Geothermal Energy
VDKB Groep and Geothermal Energy
VDKB Groep is emerging as a leading developer of geothermal energy projects in Europe and Asia. Leveraging decades of expertise in the traditional drilling sector, VDKB seeks to provide a model for the energy industry’s transition to meeting the needs of a new era.
Geothermal energy refers to any heat derived from the naturally occurring hot reservoirs below the ground, from depths of a few metres to multiple kilometres beneath the Earth’s surface. As these hot reservoirs are naturally replenished continuously, geothermal represents one of the most promising renewable sustainable energy resources.
A rapidly growing sector, geothermal energy meets the “Sustainable Development Goal on Energy” (SDG7) to “ensure access to affordable, reliable, sustainable and modern (Green) energy for all” according to the World Bank. 26 countries currently generate geothermal electricity, while 70 countries are utilising geothermal heating, working to diversify the world’s energy mix.
In a world marked by growing complexity and energy security anxieties, geothermal power is an important addition to any energy portfolio and geothermal electricity is an attractive alternative to both conventional electricity feedstocks and intermittent renewable sources such as wind and solar.
Challenges and Opportunities
Deep geothermal energy often refers to heat resources derived from depths of >500 m. The heat of the Earth increases with depth, a phenomenon described as the geothermal gradient and this upward heat flux varies across the globe.
Shallow geothermal utilises low-grade heat stored in the shallow subsurface (less than 200 m) which is largely derived from solar radiation that is absorbed by the ground and distributed via natural groundwater systems and artificial structures such as flooded coal mines. The ground acts as a solar battery and, for this heat, utilisation usually requires a heat pump.
Most of the electrical power produced from geothermal resources worldwide originates from regions with extreme geothermal gradients (such as volcanic countries like Indonesia) and very high surface heat-flow. These regions attain high ground temperatures at shallow depth and are typically found in active volcanic areas, young rift systems and similar geological settings. These geothermal sources are also known as high-enthalpy reservoirs or high-enthalpy systems with reference to the high heat content of the reservoir fluid used as the heat transfer medium. High-enthalpy systems produce electrical power directly from dry steam or from a high-temperature two-phase fluid in flash-steam plants.
VDKB Groep is well placed to leverage its extensive experience in hydrocarbon drilling, drilling equipment and well development, especially in the Netherlands and Indonesia, two national energy markets that have committed toUN SDG7 and must necessarily transition to diversify away from hydrocarbons and towards alternative sustainable lower carbon energy resources such as geothermal.
The Netherlands has declared its aims to wean itself off natural gas by 2030 and has adopted the approach of utilising geothermal energy for heating of greenhouses, residential and commercial buildings. One project in Westland plans to produce 25-45 MW thermal per year, which should provide heating for about 25,000-40,000 households and save up to 64,000 tons in CO2 emissions.
Geothermal is a significant, growing source of energy in Indonesia, which enjoys 40% of the world’s geothermal potential. The total potential geothermal electricity generation potential of Indonesia is estimated at 28,910 MW, and found across 312 locations on several islands such as Java, Sumatra, Bali, Nusa Tenggara, and Sulawesi.
Indonesia, with its volcanic geology, ranks 3rd among all countries in the world, in utilizing geothermal power, currently producing 1,699 MW of electricity from geothermal power plants - about 3.7 % of the country’s total electric power demand. The abundance of geothermal resources in Indonesia results from its location within the planet’s Ring of Fire, a region where continental plates meet around the edges of the Pacific Ocean. Despite its huge geothermal potential, Indonesia still largely relies on fossil energy resources and less than 5 % of its geothermal potential is being currently used.
Having announced an aggressive development plan, Indonesia aims to produce more than 7000 MW of geothermal power by 2025 presenting exciting opportunities for VDKB Groep’s ambitions. A high growth sector underpinned by the World Bank and its Clean Technology Fund (CTF), specifically the Indonesia Geothermal Energy Upstream Development Project of 2017, participation in the development of Indonesia’s geothermal energy sector offers compelling opportunities.
Geothermal energy locations in Indonesia
