Saudi drilling experts pivoting to geothermal

Saudi Arabia

Meshary Al Ayed, CEO and managing director of TAQA Geothermal, talks to The Energy Year about applying geology and drilling experience to geothermal projects and partnering with EDF on high-efficiency geothermal systems. TAQA Geothermal is a joint venture between TAQA and Reykjavik Geothermal that develops geothermal resources for power generation and direct use applications.

How has Saudi Arabia’s approach to energy diversification evolved, and what role can geothermal energy play?
Historically, Saudi Arabia has never had a strong mandate for energy diversification; the system was deeply entrenched in oil. However, this began to change 5-10 years ago, driven by environmental awareness and a desire to insulate the country from the volatility of oil prices. As Vision 2030 unfolded, it became clear that diversification away from oil revenues is essential, as is reducing emissions and shifting toward a varied energy mix.
Large-scale solar and wind projects are becoming more prevalent, but Saudi Arabia is a nation with increasing energy demands from its growing population and industrial, residential and commercial sectors. The emergence of geothermal energy as a viable alternative has been a major development.
As the Minister of Energy, H.R.H. Abdulaziz bin Salman Al Saud has stated, the country needs to consider geothermal energy as part of its renewable strategy. “If there’s a resource, we will find it,” he said, bringing attention to geothermal energy from beyond academic circles.

How did TAQA become involved in geothermal energy?
As an upstream services company, TAQA has a deep understanding of subsurface geology and drilling-associated services, which made the transition into geothermal relatively straightforward. Much of the knowledge and technology we use for the design and execution of oil and gas wells can be used for geothermal wells.
TAQA’s involvement in geothermal started by joining forces with KACARE [King Abdullah City for Atomic and Renewable Energy], the Saudi Geological Survey and the Ministry of Energy. We led a visit to Iceland to explore geothermal fields and established the TAQA Geothermal Center of Excellence in Turkey.
Turkey’s geothermal sector has been one of the fastest-growing in the world, and we learned a lot from their experience. We have drilled more than 350 geothermal wells in Turkey, gaining crucial expertise in subsurface management, drilling and cost control.
From there, TAQA began collaborating with Reykjavik Geothermal, a leading developer from Iceland that had already completed feasibility studies with the Saudi Geological Survey and Saudi Aramco in the 2010s. We formed a joint venture, and at COP27, we announced our ambition to add 1 GW of geothermal energy to the Saudi grid.

Can you tell us about your collaboration with EDF and its impact on the implementation of geothermal energy in Saudi Arabia?
One of our key projects is using geothermal heat in industrial absorption chillers. Nearly half of the electricity generated in Saudi Arabia goes towards cooling, and we aim to improve systems by replacing compressor-based technologies with more efficient geothermal absorption chillers. The potential for energy savings, carbon emissions reductions and cost efficiencies is huge.
We are collaborating with EDF to pilot several projects in Saudi Arabia. The Saudi district cooling market is worth around USD 1.6 billion. If our pilot projects are successful, we could drive widespread adoption and have a lasting impact on energy efficiency.

What are the main challenges in developing geothermal energy, and how is TAQA addressing them?
The main challenge lies in proving the resource, which involves extensive surveys, testing and the drilling of various shallow and deep wells. This phase carries the highest risk and accounts for up to 40% of the total project cost.
In Saudi Arabia, where there is no energy shortage, securing funding for exploration is a significant challenge. The domestic market is accustomed to oil and gas drilling, so it’s tempting to apply the same methodologies to geothermal, which can potentially undermine commerciality. Geothermal wells require different business models, which is why our partnership with Reykjavik Geothermal is so valuable.
Developing geothermal energy is a highly specialised endeavour. Determining how much heat can be converted to electricity, and for how long, involves complex technical and financial studies. Once feasibility has been established, attracting a mix of equity investments and financial backing becomes the crucial step.

Can you tell us about your collaboration with King Abdullah University of Science and Technology (KAUST)?
KAUST aims to become the first green campus in Saudi Arabia, and in 2022, they approached us to drill a geothermal well on campus. We managed the entire project, installing permanent sensors for data collection. We have been working with KAUST on this project ever since, co-authoring papers for technical symposiums, and we plan to drill deeper wells.

What are your key objectives for the coming years?
Key goals for 2025 include piloting a district cooling or compressed natural gas project and advancing our partnership with EDF. Additionally, we are excited about geothermal development opportunities in NEOM, which we expect will take shape in 2025.
We are also looking internationally, especially towards East Africa, Turkey and their mature markets to expand our project management and development portfolio. We believe that growing our knowledge internationally will accelerate our geothermal expertise and benefit Saudi Arabia’s energy transition.

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