IEA Geothermal Implementing Agreement. Annual Report 2015

Transcription

1 IEA Geothermal Implementing Agreement Annual Report 2015 Final Draft 18 September 2016

2 Table of Contents Message from the Chair... ii Thank You to Mike Mongillo... iii Executive Summary... iv Chapter 2 - Introduction Chapter 3 - Annex 1 Environmental Impacts of Geothermal Energy Development Chapter 4 - Annex 7 Advanced Geothermal Drilling and Logging Chapter 5 - Annex 8 - Direct Use of Geothermal Energy Chapter 6 - Annex 10 Data Collection and Information Chapter 7 - Annex 11 Induced Seismicity Chapter 8 - Annex 12 - Deep Roots of Volcanic Systems Chapter 9 - Annex 13 - Emerging Geothermal Technologies Chapter 10 - Australia Chapter 11 - European Union Chapter 12 - Germany Chapter 13 - Iceland Chapter 14 - Mexico Chapter 15 - New Zealand Chapter 16 - Norway Chapter 17 - Republic of Korea Chapter 18 - Switzerland Chapter 19 - United Kingdom Chapter 20 - United States of America Chapter 21 - Spanish Geothermal Technology Platform Chapter 22 - CanGEA Appendix 1 IEA-GIA Executive Committee as of December Appendix 2 Working Group Participation Table Appendix 3 - Annex Working Group Details i

3 Message from the Chair Dear Reader, Welcome to the 2015 IEA Geothermal Annual Report. This reports the work occurring in our Working Groups (Annexes) and provides you with comprehensive information about our participating nations, markets, technology, research, and statistics. Starting in 1997 IEA Geothermal is now in its 18th year, with 2015 characterized by activity and change. In April we took a very active part in the World Geothermal Congress in Melbourne hosting a booth, presenting many papers to the congress, running several technical meetings, holding an ExCo Business-Meeting and a number of our members participated in WGC fieldtrips. The IEA 33 rd ExCo Meetings were held in Taupo, New Zealand on 30 th April and 1 st May 2015 along with Working Group meetings (Induced Seismicity and Environmental) and a Working Group 1 field trip around the Taupo Volcanic Zone was held on 29 th April. In September Working Group 13, Emerging Geothermal Technologies, was established at meetings in Hanover, Germany. At the end of October the 34th ExCo-Meeting in Geneva was combined with a joint IEA Geothermal and Geothermal ERA-NET Direct Use, New Concepts Workshop New and Innovative Applications of Geothermal Energy. The new IEA programme officer Yasuhiro Sakuma explained in his presentation the strategy for the Technology Collaboration Programme (TCP), in which IEA Geothermal participates. TCP s should focus on public awareness, promotion of the benefits of renewable technologies and collaboration with relevant agencies and organisations. This approach will influence IEA Geothermal activities and adjustment of our strategy will be necessary. During the meeting in Geneva ending eras in leadership were celebrated: Dr. Mike Mongillo, Executive Secretary from retired, and Chris Bromley, ExCo Chairman since March 2007 relinquished that role. I personally would like to thank both of them for their engaged work over these long periods of time and our group owes them a great debt of gratitude. Brian Carey, a well experienced expert from GNS, New Zealand stepped into the position of the Executive Secretary from August 2015 in a smooth transition. I would like to thank everyone who has contributed to preparing this report and particularly the Working Groups and the Working Group leaders. Please enjoy the read. Lothar Wissing Chair IEA Geothermal ii

