Report on Closed-Loop Geothermal Systems and Their Alignment with Sustainable Development Goals

Executive Summary

An innovative clean energy solution, closed-loop geothermal technology, is attracting significant investment from leading technology corporations, including Meta, Microsoft, and Google. This system harnesses subterranean heat to provide a steady and low-pollution source of electricity, positioning it as a critical technology for powering energy-intensive infrastructure like data centers. Its development and deployment are strongly aligned with several United Nations Sustainable Development Goals (SDGs), particularly those concerning clean energy, climate action, and sustainable industrial innovation.

Technological Framework and Operational Advantages

Closed-loop geothermal systems represent a significant advancement over traditional geothermal methods. Their operational model offers distinct advantages that enhance their contribution to sustainable development.

• Operating Principle: The technology circulates heat-exchanging fluids through sealed pipes installed in deep wells, transferring heat from the Earth’s core to the surface for power generation.
• Geographic Versatility: Unlike conventional geothermal energy, which relies on specific geological formations like porous underground reservoirs, closed-loop systems can be deployed in a wider range of locations. This includes the repurposing of retired oil and gas wells, an innovative approach that supports SDG 9 (Industry, Innovation, and Infrastructure).
• Enhanced Efficiency: Advanced designs can nearly double the energy output per well compared to older geothermal methods, increasing resource efficiency and viability.

Contribution to Global Sustainable Development Goals (SDGs)

The adoption of closed-loop geothermal technology directly supports the achievement of key SDGs through its environmental and economic benefits.

1. SDG 7: Affordable and Clean Energy

   The technology is a prime contributor to ensuring access to affordable, reliable, sustainable, and modern energy for all.

   • It provides baseload reliability, capable of generating electricity 24/7.
   • It produces minimal pollution, reducing dependence on fossil fuels and advancing the transition to clean energy.
   • Its consistent output helps stabilize power grids, enhancing energy security.

2. SDG 13: Climate Action

   By offering a low-carbon power source, geothermal energy is a vital tool in taking urgent action to combat climate change and its impacts.

   • It significantly reduces greenhouse gas emissions compared to conventional power sources.
   • It supports global decarbonization strategies by providing a scalable, clean energy alternative.

3. SDG 9: Industry, Innovation, and Infrastructure

   The system fosters sustainable industrialization and promotes innovation.

   • It provides the reliable, clean power required for the expansion of digital infrastructure.
   • Its minimal land-use footprint makes it an efficient solution for industrial power needs.

4. SDG 11 & SDG 12: Sustainable Cities and Responsible Production

   The technology promotes sustainable consumption and production patterns and makes human settlements more sustainable.

   • It enables corporations to adopt more sustainable energy sources for their operations.
   • Pilot projects are exploring the extraction of lithium from geothermal fluids, which would create a sustainable domestic supply chain for batteries and support SDG 12 (Responsible Consumption and Production).

Challenges and Future Outlook

Despite its potential, the widespread adoption of closed-loop geothermal technology faces certain obstacles, primarily related to cost. However, growing investment and policy support indicate a positive trajectory.

• Economic Viability: High upfront drilling costs remain a significant barrier. Capital expenditures may need to decrease by as much as 60% for the technology to compete with other baseload power sources like nuclear energy on a large scale.
• Investment and Policy Momentum: Global funding for geothermal projects exceeded $2 billion in 2024, and supportive policies are emerging in key markets. This momentum is crucial for driving down costs through innovation and economies of scale.
• Strategic Importance: A report from Wood Mackenzie noted, “While strategic interest in geothermal is real, progress could be slowed by a lower prioritization of low-carbon investments.” Continued focus on climate goals is essential for the technology to become a prominent part of the global clean energy mix.

SDGs Addressed in the Article

• SDG 7: Affordable and Clean Energy

  The article focuses entirely on closed-loop geothermal technology, a form of clean, renewable energy. It discusses its potential to provide “steady, low-polluting electricity” and become a “prominent part of the clean energy mix,” directly aligning with the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all.

• SDG 9: Industry, Innovation, and Infrastructure

  The text highlights a “cutting-edge clean energy system” and “innovation” as central themes. It describes how this technology can be integrated into “digital infrastructure” by powering data centers for companies like Meta, Microsoft, and Google. The concept of “repurposing retired oil and gas wells” also points to building resilient and sustainable infrastructure.

• SDG 13: Climate Action

  The article explicitly connects the technology to climate goals. It emphasizes that closed-loop geothermal systems produce “zero-pollution electricity,” help “reduce dependence on dirty fuels,” and support “long-term climate goals.” This directly addresses the need to take urgent action to combat climate change and its impacts.

• SDG 8: Decent Work and Economic Growth

  The article touches on economic aspects, such as the potential to add “economic value by supporting battery supply chains” through lithium extraction from geothermal fluids. It also discusses the high capital costs and the need for them to fall for the technology to be competitive, linking innovation to sustainable economic viability.

Specific SDG Targets Identified

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

     The article supports this target by presenting closed-loop geothermal as a technology that can “significantly boost output” and become a “more prominent part of the clean energy mix,” thereby increasing the share of renewable energy.

   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.

     This target is reflected in the mention of “over $2 billion in global funding allocated to geothermal initiatives in 2024” and “new supportive policies emerging in countries like Germany,” which indicates investment and policy support for clean energy technology.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.

     The article highlights geothermal’s “baseload reliability” and its ability to provide “round-the-clock electricity,” which is crucial for developing reliable and resilient energy infrastructure to power data centers, cities, and businesses.

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.

     The practice of “repurposing retired oil and gas wells” for geothermal energy is a direct example of retrofitting infrastructure for sustainable use. The adoption of this technology by tech giants like Meta, Microsoft, and Google illustrates the move towards clean and environmentally sound technologies in industry.

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.

     The article notes that “supportive policies emerging in countries like Germany” and the overall push for low-carbon investments demonstrate the integration of climate-friendly technologies into national strategies. The technology is framed as a solution that “supports long-term climate goals.”

Indicators for Measuring Progress

1. For Target 7.2 (Increase renewable energy share):

   • Energy generated per well:

     The article implies this is a key metric for progress, stating that advanced designs can “nearly doubling the energy generated per well compared to older geothermal methods.”

   • Share of geothermal in the energy mix:

     The article suggests this as a long-term goal, aiming for geothermal to “become a more prominent part of the clean energy mix.”

2. For Target 7.a (Promote investment in clean energy):

   • Financial flows to geothermal initiatives:

     The article explicitly mentions this indicator, citing “over $2 billion in global funding allocated to geothermal initiatives in 2024.”

3. For Target 9.4 (Upgrade infrastructure and adopt clean tech):

   • Reduction in capital expenditures:

     The article identifies this as a critical indicator for widespread adoption, noting that “Capital expenditures may need to fall by up to 60% for geothermal to compete with nuclear energy at scale.”

   • Rate of adoption by major industries:

     The article implies this indicator by naming “Meta, Microsoft, and Google” as companies already investing in the technology.

4. For Target 8.4 (Improve resource efficiency):

   • Amount of valuable materials extracted as by-products:

     The article implies this indicator by mentioning pilot projects that are “testing the potential to extract lithium from geothermal fluids, adding economic value.”

Summary of SDGs, Targets, and Indicators

Source: thecooldown.com