Skip to main content

Just In

KenGen Risks Losing Olkaria Geothermal Wells Over Licence Error

KenGen Risks Losing Olkaria Wells Over 18-Year Licence Blunder Kenya Electricity Generating Company (KenGen) faces a serious legal and operational risk at Olkaria after an error in the coordinates of its geothermal licence left part of the company’s wells, steam infrastructure and other assets outside its legally recognised area. The licensing mistake, made nearly two decades ago, remains unresolved despite the Ministry of Energy and Petroleum acknowledging the problem in 2017.  The dispute has raised questions about the security of KenGen’s investments, the government’s management of geothermal resources and the potential consequences for Kenya’s electricity supply. Olkaria is the country’s most important geothermal centre and accounts for the overwhelming majority of Kenya’s installed geothermal generation capacity.  Licence Error Exposes Strategic Assets The problem dates back to September 19, 2008, when the Ministry of Energy and Petroleum issued KenGen a licence covering ...

Mastering the Subsurface: A Geothermal Reservoir Engineer's Insights on EGS, Stimulation, Digital Twins, and the Future of Clean Baseload Power

Geothermal energy is often called the “quiet backbone” of the clean energy transition. To understand the science, challenges, and innovations driving this sector, we spoke with a seasoned geothermal reservoir engineer with experience spanning the Andes, Nevada, Utah, and volcanic fields worldwide. Here’s what they shared.

By: Robert Buluma
This interview was conducted by Robert Buluma, Founder of Alphaxioms. The responses were provided by Jerjes Porlles, Ph.D., Regional Technical & Business Development Manager – Latin America at Avasthi & Associates, Worldwide Energy Consulting.

1. What sparked your passion for geothermal reservoir engineering, and did you ever imagine yourself working in some of the world’s most challenging geothermal fields?

My passion was sparked during my early career in the petroleum industry, specifically in reservoirs. I was fascinated by the subsurface—how fluids move, how heat and pressure interact but it wasn’t until I worked on projects in Peru that I realized geothermal offered the chance to apply my skills to clean energy. I never imagined I would later work on Enhanced Geothermal Systems (EGS) projects in Nevada and Utah or Andean volcanic fields, where the geology is as unforgiving as it is exciting. Those challenges became a source of motivation rather than a source of fear.

2. Looking back, which project pushed you to your limits and what did it teach you about yourself and the industry?


A project in Nevada, where we modeled a reservoir under extreme conditions, truly tested me. We had to integrate geomechanics, stimulation modeling, and uncertain thermal recovery forecasts. It taught me that adaptability is as important as technical expertise. The industry is full of unknowns, and resilience is built by embracing them, not resisting them.

3. If you could go back in time, what advice would you give your younger self starting in this field?

I’d say: “Don’t fear complexity. Chase it.” The more complex the reservoir, the more you’ll learn. And, importantly, I would tell myself to build strong collaborations early—because geothermal is never a one-discipline job.

4. Can you share a moment when reservoir modeling or simulation completely changed the direction of a project?


Yes, during a simulation of a fractured geothermal system, the initial plan was to stimulate multiple wells aggressively. The model, however, revealed rapid thermal breakthrough if we followed that strategy. By re-optimizing injection and production spacing, we extended project life by years. That one model saved millions and demonstrated that simulation is not just academic it is a survival tool.

5. Have you ever faced a situation where enhancing permeability didn’t go as planned? How did you overcome it?


Absolutely. In one stimulation test, induced fractures propagated away from the desired reservoir zone, causing poor injectivity gains. Instead of repeating the operation, we integrated microseismic monitoring with adaptive modeling to redesign the stimulation in real time. The next stage succeeded, teaching me that feedback loops between field data and modeling are essential.

6. What’s the one reservoir challenge that keeps you up at night, even after years of experience?

Sustainability. We can always produce heat, but doing so without depleting the reservoir or causing induced seismicity is the tightrope we walk. Balancing aggressive targets with long-term reservoir health is an art as much as it is science.

7. In your experience, what is the most misunderstood aspect of geothermal reservoir management by outsiders?

That geothermal is “free heat forever.” Many people underestimate the complexity of maintaining productivity and sustainability. Reservoirs are dynamic, and if poorly managed, you can lose capacity quickly. It’s not just drilling a hole into hot rock.


