Skip to main content

Just In

Serbia Advances Mišeluk Geothermal District Heating Project in Novi Sad

Serbia Advances Geothermal Drilling for the Mišeluk District Heating Plant in Novi Sad Serbia is moving forward with plans to develop a geothermal district heating system in Mišeluk, a rapidly urbanizing area of Novi Sad. The project is intended to place geothermal energy at the centre of a new low-carbon heating network, supported by solar power and natural gas backup. Exploratory drilling and construction of the heat distribution network are being carried out by JKP Novosadska toplana, Novi Sad’s public district heating utility. The initiative is supported through the United Nations Development Programme’s “Geothermal Energy in Serbia” programme, with financial backing from Slovakia.  The Mišeluk project is important not only because it could provide a new renewable heat source for Novi Sad, but also because it demonstrates how geothermal energy can be integrated into urban development from the earliest planning stages. Rather than retrofitting a geothermal system into an establi...

Enhanced Geothermal Systems (EGS) Induced Seismicity: Can We Engineer Earthquakes Safely?

Enhanced geothermal systems are one of the few realistic paths to firm zero carbon power at scale, but they work by deliberately changing stresses in the crust, so induced seismicity is not a bug; it is a built‑in consequence that we have to manage, not eliminate.
Image: geothermal wells of power

The real question is whether we can design and regulate EGS so that most earthquakes stay tiny and useful as a reservoir diagnostic, and rare felt events stay within a risk envelope society will accept, with clear rules on who pays when something still goes wrong.

EGS and induced seismicity

Enhanced geothermal systems increase permeability in hot but relatively tight rock by injecting fluid under pressure, which raises pore pressure and shifts effective stresses on pre‑existing fractures and faults. When those faults are close to failure, even modest pressure changes can trigger slip, generating induced seismic events that range from microquakes only instruments detect to felt earthquakes like Basel in Switzerland and Pohang in South Korea.

A widely cited review in 2007 already noted that EGS‑related seismicity had rarely caused significant structural damage but had caused annoyance and public concern, especially when projects operated near urban areas.[1] Later case studies emphasise that the main risk is not thousands of tiny events but the small chance of a moderate event on a larger fault, which can undermine social licence even if the technical risk was judged low ex ante.

 The Pohang lesson

The Pohang EGS project in South Korea was designed as a deep stimulation of granitic rock and became infamous after a magnitude 5.4–5.5 earthquake in November 2017 that injured residents and damaged buildings. Subsequent scientific investigations concluded that the mainshock was likely triggered by the project’s injections, which had reactivated a previously unmapped fault near the injection well.

The fallout was severe. Authorities permanently shut the project, commissions recommended against further EGS activity at the site, and the government set up compensation mechanisms for affected residents while debates about legal liability and negligence played out.For the global industry, Pohang became a cautionary tale: even one poorly characterised site with aggressive injection can reset public attitudes and push regulators toward very conservative approaches.  

Why we use traffic light systems

To keep operations within acceptable bounds, most EGS projects now run under some form of “traffic light system” that ties injection decisions to real‑time seismic monitoring. In its simplest form, a TLS defines thresholds in terms of local magnitude or ground motion; events below a low threshold are green and allow normal operations, events above an intermediate threshold trigger amber responses such as reduced flow, and events beyond a higher threshold require red actions such as immediate shut‑in and pressure bleed‑off.

TLS frameworks appear explicitly in the US Department of Energy’s induced seismicity protocol and in European “good practice” guidance, which recommend project‑specific thresholds based on local hazard and vulnerability. However, they are inherently reactive: operators only change course after seismicity has already occurred, and fixed magnitude cut‑offs may be poorly tuned to local geology and risk tolerance.

 Real‑time microseismic monitoring

Modern EGS projects therefore supplement TLS with dense microseismic networks that record events far below human perception Downhole and surface arrays routinely detect magnitudes down to about −1 or −2, allowing engineers to map fracture growth in three dimensions, see which faults are being activated and track how seismicity evolves as injection proceeds.

Reviews of recent projects argue that microseismic data should be treated as both a safety signal and an operational diagnostic.[8][1] High event rates with small magnitudes can indicate efficient creation of fracture surface area, while changes in magnitude‑frequency distributions or migration of events toward known larger faults can flag rising hazard.[8][4] In this view, microseismicity is not just noise to be minimised but a real‑time window into the subsurface that, if interpreted correctly, helps keep operations out of dangerous parts of the stress landscape.

Adaptive and AI‑informed TLS

Building on that, several research groups and regulators are exploring “adaptive” TLS that adjust thresholds and responses as more data accumulate.Instead of static trigger levels, these systems use evolving hazard estimates that incorporate microseismic patterns, fault models and operational history, tightening or loosening constraints depending on whether indicators point toward increased or decreased risk.

