At New York Energy Week 2025, Ahmed Eldemerdash, Vice President of New Energy at Baker Hughes, discusses geothermal energy’s increasingly vital role in the global shift toward sustainable power. Eldemerdash, a leader deeply embedded in Baker Hughes’ clean energy initiatives, presents geothermal as an essential, yet under-recognized, solution in the ongoing energy transition—offering clean, reliable, and constant baseload power.
The Untapped Potential of Geothermal Energy
Despite geothermal’s minimal share—less than 1%—of today’s global energy mix, Eldemerdash argues that it is on the verge of rapid growth. He points out the accelerating global demand for clean energy, driven by both sustainability commitments and the growing energy needs of data centers, artificial intelligence infrastructure, and industrial sectors. As renewable sources like solar and wind expand, geothermal emerges as a compelling third alternative, distinguished by its ability to provide firm, always-on energy without the intermittency issues associated with other renewables.
Eldemerdash explains that while conventional geothermal systems have operated commercially for decades, they require specific geological conditions: naturally high subsurface temperatures, permeable reservoirs, and the presence of water. These factors rarely coincide, limiting widespread adoption. However, advancements in unconventional geothermal technologies—including enhanced and advanced geothermal systems—are now overcoming these constraints by creating artificial permeability and introducing externally supplied water, thus vastly expanding potential locations for geothermal development.
Leveraging Oil and Gas Expertise for Sustainable Innovation
Central to geothermal’s renewed viability is its alignment with existing oil and gas industry capabilities. Eldemerdash highlights Baker Hughes' significant advantage in adapting proven techniques from traditional energy production—horizontal drilling, reservoir stimulation, subsurface characterization—to geothermal applications. This strategic transfer of technology and expertise not only accelerates geothermal innovation but significantly reduces both cost and risk.
He details Baker Hughes' integrated approach, known as "subsurface-to-surface" (S2S). Unlike traditional geothermal developments—where subsurface and surface activities are managed separately—Baker Hughes integrates these components early in the process. This unified approach significantly reduces technical uncertainties, speeds up project timelines, improves efficiency, and ultimately lowers geothermal energy costs. By applying oil and gas drilling technologies, Baker Hughes has successfully reduced drilling times by as much as 80%, directly impacting geothermal’s economic competitiveness.
Addressing the Cost Barrier through Technology
Geothermal energy faces the critical challenge of cost, particularly for advanced geothermal systems that currently require significant initial investments. Eldemerdash acknowledges this challenge candidly, emphasizing that the industry's immediate priority is cost reduction. However, he firmly positions geothermal on a trajectory parallel to the cost improvements seen in the unconventional oil and gas sector over the past fifteen years.
Through targeted innovations and continuous engineering improvements, Eldemerdash sees a clear pathway to competitive geothermal pricing within a decade. He underscores that government incentives, combined with technological advancements, are essential during this transition phase. These collective efforts are necessary to bridge the current economic gap and unlock geothermal’s full potential as a mainstream renewable energy source.
Growing Global Momentum and Strategic Value
Eldemerdash observes strong international momentum for geothermal energy, emphasizing its appeal to both public and private stakeholders. The U.S., Europe, and Asia are actively incorporating geothermal into their energy strategies, attracted by its stability, low emissions, and geopolitical advantages. He notes significant policy support, citing about $2 billion in recent investments directed toward geothermal projects—75% of which occurred within the past two years. This indicates growing confidence among investors and a shift toward recognizing geothermal’s long-term strategic value.
In Europe, geothermal is recognized for its potential to significantly reduce emissions from district heating, while in Asia, burgeoning demand from high-tech industries further accelerates its adoption. Eldemerdash highlights the geopolitical and energy security benefits of geothermal, stressing its decentralized nature. Unlike gas or LNG supplies, geothermal energy does not rely on international supply chains, positioning it as a highly strategic, domestically controlled resource.
Strategic Advantages: Reliability and Decentralization
One of geothermal’s distinctive strengths, Eldemerdash emphasizes, is its inherent resilience. Because geothermal plants utilize localized, naturally occurring resources, they are less vulnerable to external disruptions. This decentralization ensures continuous and reliable energy, vital for regions seeking both energy independence and stability. He describes geothermal’s resilience as a critical benefit increasingly recognized by policymakers, utilities, and technology companies looking for secure and sustainable power solutions.
Accelerating Geothermal's Commercial Viability
To move geothermal energy from promise to reality, Eldemerdash identifies two essential strategic drivers:
- Sustained Policy Support and Incentives:
Eldemerdash emphasizes that policy incentives must remain robust during the industry's transitional phase, supporting pilot programs and early commercial-scale projects until geothermal reaches competitive cost levels. - Continuous Technological Advancement:
Ongoing innovation remains crucial. Eldemerdash calls for continued research and development, particularly focused on subsurface engineering and advanced drilling technologies. The ability to access higher temperatures at greater depths offers substantial efficiency gains but poses significant technological challenges. Continued investment in these areas is critical to lowering geothermal’s overall cost and enhancing its attractiveness to investors.
The Quiet Geothermal Revolution
Eldemerdash confidently states that geothermal energy is experiencing a quiet yet decisive revolution. Large-scale pilot projects are already demonstrating substantial technological breakthroughs and promising economic outcomes. While many companies prefer discretion until these projects fully mature, Eldemerdash anticipates that geothermal will soon be widely recognized as a core component of future global energy portfolios.
Baker Hughes, with its extensive legacy in the oil and gas sector, is uniquely positioned to lead this transformation. By applying existing technological expertise to geothermal, the company exemplifies how traditional energy industries can actively support global sustainability goals.
Redefining Geothermal's Role in the Global Energy Transition
Eldemerdash concludes his session with a strong vision: geothermal energy is no longer an ancillary option but a critical piece of the energy transition puzzle. Its consistent, firm capacity makes it particularly valuable as a complement—and perhaps a successor—to intermittent renewables, such as wind and solar.
By positioning geothermal as both economically viable and strategically valuable, Eldemerdash challenges investors, policymakers, and industry leaders to rethink conventional views of renewable energy. His message at New York Energy Week 2025 is clear: geothermal energy is ready to play a defining role in shaping a clean, resilient, and secure global energy future.
