Geothermal ORC Market Trends

Growth Drivers

• Growing Adoption in Waste Heat Recovery - In particular in industrial applications, the adoption of ORC systems to recover heat from waste is increasing. These systems, which can help companies decrease energy costs and carbon emissions, are capable of capturing and converting waste heat from industry processes to usable electricity. The potential yearly global savings might be as high as USD 151 billion, which is equivalent to the value of all-natural gas imported by the European Union, depending on whether waste heat is used for power or heat. Therefore, the demand for geothermal ORC systems to recover heat from waste is expected to grow as industries seek more effective energy efficiency.
• Growing Shift Towards Sustainable Solutions - The main driver of growth in the geothermal ORC system market is environmental sustainability. The ORCs provide a reliable and renewable energy source for reducing greenhouse gas emissions and mitigating climatic change. Governments and organizations around the world are increasingly focusing on environmental sustainability, which is expected to be a key driver for the adoption of ORC systems over the next few years. For instance, the US government launched the Global Methane Commitment in 2021 to reduce net greenhouse gas emissions by 50 to 52% by 2030 and has taken further concrete steps to advance climate action at home and abroad.
• Increasing Technological Advancements in Turbines and Fluids - Innovation in the geothermal ORC market is driven by technological developments in turbines and working fluids. To increase the efficiency of ORC systems, manufacturers are developing more efficient turbines and experimenting with new working fluids. For instance, a 22 MW offshore wind turbine has been launched by Mingyang Smart Energy. With a rotor length exceeding 310 meters, the MySE 22MW offshore turbine is anticipated to be the most potent in the world. It is designed for high-wind regions where typical wind speeds range from 8.5 to 10 meters per second. Therefore, these developments are intended to enhance the efficiency and reliability of ORC systems, thereby increasing their attractiveness for a wide range of uses.

Challenges

• Accessibility of Alternative Products - Currently, Organic Rankine Cycle ORC technology is in the development phase and often involves a more complex and protracted process for obtaining environmental authorizations as opposed to Supercritical Rankine CycleSRC. The ORC tends to be overshadowed by SRC and Kalina technologies that offer better efficiency and lower costs. Unlike ORC systems, SRC is more widely adopted because of its use of economical working fluids and its reputation for safe operation. Therefore, this factor may hinder the growth of the geothermal ORC market.
• Higher Capital Costs may Impede the Market Growth
• Lack of Technical Staff may Hinder the Growth of the Market