DIRECT USE OF GEOTHERMAL ENERGY

AROUND THE WORLD

Ingvar B. Fridleifsson
President, International Geothermal Association
Orkustofnun, Grensasvegur 9, 108 Reykjavik, Iceland

SUMMARY
Geothermal energy has been produced commercially
for nearly a century, and on the scale of hundreds of MW for
over four decades both for electricity generation and direct
use. The world direct-use energy production is about 37 TWh/
a (installed capacity of 10,000 MWt in nearly forty countries),
and is, with the exception of China, mainly in the industrial-
ized, and central and eastern European countries. Fourteen
countries have installed capacities over 100 MWt. The main
uses are space heating (33%), heat pumps (12%) for heating
and cooling, bathing (19%), greenhouses (14%), aquaculture
(11%) and industry (10%). The application of the ground-
source heat pump opens a new dimension in the scope for
using the earth’s heat, as heat pumps can be used basically
everywhere and are not site specific as conventional geother-
mal resources. Geothermal energy, with its proven technol-
ogy and abundant resources, can make a very significant con-
tribution towards reducing the emission of greenhouse gases
worldwide. It is necessary, however, that governments imple- Figure 1. The Lindal Diagram.
ment a legal and institutional framework and fiscal instruments
allowing geothermal resources to compete with conventional est geothermal district heating service in the world (the
energy systems and securing economic support in consider- Reykjavik District Heating serving about 152 thousand
ation of the significant environmental benefits of this energy people), obtains 75% of its heat from low-temperature fields
source. (85 - 130oC) and 25% from a high-temperature field (300oC
production temperature). In addition to the straightforward
INTRODUCTION use of hot water or steam, combined heat and power units and
Geothermal utilization is commonly divided into two cascaded use (where a number of temperature requirements
categories (i.e., electric production and direct application). The are met from a single source) offer the potential for maximum
minimum production temperatures in a geothermal field gen- energy extraction and economics.
erally required for the different types of use are shown in Fig-
ure 1 (Lindal, 1973). The boundaries, however, serve only as WORLDWIDE USE OF GEOTHERMAL ENERGY
guidelines. Conventional electric power production is lim- Geothermal energy has been produced commercially
ited to fluid temperatures about 150oC, but considerably lower for nearly a century, and on scale of hundreds of MW for over
temperatures can be used with the application of binary fluids four decades both for electricity generation and direct use. At
(outlet temperatures commonly at 100oC). The ideal inlet tem- present, there are records of geothermal utilization in 46 coun-
peratures into houses for space heating using radiators is about tries in the world (Stefansson and Fridleifsson, 1998). The
80oC; but, by using radiators of floor heating, or by applying electricity generated in these countries is about 44 TWh/a,
heat pumps or auxiliary boilers, thermal waters with tempera- and the direct use amounts to about 37 TWh/a (Table 1).
tures only a few degrees above the ambient can be used ben- Geothermal electricity generation is equally common in in-
eficially. dustrialized and developing countries, but plays a more im-
It is a common misconception that direct use of geo- portant role in the latter. The world distribution of direct uti-
thermal is confined to low-temperature resources. High-tem- lization is different. With the exception of China, the direct
perature resources can, of course, also be used for heating and utilization is a serious business mainly in the industrialized,
drying purposes even if the process is at a very low tempera- and central and eastern European countries. This is to some
ture. Refrigeration is, in fact, only possible with temperatures extent understandable, as most of these countries have cold
above about 120oC. The world’s two largest industrial com- winters where a significant share of the overall energy budget
panies using geothermal energy (the Kawerau paper mill in is related to space heating. Direct use of geothermal is very
New Zealand and the Kisilidjan diatomite plant in Iceland) limited in Africa, Central and South America, as well as the
both use high-temperature steam for their processes. The larg- Asian countries apart from China and Japan.

