Geothermal Energy in the Arabian Shield: The Untapped Renewable Powering Saudi Mining Operations

The Next Energy Frontier: Saudi Arabia’s Geothermal Transformation

As Saudi Arabia accelerates toward its 2060 net-zero commitment, a powerful and reliable renewable energy source lies directly beneath the Kingdom’s most active mining regions. The geothermal energy Saudi landscape is rapidly evolving, with the Arabian Shield identified as one of the most promising geothermal provinces in the Middle East . For mining operations already extracting mineral wealth from this ancient geological formation, the opportunity is unprecedented: power mines with clean, baseload renewable energy generated from the same deep wells and geological expertise already deployed in exploration. With Saudi Arabia’s first geothermal power projects now underway, Arabian Shield geothermal development represents not just energy diversification, but a fundamental transformation in how mining operations achieve sustainability, reduce costs, and contribute to national climate goals.

The Saudi Geothermal Awakening: Scientific Validation and Industry Momentum

The Arabian Shield’s Geological Advantage

The Arabian Shield’s geothermal potential is no longer theoretical. Recent research has quantified the immense energy available along the eastern flank of the Red Sea spreading axis and throughout the western Arabian Shield. Studies estimate that super-hot Enhanced Geothermal Systems (EGS) in this region could generate 49 × 10¹¹ kWh of electricity annually—many times greater than Saudi Arabia’s total annual consumption of 2.89 × 10¹¹ kWh . This energy could power the entire western Arabian coast, as well as ambitious developments like NEOM .

The geological drivers are compelling:

• Red Sea Tectonics: The ongoing rifting process creates elevated heat flow along the western Arabian Shield

• Sedimentary Basin Potential: The Yanbu Basin’s Al-Wajh Formation has demonstrated production potential of approximately 80 liters/second at 120°C from a single well

• Reservoir Continuity: Lateral extension of reservoirs enables strategic well placement for optimal temperature capture and pressure maintenance

National Momentum: From Vision to Action

Saudi Arabia’s commitment to geothermal is now manifesting in concrete projects and strategic partnerships. The Minister of Energy, H.R.H. Abdulaziz bin Salman Al Saud, has explicitly stated that the country needs to consider geothermal energy as part of its renewable strategy, declaring: “If there’s a resource, we will find it” .

A landmark development came with the formation of TAQA Geothermal Energy, a joint venture between Saudi-based TAQA and Icelandic firm Reykjavik Geothermal. This partnership aims to deliver 1 gigawatt of clean energy to Saudi Arabia and the Middle East, representing the first dedicated geothermal company in the region . As Meshary Al Ayed, CEO of TAQA Geothermal, explains: “As an upstream services company, TAQA has a deep understanding of subsurface geology and drilling-associated services, which made the transition into geothermal relatively straightforward. Much of the knowledge and technology we use for the design and execution of oil and gas wells can be used for geothermal wells” .

Ground Validation: Drilling Campaigns Confirm Potential

The scientific predictions are now being validated on the ground. Strataphy, a geothermal cooling startup, has completed multiple drilling and testing campaigns across western and northwestern Saudi Arabia. Key findings from over 25 wellbores drilled to depths of up to 250 meters include :

• Exceptional Efficiency: Shallow geothermal reservoirs achieved a Coefficient of Performance (COP) exceeding 5.5, making them significantly more energy-efficient than conventional cooling technologies

• Favorable Thermal Properties: Subsurface thermal conductivity and diffusivity values confirm strong heat transfer characteristics

• ATES Viability: Aquifer Thermal Energy Storage testing supports an 80/20 cooling-to-heating split, ideally suited to Saudi Arabia’s climate

The Mining-Geothermal Synergy: A Natural Partnership

Why Mining Operations Are Ideal Geothermal Candidates

The alignment between mining and geothermal energy is compelling and mutually beneficial:

Operational Compatibility:

• 24/7 Baseload Requirements: Mines require continuous power, perfectly matched to geothermal’s 90%+ capacity factor

• Remote Locations: Many mines operate far from grid infrastructure, making on-site generation valuable

• Long Lifespans: Mine lives of 20-30 years align with geothermal plant economics

• Declining Ore Grades: Increasing energy requirements for processing lower-grade ores

Infrastructure Overlap:

• Deep Drilling Expertise: Mining companies already possess deep drilling capabilities transferable to geothermal well construction

• Geological Understanding: Existing geological models inform geothermal targeting

• Site Access: Active mining sites have established infrastructure and permits

• Workforce Skills: Mining personnel can transition to geothermal operations

Global Precedents, Saudi Opportunity

The mining-geothermal connection is well-established globally. TAQA’s experience in Turkey—where it has drilled more than 350 geothermal wells—demonstrates the transferability of expertise from fossil fuels to renewable geothermal development . Saudi Arabia now has the opportunity to build on this knowledge within its own geological context.

