Geothermal energy

GEOTHERMAL ENERGYGEOTHERMAL ENERGY

Fausto BatiniFausto Batini

Enel – InternationalEnel – International

Rome – ItalyRome – Italy

fausto.batini@enel.itfausto.batini@enel.it

Rome, 2006 6th JulyRome, 2006 6th July

Geothermal energy

Contents1° PART1° PART

1. introduction

2. Geothermal energy basic concepts

• Heat sources

• Geothermal systems

3. The geothermal industry worldwide

• Electric energy generation

• Direct use application

2° PART

1. Resource assessment and development

• Ranking of geothermal prospects

• Project development

• Operation and maintanamce

2. Drivers & barriers for the geothermal energy growth

• Technological challenges

• Economic and environmental sustainability

3. Conclusions

Geothermal energy

Geothermal systems

Geothermal energy

Project can generate revenues through sale of Project can generate revenues through sale of electric energy, water, chemicals and CDMelectric energy, water, chemicals and CDM

Project can generate revenues through sale of Project can generate revenues through sale of electric energy, water, chemicals and CDMelectric energy, water, chemicals and CDM

Electric power generation

Electric power generation

Geothermal project revenues scheme

CDMCDM

By-productsBy-products (heat, water, chemicals)(heat, water, chemicals)

By-productsBy-products (heat, water, chemicals)(heat, water, chemicals)

Process water & chemical productsProcess water &

chemical productsHeat supply

Geothermal energy

Ranking criteria

Development/Riskdimension

Technicaldimension

Because these parameters are not certain for most of the projects, they shall be considered as expected

parameters.

Resource capacity

Technology to apply (Temperature)

Depth of the reservoir

Transmission line & logistics

Chemistry of fluid

Energy market price

Permitting

Enviromental

Customers

Regulatory and political risk

Geothermal energy

Regional Reconnaissance

(1000's km2)

surface prospecting

1-2 years

Exploration 100's km2

•surface Prospecting •exploratory drilling

1-2 years

Project Development 10’s km2• Project permitting• Drilling of production/reinjection wells•Steam gathering system:•Power Plant Design and•Construction•Transmission line

2- 3 years

Identification and ranking of the most promising areas for exploration

Geothermal resource characterization

and economic evaluation

Resource assessment and development

Main phases

Operation & Maintenance

20- 30 years

Geothermal energy

500

1000

1500

2000

2500

3000

3500

4000

4500

265 300 330 375 425 450 510 525 570

Resource temperature (°F)

Sp

ecif

ic c

ost

of

Po

wer

Pla

nt

($/k

W)

Flash

Binary

Investment expenditures

Geothermal energy

Expenditures & risks of a geothermal project

Geothermal energy

Cost breakdown (%):Exploration Well drilling Field piping Power Plant

Enthing & McVeigh (2003) 10 25 5 60

World Bank 10 33 57

Valgurdur 9 23 68

CEC (2003) Flash 3 34 63

EPRI (1997) Flash 8 38 3 51

Kutscher (2000) Flash 48 52

CEC (2003) Binary 4 43 53

EPRI (1997) Binary 4 13 2 81

Kutscher (2000) Binary 24 76

Lesser (1993) 39 61

Investment expenditure breakdown

Geothermal energy

O&M costs value and ranges.

Source:O&M Cost ($/MWh)

Sanyal (2004) 14 - 20*

Owens (2002) 17.5 - 20

EPRI (2001) [15 - 25]

Lovekin (2000) 18 - 20

http://www.eere.energy.gov/geothermal/faqs.html [10 - 30]

http://www.saintmarys.edu [15 - 45]

Geothermal energy

Contents1° PART1° PART

1. introduction

2. Geothermal energy basic concepts

• Heat sources

• Geothermal systems

3. The geothermal industry worldwide

• Electric energy generation

• Direct use application

2° PART

1. Resource assessment and project development

• Ranking of geothermal prospects

• Project development

• Operation and maintanamce

2. Drivers & barriers for the geothermal energy growth

• Technological challenges

• Economic and environmental sustainability

3. Conclusions

Geothermal energy

Drivers

Great number of areas with an interesting geothermal potential

Electrical energy demand growing within the next years

Base load capacity (>95% availability), renewable and domestic energy

Employment opportunity

Barriers

Technological challanges – deep exploration

Economic - High development cost (logistics, transmission, exploration risk in “green field” project

Regulatory / market / political risks

Environmental - adverse impacts in some areas with local communities

Drivers & barriers for the geothermal energy growth

Geothermal energy

Technological challenges

Current efforts are focused on:

•Identifying Resources development and opportunities

•Resources Assessment

•Exploration and Drilling

•Optimizing Resource Utilization and Management

•Resource Management

•Generation Technologies

•Investigating Applications that Increase

• system reliability

• environmental compatibility

Technological challenges

Geothermal energy

Emploiment opportunity

GEOPHYSICS

RESERVOIR PHYSICS

seismology gravity electromagnetics well geophysics

DISCIPLINE

thermodynamicsfluidodynamicsnumerical modelling

GEOLOGY

structural geology hydrogeologypetrographyrock mechanics

KNOW HOW

DRILLINGTECHNOLOGIES

Well design Drilling operations Mud & cementing

DEGREE

GEOLOGY

ENGINEERING

PHYSICS

Geothermal energy

8000

6000

4000

2000

0

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TechnologyIncremental

Technologies Technologies

8000

6000

4000

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Technology Technologies Technologies

$

per

KW

Comparison of investment expenditures for different renewable energy project

Geothermal energy

Geothermal energy

Geothermal energy

Conclusions

Geothermal energy, like other renewable energy sources (RES), plays

an important role to:

complement existing energy production systems

tackle climate change

contribute to an overall strategy of sustainable development

reduce dependence on energy imports, thereby ensuring

sustainable security of energy supply

have a positive impact on regional development and employment