8. How do you decide whether a geothermal site is worth the risk and have you ever been proven wrong?

We weigh geoscientific data, stress regimes, reservoir modeling, and economics together. I was once overly optimistic about a site in the Andes where surface heat flow data looked ideal. But drilling revealed a tight formation with poor permeability. It reminded me that nature always humbles engineers.

9. Can you share a story where data-driven decisions turned a struggling project into a success?

During my work on an Enhanced Geothermal System (EGS) project in Nevada, the team initially struggled because early stimulation results didn’t achieve the expected fracture connectivity. This meant we weren’t seeing the necessary flow rates to make the project viable. Instead of continuing with trial-and-error pumping strategies, we shifted toward a data-driven approach.

We integrated microseismic monitoring, well-test data, and geomechanical modeling to better understand the fracture network evolution. Using this data, I helped calibrate coupled reservoir–fracture models that revealed why stimulation fluid was not effectively propagating into the target zones. The analysis showed stress anisotropy was steering fractures away from our preferred direction.

Based on these insights, we adjusted the injection sequence, pressure schedules, and selected zones with a higher probability of fracture reactivation. As a result, we improved fracture connectivity, increased injectivity, and achieved sustainable flow rates that transformed the project from uncertain to technically successful.

10. What are the biggest obstacles technical, political, or operational that the geothermal industry refuses to talk about openly?

Political instability and inconsistent energy policy. Technically, we discuss challenges freely, but projects often fail due to sudden regulatory changes, permitting delays, or lack of financing frameworks. It’s the silent elephant in the room.

11. How do you balance the pressure for high energy output with the long-term sustainability of a reservoir?

By always planning for 20–30 years, not 2–3. It requires convincing stakeholders that moderate, steady production is better than chasing early peaks. Simulation helps us demonstrate the economic value of patience.

12. Supercritical geothermal resources are often called “the holy grail” of clean energy. How close are we really to unlocking their potential?

We’re closer than people think pilot wells in Iceland and Japan are already proving concepts but engineering materials, drilling technologies, and induced seismicity control are still hurdles. I believe within the next decade we’ll see the first commercial supercritical project.

13. Which emerging technology AI, digital twins, or advanced sensors do you think will revolutionize reservoir engineering, and why?

Digital twins integrated with real-time sensing will be the game changer. AI is powerful, but without live feedback, it risks being abstract. Digital twins will let us simulate and adjust operations on the fly, closing the gap between modeling and reality.

14. In your view, what is geothermal’s role in the next decade of the global energy transition?

Geothermal will be the quiet backbone less flashy than solar or wind, but crucial for baseload power and grid stability. As hydrogen and storage grow, geothermal will complement them, ensuring reliability.

15. If you had unlimited funding and freedom, what geothermal innovation would you pursue tomorrow?

A fully integrated fiber-optic sensing and AI-driven digital twin for EGS reservoirs. Real-time reservoir visibility would transform how we design and manage these systems.

16. Tell us about the most unexpected problem you’ve faced in a geothermal field and the creative solution you came up with.

In one project, scaling from silica precipitation clogged a well faster than anticipated. Instead of just chemical treatment, we designed a hybrid mechanical-chemical solution with pulsed injection cycles. It reduced downtime dramatically.

17. Collaboration can be tricky. Can you describe a time when you had to convince geologists, engineers, and operators to see your perspective on a project?

In a fractured reservoir project, geologists insisted that fractures connected to a nearby fault were beneficial. My simulation indicated a high risk of rapid pressure decline.

18. For aspiring geothermal engineers, what bold advice would you give something they won’t hear in textbooks?

Don’t just learn geothermal learn petroleum, mining, and even policy. The best geothermal engineers are multidisciplinary. And never forget: the reservoir is alive; treat it with respect. 