4 Thank You to Mike Mongillo The Executive Committee of IEA Geothermal acknowledges as a significant event in the 2015 year, the retirement, in August, of Dr Mike Mongillo, the Executive Secretary for over twelve years. The committee is taking this opportunity to gratefully acknowledge Mike s vibrant enthusiasm and boundless energy which he brought to the work. He served as Executive Secretary under the Chairmanship of David Nieva (Mexico) from March 2003 to March 2007 and Chris Bromley (New Zealand) from 2007 until he retired. His first Executive Secretary meeting experience was the 10 th Executive Committee and Annex meetings in Reykjavik, Iceland in September, This was also Mike s first viewing of the aurora borealis a memorable moment for him, because of his long-held passion for star gazing. (He was an astronomer, before moving into geothermal geophysics in the 1970 s). Mike reflects on a multitude of memorable and exciting experiences through the years, and the pleasure he has had working with the many supportive, considerate and knowledgeable GIA members and Annex participants. He enjoyed travelling to Member countries for the ExCo meetings, the special geothermal fieldtrips associated with the meetings and representing IEA Geothermal at international meetings and seminars in places such as Budapest, Beijing, and Moscow. Among the highlights of Mikes experiences during this time was participating at three World Geothermal Congresses: Antalya - Turkey (2005); Bali - Indonesia (2010); and Melbourne - Australia (2015); where, in addition to promoting GIA s efforts, he met and talked with many interesting and enthusiastic geothermalists from all over the world; many of them have become good friends. Mike remembers well his initiation and exponential learning period in 2003, aided by Ladsi Rybach (Vice Chair), who sent him a tabulated version of the IEA-GIA Implementing Agreement, incorporating a column itemizing the Secretary s associated duties. Ladsi would regularly enquire into the status of various GIA projects, and provided great training for Mike. Mike s first major project was to complete an expanded format 2002 GIA Annual Report by the end of April 2003, a challenging task within just a few weeks of becoming Secretary. In his retirement Mike hopes to pursue some of his other passions, which include ancient illustrated manuscripts, archaeological studies and collecting photographs of gargoyles. For your commitment to accuracy, your passion for cooperation and your patience with many busy colleagues, We all thank you very much. iii

5 Executive Summary The work of IEA Geothermal (GIA) and highlights from 2015 are presented in this report. Visit our website participate in our Working Groups (previously known as Annexes ) join one of our workshops or become a member of IEA Geothermal. We seek to foster the sustainable use of geothermal energy through international collaboration, collating and distributing quality information, supporting the development and uptake of geothermal technologies, and communicating geothermal energy s strategic, economic and environmental benefits. Aspects of the significant IEA Geothermal presence at the 2015 World Geothermal Congress in Melbourne Australia are documented in this report. Geothermal energy is used around the world in direct applications: space heating and cooling, greenhouse heating, aquaculture, bathing, thermal city networks, and industrial uses. In certain parts of the world, geothermal energy is found at appropriate conditions to be able to be used to generate electricity. While global geothermal energy use is increasing, appropriate policy and in some areas investigation and R&D is required to release more of the earth s very large geothermal energy potential. GIA had 17 contributing members in 2015; 13 were country members; the European Commission; and three industry organization/company sponsors. Three Executive Committee meetings were held; a Special Business meeting on 21 st April in Melbourne, Australia, an Executive Committee meeting in Taupo, New Zealand on the 30 th April and 1 st May and an Executive Committee meeting in Geneva from 27 th to 29 th October. Working group meetings and seminars were held in association with each of the meetings and the World Geothermal Congress. There were joint events with Geothermal ERANET, IGA and IPGT. Lothar Wissing took over as Chair from Chris Bromley who had served in the role for 8 years. Brian Carey took over from Mike Mongillo as Executive Secretary. The working groups active through 2015 or part of 2015 were: WG 1 - Environmental Impacts WG 7 - Advanced Geothermal Drilling and Logging Techniques WG 8 - Direct Use WG 10 - Data Collection and Information WG 11 - Induced Seismicity WG 12 - Deep Roots of Volcanic Systems WG 13 - Emerging Geothermal Technologies The working groups prepared a number of reports and papers and the bibliographic references can be found at the end of each WG Chapter (3-9). There were many IEA Geothermal presentations delivered at the 2015 World Geothermal Congress. WG1 presented papers on environmental aspects of geothermal development at the February 2015 Stanford Geothermal Reservoir Workshop, the April 2015 World Geothermal Congress, the October 2015 Geothermal Resources Council meeting and the November 2015 New Zealand Geothermal Workshop. Participants conducted outreach activities on environmental issues with non-member countries and the PhD work of Ruth Shortall on indicators of sustainability was completed. A special issue of 16 articles on the topic of Enhanced Geothermal Systems was in preparation for publication in Geothermics (Volume 63) in This publication comes from work undertaken, in part, by collaborating WG 3 participants during iv

