| Title | Innovation is All Geothermal Economics Needs: An Empirical Study on the Investment of Large Oil and Gas Companies in the Geothermal Field |
|---|---|
| Authors | Gong Xiao, Tianruo Zhang, Bo Xiong, Chaohe Fang, Shejiao Wang, Shixiang Li, Shaoyuan Mo, Boning |
| Year | 2026 |
| Conference | World Geothermal Congress |
| Keywords | |
| Abstract | In an era of global shift towards sustainable energy development, geothermal energy has emerged as an important renewable resource with great potential. Oil and gas companies are core players in the geothermal sector. However, the willingness of those companies to develop geothermal projects is severely limited by the high upfront capital requirements and long payback periods of geothermal projects. Moreover, traditional oil and gas companies adhere to a conservative investment framework, relying mainly on internal funds or traditional bank loans, ignoring the need to diversify funding sources. This rigid financing model not only limits the scale and breadth of projects, but also impedes technological progress. In addition, the lack of innovation has hindered research in the area of multi-energy coupling. The combination of geothermal energy with other renewable energy sources produces a more stable and efficient energy system, yet such synergistic opportunities remain largely unexploited. This paper uses economic data on project investments in the geothermal sector by large oil and gas companies. Empirical studies show that in order to overcome these challenges, large oil companies must be innovative. They should actively explore new financing mechanisms, such as green bonds and project-based crowdfunding; and unlock the potential benefits of multi-energy coupling, thereby improving the economic viability of geothermal projects for sustainable development. |