GNS 2006, 95% C

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1 power renewed renewed power geothermal science

2 Today, over 7% of New Zealand s power is generated from geothermal resources. By 2020 this could exceed 20%. GNS Science will be instrumental in achieving this goal.

3 powerful expertise expertise powerful With energy demand escalating and climate change now a major concern, there are strong reasons to make use of renewable geothermal energy resources. In New Zealand, as in many countries, geothermal is the only natural renewable energy source capable of providing reliable base load electricity generation, with more than 95% availability. Whatever your plans, expertise matters. GNS Science has been a world-leader in understanding and sustainable development of the Earth s cauldron of energy for over 50 years. We are internationally recognised for innovative, robust geoscientific research, expertise and consultancy advice. GNS Science has provided expert assistance for successful geothermal projects in New Zealand, Japan, the Philippines, Indonesia, Chile and other countries worldwide. For exploration, drilling, environmental sustainability, field development, optimal production, and ongoing resource management we ll help power your project success.

4 reliable, renewable energy What s the potential of your geothermal resource? How can it best be sustainably developed? What issues will need to be managed? The GNS Science geothermal team and our scientific partners offer you specialist expertise and guidance for all stages of geothermal exploration, development and production. Resource assessment and exploration The GNS Science geothermal team can help you to delineate the system, assess the resource capacity, and identify and mitigate the development risks. We utilise a diverse range of scientific assessment and modelling services. We can: Evaluate existing geoscientific data and provide recommendations for an exploration programme and feasibility study Design and undertake field exploration programmes Undertake chemical characterisation of surface features and reservoir fluids Interpret subsurface temperatures, processes and flow paths Run geophysical surveys including MT, seismic acquisition, tensor LOTEM, resistivity and gravity techniques Offer aeromagnetic and airborne infrared mapping for difficult terrain Locate permeability including fault location, porosity contrasts and fracture characterisation Assess hydrothermal mineralogy and petrology Undertake conceptual modelling Define resource capability, maximum flows, and chemical criteria Assist with reservoir modelling, with 2D and 3D structural controls on fluid flow Recommend strategies to optimise resource development Targeted geothermal drilling Our success at targeting a variety of permeability structures is demonstrated by our leading role in all current major geothermal developments in New Zealand. These include Rotokawa, where faults are targeted; Mokai and Ohaaki which have formational permeability; Kawerau which has basement fracture permeability; and Wairakei, which targets auto-brecciated rhyolite. We have supplied geological rig services for more than 50 wells since 2004, to a maximum depth over 3000 metres. Our success rate (exceeding 90%) in achieving exploration and production goals is unsurpassed in New Zealand. GNS Science has an experienced team of geothermal rig geology specialists for every stage of a geothermal exploration or production/injection drilling programme. Well targeting, and geological prognosis Rig geology including interpretation of downhole stratigraphy Interpretation of alteration mineral assemblages, fluid inclusion studies etc, to resolve system hydrology and evolution Interpretation of lithostratigraphic controls on fluid flow, and structural analysis Proven ability to transfer technical expertise to mud loggers and drilling engineers. Complete due diligence and prefeasibility studies.

5 Sustainable production and resource management To control costs and promote investor confidence, it is critical to utilise geothermal energy in sustainable and efficient ways. Optimum withdrawal rates need to match the recharge. Alternative resources need to be reserved, to maintain indefinite energy output. Production problems, such as scaling and corrosion by process and aquifer fluids, need to be controlled to reduce costs and development risk, and to increase efficiency. GNS Science will assist you with: Assessment of reservoir performance and assisting with production, injection and resource issues Geothermal well targeting advice Use of tracers to locate high-permeability flows Quantitative determination of mass flow Modelling 3D and 4D characteristics including permeability, fluid pathways and drawdown Delivering environmental expertise Every geothermal project plan considers the wider environment. Regardless of location, it is crucial that impacts are avoided or mitigated. Responsible management supports long-term social, environmental and financial success. GNS Science offers environmental expertise for every stage of your project planning, exploration, development and long-term resource management. Our scientists are experienced in modelling, monitoring, assessment and consultancy to support compliance with environmental regulations and preparation of environmental assessments needed for permits. Baseline modelling of environmental impacts including geochemistry, seismicity and surface thermal features Predicting and monitoring subsidence impacts Injection flow surveys and simulation of effects Sampling and analysis of geothermal fluids and gases Micro-earthquake monitoring. Modelling kinetic and thermodynamic chemical reaction paths Power station design for optimum circuit flow chemistry, matching the characteristics of the resource Geochemical analysis and problem solving to mitigate development challenges such as corrosion, scaling and injection returns Optimising production and injection strategies Monitoring resource boundary changes.