The Darkstone Advantage: Mining Expertise Meets Energy Innovation

Integrated Capabilities for Geothermal Development

Darkstone Group’s Mining Exploration division possesses capabilities directly transferable to geothermal energy development:

Deep Drilling Excellence:

• RC and diamond drilling expertise applicable to geothermal well construction

• Formation evaluation capabilities essential for reservoir characterization

• Directional drilling techniques for optimal well placement within productive zones

Geological Surveying Expertise:

• Structural analysis for understanding fracture systems controlling fluid flow

• Geophysical interpretation integrating magnetic, gravity, and seismic data

• 3D geological modeling supporting resource assessment and development planning

Arabian Shield Knowledge:

• Deep understanding of the felsic igneous rocks and basin formations

• Experience in western regions identified as most prospective

• Relationships built through years of exploration across the Kingdom

Supporting the Mining-Geothermal Transition

Darkstone can facilitate the integration of geothermal energy into mining operations through:

Resource Assessment:

• Targeted exploration programs in high-potential areas

• Subsurface characterization using proven methodologies

• Resource estimation and reporting to international standards

Development Support:

• Drilling services for production and injection wells

• Geological monitoring during development and operations

• Integration with existing mining infrastructure

Economic Case: The Compelling ROI for Mining Geothermal

Cost Competitiveness Analysis

For mining operations evaluating energy options, geothermal offers compelling economics:

Comparative Costs:

• Diesel Generation: $0.12-0.18/kWh (volatile, high operating cost)

• Grid Power: $0.04-0.08/kWh (where available, subject to tariffs)

• Solar PV: $0.02-0.04/kWh (intermittent, requires storage or backup)

• Geothermal: $0.04-0.07/kWh (stable, 90%+ capacity factor)

Geothermal Advantages:

• Price Stability: No fuel cost volatility, 20-30 year price certainty

• Baseload Reliability: Continuous power without storage requirements

• Complementarity: Pairs perfectly with solar for 24/7 renewable coverage

• Long Life: 30+ year plant life with proper reservoir management

Mine-Specific Financial Benefits

For a 30 MW mine load, geothermal integration could deliver:

• Annual Savings: $15-25 million compared to diesel generation

• Payback Period: 3-6 years typical for geothermal investments

• 20-Year Savings: $200-400 million for medium-sized operations

• Carbon Revenue: Potential carbon credits (150,000+ tons CO₂ avoided annually)

Strategic Partnerships Driving the Saudi Geothermal Sector

TAQA and Reykjavik Geothermal: 1 GW Ambition

The TAQA-Reykjavik Geothermal joint venture represents a significant commitment to Saudi geothermal development. Speaking at the Public Investment Fund Private Sector Forum, TAQA Group CEO Khalid Nouh stated: “This is the first geothermal company in the region, and we promise to bring at least one gigawatt of clean energy to the energy grid of Saudi Arabia and the Middle East” .

KAUST Collaboration: Research to Reality

TAQA Geothermal is actively collaborating with King Abdullah University of Science and Technology (KAUST), having drilled a geothermal well on campus with permanent sensors for data collection. This partnership supports KAUST’s goal of becoming the first green campus in Saudi Arabia while advancing geothermal knowledge .

Recent research from KAUST has provided valuable insights into the Yanbu Basin’s potential, with reservoir modeling confirming production rates of approximately 80 liters/second at 120°C from a single well . These findings provide crucial guidance for commercial project development.

Strataphy: First Industrial-Scale Geothermal Cooling

Strataphy is poised to commission Saudi Arabia’s first industrial-scale geothermal cooling system before the end of 2025, with two additional projects scheduled for installation in summer 2025. The company aims to install over 15 MW-th of geothermal cooling capacity within three years and 50 MW-th within five years .

Given that cooling accounts for 50-70% of Saudi Arabia’s electricity consumption, primarily through conventional air-based systems, geothermal cooling represents a transformative opportunity for energy efficiency .

