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Environmental impact

Existing geothermal electric stations, that fall within the 50th percentile of all total life cycle emissions studies reviewed by the IPCC, produce on average 45 kg of CO equivalent emissions per megawatt-hour of generated electricity (kg CO eq/ MW·h). For comparison, a coal-fired power plant emits 1,001 kg of CO equivalent per megawatt-hour when not coupled with carbon capture and storage (CCS). As many geothermal projects are situated in volcanically active areas that naturally emit greenhouse gases, it is hypothesized that geothermal plants may actually decrease the rate of de-gassing by reducing the pressure on underground reservoirs.

Stations that experience high levels of acids and volatile chemicals are usually equipped with emission-control systems to reduce the exhaust. Geothermal stations can also inject these gases back into the earth as a form of carbon capture and storage, such as in New Zealand and in the CarbFix project in Iceland.

Other stations like the Kızıldere geothermal power plant, exhibit the capability to utilize geothermal fluids to process carbon dioxide gas into dry ice at two nearby plants resulting in very little environmental impact.

In addition to dissolved gases, hot water from geothermal sources may hold in solution trace amounts of toxic chemicals, such as mercury, arsenic, boron, antimony, and salt. These chemicals come out of solution as the water cools, and can cause environmental damage if released. The modern practice of injecting geothermal fluids back into the Earth to stimulate production has the side benefit of reducing this environmental risk.

Station construction can adversely affect land stability. Subsidence has occurred in the Wairakei field in New Zealand. Enhanced geothermal systems can trigger earthquakes due to water injection. The project in Basel, Switzerland was suspended because more than 10,000 seismic events measuring up to 3.4 on the Richter Scale occurred over the first 6 days of water injection. The risk of geothermal drilling leading to uplift has been experienced in Staufen im Breisgau.

Geothermal has minimal land and freshwater requirements. Geothermal stations use 404 square meters per GW·h versus 3,632 and 1,335 square meters for coal facilities and wind farms respectively. They use 20 litres of freshwater per MW·h versus over 1000 litres per MW·h for nuclear, coal, or oil.

Local climate cooling is possible as a result of the work of the geothermal circulation systems. However, according to an estimation given by Leningrad Mining Institute in 1980s, possible cool-down will be negligible compared to natural climate fluctuations.

While volcanic activity produces geothermal energy, it is also risky. As of 2022 the Puna Geothermal Venture has still not returned to full capacity after the 2018 lower Puna eruption.