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Bad News for Geothermal Energy: Two Major Projects Bite the Dust

Explore the impact of recent setbacks on geothermal energy projects due to earthquake risks, including the Basel case.

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Dreams that major geothermal energy plants could power our future took a major hit last week, as worries over earthquakes and technical failures killed two ambitious projects in consecutive days. The two projects both hoped to harvest the heat of deeply buried bedrock by drilling down, fracturing the rock, and then circulating water through the fissures to produce steam that could drive turbines. First, on Thursday, the $60 million plan to tap geothermal energy beneath Basel, Switzerland, died for good after a Swiss government study said it would cause millions of dollars in damage through earthquakes each year.

The project, led by Markus O. Häring, a former oilman, was suspended in late 2006 after it generated earthquakes that did no bodily harm but caused about $9 million in mostly minor damage to homes and other structures. Mr. Häring is to go to trial next week on criminal charges stemming from ...

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