Complex and costly, or actually one of the most efficient and financially sound investment clean energy clients can make? QHeat’s Drilling Manager Harun Bitlis and Commercial Development Lead Valtteri Viitala discuss what makes geothermal projects a profitable solution – and what sort of trial and error it takes to get there.
Drilling two kilometers deep into the Scandinavian crust in just four weeks might sound a little daunting, but in fact, it’s the foundation of a solid clean energy business case.
For energy producers and users, QHeat’s geothermal technology stores and delivers heat when it’s most valuable. For drilling partners, it provides a predictable workflow backed by proven methods and customized equipment. We sat down with QHeat’s Drilling Manager Harun Bitlis and Commercial Development Lead Valtteri Viitala to discuss how efficiency, predictability and adaptability make deep geothermal a win-win.
Bitlis: Drilling deeper and larger wells is a new practice for traditional drillers in Scandinavia. We aim to partner with local drilling firms that are eager to expand their business to deeper geothermal drilling. To do that, we help them convert their setup to a larger scale in terms of surface equipment. Partners are often concerned about the cost structure of the operation, required investment, and the parameters that should be applied when drilling. We also receive inquiries about risk assessment and our operational plan.
Viitala: What Harun is describing, deep geothermal, is quite a new technology for many. Naturally the end clients want to know the cost in comparison to other existing solutions. Is it more expensive, how long will it take to pay back? We also hear concerns about risk: is this investment predictable, will the client end up spending significant amounts of money without guaranteed results.
Our clients also have questions about how our heat wells adapt to current and new heating systems. For example, waste incineration plants can produce a lot of excess heat that is at risk to go unused. Data centers, on the other hand, need cooling, too, as their servers generate huge amounts of heat while running. Deep coaxial geothermal wells solve both problems. They can store excess heat for later use and provide cooling when needed, without requiring structural changes to existing systems.
Bitlis: First of all, we’ve taken advantage of our previous drilling projects’ lessons learned to make our process as efficient as possible. Our geothermal wells can be drilled in 4–5 weeks when operating 24/7 – 8–9 weeks, when working during the day only. We have standardised operating procedures and contingency plans in case any deviation is required. This efficiency translates into profitability, especially because once the borehole is delivered, we can guarantee predictable energy production with our well design.
"Basically, the more efficient the drilling process and the technology we use, the lower the costs and the stronger the return on investment for the energy company." - Valtteri Viitala
Viitala: The investment required for one 1–2 kilometer deep well is less than a million euros. In comparison, conventional deep geothermal systems require tens of millions. Payback times are in the range of around ten years, depending on the case. Basically, the more efficient the drilling process and the technology we use, the lower the costs and the stronger the return on investment for the energy company.
Viitala: From a financial point of view, the investment cost, payback time, levelized cost of energy (euros per megawatt hours), and the energy coverage (how big of a percentage of the client’s total need can be covered by QHeat’s wells). For drilling partners, important metrics are drilling time and consequently the cost.
"We also share our lessons learned with our drilling partners to guarantee certain results based on our previous projects. Partners also benefit from our experiences in choosing the right equipment for efficient drilling." - Harun Bitlis
Bitlis: It comes down to two main things: the bedrock and the drilling method. Many traditional oil and gas drillers avoid the Scandinavian bedrock as it’s very abrasive and can be drilled at low penetration rates with conventional drilling fluid system methods. In our case, the geology is actually an advantage. We use a method called down-the-hole air hammer drilling, which is a similar setup to what’s used for shallow ground-source heat wells. But we’ve scaled it up significantly: we can drill deeper and larger wells.
Viitala: This approach allows faster, more reliable and lower cost drilling than conventional oil and gas drilling techniques. Our method uses air instead of drilling fluid. So the process is simpler and more efficient for drilling crystalline rock, right?
Bitlis: Yes. The homogeneity and stability of the Scandinavian crustal lithology make down-the-hole air drilling methods feasible. We also share our lessons learned with our drilling partners to guarantee certain results based on our previous projects. Partners also benefit from our experiences in choosing the right equipment for efficient drilling.
"We gather detailed data on drilling parameters and track it daily. This helps us develop and design the right tools for certain conditions, minimize non-productive time, and ensure efficient drilling." - Harun Bitlis
Bitlis: Drilling always comes with geological unknowns, no matter how much experience you have. The key is to learn from the first well in each project and to establish a learning curve from the beginning. We gather detailed data on drilling parameters (everything from hammer size to bit design) and track it daily. This helps us develop and design the right tools for certain conditions, minimize non-productive time, and ensure efficient drilling. At the end of the project, we compile and analyze all the gathered data in an end-of-well report. It serves as a valuable resource for improving future operational planning.
"Reliability strengthens the return on investment for clean energy clients, as they can plan finances, avoid costly downtime, and better forecast energy production and savings." - Valtteri Viitala
Viitala: Because our experts, like Harun here, understand how the rock behaves and which tools to use, we can plan projects with accurate timelines and minimal unexpected delays. This is based on our team’s vast experience in down-the-hole drilling, well design, and geological simulation. Reliability strengthens the return on investment for clean energy clients, as they can plan finances, avoid costly downtime, and better forecast energy production and savings.
Bitlis: We also work in close collaboration with both our drilling partners and our clients, consulting them at every stage of the execution phase. In each collaboration, we provide our drilling partners with a standardised well design, comprehensive manual, and a lessons learnt end report. So, in a nutshell, we share all our expertise with our drilling partners and clients in order to make geothermal projects a sustainable business for every party.
In 2019, Lounavoima power plant made a decision to commission six 1,6–2 kilometer wells from QHeat. This project, completed in 2025, provided an invaluable learning curve that led to tangible results in efficiency and profitability.
The first well was drilled with a rented rig, which led to longer operational time, heightened costs, and related risks. For the last five wells at the Salo site, QHeat and a manufacturing partner jointly developed bespoke, remotely controlled and data-gathering drilling equipment that is particularly suitable for heat wells reaching up to 2000 meters.
In addition, drilling time was reduced via improved and data-based planning, learning how to deal with fractures in bedrock, and collaborating with service providers more efficiently. This led to the project’s gross profit margin improving from a deep negative margin to a 40 percent gross profit.