4 GHC BULLETIN, DECEMBER 1998

Table 1. Electricity Generation and Direct Use of Geothermal Energy 1997 (Stefansson and Fridleifsson,
1998)

Electricity Generation Direct Use

Installed Total Production Installed Total Production
Capacity Capacity
MWe GWh/a % MWt GWh/a %
European Union 754 3,832 1,031 3,719
Europe, other 112 471 3,614 14,790
Europe, total 866 4,303 10 4,645 18,509 50

North America 2,849 16,249 1,908 3,984

Central and South America 959 6,869
America, total 3,808 23,118 53 1,908 3,984 11

Asia 2,937 13,045 30 3,075 12,225 33

Oceania 365 2,901 6 264 1,837 5
Africa 45 390 1 71 355 1
World Total 8,021 43,756 9,963 36,910

It is of interest to note that Europe has only a 10% description of the situation in each country. The International
share of the world total electricity generation with geother- Geothermal Association is preparing a new collection of coun-
mal; whereas, it has about 50% share of the direct use. It is try papers and national energy data for the World Geothermal
the reverse for the Americas, with a 53% share of the electric- Congress in Japan in the year 2000.
ity generation and only 11% share of the direct use. For Asia, Table 2 shows the installed capacity and produced
Oceania and Africa, the percentage share of the world total is energy in the top eight direct-use countries in the world. It is
similar for electricity generation and direct use. worth noting that the two countries with the highest energy
production (Japan and Iceland) are not the same as the two
DIRECT USE OF GEOTHERMAL ENERGY with the highest installed capacities (China and USA). the
Direct application of geothermal energy can involve reason for this is the variety in the load factors for the differ-
a wide variety of end uses, as can be seen from Figure 1 (Lindal, ent types of use.
1973). It uses mostly existing technology and straightforward
engineering. However, in some cases, the technology is com- Table 2. Top Eight Countries in Direct Utilization
plicated by dissolved solids or non-condensible gases in the (Stefansson and Fridleifsson, 1998)
geothermal fluids. The technology, reliability, economics, and Installed Production
environmental acceptability of direct use of geothermal en- MWt GWh/a
ergy has been demonstrated throughout the world. In com- Japan 1159 7500
parison with electricity production from geothermal energy, Iceland 1443 5878
direct utilization has several advantages, such as a much higher China 1914 4717
energy efficiency (50 - 70% as opposed to 5 - 20% for con- USA 1905 3971
ventional geothermal electric plants), generally the develop- Hungary 750 3286
ment time is much shorter, and normally much less capital New Zealand 264 1837
investment is involved. Last, but not least, direct application France 309 1359
can use both high- and low-temperature geothermal resources Italy 314 1026
and is, therefore, much more widely available in the world.
Direct application is, however, much more site specific for
the market, as steam and hot water is rarely transported long TYPES OF DIRECT USE
distances from the geothermal site. The longest geothermal Lund (1996) has recently written a comprehensive
hot water pipeline in the world is 63 km, in Iceland. The summary on the various types of direct use of geothermal en-
production cost/kWh for direct utilization is highly variable, ergy. Space heating is the dominant type (33%) of direct use
but commonly under 2 U.S. cents/kWh. in the world; but, other common types are bathing/swimming/
Data is available for the direct use of geothermal re- balneology (19%), greenhouses (14%), heat pumps for air
sources in some forty countries. The quality of the data is, cooling and heating (12%), fish farming (11%), and industry
however, high variable. Country papers were presented for (10%).
most of these countries in the “Proceedings of the World Geo- Table 3 shows the types of direct use of geothermal
thermal Congress” in Florence (Italy) in 1995. Freeston (1996) in the top four countries in direct utilization in the world–all
summarized these papers and gave a very comprehensive of which have a well developed tradition for direct use. It is