Comments

Popular posts from this blog

Jicarilla Apache Geothermal Study Wins $2.5 Million Grant

Jicarilla Apache Nation Launches $2.5 Million Geothermal Feasibility Study The Jicarilla Apache Nation in northern New Mexico has launched a major investigation into its geothermal energy potential after receiving a $2.5 million grant from the State of New Mexico. The funding will support a detailed feasibility study examining whether underground heat resources on tribal lands could be developed for electricity generation, direct heating, or other energy applications. The initiative represents an important step in the Nation’s efforts to understand and diversify its energy resources. Although the Jicarilla Apache Nation has not yet committed to building a geothermal facility, the study could provide the geological, technical, and economic information required for future investment decisions. The project is particularly significant because the Nation already has extensive experience with subsurface exploration through its oil and gas activities. Existing geological records, drilling inf...

Next-Gen Geothermal Funding 2026: VCs, Banks, Government Capital

Who Is Really Funding Next-Gen Geothermal in 2026? Next-generation geothermal has moved beyond laboratory research into a capital-intensive commercialization phase. In 2026, the most important financing is no longer coming from one investor category: venture capital funds are financing drilling, subsurface modelling and hardware; strategic energy companies are providing equipment, project access and market credibility; banks are beginning to lend against contracted projects; and governments are absorbing exploration and first-of-a-kind technology risk. The strongest financing activity is concentrated in the United States and Canada, but Europe is becoming increasingly important through Germany-based deployment, European Union grants, UK innovation support, and strategic participation from European energy companies. The central investment question is changing from “Can this technology work?” to “Can the developer deliver repeatable, financeable projects at commercial cost?” The 2026 fun...

Vercana Electric Rig Advances Geothermal Brine Lithium Extraction Economics

Electric-Rig Direct Lithium Extraction From Geothermal Brine: The Economics of Vercana Versus Ormat Vulcan Energy Resources is pursuing an integrated model that combines geothermal drilling, direct lithium extraction, renewable electricity and industrial heat. Through its Vercana subsidiary, the company is also using electric drilling equipment designed to support the development of its Lionheart project in Germany’s Upper Rhine Valley. The approach differs from the conventional geothermal model represented by Ormat Technologies, whose core business remains geothermal power generation, equipment, project development and energy storage rather than commercial lithium recovery from geothermal brine.  The economic question is broader than whether an electric drilling rig costs less to operate than a diesel rig. The more important issue is whether electric drilling, geothermal energy and direct lithium extraction can create a more valuable integrated project than a conventional geotherm...

Billionaire Families Bet on Advanced Geothermal Energy Investments

Billionaire Geothermal Families Bet on Geothermal Billionaire families and private investment offices are placing increasingly large bets on geothermal energy, especially on technologies designed to make the resource available in more locations. Their investments are helping finance enhanced geothermal systems, advanced drilling, closed-loop designs, and other approaches that could transform geothermal from a regionally concentrated power source into a globally scalable clean-energy industry. The investment surge reflects a broader change in the energy market. Electricity demand is rising because of artificial intelligence, data centers, industrial electrification, electric vehicles, and the expansion of digital infrastructure. At the same time, utilities and large corporations need power that is reliable around the clock. Solar and wind remain essential to the clean-energy transition, but their output varies with weather and time of day. Geothermal could complement these technologies ...

Global Geothermal Investment 2026: 15 High-Growth Markets

Global Geothermal Investment 2026: 15 Markets Where Developers Should Look Next Geothermal energy is entering its most investable decade yet, with developers, drilling contractors, turbine suppliers and private capital providers scanning a widening map of opportunities beyond the traditional “big five” producers.  This article profiles 15 markets where project pipelines, policy signals, resource quality and technology readiness converge to create compelling entry points in 2026 and beyond.  Why 2026 Is a Turning Point for Geothermal Capital Global geothermal investment is accelerating as governments seek firm, low‑carbon baseload to back up variable wind and solar, while advanced drilling and subsurface engineering lower costs and expand the resource base. Market analysts project the geothermal energy market to reach roughly USD 13.56 billion by 2030, up from about USD 9.81 billion in 2025, implying sustained double‑digit growth in development spend. Capital is flowing not onl...

