Investment Approach
A Strategic Opportunity in Geothermal Energy Drilling Projects
The space Inco-Drilling works in
The global energy landscape is undergoing a seismic shift as nations strive to decarbonize their economies and reduce reliance on fossil fuels while at the same time ensuring local energy security. Renewable energy sources such as wind, solar, and geothermal are gaining momentum, but geothermal has been lagging behind. Geothermal energy, in particular, represents a vast, underutilized resource with the potential to deliver reliable, clean, and cost-effective energy. Inco-Drilling presents a compelling case for investing in this space. We are specializing in geothermal energy projects, with a unique competitive positioning, vast growth opportunities, and long-term value creation.
Inco-Drilling is well-positioned to capitalize on the rising demand for geothermal projects, driven by technological advancements, supportive regulatory frameworks, and increasing global investments in clean energy infrastructure.
The Growing Importance of Geothermal Energy
Geothermal energy is generated by using the Earth’s internal heat, making it an inexhaustible and sustainable energy source. It is unique among renewable technologies in its ability to provide baseload power 24/7, irrespective of weather conditions. According to the International Renewable Energy Agency (IRENA), global geothermal power capacity reached approximately 15.6 gigawatts (GW) in 2023, with forecasts projecting rapid growth to 30 GW or more by 2030.
The increasing global emphasis on decarbonization and the need for stable energy sources present a significant opportunity for geothermal development. Governments across Europe, America, Africa and Asia are integrating geothermal energy into their national energy strategies. This is worldwide:
- Europe: The European Green Deal prioritizes renewable energy, with geothermal included as a key component for sustainable heat and electricity production.
- Asia-Pacific: Countries such as Indonesia, Japan, and the Philippines are aggressively pursuing geothermal projects to address energy security and climate goals.
- Latin America & Caribbean: Regional initiatives, such as the Geothermal Development Facility for Latin America (GDF), are providing financial and technical support to accelerate geothermal exploration and development.
- Africa: Several countries, including Kenya, Ethiopia, and Djibouti, are leveraging geothermal energy to enhance energy access and sustainability, with Kenya leading as the top producer on the continent.
- United States: The Inflation Reduction Act (IRA) and other federal incentives provide tax credits and grants for geothermal exploration and development.
This favourable policy environment, combined with growing investments in renewables, provides the perfect tailwinds for Inco-Drilling.
TAM
Major funding programs, such as the World Bank’s Renewable Energy Scale-Up Program and the U.S. Department of Energy’s Geothermal Technologies Office, are allocating substantial resources to geothermal initiatives. This influx of capital will drive demand for drilling services, creating a robust pipeline of opportunities for Inco-Drilling.
Inco-Drilling Specialization and Technical Expertise
Drilling for geothermal energy presents unique challenges compared to traditional natural gas drilling. Geothermal wells often require ultra-deep, high-temperature drilling capabilities to access heat reservoirs located several kilometres beneath the Earth’s surface. This requires highly specialized equipment, drilling rigs, and expertise in managing extreme pressures and temperatures.
At Inco-Drilling we possess the following core advantages:
- Efficient Technologies: Customized drilling equipment, heat-resistant materials, and precision tools tailored for geothermal wells.
- Superior Engineering and Operational Excellence: A proven track record in drilling high-temperature and high-pressure wells, which differentiates us from general drilling service providers. Track record of success.
- Cost Efficiency: The ability to reduce drilling costs through our innovative techniques, such as real-time monitoring, remote monitoring, reduced crews, and improved wellbore stabilization.
We are an industry leader in a specialized market
While the natural gas drilling market remains highly competitive, geothermal drilling represents an emerging niche with limited competition. Few companies currently possess the technical expertise, reputation and infrastructure required to specialize in geothermal wells, like we do. We focus on this underserved market. We aim at gaining the first-mover advantage, securing contracts with geothermal developers that seek reliable drilling partners.
As the market grows, we will benefit from economies of scale, strengthened our industry relationships, and global expansion and profitability.
Why Enhanced Geothermal Systems (EGS) matter to Inco-Drilling
The emergence of Enhanced Geothermal Systems (EGS) represents a game-changing innovation for the geothermal industry. Unlike conventional geothermal projects, which rely on natural heat reservoirs, EGS involves drilling deep wells and injecting water to create artificial reservoirs. This expands the geographical potential of geothermal energy to regions previously considered unsuitable.
Inco-Drilling specializes in geothermal projects to benefit immensely from EGS adoption, as it significantly increases the demand for deep, precision drilling services. Inco-Drilling is equipped with advanced drilling technologies allowing to convert more contracts.
The company’s revenue model is centred around:
- Contract-Based Drilling Services: Providing end-to-end drilling solutions for geothermal developers on a fixed or variable pricing model.
- Equipment Leasing: Leasing specialized geothermal drilling equipment and tools to developers.
- Engineering & Consulting: Offering expertise in geothermal well design, drilling optimization, and post-drilling maintenance.
Long-Term Growth Potential