AI and machine learning add another layer by learning relationships between injection parameters, microseismic signatures and subsequent larger events across many datasets. For example, models trained on past EGS and wastewater‑injection projects can flag combinations of event rate, b‑value changes and spatial migration that often precede larger shocks, allowing operators to pre‑emptively reduce or pause injection instead of waiting for a threshold exceedance.[8][9] Early studies emphasise that such AI systems must be physics‑informed and used as decision support rather than standalone autopilots, but they show promise in turning TLS from a simple rulebook into a predictive control tool.

 Engineering toward “safer” earthquakes

On the engineering side, best‑practice reviews converge on a few levers that can steer induced seismicity toward smaller, more frequent events instead of occasional larger ones. These include conservative site selection that avoids large, critically stressed faults near population centres; gradual ramp‑up of injection rates; limiting overpressures; and using cyclic or pulse injection strategies that promote distributed micro‑slip rather than allowing stress to build to larger failures.

Numerical studies and field data suggest that controlling total injected volume, injection depth relative to key faults and pressure‑time histories can reduce the likelihood of moderate events, even if microseismicity is abundant. However, authors stress that there is no free lunch: any project that significantly changes pore pressure in a seismically active region will create some probability of felt events, and risk cannot be strictly zero. What can be engineered is the distribution of event sizes and the probability of damaging ground motions, which brings us to the idea of “safe limits.”  

 Is there a safe limit?

Regulators have moved away from the idea of a universal safe magnitude and toward project‑specific risk criteria based on hazard and exposure. For example, Dutch and European guidelines for geothermal operations emphasise probabilistic seismic hazard analysis and acceptability thresholds framed as the annual probability that ground motions exceed levels likely to cause damage or significant nuisance.

Within this framework, small induced events are expected and tolerated, provided that their ground motions stay below vibration criteria derived from mining and construction standards and that the probability of more damaging motions remains below agreed‑upon thresholds such as one in ten thousand per year. The US DOE protocol similarly emphasises ground motion and risk rather than magnitude alone and positions TLS as one element within a broader seven‑step process that includes screening, outreach, hazard quantification, risk characterisation and mitigation planning.

So there is no single magic number, but there is an emerging consensus that “safe enough” means transparently quantified hazard, explicit risk targets, and operational envelopes designed to keep projects within those boundaries. Whether a given community accepts those boundaries is as much a political question as a technical one.  

Liability and who pays

Pohang also crystalised the liability debate. Investigations there led to findings that the EGS project likely triggered the damaging earthquake, and South Korean authorities ultimately set up compensation schemes for victims, while discussions about operator responsibility and government oversight intensified. That experience highlighted gaps in pre‑existing legal frameworks for induced seismicity, which often treated it under generic nuisance or negligence law rather than sector‑specific regimes.  

In response, emerging practice in Europe and North America is to embed seismic risk management and liability allocation directly in project approvals.Developers are typically required to: carry insurance that covers induced seismic damage; implement approved monitoring and TLS protocols; report seismic data to regulators; and accept that exceeding specified thresholds can trigger mandatory shutdowns or even permit revocation.[6][3][4] Some frameworks also contemplate shared responsibility, recognising that governments promoting EGS as public policy may bear part of the risk, especially for legacy damage or if state‑owned entities are involved.
Image: advanced geothermal systems networks 

There is ongoing debate about whether induced seismicity should be treated more like nuclear risk or CO₂ storage, with explicit state backstops and dedicated funds, or left largely to private insurance and tort systems. For now, most regimes sit somewhere in between, with project‑specific licences that delineate responsibility but no universal compensation fund.  

Can we engineer earthquakes safely?

Putting this together, the honest picture is nuanced. Technical literature is clear that EGS induced seismicity can be managed to levels that many experts consider acceptable, provided operators follow robust protocols, regulators enforce them and sites are chosen carefully.[1][4][2] At the same time, case histories like Basel and Pohang show that missteps at a few projects can generate outsized societal and political backlash.  

The cutting edge consists of multi‑step protocols like the DOE’s seven‑step framework, dense microseismic networks, adaptive TLS, physics‑informed AI for fracture and seismicity forecasting and operational strategies aimed at fostering frequent tiny events instead of rare larger ones. These tools do not remove risk, but they can lower it and make it more transparent, which is essential for social licence and financing.  

Ultimately, the question “can we engineer earthquakes safely” has two answers. Technically, we can substantially reduce and manage risk, though not to zero, and induced seismicity can even be turned into a monitoring asset if handled correctly. Societally, “safe” will be defined community by community; in some quiet regions, even minor felt events may be intolerable, while in others with high natural seismicity, carefully managed induced microseismicity may be seen as a reasonable trade for firm decarbonised power. The EGS industry will live or die on how honestly it engages with that trade‑off and how rigorously it uses the new toolkit of TLS, real‑time monitoring and AI‑guided fracture management to keep the ground shaking mostly where it belongs.