6 WG 8 held a Direct Use meeting in association with the World Geothermal Congress, a networking meeting in association with CanGEA at the October 2015 Geothermal Resources Council meeting in Reno, USA and a New Concepts direct use seminar in conjunction with Geothermal ERA-NET - New and Innovative Applications of Geothermal, in Geneva, Switzerland on the 30 th October. Presentations from this workshop can be accessed at the iea-gia.org website ( The focus of WG 10 is to improve the consistency of the geothermal data collected, extend the data reported to include non GIA member nations and to collaboratively work with other agencies seeking to produce reliable annual statistical data. The 2013 GIA Trend Report providing key geothermal data (Weber, J. & IEA-GIA 2015) was officially published in The geothermal energy data for electricity and heat can be found in the Trend Reports on the iea-gia website The 2014 Trend report is available on the web site. WG 7 and 11 were closed in April On-going aspects of these have been included in WG 13. WG 12 participants focussed their 2015 joint activities on sharing relevant information between related Deep Roots research programs which are hosted by Iceland (GEORG), Italy (DESCRAMBLE), USA (FORGE), Switzerland (COTHERM & Grimsel), Japan (Supercritical & Beyond Brittle) and New Zealand (HADES). A joint seminar, with speakers representing each of these research programs, was held in Geneva, Switzerland, on the 26 th of October WG 13 Emerging Geothermal Technologies was mandated in April 2015 and initialised at a meeting in Hanover Germany in September The focus is on six largely technology oriented tasks: A) Exploration, Measurement and Logging, B) Drilling Technology, C) Reservoir Creation and Enhancement, D) Induced Seismicity, E) Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracers) and F) Geothermal Reservoir Management. Task leaders are drawing together interested nations and organisations and then developing work programmes. National Activities The geothermal programme of each GIA member country provides the basis for cooperative IEA Geothermal activity. The work that has occurred in each of the participating countries and the European Commission in 2015 is written up in more detail in chapters of this report. The material immediately below is a short summary from each of the contributing members of activity through Australia The highlight for the geothermal sector in Australia in 2015 was hosting the World Geothermal Congress in Melbourne Australia April 19-25, The Congress was jointly organized by the International Geothermal Association (IGA), Australian Geothermal Energy Group (AGEG), Australian Geothermal Energy Association (AGEA) and the New Zealand Geothermal Association (NZGA) with the theme of Views from Down Under Geothermal in Perspective. The World Geothermal Congress occurs every 5 years and represents a unique opportunity for delegates to share ideas and knowledge covering geothermal developments in both direct use and electricity generation applications worldwide. Over 1600 international delegates from 83 countries attended the Melbourne Congress with New Zealand, Indonesia, USA, the Philippines, Iceland, Australia, Germany, Japan, China and Turkey among the most represented countries. Particularly pleasing was the strong number of delegates attending from developing nations and v

