Strategic Investment Strengthens Nabors’ Position in Adjacent Energy Markets

The geothermal drilling investment advances Nabors’ broader strategy to deploy its differentiated drilling, automation, and well-construction capabilities into attractive adjacent energy markets. Quaise’s hybrid platform combines conventional rotary drilling with high-power millimeter-wave technology, specifically designed to reach deeper and hotter geothermal resources that remain inaccessible through conventional drilling methods. Should the technology reach successful commercial deployment, it is expected to broaden the addressable market for geothermal power while creating future opportunities for Nabors’ rigs, drilling services, engineering, and automation solutions.

Nabors funded the investment through the issuance of approximately 392,000 shares of Nabors common stock.

Executive Leadership Speaks to the Strategic Alignment

Anthony G. Petrello, Chairman, President and Chief Executive Officer of Nabors, commented on the transaction: “This investment brings together strategic commitment and one of the most compelling opportunities in geothermal energy. Quaise’s technology closely aligns with our core strengths. By pairing its innovation with Nabors’ global platform, technical expertise, and field execution capabilities, we believe we can help accelerate industry adoption while creating an attractive pathway for long-term value creation.”

Carlos Araque, Chief Executive Officer and President of Quaise Energy, responded: “Nabors combines world-class drilling, advanced technology, field execution, and a global operating footprint. Its increased investment is a strong endorsement of our technology and growth strategy. We could not be more excited to move forward together as we advance our technology and bring the world’s first superhot geothermal power plant to life — a meaningful next step toward deploying geothermal at commercial scale.”

How Quaise’s Millimeter-Wave Technology Works

Quaise’s gyrotron-powered drilling platform is designed to ablate rock using millimeter-wave energy transmitted downhole through a waveguide. This approach reduces reliance on complex downhole equipment in extreme-temperature environments. By integrating this technology with established drilling practices, existing infrastructure, and proven supply chains, Quaise is pursuing a scalable pathway to access deeper and hotter geothermal resources that conventional methods simply cannot reach.

Project Obsidian: The Path to Commercial Deployment

A Nabors PACE®-B rig is currently drilling at Quaise’s Project Obsidian in Oregon, giving Nabors a direct and active role in the project’s field execution. The planned first phase of Project Obsidian targets 50 megawatts of reliable power output, with subsequent phases aiming for up to one gigawatt of additional capacity. Project Obsidian is intended to become the first commercial deployment of a superhot enhanced geothermal system anywhere in the world.

Exclusivity Arrangement and Future Collaboration

Following the completion of this Nabors Industries geothermal drilling investment, the two companies have established a strategic framework that includes an exclusivity arrangement under which Nabors will provide drilling services in support of Quaise’s geothermal projects. The companies also expect to continue evaluating additional opportunities together, encompassing drilling-system integration, rig engineering, field deployment, automation, and global project development. These opportunities could extend Nabors’ participation beyond its current ownership interest and support potential future revenue as Quaise progresses toward broader market adoption.

European Solar and Storage Developments

In parallel with the recent solar tender results, the broader supply chain continues to evolve. Current industry tracking shows that Turkey accounts for over half of Europe’s module production capacity. This significant module production capacity underscores the shifting dynamics of equipment manufacturing across the continent. Energy storage is also advancing rapidly alongside primary generation. A Moldovan tender allocates 170 MW of wind with co-located BESS infrastructure. Additionally, the Swiss paper maker Perlen plans to co-develop a 10-MW BESS project. Globally, according to Ember, Bulgaria and Chile currently lead as BESS unlocks the anytime solar era.

Offshore and Onshore Wind Progress

The wind sector is expanding effectively alongside the ground-mounted solar initiatives. The sector cheers the October date for Norway’s floating wind support review, which brings anticipated clarity for future offshore developments. Once completed, the upcoming wind support review will guide specific project investments. In Germany, the German industry body calls for a CfD-only model for offshore wind. Supply chain readiness is also visible as the Polish port of Darlowo is ready for servicing offshore wind farms. In the onshore market, Eurowind buys an 87-MW permitted wind farm duo in Germany.

Additional Global Infrastructure Tenders

Further infrastructural progress is evident globally. Litgrid launches a tender for Lithuania’s largest transformer substation, signaling vital grid upgrades. Concurrently, the Philippines is preparing to hold a 400-MW waste-to-energy auction in October. Finally, addressing corporate power procurement requirements, Pacific Energy signs a 10-year PPA for an Australian gold mine.

