A view on geothermal development in the world

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A view on geothermal development in the world

• Environmental/Development Session
• GRC 2008

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Stranded Energy

• What is stranded energy?
• Why pursue stranded energy?
• What caused stranded energy?
• How can it be feasible?
• What is the business model?
• How can we make it happen?

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Stranded Energy

• Aboundant geothermal resource still no viable
  project
• Resources not utilised i.e. stranded
• Examples
• Remote areas f.ex. in Alaska, Iceland
• Rural villages f.ex. in Central Eastern Europe,
  China, India

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Why pursue?

• Co-operation to create viable projects
• Reduce carbon footprint
• Available proven solutions
• Technology
• Resource management

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What caused?

• Market location vs. resource location
• Proximity
• Remote areas
• Market size
• Investment
• Rural areas

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Proximity to Market

• Natural causes
• Geology
• Harsh climate
• Urbanization
• Examples
• Alaska
• Iceland
• Africa
• Kamchatka

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Market Size

• Feasible size to maximize utilization of the
  investment
• Investment cost rising
• Oil Steel prices
• Concession cost
• Examples
• Central Eastern Europe
• China
• India

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How feasible?

• Known technology keeps cost down
• Alliance with big energy consumers
• Incentives for geothermal
• Financing available for geothermal projects
• Benefit for local population in case of small
  existing market

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Known Projects

• Known technology
• Drilling technique
• Flash plants
• Commercial sizes
• Known resource management
• Hydro geothermal utilization has a long history

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Alliance with big energy consumers

• A way to increase utilization of hydro geothermal
  resources
• Advance into market areas together
• Examples
• Aluminum smelters
• Drying factories
• Green houses

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Incentives

• Incentives always play key role in the first
  development stages
• Recent reviews further encourage renewable energy
  / geothermal
• Rural village power encouraged in policies
  f.ex. in China India

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Financing

• Investments in geothermal steady
• Setback of financial markets not affected this
  industry yet (UNEP report)
• Revised low risk driven financing policy to come?

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Business model

• Core competence
• Known resource management
• Known technology
• Product
• Renewable base load with predictable price
• Green Brand
• Market
• Alliance with shared risk
• Small market areas gain viable projects

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Make it happen

• Web based forum
• Interactive site
• Market information
• Case studies with lessons learned
• Co-operation made easy

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• Thank you for listening