SLB and Ormat partner to accelerate geothermal development – World Oil

Report on the SLB and Ormat Technologies Strategic Partnership for Geothermal Energy Development

Introduction and Strategic Objectives

A strategic agreement has been established between SLB and Ormat Technologies to accelerate the development and commercialization of integrated geothermal assets. This report outlines the partnership’s objectives and its significant alignment with the United Nations Sustainable Development Goals (SDGs).

• Primary Objective: To fast-track the deployment of next-generation geothermal solutions, including Enhanced Geothermal Systems (EGS).
• Core Mission: To deliver clean, reliable, and scalable baseload energy, thereby expanding energy access beyond traditional hydrothermal resource regions.
• Methodology: The collaboration will co-develop and deploy integrated geothermal technologies through a pilot EGS project to validate commercial-scale performance.

Alignment with SDG 7: Affordable and Clean Energy

The partnership is fundamentally aligned with ensuring access to affordable, reliable, sustainable, and modern energy for all.

• The initiative aims to make both traditional hydrothermal and EGS technologies commercially viable systems, directly addressing the affordability and accessibility targets of SDG 7.
• By engineering thermal reservoirs, EGS technology can unlock geothermal potential in new geographic areas, contributing to a global increase in the share of renewable energy.
• The project focuses on providing a reliable baseload power source, which is critical for stable and sustainable energy infrastructure.

Contribution to SDG 9: Industry, Innovation, and Infrastructure

This collaboration fosters innovation and promotes the development of resilient and sustainable energy infrastructure.

1. Technological Innovation: The partnership merges distinct areas of expertise to drive innovation.
   • SLB provides subsurface, reservoir, and well-construction expertise.
   • Ormat contributes extensive experience in geothermal power-plant design and operations.
2. Sustainable Industrialization: Key goals include improving system efficiency, reducing drilling and completion costs, and optimizing surface-facility integration for long-term sustainability.
3. Infrastructure Development: The successful commercialization of EGS will lead to the construction of new, resilient energy infrastructure capable of meeting rising demand from sectors like AI and data centers.

Impact on SDG 13: Climate Action

The development of geothermal energy is a direct action to combat climate change and its impacts by providing a low-carbon alternative to fossil fuels.

• EGS technology generates power with minimal greenhouse gas emissions by transferring heat from naturally hot rock to the surface.
• Scaling this technology will contribute significantly to the global energy transition and help nations meet their climate targets.
• The U.S. Department of Energy estimates that next-generation geothermal could supply up to 300 GW of clean power in the U.S. by 2050, demonstrating the technology’s potential for substantial climate impact.

Fostering SDG 17: Partnerships for the Goals

The agreement between SLB and Ormat serves as a model for the multi-stakeholder partnerships required to achieve the SDGs.

• It represents a strategic alliance between two industry leaders to mobilize and share knowledge, expertise, and technology.
• The collaboration is designed to accelerate the path to rapid, commercial-scale deployment of sustainable energy solutions, demonstrating a commitment to global sustainable development.

Future Outlook and Commercialization Strategy

Following a successful pilot phase, the partnership plans to pursue a global commercialization strategy targeting a diverse customer base.

1. Validation: A pilot EGS project at an existing Ormat facility will be used to demonstrate commercial viability and performance.
2. Global Deployment: The partners will pursue the global commercialization of EGS technologies.
3. Target Markets: The initiative will focus on supplying clean energy to independent power producers, utilities, and large-scale industrial users.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy: The article’s central theme is the development and scaling of geothermal energy, a clean and reliable energy source. The partnership aims to “fast-track the development and commercialization of integrated geothermal assets” to deliver “clean, reliable baseload energy.”
• SDG 9: Industry, Innovation, and Infrastructure: The collaboration focuses on technological innovation (“next-generation geothermal solutions,” “EGS technologies”) and improving infrastructure to make energy production more sustainable. It mentions goals like “improving system efficiency, reducing drilling and completion costs, and optimizing surface-facility integration.”
• SDG 13: Climate Action: By promoting a large-scale clean energy source like geothermal, the initiative directly contributes to combating climate change. Geothermal power is a low-carbon alternative to fossil fuels, which is a key strategy for climate action.
• SDG 17: Partnerships for the Goals: The article is about a “strategic agreement” between SLB and Ormat Technologies. This collaboration exemplifies a partnership that leverages the combined expertise of different entities (“SLB’s subsurface, reservoir, and well-construction expertise alongside Ormat’s experience in geothermal power-plant design”) to achieve a common sustainable development objective.

2. What specific targets under those SDGs can be identified based on the article’s content?

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 directly supports this target by focusing on scaling up geothermal energy, a renewable source. The goal is to make these technologies “truly competitive and commercially viable systems that can scale quickly to meet global energy demand.”
   • 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. The partnership between SLB and Ormat is a form of cooperation to “co-develop and deploy integrated geothermal and EGS technologies,” which aligns with facilitating access to and advancing clean energy technology.

2. SDG 9: Industry, Innovation, and Infrastructure

   • 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 article mentions the partnership’s focus on “improving system efficiency” and deploying “next-generation geothermal solutions,” which are clean technologies aimed at making the energy industry more sustainable.

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. While the article doesn’t discuss national policies, the development of large-scale clean energy infrastructure, such as the 300 GW potential mentioned for the U.S., is a fundamental measure and strategy for nations to combat climate change and meet their climate goals.

4. SDG 17: Partnerships for the Goals

   • Target 17.16: Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources. The strategic agreement between SLB and Ormat is a direct example of this, as they are combining their unique “expertise” and “technologies” to achieve the shared goal of advancing geothermal energy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for Target 7.2 (Renewable energy share): The article provides a specific, quantifiable potential outcome that can serve as an indicator. It states, “The U.S. Department of Energy estimates that next-generation geothermal could supply up to 300 GW of power domestically by 2050 — nearly one-third of total U.S. generating capacity.” This figure directly measures the potential increase in the share of renewable energy.
• Implied Indicators for Target 9.4 (Sustainable industry): The article implies indicators for progress by stating the partnership will focus on “improving system efficiency, reducing drilling and completion costs, and optimizing surface-facility integration.” These metrics, while not quantified in the text, are clear areas where progress can be measured to track the sustainability and efficiency of the technology.
• Indicator for Target 17.16 (Partnerships): The existence of the “strategic agreement” between SLB and Ormat itself serves as a qualitative indicator of a partnership being formed to advance sustainable development. The deployment of a “pilot EGS project” is a concrete milestone and indicator of this partnership’s progress.

4. Summary Table of SDGs, Targets, and Indicators

Source: worldoil.com