Turkish Minister of Energy and Natural Resources Alparslan Bayraktar announced that the new renewable energy agreement builds directly upon an earlier 2,000-MW framework established between the two countries. The additional accord is scheduled for formal execution on the sidelines of the COP31 United Nations Climate Change Conference, which will convene in Antalya, Türkiye, in November.

Expansion of National Generation Capacity

The strengthened renewable energy partnership aligns with ongoing efforts to reinforce national power infrastructure and decrease dependence on imported resources under the “Century of Türkiye” framework. Alparslan Bayraktar noted that the nation’s installed electricity capacity has increased nearly fourfold over the last 24 years, scaling from approximately 32,000 MW to 126,000 MW.

As a result of this development, Türkiye now ranks third in Europe for installed electricity capacity, overall power generation, and electricity consumption, positioned behind France and Germany. Over the same 24-year timeframe, domestic crude oil extraction has tripled, mineral exports have grown tenfold, and natural gas production has expanded ninefold.

Hydrocarbon Production and Regional Transit Initiatives

Domestic natural gas production from the Black Sea is projected to double this year and reach four times its current volume by 2028, providing enough fuel to supply an estimated 17 million households. Concurrently, daily crude extraction at the Gabar field in southeastern Türkiye has exceeded 83,000 barrels per day, supporting regional employment and economic progress. Ongoing exploration in Diyarbakır is evaluating unconventional oil formations that hold the potential to produce two to three times the output of the Gabar field.

Regional Hub Integration

Alongside domestic resource development, Türkiye is progressing discussions concerning the transit of Iraqi crude via the Ceyhan terminal, as well as transit options for Qatari natural gas and Kuwaiti crude. The country is also engaging in joint onshore and offshore exploration initiatives in Pakistan. Combined with broad energy cooperation, these projects support the country’s strategic objective to diversify supplies and function as an energy bridge between resource-producing nations, Europe, and global markets.

Record Achievements Across Wind and Solar Sectors

Wind power remained the largest single contributor to clean power in the country, delivering a record 29.5% (86.4 TWh) of overall output, compared to 29.2% (83.6 TWh) in 2024. Wind assets accounted for 56.5% of all green power produced during the year. Within this category, offshore wind set an all-time annual high by producing 17.7% (52 TWh) of total power, up from 17.1% (48.8 TWh) in 2024. DUKES noted that this volume is roughly triple the level recorded ten years ago, with offshore wind representing 60% of all wind generation and 34% of overall clean output due to stronger coastal winds and higher turbine efficiency. Onshore wind contributed 11.7% (34.4 TWh), compared to 12.2% (34.8 TWh) in the previous year.

Simultaneously, solar generation reached a record 6.9% (20.1 TWh) of national power, a notable rise from 5.2% (15 TWh) in 2024, driven by expanded capacity and higher-than-average sunshine hours. In contrast, fossil fuels produced 94.9 TWh (32.3% of the total), with gas generating 93.2 TWh (31.75%) following the complete phase-out of coal in 2024. Nuclear power declined 12% to 35.9 TWh (12.2% of the mix) due to plant decommissionings and maintenance outages across ageing facilities. However, total low-carbon sources, combining renewables and nuclear, supplied 64.3% of the grid in 2025.

Industry Impact and Strategic Sector Outlook

The expansion of UK renewable energy demonstrates how clean power continues to displace traditional thermal generation across the grid network. Commenting on the official statistics, RenewableUK CEO Tara Singh stated:

“It’s great to see that renewables have generated over half the UK’s electricity for the second year running, outperforming fossil fuels significantly, and proving once more that clean power is right at the heart of our modern energy system, consistently providing most of the electricity we need to keep British homes and businesses up and running.

“It’s good news for billpayers struggling with the cost of living too, as every wind farm we build pushes the most expensive gas generators off the system. In 2025, wind reduced wholesale electricity prices by 31% by cutting the need for gas-fired power plants. Renewables also enable us to move faster on the electrification of heat and transport to cut bills by reducing the use of costly fossil fuels.

“We can build on today’s milestone by attracting record levels of investment in new wind and solar projects in this year’s clean energy auction which opened this month. We secured a record-breaking amount of offshore wind in the last round which will bring over £30 billion in private investment to the UK, and it’s essential that we continue to procure good value renewables. The last auction showed onshore wind is half the cost of new gas plants and offshore wind is 40% cheaper. Double the amount of offshore capacity that won contracts in the last round eligible to bid in this one, which will ensure that bids will be priced as low as possible due to the intense level of competition. We’re looking forward to the Government announcing the budget soon, and hope that it will be set at a level which maximises the amount of low-cost power we can deliver, as we continue to strengthen the UK’s energy security year on year”.