GHC BULLETIN, DECEMBER 1998 5

very interesting, however, to see that each of the countries has ings. At the end of 1997, over 300,000 geothermal heat pumps
its speciality in the direct use of geothermal. Iceland is the were operating nationwide in homes, schools and commer-
leader in space heating. In fact, about 85%of all houses in the cial buildings for space heating and space cooling (air condi-
country are heated with geothermal (Ragnarsson, 1995). The tioning), providing some 8,000 - 11,000 GWh/y of end-use
USA leads the way in the application of heat pumps for heat- energy according to different estimates. The geothermal heat
ing and cooling buildings (Lund, 1996). Over 70%of Japan’s pumps have been officially rated among the most energy effi-
direct use is for bathing/swimming/balneology at the famous cient space conditioning equipment available in the USA. They
“onsen” (Uchida, 1997). China has a more even distribution reduce the need for new generating capacity and are found to
of the geothermal usage than the other countries; but, nearly perform at greater efficiencies than conventional air-source
50% of the use in China is for fish farming (Ren, et al., 1990). heat pumps used for air conditioning.
It is noticeable that of these four countries, as yet, only the Financial incentive schemes have been introduced
USA makes a significant use of heat pumps. Several Euro- by several electric utilities in the USA encouraging house
pean countries (e.g., Germany, Switzerland, Sweden and owners to use groundwater heat pumps for space cooling/heat-
France), however, also have a widespread utilization of ing purposes and thus, reduce the peak loads on their electric
ground-source heat pumps for space heating. systems. The Geothermal Heat Pump Consortium has estab-
lished a U.S. $100 million 6-year program to increase the geo-
Table 3. Types of Direct Use in the World and the Top thermal heat pump unit sales from 40,000 to 400,000 annu-
Four Countries (in %) ally and thus, reduce greenhouse gas emissions by 1.5 million
metric tonnes of carbon equivalent annually (Pratsch, 1996).
World Japan Iceland China USA One-third of the funding comes from the U.S. Department of
Space Heating 33 21 77 17 10 Energy and the Environmental Protection Agency; whereas,
Heat Pumps 12 0 0 0 59
(heating/cooling)
two-thirds come from the electric power industry. Financial
Bathing/Swimming/ 19 73 4 21 11 incentive schemes have also been set up in European coun-
Balneology tries such as Germany and Switzerland.
Greenhouses 14 2 4 7 5
Fish Farming 11 2 3 46 10 THE ROLE OF GEOTHERMAL ENERGY IN
Industry 10 0 10 9 4 ICELAND
Snow Melting 1 2 2 0 1
Iceland is located astride the mid-Atlantic ridge, and
100 100 100 100 100
is richly endowed with geothermal resources. Iceland has also
large hydro-resources, which are used for the generation of
HEAT PUMP APPLICATIONS electricity. In 1997, the total primary energy consumption in
Geothermal energy has until recently had a consid- the country was 106 PJ or 2,541 thousand tonnes of oil equiva-
erable economic potential only in areas where thermal water lent. This was supplied by geothermal energy (48.1%), hy-
or steam is found concentrated at depths less than 3 km in dro-power (17.6%), oil (31.9%) and coal (2.4%). About 66%
restricted volumes analogous to oil in commercial oil reser- of the total primary energy consumption was thus served by
voirs. This has recently changed with developments in the renewable energy sources (geothermal and hydro). This is a
application of ground-source heat pumps using the earth as a higher share of renewable energy than in any other country.
heat source for heating or as a heat sink for cooling, depend- Direct use is the main utilization of geothermal en-
ing on the season. This has made it possible for all countries ergy in Iceland (see Table 3 for types of use). At present,
to use the heat of the earth for heating and/or cooling, as ap- geothermal energy contributes only about 6% to the genera-
propriate. It should be stressed that the heat pumps can be tion of electricity in the country, the main part being gener-
used basically everywhere and are not as site-specific as con- ated from hydro. By the year 2000, when the geothermal
ventional geothermal resources. power plants presently under construction will be online, the
Switzerland, a country not known for hot springs and share of geothermal energy in the electricity generation will
geysers, gives an example of the impact this can have on the be in excess of 15%. Two of the three main power plants
geothermal applications in what previously would have been have co-generation of electricity and hot water for district
called non-geothermal countries. The use of heat pumps in heating, thus securing efficient use of the geothermal resources.
Switzerland (Rybach and Goran, 1995) amounts to 228 GWh/ The main reason for the advanced use of geothermal
y. The population of the country is about seven million. If energy in Iceland is that geothermal energy is much cheaper
the same level of use would materialize in other European than other energy sources for heating purposes. On average,
countries north of the Alps and west of the Urals (350 million the energy cost for heating is only some 20 - 30% of the cost
people), the utilization of geothermal through heat pumps by oil. The district heating companies are owned by the mu-
would amount to some 11,400 GWh. This is comparable to nicipalities and are in most cases highly profitable. Typical
the total direct use of geothermal in Europe at present (18,500 prices of geothermal energy to the consumers for heating pur-
GWh/y). poses are in the range 1.1 - 1.6 U.S. cents/kWh. The cost of
Geothermal heat pumps have been found to perform electricity generation from geothermal steam is also quite fa-
very well throughout the USA for heating and cooling build- vorable in Iceland, about 3 U.S. cents/kWh. The savings of