Source: This article was researched and written by Robert Buluma 

Comments

Popular posts from this blog

Eavor Kleefeld II Permit Boosts Hannover Geothermal Expansion and Deep Heat Development

Eavor Secures Kleefeld II: A New Milestone for Hannover’s Deep Geothermal Ambitions Image: A Thematic image of The Eavor Project at Geretsried  Eavor’s new Kleefeld II permit marks an important step forward for deep geothermal development in Hannover, reinforcing the city’s position as one of Germany’s most closely watched urban heat-transition markets . The licence covers about 64.5 square kilometers, lasts for three years, and combines the former Buchholz and Kleefeld I exploration areas into a single, larger field that Eavor already controlled. The decision is more than an administrative update. It signals continued confidence in geothermal as a practical, scalable source of district heating in a dense metropolitan region. For Hannover, it also strengthens a project that has been building momentum for several years and could become a reference case for other European cities seeking cleaner, locally produced heat. A New Chapter For Hannover Kleefeld II sits in the northeast of...

XGS Energy IPO: Morgan Stanley, Geothermal Growth, and Fervo’s Market Momentum

XGS Energy Weighs IPO After Hiring Morgan Stanley, Chasing Fervo's Geothermal Momentum Geothermal developer XGS Energy has hired Morgan Stanley to evaluate an initial public offering, positioning itself as a potential second geothermal IPO of 2026 after Fervo Energy's blockbuster listing. The move underscores growing investor appetite for clean, firm power technologies as data-center demand and grid reliability concerns reshape the energy investment landscape. The Scoop: Morgan Stanley, IPO Timing, and Market Context In early July 2026, Axios Pro reported that XGS Energy engaged Morgan Stanley to assess a public listing, with company leadership potentially deciding within about a month whether to proceed. The timing is strategic: Fervo Energy's May 2026 IPO created a rare "open window" for geothermal equities, providing valuation benchmarks and investor education that earlier private rounds lacked. For investors, the narrative is straightforward. If Fervo proved t...

Arverne’s 70 Million Euro ORANE Financing Boosts Geothermal Growth and Lithium Expansion

Arverne Finalizes 70 Million Euro ORANE Issue, a Milestone for France’s Geothermal Future Image: A thematic picture of Arvene welcoming a team at their Lithium De France Operations Arverne’s successful completion of its 70 million euro ORANE financing marks more than a capital raise, it signals momentum for one of France’s most ambitious geothermal platforms. Backed by GEOGREEN , Bpifrance ,  ADEME Investissement   Crédit Mutuel Equity , and Eiffel Investment Group , the transaction reinforces confidence in Arverne’s integrated geothermal and geothermal lithium strategy, while giving the company fresh resources to accelerate its Dual Flow plan . A financing round with strategic weight The announcement, made on 24 July 2026, confirms that the ORANE issue was fully subscribed for a total of 70 million euros . For Arverne, this is not just a funding event, it is a validation of a business model built around the full geothermal value chain, from subsurface expertise and drilling...

85 Degrees Renewable Secures €200M Project Finance Framework to Expand Dutch Geothermal Heat Infrastructure

85 Degrees Renewable Secures €200M Project Finance Framework to Accelerate Dutch Geothermal Heat Infrastructure 85 Degrees Renewable has taken a major step in the financing of geothermal energy with a new project finance framework of up to €200 million backed by ING and Rabobank. The facility is designed to support the company’s next phase of development in the Netherlands, including the expansion of its Central Oostland geothermal heat network and the broader growth of its renewable heat infrastructure platform. The announcement is especially significant because it shows that geothermal heat is increasingly being treated as a mature infrastructure asset rather than an early-stage experimental technology. The deal also highlights how geothermal energy is becoming more central to the Dutch energy transition. In a country where greenhouse horticulture is a major economic sector and heat demand remains heavily dependent on natural gas, renewable heat solutions are gaining strategic import...

Who Finances Next-Generation Geothermal Projects? Key Investors and Funding Trends

Who Is Financing the Next Generation of Geothermal Projects? Image : A thematic image of a geothermal power plant  The next generation of geothermal projects is being financed by a wide mix of venture capital firms, strategic corporate investors, commercial banks, institutional funds, and project finance lenders. The financing landscape is changing quickly because geothermal is moving from a niche clean-energy option into a serious infrastructure asset class with the potential to deliver reliable, 24/7 power at scale. Why geothermal finance is changing For years, geothermal struggled to attract large pools of capital because many projects were seen as technically risky, geographically limited, and difficult to scale. That perception is shifting as advanced geothermal technologies, especially enhanced geothermal systems, expand the number of places where geothermal can work. Investors now see a larger addressable market, stronger power demand, and better alignment with the needs of...