The continued momentum in solar generation and wind infrastructure positions the sector for upcoming investment cycles as competitive bidding rounds proceed. The latest DUKES report confirms that increased capacity and favorable atmospheric conditions remain key drivers for ongoing electricity generation benchmarks.

Solar PV to Become Second-Largest Renewable Source

Solar PV is expected to account for the largest share of new electricity supply expansion. The IEA projects global solar PV generation to rise by around 600 TWh in 2026, matching the record growth achieved in 2025. This milestone will allow solar PV to overtake wind power and become the world’s second-largest renewable electricity source behind hydropower in 2026, with similar growth projected for 2027.

Regional Growth Trends and Energy Security

The growing share of renewable energy generation has helped diversify electricity supplies and significantly improved energy security, even as global markets faced higher generation costs linked to Middle East tensions early this year. Although additional LNG supplies, particularly from North America, helped ease market pressures, higher gas prices prompted several countries in Asia and Europe to switch part of their generation from natural gas to coal.

Overall global electricity consumption is projected to increase from 28,600 TWh in 2025 to 30,700 TWh by 2027. Global electricity demand is expected to grow by 3.6% in 2026 and 3.8% in 2027, up from the 3% growth recorded in 2025. Consumption across major global power markets shows steady expansion:

• China’s demand is projected to grow by 5.5% in 2026, supported by manufacturing and EV charging.
• India’s demand is expected to rebound by 7% after a subdued 1.6% in 2025.
• US and European Union electricity demand is forecast to grow by around 2%, driven by electrification, cooling needs, and data centers.

Grid Flexibility and System Reliability

Weather conditions remain a key uncertainty for electricity markets. A stronger-than-expected El Niño event could increase electricity consumption through higher cooling needs while reducing hydropower and wind generation in some regions, temporarily raising dependence on fossil fuel generation. At the same time, the ongoing expansion of renewable energy is making negative wholesale electricity prices more frequent in certain markets, highlighting the growing need for grid flexibility, battery energy storage, and demand response to maintain energy security and reliable electricity systems.

The document highlights that the combined installed capacity of wind and solar power is projected to exceed 2.8 billion kW by the end of the decade, with annual generation from these sources surpassing 4 trillion kWh. This roadmap for renewable energy development also specifies that the total scale of renewable energy used for non-power purposes will increase 2.5-fold compared to 2025 levels, reaching an equivalent of 150 million tonnes of standard coal. To support this growth, the plan mandates the addition of more than 300 million kW of new reliable peak power capacity, while the scale of newly commenced offshore wind power projects nationwide is expected to reach 100 million kW.

Diversification of the Energy Mix and Ecological Integration

China’s 2030 targets extend beyond wind and solar to include a diversified portfolio of hydropower, biomass, geothermal, and marine energy. Conventional hydropower installed capacity is expected to reach 410 million kW by 2030, as the country balances development with ecological protection and the requirements of flood control, irrigation, and navigation. Furthermore, the plan sets specific targets for emerging sectors, including 15 million kW of solar thermal power, 400,000 kW of marine energy capacity, and approximately 160 million kW of pumped storage power capacity. Officials noted that the objective is to create an electricity generation mix featuring “half non-fossil fuels, nearly half renewable energy, and 30 percent new energy sources.”

The policy differentiates between “renewable energy,” which encompasses all naturally replenishing sources including hydropower, and “new energy,” which refers to all renewable sources excluding hydropower. This distinction is central to the country’s strategy of ensuring a reliable and sustainable energy substitution. The NEA emphasized that the transition will prioritize quality and reliability to ensure that green power can effectively replace fossil-fuel-based generation while maintaining grid stability across the national power system.

International Cooperation and Standardization

In addition to domestic expansion, the plan emphasizes China’s role in global energy transition through international cooperation and the alignment of technical standards. The document states that China will actively facilitate the free flow of high-quality green technologies and products in the global market. The government intends to support various institutions and enterprises in deepening their involvement in the development of international standards and certification systems. By advancing the internationalization of its renewable energy technologies and management norms, China aims to promote the mutual recognition of certification results across global markets.

The document further outlines China’s commitment to participating in global governance regarding green and low-carbon development. Adhering to the principle of common but differentiated responsibilities, the country will tailor its cooperation with partner nations to local conditions, focusing on energy transition and green energy technologies. This collaborative approach is designed to address the challenges of climate change collectively while supporting a global transition toward green and low-carbon energy. By fostering these international alignments, China seeks to ensure that its domestic industrial advancements contribute to a broader international low-carbon economy.