6 GHC BULLETIN, DECEMBER 1998

the Icelandic economy by using geothermal energy for heat- thermal schemes in sedimentary basins commonly produce
ing of houses instead of using imported oil, is estimated about brines which are generally reinjected into the reservoir and
110 million U.S. $ per year or about 400 U.S. $ per capita. thus, never released into the environment. The CO2 emission
from these is thus zero.
INTEGRATED USE WITH OTHER ENERGY
SOURCES GROWTH OF GEOTHERMAL DEVELOPMENT
Geothermal plants are characterized by a low-oper- The growth rate of geothermal development has in
ating cost, but a relatively high investment cost. The price of the past been significantly affected by the prices of the com-
the heat/energy, therefore, implies a high-fixed cost which has peting fuels, especially oil and natural gas, on the world mar-
to be taken into consideration when integrating geothermal ket (Fridleifsson and Freeston, 1994). As long as the oil and
into energy supply systems using two or more energy sources. gas prices stay at the present low levels, it is rather unlikely
Conventional development of geothermal energy requires 1 that we will see again the very high annual growth rates for
to 3 km deep wells, the drilling of which is relatively expen- geothermal electricity of 17% as was the case during the oil
sive. Once a geothermal plant is installed, the operating cost crises of 1978-1985. The growth rate is, however, quite high
is very low, since water as the energy carrier is available on due to the fact that geothermal energy is one of the cleanest
the spot. The “fuel” is paid up front with the drilling for the energy sources available on the market. During 1975 -1995,
hot water/steam. Geothermal production wells have in sev- the world average growth rate in geothermal utilization for
eral countries been operated for several decades with only electricity generation was 9% p.a., which is one of the highest
minor servicing. Geothermal energy is very suitable for base- growth rates experienced in the use of a single energy source.
load plants and thus, can be in competition with other base- The average growth rate in the direct use of geother-
load plants such as heat and power co-generation units. The mal energy seems to have been about 6% p.a., during the last
decision pro or contra geothermal energy use will always de- decade. It is high affected by the competing prices of oil and
pend on the actual location, and the importance that people gas on the world market. The large potential and growing
give to clean environment which comes with geothermal. interest for the development of direct applications in China
With due consideration to the above mentioned eco- for fish farming, public baths, greenhouses and district heat-
nomic constraints, geothermal district heating plants can be ing, and the great surge of installations of geothermal heat
combined very favorably with conventional peak-load plants. pumps in recent years exemplified by the USA, Switzerland
The latter have a low investment cost, high operation cost and and Germany, give a cause for optimism for the growth rate
high pollution. Therefore, they are kept in operation for as of direct applications.
short periods as possible. In Europe, it is common practice Examples of high growth rate in the direct use of
that such plants cover the peak load, but produce only 10 - geothermal are found in countries such as Turkey and Tuni-
20%of the amount of heat required annually. Thus, the above sia. In Turkey, the installed capacity for direct use (mostly
economic constraints have only little influence on the eco- space heating) was 140 MWt in 1994, and had grown to 274
logical advantages of geothermal energy. In case the tem- MWt in May 1997. It is expected to be 2,500 MWt in year
perature of the geothermal reservoir is not sufficient for the 2000 and 3,600 MWt in year 2005 (Simsek, 1997). In Tuni-
district heating system, then it can be raised by heat pumps or sia, geothermally-heated greenhouses have expanded from
auxiliary boilers. These systems produce significantly less 10,000 m2 in 1990 to 800,000 m2 in 1997 (Said, 1997). They
emission of greenhouse gases than conventional thermal plants are expected to reach 1,750,000 m2 in the year 2002. The
using fossil fuels. greenhouses in Tunisia do, in fact, replace cooling towers five
months per year to cool irrigation water from deep wells from
ENVIRONMENTAL CONSIDERATIONS 75 to 30oC in oases in the Sahara Desert. The main products
Geothermal fluids contain a variable quantity of gas, are tomatoes and melons for export to Europe.
largely nitrogen and carbon dioxide with some hydrogen sul-
phide and smaller proportions of ammonia, mercury, radon WHAT IS EXPECTED OF GEOTHERMAL AND
and boron. The concentration of these gases are usually not OTHER “NEW”AND RENEWABLES?
harmful, but should be analyzed and monitored. The amounts It is of interest to look at what is expected from geo-
depend on the geological conditions of different fields. thermal energy in the future in international energy plans. Are
It should be stressed that the gas emissions from low- there similar expectations for geothermal energy as there are
temperature geothermal resources are normally only a frac- for solar energy and wind energy? The world consumption of
tion of the emissions from the high-temperature fields used geothermal energy was about 13 Mtoe/a in 1995. With the
for electricity production. The gas content of low-tempera- high growth rate expected, the aggregate consumption of geo-
ture water is in many cases minute, like in Reykjavik (Ice- thermal energy (for electricity and direct use) might be as high
land); where, the CO2 content is lower than that of the cold as 340 Mtoe/a by the year 2020 (Björnsson, et al., 1998). This
groundwater. In sedimentary basins, such as the Paris basin, is a very much higher figure than estimated for geothermal
the gas content may be too high to be released, and in such energy within the international energy community. A study
cases, the geothermal fluid is kept at pressure within a closed organized by the World Energy Council (WEC Commission,
circuit (the geothermal doublet) and reinjected into the reser- 1993) includes forecasts for the various energy sources, in-
voir without any de-gassing taking place. Conventional geo- cluding solar, wind, and geothermal energy, for the year 2020.

