Geothermal Technologies Program

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Geothermal Technologies Program
Roy Mink Program Manager
GRC 2004 Annual Meeting August 30, 2004
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Geothermal Technologies Program
The Programs mission is to work in partnership
with U.S. industry to establish geothermal energy
as an economically competitive contributor to the
U.S. energy supply.
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Geothermal Technology Program Organization Chart
Program Manager
Analysis
Technology Development
Technology Application
Enhanced Geothermal Systems
Systems Development
Resource Development
Deployment
Technology Verification
Resource Exploration and Definition
GeoPowering the West
Advanced Heat and Power
Resource Assessment
Reservoir RD
System Demonstration and Verification
Education and Outreach
Drilling Technology
Exploration RD
Field Projects
12/8/03
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Geothermal Budget
Funding Profile ( thousands)
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Temperature at 6 km
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Present and Near-Term Capacity
25 MWe Sulfur Hot Springs (under development)
10 MWe Raft River (under development)
30 MWe Ormat (under development)
Installed About 2600 MWe (electric)
100 MWe Glass Mountain (under development)
60 MWt
102 MWt
Over 600 MWt (heat)
28 MWt
40 MWe Steamboat (under development)
400 MWe under development (electric)
200 MWe
40 MWe
69 MWt
30 MWt
51 MWt
2300 MWe
114 MWt
185 MWe Salton Sea (under development)
22 MWt
54 MWt
30 MWe
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New Strategic Plan

• Responds to changes in
• Power markets
• Geothermal industry
• Understanding of resources
• Projected technical and economic requirements
• Policy recommendations
• Technical opportunities

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Key Strategic Directions

• Enhanced Geothermal Systems
• Exploration and Resource Characterization
• Drilling and Reservoir Management
• Power Systems and Energy Conversion
• Institutional Barriers

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Strategic Program Goals

• Reduce the levelized cost of hydrothermal
  development to less than 5 cents/kWh by 2010
• Increase the economically viable geothermal
  resource to 40,000 megawatts by 2040
• Decrease the levelized cost of electricity from
  Enhanced Geothermal Systems to less than 5 cents
  per kWh by 2040

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Enhanced Geothermal Systems Program
Goal Decrease the levelized cost of electricity
from EGS to less than 5 cents per kWh
Accomplishments to Date Technical feasibility
demonstrated at various sites

• Strategy
• Conduct research and development on EGS
  technologies
• Apply technologies in partnership with industry
  at selected field locations

• Status
• Research grants awarded
• Three cost-shared projects underway

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EGS Winning Proposals

• Duke University
• Remote Sensing and Imaging Tools
• Pennsylvania State University
• Permeability
• Pinnacle Technologies, Inc.
• Thermoelastic Hydraulic Fracture Design,
  Permeability
• SAIC
• Permeability
• University of California San Diego
• Reservoir Characterization and Management
• University of North Carolina at Chapel Hill
• Remote Sensing and Imaging Tools, Reservoir
  Characterization and Management
• University of Utah EGI
• Permeability, Resource Analysis, Reservoir
  Characterization and Management, Remote Sensing
  and Imaging Tools, Production and Injection
  Strategies

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EGS Projects

• Coso
• Create and test an EGS through thermal and
  hydraulic stimulation.
• Coso Operating Company (COC) , United States
  Geological Survey (USGS), Geomechanics
  International (GMI), Kansas State University
  (KSU), Halliburton Energy Systems, TerraTek,
  Quantec, Q-con
• Desert Peak East
• Define technical and economical parameters for
  cost-effective commercial EGS development.
• ORMAT, GeothermEx, UNR, EGI,Pinnacle Technologies
• Geysers/Glass Mountain
• Apply well permeability enhancement techniques to
  reduce the number of wells.
• Calpine Halliburton

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Exploration
Double the exploration success rate from 20
percent in 2000 to 40 percent, locating 20 new
geothermal fields, by 2010

• Establish which exploration techniques are most
  effective, and work to improve these techniques.
  
• Update assessments and characterizations of
  known resources.
• Develop collaborative efforts with industry to
  support exploration for and definition of new
  geothermal resources.

