produce electricity continuously, which is one of the main advantages over weather-dependent renewable energy sources. EGS technology is expected to extend this advantage to a wider range of geographic regions. The companies believe that the technology can be applied to areas such as data centers, industrial facilities, community microgrids, and critical infrastructure, where the demand for reliable power is increasing. Ken Kimeta, Director of Business Co-creation and Assistant Director of Business Development and Growth Transformation at Chiyoda, stated that geothermal energy holds significant untapped potential, and new-generation technologies like Sage's are key to unlocking this potential.
This collaboration combines Chiyoda's engineering strength in high-pressure facility design with Sage's underground technology solutions. The companies expect to accelerate the pace of commercial-scale deployment, providing a reliable and low-carbon power source.
The study has been selected for support under the Tokyo Metropolitan Government's TIB CATAPULT program and aligns with the goals of the Tokyo Metropolitan Government's "Zero Emission Tokyo Strategy."
The Commercialization Prospects of High-Pressure Geothermal Technology
The collaboration between Sage Geosystems and Chiyoda marks an important step in the commercialization of high-pressure geothermal power generation technology. The application of EGS technology not only improves the efficiency of geothermal power generation but also extends its reach to a wider range of geographic regions, addressing the growing demand for stable power. As renewable energy continues to rise, geothermal power generation, with its continuous nature, becomes an important option. Through this collaboration, both companies hope to accelerate the deployment of the technology and pave the way for future low-carbon power sources.