In order for deep geothermal energy to implemented as part of our energy production portfolio, the economic and environmental impact should be known. An innovative calculation method was further developed and applied on cases in Belgium, France, Germany and the Netherlands. The spreadsheet model is based on Real Options Analysis and is able to capture the full range of geological uncertainty, which results in a more realistic assessment of risk.
The goal of the report is to determine the profitability, development probability and environmental impact of multiple projects with a single calculation method. Results show that successful DGE are possible under current circumstances, but public support is needed in many cases. With this unique approach, the value of uncertainty reduction through exploration of the deep subsurface is determined, which is a primary target for investment risk reduction. It is also clear that DGE projects as a whole still have significant greenhouse gas emissions, though compared to decentralize gas heating, the avoided emissions are twice as high.
