Profit Maximization Model for the Cascading Use of Geothermal Energy

Abstract

Geothermal energy is considered a renewable resource that can be utilized in many places around the globe and has many uses from energy production to greenhousing to aquaculture. Geothermal energy can play an important role in humanity’s movement towards sustainable development by providing not just electricity but also ways to increase sustainability in different sectors. The goal of this research project is to develop a method to optimize the utilization of geothermal energy by maximizing the potential profits of prospective geothermal resource parks, with the aim of attracting stakeholders to invest in geothermal projects. The report completes a case study on the Hellisheiði region of Iceland, using geothermal energy coming from the Hellisheiði geothermal plant. This is done by studying two different temperature profiles of incoming geothermal energy as test cases within the case study to display the variable nature of the method. According to these inputs the associated net present value can be estimated, as well as estimates for the potential revenue that could be made by the supplier of the thermal energy and potential job creation within the resource park. The methodology focuses on a Lindal Diagram with the primary utilizations applicable for an Icelandic resource park with the associated inputs inserted into a decision-making support tool and optimized to maximize the potential profit of the resource park. The significance of this methodology is that it can then be used to look at different scenarios with the goal of finding the most economical and sustainable solutions for different regions according to local needs and available resources.