7 student registrations which enhanced the success in achieving two of the Congress key objectives: to educate; and to share knowledge, technology and regulatory best practice. European Commission Two projects continued through 2015; with extensive field campaigns carried out as part of the Integrated Methods for Advanced Geothermal Exploration project (IMAGE), with this project attracting a high level of interest from European industry; and the Geothermal ERA-NET project continued advancing implementation of joint activities. Several new geothermal projects commenced in Two heating and cooling demonstration projects focus on reducing drilling cost (GEOTeCH) and on improving the efficiency of shallow geothermal systems (Cheap-GSHPs). The EGS project (DEEPEGS) aims at demonstrating and testing technologies to prove the feasibility of enhanced geothermal system energy delivery. Two research projects, expected to improve the level of technology readiness are a project concentrating on novel drilling technologies to reach high temperature and pressure resources (DESCRAMBLE) and one aimed at increasing drilling penetration rates using combined jetting and rotary drilling (ThermoDrill). A total budget of over 80 million Euro was allocated to the new 2015 projects with more than half of the funding coming from Horizon France Refer to the 2013 report for the latest information from France. Germany Renewable energy contributed 32% of German electricity demand and renewable heating (and cooling) increased to 13.2% of the total heat demand. As of the end of 2015 the German Geothermal Association reported there were 33 deep geothermal electricity and heating plants in operation, 3 under construction and 30 are planned. Installed electricity capacity was 40 MWe with a running capacity of 35 MWe. The Federal Ministry for Economic Affairs and Energy (BMWi) approved funding for 21 new geothermal projects totaling 17.3 M euros and 13.4 M euros was invested in 15 ongoing research projects. In December 2015 the feed-in-tariff for geothermal generated electricity was fixed at 25.2 Eurocents per KWh through an amendment to the Renewable Energy Sources Act (EEG). Progress continued on project GRAME supporting 100% renewable heat energy supply to Munich by Project PETher is awaiting a trial site for prototype testing of on line fluid thermal property determination equipment. Submersible pump technology is advancing through a HotLoop test facility that Baker Hughes has installed which has resulted in improved life and reliability of submersible geothermal pumps. Iceland Geothermal development in Iceland has been steadily increasing in the last decade. In 2015 construction was underway at the 303 MWe Hellisheiði power station, operated by Reykjavík Energy, with the building of a 5 km pipeline from the nearby Hverahlíð field, to connect up vi

8 production wells being drilled in that area. The Hverahlíð wells tap into a steam dominated geothermal reservoir and once connected (early 2016) are expected to improve the operational performance of the Hellisheiði power station. One make-up well was drilled in the Hellisheiði field in 2015; this is the first make up well drilled here since Landsvirkjun, the National Power Company of Iceland, is currently constructing the first unit of the Þeistareykir power plant in North Iceland. The 45 MWe unit is scheduled to go online in the autumn of The power plant is currently licensed for a capacity of 100 MWe. The Icelandic Deep Drilling Project (IDDP) is on-going with preparation under way for the second well. The first IDDP well was drilled in 2009 in the Krafla field in North Iceland. The second IDDP well will be in the Reykjanes area of South Iceland, and drilling is expected to start in All the energy companies in Iceland, Orkustofnun and Statoil are participating in this project. In 2015 construction began at the Blue Lagoon to enlarge the lagoon from 5000 m 2 to 8700 m 2 continuing expansion at the Reykjanes Resource Park. Direct geothermal use continues to increase. Total installed direct use capacity is estimated at 2000 MW t. Following the 2015 discovery of suitable hot water, construction started on a geothermal district heating system in Kjós, an area that has until now relied on electricity for residential and commercial heating. Italy Refer to the 2014 report for the latest information from Italy Japan The 2015 Japan report chapter is being prepared and this report will be updated when the material is completed. For now please refer to the 2014 IEA Geothermal annual report for the latest information from Japan Republic of Korea At the end of 2015 the total capacity of geothermal heat pumps (GHP) installed in Korea is estimated to be over 900 MWt. Capacity has been growing by more than 100 MWt a year since This very successful deployment has raised the awareness of the general public and the energy sector to the advantages in geothermal energy providing base load energy. The second well at the Pohang EGS pilot project reached a final depth of 4,348 m (MD) in December Subsequent wire-line logging and pre-stimulation are scheduled for early The original target depth was 4,500 m, but due to well instability including lost circulation issues, the project team terminated drilling at 4,348 m. On the basis of the wire-line logging and stimulation results, decisions will be made either to drill the third well or to side track the first well towards the direction of the propagating (stimulated) reservoir. Exploration for geothermal resources at Ulleung island continued through The work included additional magnetotelluric surveying and drilling of temperature gradient holes. Intermediate temperature measurements from the gradient holes identified a high possibility of thermal fluid convection through a fracture zone. The final geothermal exploration report will be completed in mid 2016 and detailed development planning will be provisioned by the end of vii