6 World-class analytical services All laboratory analyses are undertaken in an uncompromising research environment. You can be certain of optimum precision, and quality control. Our laboratory services include: Major and trace analyses of condensate, gas and water Stable isotope analyses of fluids and minerals Petrology, petrography and x-ray diffraction Fluid-inclusion microthermometry Radiometric dating of fluids and rocks Measurement of physical rock properties Surface sampling of fluids and gases Extremophiles research. Direct use of geothermal resources In many regions, even those without extensive surface geothermal activity, there is an opportunity to access low temperature geothermal energy. In addition to direct extraction, options include cascaded field development, use of waste fluid streams from power stations, and harnessing of energy from abandoned oil wells and methane-rich spring systems. Currently, the main worldwide direct uses for low temperature geothermal resources are space heating, bathing, domestic heat pumps, heating greenhouses, and aquaculture. Other applications include snow melting, fog dispersion, de-icing and numerous industrial uses. At GNS Science, we offer proven expertise for exploration, delineation and resource assessment of low enthalpy geothermal systems. Research leadership Long-term research is an integral part of solving challenges in geothermal exploration, development and production. Research underpins our consultancy expertise. Ongoing collaborative research with top overseas researchers and laboratories, including USGS, BGS, ICDP, IEA-GIA members and various universities, maintains GNS Science among the geothermal world leaders. Up-skill your team We have a long history of involvement in a variety of training programmes. Our experts are keen to assist practical training of scientists and technicians in all areas.

7 case studies studies case Assisting environmental legislation in Chile Chile has announced its intention to develop indigenous geothermal resources for electricity generation. This aims to overcome a current energy crisis caused by insecurity of supply from other sources. In 2006, the Chilean government requested assistance from New Zealand for geothermal environmental policy development under the Trans-Pacific Strategic Economic Partnership between Chile, Brunei Darussalam, Singapore and New Zealand. GNS Science undertook a collaborative study with non-profit organisation Fundacion Chile to review international environmental legislation and provide guidance to the Chilean Government on legislation to govern geothermal development. We also provided cost information for exploration, development and production, and for mitigation of environmental effects. Recommendations by GNS Science included: Having an independent panel of experts to review monitoring of the resource and environmental effects, and recommend changes to a regulating authority. Allocating geothermal resources to categories such as protected or development, to reduce uncertainty in permitting. Ensuring different operators on the same resource share information and collaborate formally through a joint resource management plan, to avoid adverse effects from competitive strategies. Chile has recently embarked on a policy to explore for their geothermal resources and a delegation recently visited New Zealand to discuss geothermal environmental policy and management strategies. GNS Science will continue to interact and provide specialist services. Geothermally-heated glasshouses Gourmet Mokai Ltd grow tomatoes and capsicums in 5.5ha of climate-controlled greenhouses on the Mokai Geothermal Field in New Zealand s central north island. The heat source for the glasshouses is by heat exchangers, utilising 170 C geothermal fluids obtained from Tuaropaki geothermal well MK-2. GNS Science, with our technical partners, provided geochemistry advice for the design of the heat exchanger to minimise corrosion and scaling. The heat exchanger transfers heat from the geothermal steam and fluids, to water in a closed circuit that is used in the glasshouses. Pipe rail heating is used in every path of the greenhouse and additional small pipes can be elevated to the height of the plant heads. GNS Science continues to be involved in projects at the glasshouses, as well as production and injection drilling, and monitoring of the geothermal field. For example, Tuaropaki Trust are currently looking at innovative options for carbon dioxide enrichment in the greenhouse. Carbon dioxide (CO ² ) enhances growth of the produce, and currently this is supplied by bulk CO ² stored in tanks. We are working on a technology to separate CO ² from other off-gases from the geothermal power plant to supply the greenhouses.

8 contact us us contact To know more about the services and expertise of the GNS Science geothermal team, and how we can support the success of your project, visit or call us on or us at geothermal@gns.cri.nz Wairakei Location Principal Location Other Locations Wairakei Research Centre 114 Karetoto Road Wairakei 3377 Private Bag 2000 Taupo 3352 New Zealand T F GNS Science 1 Fairway Drive, Avalon Lower Hutt 5010 PO Box Lower Hutt 5040 New Zealand T F National Isotope Centre 30 Gracefield Road Lower Hutt 5010 PO Box Lower Hutt 5040 New Zealand T F Dunedin Research Centre 764 Cumberland Street Dunedin 9016 Private Bag 1930 Dunedin 9054 New Zealand T F