Framework for Connection and System Categorization

To streamline the integration process, the government has implemented a tiered classification system based on the generation capacity of the installations. These are divided into four distinct categories: micro systems reaching up to 15 kilowatts, small systems ranging between 15 and 100 kilowatts, medium systems from 100 kilowatts to one megawatt, and large-scale systems exceeding one megawatt. The Ministry clarified the scope of these protocols, stating, “The rules regulate the procedure for connecting solar power plants (solar panels), small hydropower plants, wind power installations and other renewable energy facilities to the electricity grid, as well as the accounting and payment for generated electricity,” which highlights the move toward a more structured and modern utility environment. Notably, residential households and small-scale businesses deploying systems with a capacity of up to 15 kilowatts will benefit from an expedited grid connection process, with a mandated review period for applications of 10 working days.

Active Consumers and Market Integration

A pivotal element of the new regulation is the formal introduction of the “active consumer” status, which empowers participants to manage their own energy production and supply. The report defines this role as “active consumer” – an individual or organization that primarily generates electricity for its own needs using renewable energy facilities but can also feed surplus electricity into the grid. While installations used exclusively for self-consumption with technical prevention against export only require a formal notification to the network operator, any producers wishing to supply excess electricity back to the grid must fulfill technical connection conditions. Although Tajikistan’s current power sector is heavily reliant on hydropower, these legislative reforms are designed to facilitate private investment and diversify the country’s electricity generation. The adoption of these comprehensive rules for renewable energy facilities serves as a vital foundation for the broader modernization of the national energy infrastructure.

Inflationary pressures and the rising cost of raw materials have become a dominant concern for utility executives who are attempting to maintain margins while facing the massive capital requirements of grid modernization. The price of copper, aluminum, and the specialized semiconductors used in converter stations has seen significant volatility, driven by global supply chain instability and shifting trade policies. In response, many firms are moving toward more flexible infrastructure models that can adapt to rapid changes in generation patterns. This shift requires a high degree of technical transparency and a sophisticated approach to power engineering that can account for the unique characteristics of direct current links within an alternating current framework.

The Technical Justification for Hybrid Transmission Networks

The capacity to monitor and control power flow with high precision has transitioned from a specialized research objective to a fundamental pillar of national energy security. As global populations become more reliant on decentralized generation, the speed at which the grid must respond to fluctuations in production requires an acceleration in control capabilities. Hybrid AC-DC grids represent a significant shift in this capability, providing the high-throughput transmission necessary to move energy from remote resource areas to urban load centers. This technology moves beyond the limitations of traditional alternating current lines, offering a comprehensive solution to the problem of reactive power and line losses.

Within the context of utility-scale renewables, the ability to connect a broad spectrum of assets through a single high-capacity corridor changes the economics of transmission. Utilities have historically faced a trade-off between the depth of the interconnection and the speed of the deployment. High-voltage direct current links that are fully integrated into existing alternating current networks allow for the rapid expansion of renewable capacity without the labor-intensive requirements of building entirely new rights-of-way. By reducing the physical footprint of the transmission corridor and increasing the volume of energy moved daily, hybrid AC-DC grids ensure that the decarbonization of the energy sector is achieved with maximum efficiency.

Operational Stability and Active Grid Management

The presence of direct current links provides operators with a level of control that was previously unattainable in a purely alternating current environment. Power electronics and voltage-sourced converters allow for the rapid adjustment of voltage and frequency, which is vital for maintaining stability in a grid with high renewable penetration. Hybrid AC-DC grids can provide essential ancillary services, such as frequency regulation and black-start capabilities, which are often difficult to achieve with solar and wind assets alone. This active management of the grid ensures that the transition to green energy does not come at the expense of reliability or power quality.

Furthermore, the fast-acting control systems associated with direct current technology can help to mitigate the risk of cascading failures. By isolating faults and controlling the direction of power flow, hybrid AC-DC grids prevent localized issues from spreading across the entire network. This proactive approach to risk management is essential for protecting sensitive industrial equipment and maintaining the trust of both residential and commercial customers. The stability provided by these systems is a fundamental requirement for the long-term viability of utility-scale renewable energy projects, ensuring that they can be integrated into the national grid without compromising operational safety or grid integrity.

Economic Efficiency and Strategic Investment Standards

The financial case for these systems is becoming increasingly clear as the cost of power electronics continues to decrease. While the initial capital expenditure for a converter station is high, the savings in terms of reduced line losses and improved grid utilization provide a compelling return on investment. Additionally, the ability to avoid the construction of expensive new alternating current corridors by optimizing existing paths through direct current links can lead to significant cost avoidances. For utility leaders, the selection of hybrid technology is a strategic decision that balances the immediate needs of the grid with the long-term goals of the energy transition.

