Hydrogen Production and Underground Storage for Improving the Economic Stability of Geothermal Electricity Generation

ABSTRACT Geothermal energy provides reliable base‐load electricity and is an important renewable energy source. To encourage investment in geothermal projects, governments commonly offer feed‐in tariffs and financial incentives; however, these mechanisms typically expire after 10–15 years, exposing projects to fluctuations in electricity market prices, and potential revenue losses. Energy storage offers a means to mitigate this risk by allowing electricity generated during low‐price periods to be stored and used when prices are higher. This study investigates hydrogen production, underground storage, and re‐electrification as an energy storage strategy for geothermal electricity, using the Alaşehir geothermal field in western Anatolia, Turkiye, as a case study. In this field, geothermal power is produced from basement metamorphic rocks, while overlying sandstone formations provide suitable reservoirs for underground hydrogen storage. A stochastic Monte Carlo simulation was applied to capture uncertainties in storage capacity, system costs, and re‐electrification efficiency. Results indicate an electrical power potential of 103–335 MW and annual hydrogen production of 4781–9329 tons. Underground storage costs are estimated at $12.9–20.9 million, while re‐electrification of stored hydrogen could generate approximately $20.5 million in annual revenue. Overall, the findings demonstrate that hydrogen‐based energy storage can significantly enhance the economic stability of geothermal electricity generation by leveraging daily and seasonal variations in electricity prices.