Geothermal EPC Companies: How Developers Choose the Right Contractor for Projects

Geothermal EPC Companies: How Developers Choose a Contractor Image: A Thematic image of a geothermal power plant  Geothermal developers choose EPC contractors by combining technical geothermal experience, financial strength, execution credibility, and the ability to manage field-specific risk. In recent awards, the strongest bidders have been those with proven geothermal references, repeat-delivery history, and the ability to package engineering, procurement, construction, and commissioning into one bankable offer . Why geothermal EPC is different Geothermal EPC is more complex than standard power plant construction because the contractor must build around a live underground resource. That means the project team has to deal with reservoir uncertainty, steam chemistry, scaling, corrosion, reinjection behavior, plant-field interfaces, and grid interconnection all at once . For developers, this turns EPC selection into a risk-management decision. The contractor is not just a builder; ...

Furusato Neden and HEXA Energy Services Boost Japan Geothermal Investment Opportunities

Furusato Neden and HEXA Energy Services Sign Strategic Agreement to Accelerate Geothermal Investment in Japan Image: The deal is done Japan’s geothermal sector has taken an important step forward following the announcement that Furusato Neden Co., Ltd. and HEXA Energy Services GK have signed a Memorandum of Understanding to explore geothermal investment opportunities. The agreement, announced on 30 July 2026, signals growing confidence in geothermal energy as a long-term solution for Japan’s clean energy transition. The collaboration is especially significant because it brings together two complementary strengths. Furusato Neden contributes geothermal development and operational experience, while HEXA Energy Services adds expertise in renewable energy finance, project development, power purchase agreements, asset management, and electricity aggregation. Together, the two companies are positioning themselves to evaluate existing and future geothermal opportunities in Kumamoto Prefectu...

Geothermal Well Cost 2026: Country Benchmarks, Drilling Costs per Meter, Depth & Reservoir Risk, and Investment Insights

Geothermal Well Cost by Country (2026): Drivers, Benchmarks, and Investment Implications image: a thematic image of a geothermal field Geothermal drilling remains one of the most capital‑intensive steps in developing clean, dispatchable energy. In 2026 the headline fact is familiar: drilling costs vary sharply between countries and projects. But the deeper story is about why those costs vary, which factors are controllable, and how investors, developers, and policymakers should interpret country‑level benchmarks. This article explains the technical and commercial drivers behind geothermal well expense, surveys the cost landscape across major geothermal markets in 2026, illustrates the dynamics with project examples and recent performance data, and offers practical recommendations for modeling, financing, and policy design. Why geothermal wells are expensive Drilling a geothermal well is not simply “digging a hole.” It is a technically complex, multi‑phase process that combines explorat...

Best US States for Geothermal Investment in 2026: Top Markets, Growth Opportunities, and Investor Insights

Best US States for Geothermal Investment The best US states for geothermal investment are California, Nevada, Utah, New Mexico, and Texas, with Oregon, Idaho, Alaska, and Arizona also offering attractive upside depending on whether you want operating assets, early-stage development, or next-generation geothermal exposure. Geothermal is becoming a broader investment story than it was a few years ago. Stronger drilling methods, rising demand for firm clean power, and more state-level policy support are widening the field beyond the traditional western hot spots. Introduction For investors , geothermal is one of the few clean energy technologies that can deliver round-the-clock power with a relatively small land footprint. That reliability is a big advantage in a market where utilities, data centers, and industrial customers increasingly want clean electricity that behaves more like conventional baseload generation. The challenge is that geothermal is highly location-dependent. The qualit...

Dominica Geothermal Milestone: Ormat’s Plant Boosts Caribbean Clean Energy Transition

Dominica’s Geothermal Breakthrough: What Ormat’s First Power Plant Means for the Caribbean and the Global Energy Transition Dominica has taken a major step forward in clean energy with the commercial operation of its first geothermal power plant, developed by Ormat Technologies . This milestone is more than a national achievement; it is a strong signal that geothermal energy can play a much larger role in the Caribbean’s future electricity mix. For an island region long dependent on imported diesel and exposed to fuel price volatility, the shift matters. Dominica’s new geothermal plant offers a cleaner, more stable, and locally produced source of power, and it could become a model for other volcanic islands seeking energy independence. A historic moment for Dominica Dominica sits in the Lesser Antilles volcanic arc, a region with substantial geothermal potential beneath its mountains and rugged terrain. For years, experts have known the island has the geological conditions needed for ...