9 Mexico Geothermal energy has been utilized in Mexico for decades for power generation. The technology is considered mature from conventional hydrothermal high temperature resources and it competes in the energy market on the same basis as fossil-fuels, conventional hydro and nuclear technologies. There are no economic incentives for geothermal generation and the main restraint on further geothermal development is its economic disadvantage relative to modern fossil-fuel generation technologies. Mexico has targeted 35% renewable electricity capacity by 2024 and working groups established to develop scenario plans for different technologies have begun developing their plans. Additional to the energy law reform undertaken in 2014, the Energy Transition Law (Ley de Transición Energética) was formally passed by the Mexican Congress on 24 December This law is expected to further assist geothermal development in Mexico. The Mexican Centre for Innovation in Geothermal Energy (CeMIE-Geo), established in 2014, has been developing 30 specific technical projects and two general projects; the national specialized geothermal laboratories, and a program to promote education and human resource development. CeMIE-Geo has allocated federal funds budgeted up to 2018, after which the Centre is expected to be self-funding. During 2015 the following geothermal power plant developments occurred: Grupo Dragón commenced operation of two 5 MWe backpressure units at Domo San Pedro in early At the Los Azufres geothermal field a 50 MWe condensing steam turbine plant commenced commercial operation in February 2015 and four 5 MWe backpressure units were retired from service. At Los Azufres construction commenced in late 2015 on a 25 MWe condensing steam turbine plant. Commercial operation is scheduled for A 25 MWe condensing steam turbine power plant under construction in Los Humeros through 2015 is expected to commence commercial operation in late Grupo Dragón awarded Mitsubishi an EPC (engineer, procure and construct) contract for a 25 MWe (net) flash power plant to be constructed at Domo San Pedro. This plant is expected to commence operation later in In 2015, under the 2014 Geothermal Energy Law, the Energy Secretary (SENER) awarded CFE five geothermal concessions and 13 geothermal permits. The concessions are for the four CFE geothermal fields (Cerro Prieto, Los Azufres, Los Humeros and Las Tres Vírgenes) and a new field that CFE expects to develop in the near future (Cerritos Colorados, with a forecast potential of 75 MW). The permits are for exploring 13 geothermal zones within the next 3-6 years which to some extent have already been explored by CFE. It is expected that CFE will form jointventures or enter agreements with private national and/or foreign developers to explore these areas. Grupo Dragón was awarded an exploitation concession for the Domo San Pedro field and private developers were awarded exploration permits in other areas. Direct geothermal energy use is underdeveloped in Mexico in spite of having high potential. viii

