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 ...

GEOLOG Acquires Quad Ltd and QO Inc. to Revamp Wellsite Geology and Pore Pressure Outreach

Revolutionizing the Depths: How GEOLOG's Strategic Acquisition is Supercharging Geothermal Energy's Future

Imagine plunging miles beneath the Earth's surface, tapping into an ancient furnace of heat that never sleeps, never falters, and never runs out. This is geothermal energy—the planet's own endless battery, capable of powering civilizations with clean, reliable electricity around the clock. While solar panels go dark at night and wind turbines stand idle in calm air, geothermal delivers baseload power with capacity factors often above 90%. In a world racing toward net-zero emissions and facing exploding energy demands from data centers, electric vehicles, and industrial growth, geothermal is emerging as the sleeping giant ready to awaken.

Scaling geothermal globally, however, is no simple task. Drilling deep into the crust exposes crews to extreme conditions: temperatures soaring past 300°C, highly corrosive fluids, and rock so hard it can destroy drill bits in hours. Drilling costs frequently account for half of a project's total budget, and one major setback—like a blowout or borehole collapse—can turn a promising site into a financial disaster.

The invisible threat lurking in every geothermal well is pore pressure—the force exerted by fluids trapped within rock pores. Misjudge it, and the consequences can be catastrophic. Overpressure risks dangerous kicks and blowouts; underpressure can cause the wellbore to cave in. In complex geothermal environments, such as high-enthalpy volcanic fields or enhanced geothermal systems (EGS), pore pressure anomalies have historically plagued many projects, leading to costly delays and safety hazards.

This is where a major development announced on January 8, 2026, changes the game.

GEOLOG International B.V.—a global leader in wellsite geosciences, surface logging, and drilling optimization—successfully acquired Quad Ltd and QO Inc. (together, “Quad”). Quad specializes in providing experienced wellsite and operations geologists, along with advanced pore pressure prediction and fracture gradient analysis services.

This strategic bolt-on acquisition significantly strengthens GEOLOG’s ability to support high-risk, technically demanding wells—exactly the kind of projects that dominate geothermal development.

GEOLOG and Quad have collaborated successfully on numerous international projects for years. Now formally united, they combine GEOLOG’s extensive global presence (operating in over 40 countries), cutting-edge digital workflows, and real-time surface logging technologies with Quad’s renowned expertise in HPHT (High-Pressure, High-Temperature) environments, deepwater operations, and unconventional plays.

The result is a more powerful, integrated service offering that includes:

A vastly expanded global team of seasoned wellsite and operations geologists  
Superior real-time pore pressure and fracture gradient monitoring to guide well design and drilling decisions  
Comprehensive risk mitigation for complex wells, from exploration through development and production 
 
Deep geothermal drilling is an awe-inspiring feat of engineering. Rigs operate day and night, pushing through abrasive formations under extreme heat and pressure. The acquisition’s timing couldn’t be better. Enhanced Geothermal Systems (EGS) are poised to unlock vast new resources by fracturing hot dry rock and circulating water to generate steam—potentially providing hundreds of gigawatts of power worldwide. But EGS demands flawless pressure management to create productive fractures without triggering unwanted seismicity.

Kenya offers a powerful real-world example of geothermal’s potential. The country’s Rift Valley hosts some of the world’s most active geothermal fields, with projects like Olkaria already delivering hundreds of megawatts of clean power. Steam vents rise from the earth, and power plants harness this natural heat to supply electricity to millions—demonstrating geothermal’s ability to transform energy landscapes in developing nations.

With the enhanced expertise from this acquisition, GEOLOG is better positioned than ever to support operators in East Africa, Indonesia, the United States, Europe, and beyond. Real-time monitoring, advanced pore pressure modeling, and integrated geological services can reduce non-productive time, lower drilling risks, and bring down overall project costs—making geothermal more competitive with conventional power sources.

In the coming years, geothermal is expected to grow dramatically. Innovations in drilling technology, combined with supportive policies and falling costs, could see global installed capacity multiply several times over by mid-century.

This bold acquisition isn’t just a corporate milestone—it’s a catalyst for unlocking the Earth’s inner heat on a massive scale. By merging world-class expertise in subsurface analysis and drilling support, GEOLOG and Quad are helping pave the way for a cleaner, more resilient energy future.


The planet’s deepest fire is ready to power tomorrow—and thanks to moves like this, we’re getting closer to harnessing it safely, efficiently, and at scale.

Source: Business News

Connect with us: LinkedIn, X

Comments

Popular posts from this blog

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...

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...

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...

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...

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...

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...

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 ...

IID Secures Major, Local Geothermal Agreement to Strengthen Reliability

IID Secures 86 MW of Geothermal Power in Major Salton Sea Agreement The Imperial Irrigation District has signed 10-year agreements with BHE Renewables, through its CalEnergy subsidiary, to secure 86 megawatts of around-the-clock geothermal power from two established projects in California’s Imperial Valley. The agreement will strengthen IID’s electricity reliability, support renewable-energy compliance and help meet growing demand across the Imperial and Coachella valleys. The new contracts cover 44 MW from the Salton Sea 4 geothermal project and 42 MW from the Leathers geothermal project. Deliveries are scheduled to begin on January 1, 2027, giving IID access to dependable renewable electricity during a period of rising summer demand and increasing pressure on power systems across the American West. The agreement represents an important step in IID’s long-term resource planning. It combines existing geothermal generation with additional capacity from the Yuma Cogeneration facility in ...