GHC BULLETIN, DECEMBER 1998 7

There are presented maximum and minimum possibilities, nology and that of other renewables have matured enough to
based on whether there will be major policy support or not. provide a meaningful share of the world energy supply. While
Table 4 shows that geothermal energy is expected to contrib- the share of hydro power and geothermal energy resources in
ute some 40 Mtoe in the year 2020 in case of no special sup- the world energy supply will remain modest, their technology
port and 90 Mtoe in the case of major policy support. Wind is, in contrast to that of other renewables, mature with a cen-
energy is expected to contribute 85 - 215 Mtoe, and solar en- tury of practical experience. Unfortunately, very few deci-
ergy 109 - 355 Mtoe in the minimum and maximum cases, sion makers at national, not to mention world level, realize
respectively. The WEC Commission clearly expects relatively the potential that geothermal energy may play in the world
little from geothermal energy in the year 2020 irrespective of energy scenario as a clean and sustainable energy source.
whether special policy support is given for the “new” energy Following the United Nations conferences on the
sources or not. Both the minimum and maximum cases of the environment in Rio (1991) and Kyoto (1997), the European
WEC Commission are very significantly lower than the 340 Union has committed itself to reducing the overall emission
Mtoe/a by the year 2020 estimated as a realistic possibility by of greenhouse gases by at least 8% below 1990 levels in the
an Icelandic group in preparation for the 17th WEC Congress commitment period 2008 - 2012. Prior to the year 2012, only
in Houston (Björnsson, et al., 1998). geothermal energy, hydro and, to a lesser extent, wind energy
appear technically ready to make a significant contribution
Table 4. Expected Contributions from Three “New” towards an overall reduction in the CO2 emissions in Europe.
Energy Sources in 2020 (WEC Commission, In spite of this, as yet, the role of geothermal energy is very
1993) limited in the energy strategy plans for Europe.
Maximum The situation in the USA is considerably brighter at
Minimum (major policy support) present for the development of geothermal energy. The U.S.
Mtoe % Mtoe % Department of Energy’s Office of Geothermal Technologies
Solar 109 47 355 54 has recently identified five strategic goals for geothermal en-
Wind 85 36 215 32 ergy as a preferred alternative to polluting energy sources
Geothermal 40 17 91 14 (USDOE-OGT, 1998). The following are amongst the strate-
Total 234 100 661 100 gic goals: a) supply the electric power needs of seven million
U.S. homes (18 million people) from geothermal energy by
the year 2010; b) expand direct use of geothermal resources
The very low expectations that the WEC Commis- and application of geothermal heat pumps to provide the heat-
sion has for the potential contribution from geothermal en- ing, cooling and hot water needs of seven million homes by
ergy, compared to the other “new” energy sources, probably the year 2010; c) meet the basic energy needs of 100 million
reflects to a certain extent the strength of the solar and wind people in developing countries by using U.S. geothermal tech-
energy lobbies. The geothermal community has the habit of nology to install at least 10,000 MW by the year 2010; d) by
being shy and keeping information to itself; whereas, the com- the year 2010, develop new technology to meet 10% of U.S.
