Why is Google Accelerating Geothermal Energy in Taiwan?

Geothermal power holds the potential to address 15% of global electricity demand growth by 2050 according to the International Energy Agency (IEA), but it currently supplies less than 1% of global demand.

As technology advances and costs decrease, geothermal energy presents a promising solution to rising energy needs without increasing emissions.

Google has signed the first corporate PPAs for geothermal energy in Taiwan with developer Baseload Capital.

It aims to integrate 10 MW of constant power into the grid, thereby nurturing the country's geothermal market.

Google’s geothermal PPAs build on its solar commitments in the region, supporting a 1 GW pipeline of solar development in Taiwan in partnership with BlackRock’s Climate Infrastructure business.

“Taiwan has tremendous untapped geothermal potential, and we’re excited about the role corporate procurement can play to accelerate geothermal projects and bring this 24/7 clean energy resource to Taiwan’s grid,” says Adam Elman, Director of Sustainability EMEA at Google.

Local energy challenges in Taiwan

In 2022, the IEA reports that 34.6% of Taiwan’s energy came from coal and 34.2% from oil. 

Despite setting a target of 20% renewable energy by 2025, Taiwan is likely to miss this goal due to challenges in offshore wind farm construction.

Unclear permitting and corporate PPA uncertainties have stalled wind power development, and the country’s mountainous terrain limits solar farm expansion.

Taiwan aims to have 40% renewable energy by 2030, and changes are needed quickly to meet this goal.

Geothermal energy uses heat from the Earth’s crust to generate electricity.

Most resources are available near tectonic plate boundaries, such as the Pacific Ring of Fire – that Taiwan is located in. 

Unlocking geothermal markets

Taiwan's geological positioning offers access to substantial geothermal resources capable of providing stable, reliable baseload power.

This stability is crucial for industries requiring constant energy, such as healthcare, manufacturing and data centres, particularly as they transition to more intermittent renewable sources like wind and solar.

Google's partnership with Baseload Capital intends to fast-track the growth of geothermal energy across the Asia Pacific region and globally.

Since 2019, Baseload Power Taiwan, a subsidiary of Baseload Capital, has been exploring local geothermal resources and collaborating with the government to improve regulatory and permitting frameworks.

With Google's backing, there is potential for growth in local expertise and workforce, as well as supply chain and infrastructure improvements to reduce costs and accelerate project deployment.

These efforts contribute to Taiwan's objective of installing 6 GW of geothermal capacity by 2050.

“This partnership with Baseload Capital will add crucial ‘always on’ power to our operations in Taiwan,” explains Giorgio Fortunato, Head of Clean Energy and Power, Asia Pacific at Google.

Google’s geothermal progress

Taiwan is not the first instance of Google's investment in geothermal power.

The company aims for its data centres and office campuses to operate on 24/7 carbon-free energy by 2030, with geothermal energy potentially playing a key role in supporting intermittent renewables.

In 2021, Google partnered with clean energy startup Fervo to develop an enhanced geothermal power project, marking the world's first corporate agreement of its kind.

The project in Nevada, US became operational in 2023 and puts power on the grid that serves its local data centres.

Google has also partnered with Project InnerSpace, a nonprofit organisation dedicated to the global development of geothermal energy. 

"For geothermal to grow over the coming decades, we need big players with global scale and breakthrough technological solutions focused on this massive clean energy resource beneath us," said Project InnerSpace Executive Director, Jamie Beard. 

"By combining the expertise and research portfolio of Project InnerSpace with the technological capabilities and expertise of Google, we are poised to make a fast leap forward for geothermal globally."

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