10 New Zealand 17% of New Zealand s electricity was produced by geothermal energy in % of all electricity in 2015 was produced from renewable sources. At the end of both the 2014 and 2015 year the available geothermal generation capacity was 1010 MWe. There was no new geothermal electricity capacity installed during 2015 however there was an increase in utilisation effectiveness in the installed capacity. Energy produced through 2015 was 7383 GWh, which is an additional 530GWh over and above what was generated in There was consenting activity at Kawerau where the Eastland Generation Te Ahi O Maui 20 MWe project was granted consents to extract 15,000 t/day of geothermal fluid and in September resource consents were granted to Top Energy Ltd for an additional 50 MWe (2x25 staged) development at Ngawha adding to their existing 25 MW development. In the direct use industrial space two timber drying kilns using geothermal energy were installed at Sequal Lumber in Kawerau in March There continues to be growth in geothermal heat pump installations in the commercial sector as part of the rebuild of Christchurch. The systems are using aquifer water. A seminar in June 2015 identified the extent of the installations that are underway. The papers are reported on the New Zealand Geothermal Association website. In April 2015, New Zealand co-hosted, with Australia, the World Geothermal Congress 2015 (WGC). The focus of the Congress is well described in the Australia section at the beginning of the Executive Summary. New Zealand took the opportunity to show case recent geothermal projects to the world geothermal community as part of the congress and the congress field trips. Three post WGC field trips were run in New Zealand by the New Zealand Geothermal Association; Glorious Geothermal Energy, Powerful Landscapes and Lord of the Rings Middle Earth. These trips took participants to recent New Zealand geothermal developments and show-cased culture, volcanic landscapes and aspects of Lord of the Rings movie making. A post-congress Planning Workshop, Geothermal Policy and Implementation the New Zealand Example, was held in Taupo over the period 26 to 28 April On the 30 th of April 2015, Above Ground Geothermal and Allied Technologies (AGGAT) held a Global Geothermal Conference in Auckland. Presentations from 13 speakers addressed issues including: corrosion, silica scaling, material selection, secondary working fluids, surface coatings, turbine design, cooling technologies and control systems. Development of a draft GeoHeat Strategy took place in Drafted using a consultative process the strategy is looking to foster increased direct geothermal use. The strategy hosted by the New Zealand Geothermal Association will proceed to public consultation in Norway Shallow geothermal energy (Geothermal heat pump technology) is used widely in Norway in residential and commercial facilities. It is estimated that about 2500 systems were installed in In recent years there is trend for bore-hole heat exchangers to be drilled deeper in underground well fields with four or more boreholes. The average depth of the wells drilled in 2015 was about 230m. The Norwegian Centre for Geothermal Energy Research (CGER) hosted the international conference GeoEnergi 2015 in Bergen in September 2015 with participation from international scientific guests, politicians and the media. The conference was a follow-up to the successful ix

11 GeoEnergi 2011 and 2013 conferences. Also in September CGER, in collaboration with the University of Bergen, hosted the annual meeting of the EERA Joint Geothermal Programme. Norway is seeking to develop expertise and promote innovation through eight centres for environmentally friendly energy research (FME) that were established in 2009 under the auspices of the Research Council of Norway. A call for new FME centres was launched at the end of 2014 and in 2015 a proposal coordinated by the University of Bergen was lodged for a Geothermal Energy Centre. Iceland, Italy and Statoil assisted. The application will be considered during Statoil is actively engaged in deep and high temperature geothermal research being undertaken in Iceland (IDDP), by the European Union (GeoWell and DEEPEGS) and in the USA (NEWGEN as part of the FORGE work). Deep geothermal energy is a relatively new concept for the Norwegian public, politicians, funding agencies, press/media, industry and research organizations. CGER continues to promote geothermal energy in Norway seeking to raise awareness and acceptance as an important component in the renewable energy mix. Funding is required to move geothermal research forward in Norway. Switzerland Three deep geothermal projects continued to progress through 2015: Two wells have been connected to the heat plant and the long term fluid flow production test has been undertaken at the geothermal project supplying an agricultural business in Schlattingen (Canton Thurgau). In June 2015 the Haute Sorne EGS project received the building permit. This is an important milestone towards the realisation of a new reservoir creation concept. In contrast to massive borehole stimulation, Geo-Energie Suisse AG will use open-hole packer technology to multistage hydraulically stimulate in horizontal wells. The pilot project in the Canton Jura aims at proving the technical feasibility of the concept and producing up to 5 MWe by The seismic exploration campaign in the Canton of Geneva and the studies investigating the potential for cascaded uses of geothermal energy resources were completed. The next phase of the GEothermie 2020 project will be the drilling of exploration wells in 2016/2017. Several cantons passed laws regulating the exploration and exploitation of the deep underground. Strengthening the legal framework removes one of the main non-technical barriers to the development of deep geothermal projects in Switzerland. A number of R&D activities are under way through the Swiss Competence Center for Energy Research on Supply of Electricity whose remit includes geothermal energy. Highlights include the experiments at the Grimsel underground test site ( Total installed geothermal heat pump capacity is estimated to be about 1920 MWe and 2320 GWh of produced energy during the 2015 year. x