The transition to a hybrid model also requires a thoughtful approach to workforce training and technical standards. Staff at all levels must be trained on how to use new systems and understand the unique characteristics of direct current faults. Resistance to change is common, particularly if staff feel that their roles are being fundamentally altered by the introduction of complex power electronics. Leadership must communicate clearly that hybrid AC-DC grids are implemented to support the resilience of the entire network. By involving engineering and maintenance teams in the design of hybrid workflows, utilities ensure the technology meets the actual operational needs of the facility.

Future Grid Evolution and Global Decarbonization Goals

The continued evolution of the power grid will likely involve the expansion of these hybrid networks into even more complex and interconnected systems. We are already seeing the emergence of multi-terminal direct current grids that can link multiple wind farms and solar arrays into a single high-capacity network. Hybrid AC-DC grids are the foundation of this future, providing the flexibility and the scale needed to handle the total decarbonization of the energy sector. The ongoing innovation in material science and power electronics is set to further enhance the performance and the accessibility of these systems for utilities around the world.

As the industry moves forward, the focus will remain on the integration of smarter and more responsive control systems that can manage the complexities of a hybrid environment. The ability to coordinate the actions of thousands of disparate assets will remain a key challenge for grid operators. The ongoing commitment to hybrid AC-DC grids will continue to provide the technical and the operational foundation for a more efficient, resilient, and sustainable power sector for decades to come. The global implementation of these systems is a defining characteristic of the 21st-century energy sector, marking a fundamental shift in how we generate and transport the power that fuels our modern world.

In the final analysis, the integration of direct current technology into the existing alternating current grid is not a temporary trend but a fundamental reorganization of how we monitor and protect energy infrastructure. The resulting improvements in efficiency and stability will define the next generation of power generation. By prioritizing the integration of advanced power electronics, utility systems can ensure they remain prepared for whatever environmental and economic challenges the future may hold.

Integrating the Iron Cycle into the Hydrogen Economy

The research, conducted under the Clean Circles project, utilized the PERSEUS energy-system model to project the development of European energy infrastructure through 2050. The results indicate that the iron fuel potential lies in its role as a strategic complement to the hydrogen economy. While hydrogen requires extensive and expensive pipeline networks and underground storage, iron powder is a stable material that is significantly easier to store and transport. This characteristic allows for the global movement of renewable energy with reduced infrastructure investment. In regions with limited capacity for hydropower or underground hydrogen storage, iron-fired power generation can bridge supply gaps during periods of low wind or solar availability. By utilizing the iron fuel potential, the energy system can alleviate pressure on hydrogen transport pipelines when they reach their operational limits.

Economic Viability and Infrastructure Repurposing

The study highlights that Germany, with its extensive network of coal power plants, stands to benefit significantly from this transition. Much of the existing infrastructure, including turbines, grid connections, and heat networks, could be retained, with modifications primarily required for the heat generators. Across all simulated scenarios, iron-fired plants emerged as an essential component of a cost-minimizing energy system. Schuler emphasized that “iron might play a very special, but economically meaningful role for reaching carbon neutrality and in reliably making renewables available.” The eventual adoption of this “iron age” will depend on the technical complexity of retrofitting existing facilities and the future efficiency of the reduction processes used to convert iron oxide back into fuel.

The document emphasizes a strategic transition that includes peaking the consumption of coal and oil during the 2026-30 period. Central to the China energy plan is the goal to double the contribution of non-fossil fuel sources over the upcoming decade through the advancement of technologies like nuclear fusion and hydrogen. To ensure energy security, the strategy outlines the continued development of a major natural gas pipeline from Russia alongside capacity increases for nuclear power, offshore wind, and pumped hydro storage. Specific infrastructure targets include reaching 160 gigawatts of pumped hydro capacity and 300 gigawatts of battery storage, supported by 50 gigawatts of virtual power plants designed for demand response. By 2030, the nation intends to reach 2 million tons of green hydrogen production capacity, which is nearly double the volume currently operational or under development.

Under the new guidelines, wind and solar power are expected to constitute more than 50% of the total installed power capacity across the nation. While the focus remains on renewables, fossil fuel management remains a priority with oil output maintained at approximately 200 million tons annually and natural gas production slated for a steady increase. The government intends to rationally organize the construction of natural gas power plants and encourage the domestic manufacture of gas turbines. Furthermore, the plan calls for the creation of a coal production buffer exceeding 100 million tons per year, ensuring that capacity is ready for extraction whenever necessary. Looking toward long term innovation, the scheme also prioritizes the development of space-based power plants, superconducting transmission, and further research into nuclear fusion to sustain future energy needs.