Geothermal energy is emerging as a viable resource for the green transition, with closed-loop geothermal systems offering a promising solution for wider adoption, according to experts from the Oil and Gas Employers’ Federation (FPPG). This technology, already in use in Canada, Germany and the USA, provides several advantages over traditional geothermal systems. Notably, it eliminates the need for fracturing, does not depend on the proximity of hot water aquifers, and avoids risks related to induced seismicity and issues of corrosion, erosion, or deposition. Additionally, it enables a direct connection between energy demand centers and geothermal heat sources.
Closed-loop geothermal systems operate by drilling deep into the ground and installing pipes made of a special heat-conducting material near the igneous rock layer, where temperatures reach around 300 degrees Celsius. Water from a source is circulated through these thermoconductive pipes, capturing heat from the rocks. The heated water then returns to the surface via a natural thermosiphon, where it is used to generate both electricity and thermal energy at a cogeneration plant.
Although this technology is new and not yet implemented in Romania, local oil and gas companies have the expertise needed to adopt and deploy it. The closed-loop system requires a minimal physical footprint, does not interfere with agricultural land, and can be installed in industrial areas. Unlike conventional systems, it does not involve fracking and operates year-round.
Romania ranks among the top five European countries with significant geothermal energy potential, with 24 sites currently under exploration. The country also has numerous additional underground geothermal water sources. Experts from FPPG highlight that western Romania, particularly near the Hungarian border, has favorable geological conditions for developing geothermal projects and applying closed-loop technology. Cities such as Arad, Timisoara, and Oradea are already exploring geothermal energy for residential heating.
However, implementing these projects faces challenges, including a limited number of large drilling installations available in Europe—fewer than 15—which has led to competition among countries to secure them. The initial cost for such installations is substantial, with estimates around €100 million per loop, though operational costs are relatively low.
To facilitate the use of geothermal resources, legislative changes are needed. The FPPG has recommended amendments to the Mining Law to support the development and deployment of closed-loop geothermal systems in Romania.
