Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 8

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 8
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 percent.

Geothermal
Energy

According
to a December 2024 IEA (International Energy Agency) report “The Future of Geothermal Energy,” technology breakthroughs
are unlocking huge potential for geothermal energy. New geothermal harvesting technologies are enabling access to previously untapped
resources, while cost reductions and innovative financing models are paving the way for increasing the role of geothermal energy in energy
systems around the world. Additionally, techniques developed by the oil and gas industry – including a strong understanding of
the subsurface, drilling and completing wells, predicting fluid flows and managing large-scale projects – can rapidly drive down
costs and help tap geothermal resources deeper in the ground.

Advances
in technology are opening new horizons for geothermal energy, which is expected to make it an attractive option for countries and companies
all around the world. These techniques include horizontal drilling and hydraulic fracturing honed through oil and gas developments in
North America. If geothermal can follow in the footsteps of innovation success stories such as solar photovoltaic
(PV), wind, EVs and batteries, it can become a cornerstone of tomorrow’s electricity and heat systems as a dispatchable
and clean source of energy. For the moment, geothermal meets less than 1% of global energy demand and its use is concentrated in a few
countries with easily accessible and high-quality resources, including the United States, Iceland, Indonesia, Turkey, Kenya and Italy.

5

According
to the IEA report, with continued technology improvements and reductions in project costs, geothermal could meet up to 15% of global
electricity demand growth by 2050. This would mean the cost-effective deployment of as much as 800 GW of geothermal power capacity worldwide,
producing almost 6,000 terawatt-hours per year, which is equivalent to the current electricity demand today of the United States and
India combined.

Geothermal
is a versatile, clean and secure energy source that can provide around-the-clock electricity generation, heat production and storage.
As the energy source is continuous, geothermal power plants can operate at their maximum capacity throughout the day and year. On average,
global geothermal capacity had a utilization rate over 75% in 2023, compared with less than 30% for wind power and less than 15% for
solar PV. In addition, geothermal power plants can operate flexibly in ways that contribute to the stability of electricity grids, ensuring
demand can be met at all times and