Google has made a significant stride towards achieving its climate objectives by signing its first agreement to purchase geothermal energy for its facilities in Asia, specifically in Taiwan.
The deal, struck with international geothermal developer Baseload Capital, marks Taiwan’s first geothermal power purchase agreement. According to Baseload Capital, the agreement will add 10 megawatts of carbon-free energy to Taiwan’s power grid by 2029, effectively doubling Taiwan’s current commercial geothermal capacity. Geothermal energy, a renewable source of electricity derived from heat within the Earth, can help reduce fossil fuel pollution that contributes to climate change. Power Purchase Agreements (PPAs) like this one are crucial as they guarantee customers for new renewable energy projects, thereby aiding in their development.
This partnership is part of Google’s broader strategy to cut its planet-heating emissions in half and match its electricity use with carbon-free energy purchases around-the-clock by 2030. The geothermal energy procured through this deal will be used to power Google’s facilities in the region, including a data center, offices, and its largest hardware research and development hub outside of the US. In addition to purchasing geothermal energy, Google will also make an equity investment in Baseload Capital, forming a long-term partnership with the energy developer, although the exact amount of the investment was not disclosed.
Google’s venture into geothermal energy in Taiwan is part of its global efforts to leverage this renewable energy source. In the US, Google has partnered with startup Fervo to develop advanced geothermal technology that can make geothermal energy accessible beyond natural reservoirs of hot water and steam. Furthermore, Google is exploring similar geothermal deals in Japan and Indonesia and has collaborated with the University of Newcastle on geothermal energy development research in Australia.
“We hope this first corporate agreement for geothermal in Taiwan will help to scale corporate procurement for geothermal projects across the region and worldwide,” said Michael Terrell, senior director of clean energy and carbon reduction at Google, highlighting the potential of this deal to set a precedent for future geothermal energy projects.