Western Geothermal Power Transmission Roadmap Toward 2030

Geothermal Power in the Western United States: A Transmission and Planning Roadmap to 2030 Introduction The Western United States is approaching a decisive period for geothermal power. Electricity demand is rising because of data centers, industrial electrification, population growth, electric vehicles and the replacement of retiring fossil-fuel generation. At the same time, utilities are under growing pressure to add clean resources that can operate reliably when solar and wind output declines. Geothermal power is well positioned to fill this role. Unlike weather-dependent generation, geothermal plants can provide firm electricity for long periods, support grid reliability and reduce the amount of storage required in deeply decarbonized power systems. However, the industry’s expansion will depend on more than subsurface heat and drilling technology. By 2030, transmission access, resource planning, project finance, permitting and utility procurement will determine whether geothermal be...

Ijen vs Zanskar: Blind Geothermal Energy Discovery and Development

Ijen’s Blind Geothermal System vs. Zanskar’s AI-Discovered Resources: Two Models for Finding Hidden Heat The geothermal industry is entering a new phase in which the most valuable resources may no longer be the fields marked by obvious hot springs, geysers, fumaroles, or steaming ground. Increasingly, developers are targeting “blind” or hidden geothermal systems,reservoirs that lack clear surface expressions but can still contain the temperature, permeability, and fluid needed for commercial power generation. Two examples illustrate how different parts of the industry are approaching this challenge. In Indonesia, the Blawan-Ijen geothermal field in East Java was developed through geological interpretation, magnetotelluric imaging, conceptual modelling, and drilling. The project is now operating commercially, with its first phase delivering approximately 35 MW to the Java grid under a 30-year power purchase agreement.  In the United States, Zanskar Geothermal & Minerals is using...

Alberta Geothermal Startup Phase Secures Funding for High-Temperature Drilling Sensors

Alberta’s Phase Targets a Critical Geothermal Drilling Barrier With High-Temperature Sensors Alberta is using its deep oil-and-gas expertise to pursue a new opportunity beneath the surface: geothermal energy. Among the companies receiving support through Emissions Reduction Alberta’s Drilling Technology Challenge is Edmonton-based Phase Advanced Sensor Systems Corp., which is developing a high-temperature downhole pressure sensor for enhanced geothermal systems. The project addresses a problem that could determine whether deep geothermal energy becomes commercially viable: operators need reliable, accurate information from wells exposed to extreme heat and pressure. Phase plans to demonstrate a sensor capable of operating at temperatures above 200°C, with testing planned at 200°C, 250°C and 275°C.  The project has a total value of approximately C$1.57 million, including C$420,000 in ERA funding, according to Alberta’s project information.  Dealroom reported the award as approx...

Unlocking Impermeable Geothermal Reservoirs: Hydraulic Stimulation, Menengai and Olkaria

Unlocking the Impermeable Reservoir: Lessons from a 30-Year Reservoir Engineer An Alphaxioms interview with Richard Joseph Holt, Principal Consultant in Reservoir Engineering at RESPEC . Context: Menengai East and Olkaria Central. Every geothermal developer knows the moment.  The rig is gone and the money is spent. The well is drilled to depth, the temperature is there, and then the well will not flow. The heat is real, but the connection between the well and the reservoir is not. Wells like this sit at the centre of one of the most important questions in geothermal development: what do you do with a tight reservoir? Walk away and drill again, or find a way to unlock what is already there? To explore the question, Alphaxioms spoke with Richard Joseph Holt, Principal Consultant in Reservoir Engineering at RESPEC . Richard brings 30 years of global experience in geothermal energy.  We framed our questions around two settings, Menengai East and Olkaria Central, and asked him how ...

Kaishan Targets 2 GW Kenya Geothermal Development Across Five Fields

Kaishan Targets 2 GW of Geothermal Development Across Kenya Kenya's geothermal sector has opened a potentially significant new chapter after Kaishan Group and the Geothermal Development Company (GDC) signed a collaboration framework agreement covering five geothermal blocks in the East African Rift Valley. Signed in Nairobi on September 14, 2026 , the agreement establishes a framework for the two parties to explore potential joint development of Silali, Paka, Korosi, Baringo and Suswa . According to Kaishan, the five areas have potential to support approximately 2 GW of installed geothermal capacity . The headline figure is substantial, but it is important to distinguish between resource potential and committed generation capacity . The framework agreement is non-binding. The parties will first conduct due diligence, assess the resources and negotiate development plans before potentially signing separate binding agreements for individual geothermal blocks. The development coul...