• Accomplishments to Date
• Verified Steamboat Springs, NV resource for 42 MW
  plant
• Verified resources at Rye Patch, NV for planned
  12 MW plant
• Proved that aeromagnetic surveys can help find
  hidden faults
• Present Status
• Reviewing applicability of modern remote sensing
  tools
• Completing eight exploration projects, seven
  other projects continuing New solicitation in
  FY04
• Path Forward
• Research to improve exploration tools
• Resource assessment in collaboration with state
  agencies and USGS to locate exploration targets
• Cost-shared exploration with industry
• Resources
• To be matched by resources from industry

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Verification
Geothermal Resource Exploration and Definition
(GRED)

• GRED I is in closeout
• Seven Projects Funded (4 States)
• GRED II is ongoing
• Seven New Projects Funded (5 States)
• GRED III closed 6/11/04
• Three Phases
• Three Risk Areas
• Cost Shared Approach
• Cooperative Agreements DOE Involvement
• Three Proposals Received

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Verification GRED II Projects FY04
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Verification GRED III Awards
ORMAT Nevada, Inc. (Nevada) Earth Power
Resources, Inc. (Nevada) Esmeralda Energy Company
(Nevada) Noramex Corporation (Nevada) AMP
Resources (Utah) New Mexico Institute of Mining
and Technology (New Mexico) Fort Bidwell Indian
Community (California) Western Geothermal
Partners (Nevada) NGP Power Corporation
(Nevada) Arizona Public Service (Arizona) Chena
Hot Springs Resort, LLC (Alaska)
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Systems Development Advanced Drilling
Reduce Cost of Drilling 25 by 2008 Compared to
2000 Costs
Improve the component parts of a drilling
system to perform essential functions quickly,
reliably, and cheaply. Investigate
revolutionary advances in drilling materials and
techniques with the target of drilling twice as
deep for the same cost.

• Accomplishments to Date
• Diagnostics While Drilling (DWD) proof of concept
• Hard rock drill bits
• Polyurethane grout for lost circulation control
• High-temperature integrated circuits for logging
  tool
• Present Status
• DWD system test with proprietary drill bits
• Drill bit database being developed
• Improvement of polyurethane deployment system
• Path Forward
• High-speed data link and smart sub-assembly for
  DWD
• Further improvements to polycrystalline diamond
  compact (PDC) drill bits
• Advanced drilling technologies

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Systems Development Power Systems

• Reduce the capital cost of geothermal surface
  systems by 20 percent
• Develop heat rejection systems with major
  efficiency improvements, especially for
  lower-temperature resources.
• Develop advanced cycles using mixed working
  fluids that offer the potential for major
  efficiency improvements, especially for
  relatively low-temperature resources.
• Reduce operations and maintenance costs through
  optimized maintenance schedules, better
  construction materials, and hardier instruments.

• Accomplishments to Date
• Innovative condensers
• High performance coating materials
• Present Status
• Evaluating fin tubes for air-cooled condensers to
  significantly increase air-side coefficient
• Current Funding Opportunity Announcement for
  validation of power plant technology
• Supporting technologies (monitors, non-condensing
  gases removal)
• Path Forward
• Innovative cycles
• Operating strategies
• Component improvements

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Power Systems Solicitation

• Technology for generation from low-temperature
  (lt300F) geothermal resources (up to two awards)
• New components and processes for commercial
  geothermal power plants (up to eight awards)
• 3 million total funding available
• Closing date October 5, 2004
• Information at http//e-center.doe.gov

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Deployment Analysis and Outreach

• National Geothermal Collaborative
• Barriers and policies issues
• Geothermal Program Publications
• Geothermal Today, Tribal Workbook, K-12 Education
  Materials
• Technical Libraries, Databases
• Broad-Based Awards for Outreach Activities
• Support for Direct-Use Community

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Deployment GeoPowering the West

• State and Local Outreach
• State Energy Program
• State Geothermal Workshops/Working Groups
• Resource Mapping/Publications
• Native American Involvement
• Technical Assistance to States, Tribes, and Local
  Communities

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Deployment SEP Awards

• 14 awards in July 2004
• Awarded to states for specific activities
• Alaska - Alaska Energy Authority
• Arizona
• California - California Energy Commission
• Colorado - Governor's Office of Energy Management
  Conservation
• Hawaii
• Idaho
• Montana
• Nevada
• New Mexico - Energy Minerals and Natural
  Resources
• Oregon - Oregon Department of Energy
• Texas - Texas Comptroller of Public Accounts
• Utah
• Washington - Washington Department of Community,
  Trade Economic Development
• Wyoming

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Factors Influencing Future Development

• Land Access and Permitting Federal, State, and
  local
• Production Tax Credit for Geothermal
• Renewable Portfolio Standards
• Transmission
• Resource Assessment (USGS)