The Economics Of Geothermal Heat As An Alternate Fuel ? Introduction

Geothermal heat might become an important fuel for several reasons: (1) To substitute for other scarce and critical fuels. (2) Because it may be less costly to the user than alternate fuels. (3) Because its production may be more profitable than production of other fuels. (4) Or for a number of other more or less non-economic reasons such as convenience or because of less environmental impact. In competition with conventional and other non-conventional fuels, geothermal heat must score well on one or more of those points. This study first considers projections of energy needs in several United States economic sectors and the technical possibility of geothermal heat substituting for other fuels in those sectors. Then, reported and projected costs of energy from geothermal heat are compared with costs of other fuels to show the relative costs of fuels in several economic sectors. Relative costs are reported from a sample of real and hypothetical geothermal projects. The actual cost of energy will vary with each application and the particular circumstances of each geographic location.