Implementation Roadmap: From Exploration to Operation

Phase 1: Resource Assessment and Characterization (2024-2025)

Current Status:

• Multiple drilling campaigns completed across western Saudi Arabia

• Yanbu Basin reservoir modeling providing production guidance

• Red Sea geothermal belt quantified at 49 × 10¹¹ kWh annual potential

Darkstone’s Role:

• Exploration program design and execution

• Subsurface characterization and resource estimation

• Integration with existing geological databases

Phase 2: Pilot Projects and Validation (2025-2026)

Projected Milestones:

• First industrial-scale geothermal cooling system commissioned

• TAQA-EDF district cooling pilots advancing

• NEOM geothermal development opportunities emerging

Darkstone’s Role:

• Drilling support for pilot well installation

• Monitoring and data collection during testing

• Technology assessment and optimization

Phase 3: Commercial Deployment (2027-2030)

Strategic Targets:

• 1 GW geothermal capacity addition to Saudi grid

• 50+ MW-th geothermal cooling capacity installed

• Integration with mining operations across the Kingdom

Darkstone’s Role:

• Production well drilling programs

• Ongoing geological monitoring

• Operations support and optimization

Overcoming Implementation Challenges

Technical Considerations

Reservoir Permeability:

• Basement rocks tend to have very low permeabilities, potentially requiring hydraulic fracturing

• Sedimentary basins like Yanbu offer natural permeability, avoiding stimulation requirements

• Proper well spacing maintains reservoir pressure and extends project life

Exploration Risk:

• Proving the resource requires extensive surveys and testing, accounting for up to 40% of total project cost

• Different business models are required compared to oil and gas drilling

• International partnerships bring specialized expertise

Regulatory and Policy Framework

Current Status:

• Ministerial-level recognition of geothermal’s strategic importance

• Saudi Green Initiative and Middle East Green Initiative supporting development

• Growing ecosystem of service providers and technology partners

Priority Areas:

• Clear resource rights for geothermal development

• Streamlined permitting for exploration and production

• Incentives for renewable integration in mining

The Vision 2030 Alignment: Beyond Energy to Economic Transformation

National Objectives Supported

Economic Diversification:

• Develop new geothermal industry creating Saudi jobs and expertise

• Reduce mining sector diesel imports, improving trade balance

• Position Saudi Arabia as regional geothermal technology leader

Sustainability Leadership:

• Contribute to 50% renewable energy target and 2060 net-zero commitment

• Support Saudi Green Initiative objectives

• Demonstrate Saudi innovation in clean energy for heavy industry

Mining Sector Competitiveness:

• Lower energy costs improving global competitiveness

• Attract ESG-focused investment to Saudi mining

• Future-proof operations against carbon regulations

Darkstone’s Contribution to National Goals

Technical Leadership:

• Apply deep drilling and geological expertise to geothermal development

• Bridge mining and energy sectors through integrated solutions

• Develop Saudi capability in geothermal exploration and development

Demonstration Effect:

• Pioneer geothermal integration at mining operations

• Document and share learnings across Saudi mining sector

• Build case for broader geothermal deployment

Conclusion: Powering Saudi Mining with the Heat Beneath Our Feet

The convergence of geothermal energy Saudi development with mining operations in the Arabian Shield represents one of the most compelling opportunities in the Kingdom’s energy transition. For mining companies already operating in high-potential geothermal areas, the path is clear: leverage existing expertise and infrastructure to unlock a renewable energy source that can power operations for decades while dramatically reducing costs and environmental impact.

The scientific foundation is robust, with multiple studies confirming the Arabian Shield’s world-class geothermal potential . The industry momentum is undeniable, with TAQA Geothermal targeting 1 GW of capacity , Strataphy commissioning the first industrial-scale systems , and international partnerships bringing global expertise to Saudi Arabia. The timing is perfect, with Vision 2030’s sustainability targets accelerating and the first commercial projects now underway.

For Darkstone Group, this represents the natural evolution of our mining expertise into the renewable energy domain. We understand the geology of the Arabian Shield, the operations of Saudi mines, and the technologies that can extract value from both. As renewable mining operations become not just an aspiration but an expectation, we’re positioned to help Saudi mining companies lead this transformation.

The heat beneath the Arabian Shield has waited millions of years. Its time has finally come—and with it, the opportunity to power Saudi mining with clean, reliable, Saudi energy from the very ground we already know best.

---

Ready to explore how geothermal energy can transform your mining operations?

Contact Darkstone Group to discuss how our deep drilling and geological expertise can unlock the geothermal potential beneath your mining concessions, powering sustainable operations for decades to come.