Google Ignites Taiwan’s First Corporate Geothermal Deal for 24/7 Clean Energy
Google has taken another big step in clean energy by signing the first corporate geothermal power deal in Taiwan. This deal is part of Google’s global plan to power its offices and data centers with 24/7 carbon-free energy. It also shows how geothermal energy can be a strong and reliable source of clean electricity, especially in places like Asia, where the demand for energy is rising fast.
What Is Geothermal Energy?
Geothermal energy comes from the heat inside the Earth. This heat is used to create steam, which turns turbines to generate electricity. One big advantage of geothermal power is that it can run all day and night, unlike solar or wind energy, which depend on weather and sunlight. Because of this, geothermal is often called a “firm” energy source.
Taiwan sits along the Pacific Ring of Fire, an area with lots of volcanic activity. That makes it a good place to use geothermal energy. However, until now, Taiwan has not made much use of this natural resource. In fact, the country currently uses only a small amount of geothermal power.
What’s the New Deal About?
Google and Baseload Capital’s new agreement is to add 10 megawatts (MW) of geothermal power to Taiwan’s electricity grid. This will double the amount of geothermal energy currently in use in the country. The power will help run Google’s data centers and offices in Taiwan.
The deal is more than just a power purchase agreement (PPA). Google is also investing money in Baseload Capital, the company building the geothermal plants. This shows Google’s long-term support for growing geothermal energy, not just in Taiwan but across Asia and the world.
The new projects could be ready by 2029. Once they are running, they will supply clean energy to Google’s local operations around the clock.
Baseload Capital’s CEO, Alexander Helling, said the agreement “shows the growing demand for 24/7 clean, firm energy.” Google’s Senior Director of Clean Energy, Michael Terrell, added by saying:
“Through this long-term partnership with Baseload, we aim to unlock geothermal potential, driving the clean energy development needed to help decarbonize our operations and supply chains in Taiwan and globally. We hope this first corporate agreement for geothermal in Taiwan will help to scale corporate procurement for geothermal projects across the region and worldwide.”
Supporting Taiwan’s Energy Targets and Google’s 24/7 Carbon-Free Energy Goal
Taiwan has set a goal to install 6 gigawatts (GW) of geothermal energy by the year 2050. That’s a big increase from where the country stands today.
Google’s partnership with Baseload Capital will help Taiwan move toward this goal by speeding up the development of geothermal projects, creating jobs, and building local expertise in the field.
Baseload Capital’s local team, Baseload Power Taiwan, has already started exploring geothermal sites. They are working with local communities and the government to improve rules and permits, which can make it easier to start new projects.
Google has been working on clean energy for years. In 2019, the company signed its first solar energy deal in Taiwan. Now, it’s taking the next step by adding geothermal energy. This deal is part of Google’s plan to use only carbon-free energy every hour of every day, no matter where its buildings are located.
Google’s Carbon-Free Map with Data Center Operations
Google has a large and growing number of data centers. These centers use a lot of electricity to run the internet, store data, and power AI tools. To keep up with rising energy needs while cutting pollution, the tech company needs strong and steady sources of clean power. Geothermal helps meet that need.
Google’s Broader Geothermal Efforts
This deal in Taiwan is just one part of Google’s work on geothermal energy. In the U.S., Google is testing a newer type of geothermal technology with a company called Fervo Energy. This version, called “enhanced geothermal,” drills deeper into the Earth and uses advanced tools to find more heat.
The tech giant is also working with a group called Project Innerspace to study geothermal resources around the world using subsurface data.
In Australia, Google is supporting research to find out how geothermal can grow in that region, too. All these efforts are aimed at making geothermal easier and cheaper to use.
By using geothermal, Google can also reduce its reliance on fossil fuels, increase energy security, and lead the way for other companies to follow.
Clean Energy and the Tech Industry
As more companies use artificial intelligence (AI) and cloud services, the demand for power keeps growing. Many of these services run in data centers, which need electricity 24/7. Solar and wind energy are important, but they don’t provide power all the time. Geothermal fills this gap by offering clean power that is always available.
That’s why experts say geothermal could play a bigger role in the future of clean energy. According to the International Renewable Energy Agency (IRENA), geothermal provided about 15,026 MW of power in 2023.
The same energy source could provide up to 3.5% of the world’s electricity by 2050, IRENA says. That’s not a huge number, but it’s important because it offers constant power to balance out other renewables.
Geothermal Energy Around the World
Globally, geothermal power still makes up a small share of energy. As of 2023, the world had about 16 gigawatts (GW) of geothermal capacity, according to the International Energy Agency (IEA). The largest users are the United States, Indonesia, the Philippines, and Turkey.
World Geothermal Capacity and Electric Generation
In Asia, countries like Japan and Indonesia have strong potential to expand geothermal energy because of their location in the Pacific Ring of Fire. However, high costs, strict rules, and long building times have made it hard to grow quickly.
Corporate investment, like the one from Google, could help unlock these markets by bringing money, expertise, and long-term demand. Governments, oil and gas companies, and utilities are also exploring investment opportunities in geothermal energy.
If next-generation geothermal technologies can significantly reduce costs, total global investment could reach $1 trillion by 2035 and grow to $2.5 trillion by 2050, per the IEA data. Annual investment could peak at $140 billion — more than what is currently invested in onshore wind power worldwide.
A Pathway for Others to Follow
This deal is the first of its kind in Taiwan, but Google hopes it won’t be the last. By showing that corporate geothermal agreements are possible, Big Tech is setting an example for other companies. More corporate demand could help drive down costs, improve technology, and bring more clean energy projects to life.
If more firms follow this path, especially in high-demand areas like data centers, geothermal and other firm clean energy sources could play a much bigger role in meeting global energy needs.
The post Google Ignites Taiwan’s First Corporate Geothermal Deal for 24/7 Clean Energy appeared first on Carbon Credits.
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