Economics of geothermal direct-heat applications

Cost and production data from five commercial-scale geothermal direct-heat application projects are reviewed. Unit costs of geothermal energy under a variety of assumptions about production levels, costs, tax treatment, financial structure, and cost of capital are calculated and compared to prices of conventional fuels which would be displaced over the life of a geothermal project. Geothermal energy is found to be less costly than distillate fuel oil for all cases examined and cheaper than natural gas in many cases.