mercial interests of the manufacturing industries and the in- non-transportation energy needs in subsequent years.
ternational associations behind solar and wind energy have In most countries, a significant percentage of the
secured greater success in public relations. energy usage is at temperatures of 50 - 100oC, which are com-
mon in low-enthalpy geothermal areas. Most of this energy is
DISCUSSION supplied by the burning of oil, coal or gas at much higher
As shown in Table 1, the worldwide use of geother- temperatures with the associated release of sulphur, carbon
mal energy amounts to about 44 TWh/a of electricity and 37 dioxide and other greenhouse gases. The scope for using geo-
TWh/a for direct use. A new estimate of the geothermal po- thermal resources alone as well as in combination with other
tential of the world (Björnsson, et al., 1998), shows the “Use- local sources of energy is, therefore, very large. The applica-
ful Accessible Resource Base” for electricity production to tion of the ground-source heat pump opens a new dimension
be some 12,000 TWh/a. A very small fraction of the geother- in the scope for using the earth’s heat, as heat pumps can be
mal potential has, therefore, been developed so far, and there used basically everywhere and are not as site-specific as con-
is ample space for an accelerated use of geothermal energy ventional geothermal resources. Geothermal energy, with its
for electricity generation in the near future. The scope for proven technology and abundant resources, can make a very
direct use of geothermal energy is even more plentiful, as the significant contribution towards reducing the emission of
“Useful Accessible Resource Base” is estimated 600,000 EJ, greenhouse gases worldwide. The energy market is, how-
which corresponds to the present direct use of geothermal ever, very conservative when it comes to changes. It is neces-
energy for some five million years. sary that governments implement a legal and institutional
Björnsson, et al. (1998) maintains that if the devel- framework and fiscal instruments allowing geothermal re-
opment of hydro and geothermal energy is vigorously pur- sources to compete with conventional energy systems and
sued, these resources could fulfill a very important bridging securing economic support in consideration of the environ-
function during the next few decades until clean fuels tech- mental benefits of this energy source.

8 GHC BULLETIN, DECEMBER 1998

REFERENCES Ragnarsson, A., 1995. “Iceland Country Update.” Proceed-
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Lund, J. W., 1996. Lectures on Direct Utilization of Geother- Uchida, T., 1997. Lectures on geothermal energy in Japan.
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USDOE-OGT, 1998. Strategic Plan for the Geothermal En-
Mondher, S., 1997. “Geothermal Utilization for Heating, ergy Program. U.S. Department of Energy, Office
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GEO-HEAT CENTER QUARTERLY BULLETIN

ISSN 0276-1084
A Quarterly Progress and Devlopment Report
on the Direct Utilization of Geothermal Resources

This article is in the Vol 19, No. 2 bulletin

This material was prepared with the support of the U.S. Department of
Energy (DOE Grant No. DE-FG07-90ID 13040). However, any opin-
ions, findings, conclusions, or recommendations expressed herein are
those of the author(s) and do not necessarrily reflect the view of DOE.

GHC BULLETIN, DECEMBER 1998 9