12 United Kingdom A number of direct use geothermal proposals continued to be evaluated during 2015, however no geothermal power generation or direct heat use from deep sedimentary aquifers were added during the year in the UK. The Scottish Government approved five feasibility projects to be funded out of the Geothermal Energy Challenge Fund. The Challenge Fund was established to support feasibility studies exploring the capacity of Scotland s geothermal resources to meet the energy needs of local communities. Grants totalling 234,025 were offered to five projects, but only four took up the offer resulting in 185,235 total grant funding. The four projects, which reported in February 2016, were ; Aberdeen Exhibition and Conference Centre: to conduct a feasibility study for the installation of a deep geothermal single well system to provide heat to the new Centre and associated buildings. Guardbridge geothermal technology demonstrator project: to conduct a feasibility study to investigate and assess whether a geothermal district heating system accessing a Hot Sedimentary Aquifer (HSA) resource underlying a brownfield site at Guardbridge in northeast Fife, can be developed in a cost-effective manner. Fortissat Community mine-water geothermal energy district heating network: a feasibility assessment for a potential mine-water geothermal energy system in the vicinity of the James Hutton Institute s (JHI) Hartwood Home Farm, North Lanarkshire. Hill of Banchory geothermal energy project: a feasibility study to explore the deep geothermal potential at Banchory, Aberdeenshire from at least a pair of deep boreholes drilled into the Hill of Fare Granite. Geothermal Engineering Ltd were awarded 858,060 from the UK Government s Heat Network Small Business Research Initiative competition to part fund the development of a deep geothermal single well heat system at the Crewe campus, Manchester Metropolitan University. Elsewhere, additional geophysical data were collected as part of a feasibility study for direct use geothermal at Auckland Castle, county Durham. In 2013 the Department of Energy and Climate Change (DECC) established the Heat Networks Delivery Unit (HNDU) to support local authorities in England and Wales in exploring heat network opportunities. Grant funding is available to meet up to 67% of the estimated eligible external costs of heat mapping, energy master planning, feasibility studies and detailed project development. Feasibility studies can cover the sources of heat supply including renewable options such as geothermal. By the end of 2014, 6,403,249 grant funding had been made available to 82 local authorities and additional grant funding of 2,983,369 was made available in 2015, although there are no figures on the extent of the geothermal feasibility studies. USA The USA through the Geothermal Technologies Office (GTO) of the Department of Energy has programmes in: Enhanced Geothermal Systems Hydrothermal and Resource Confirmation Low Temperature and Coproduced Resources Systems Analysis There are several near term goals to accelerate conventional hydrothermal growth: Lower risk and costs of development and exploration Lower levelized cost of electricity (LCOE) to 6 cents/kwh by 2020 xi

13 Accelerate development of 30 GWe of undiscovered hydrothermal resources Along with goals for future Enhanced Geothermal Systems: Demonstrate 5 MW reservoir creation by 2020 Lower LCOE to 6 cents/kwh by 2030 In 2015, developing new, innovative or pioneering technology to further geothermal development was undertaken as follows: As the next step for EGS development, the GTO has launched FORGE, one of the Energy Department s largest geothermal initiatives. The Frontier Observatory for Research in Geothermal Energy (FORGE) will advance fundamental understanding of the subsurface, increase development of sustainable, clean energy resources, and continue to maintain the U.S s global leadership in geothermal technology development and deployment. Phase I of the Play Fairway Analysis (PFA) effort was completed, with promising results. The concept of the PFA has been used to identify potential locations of blind hydrothermal systems, areas warranting future exploration and to describe geothermal opportunities in rift-zone settings. This tool incorporates the regional or basin-wide distribution of known geologic factors besides heat flow that control the occurrence of a particular example of a geothermal system. In December 2015 six teams were selected to continue with Phase II to be completed in The projects selected focus on the overarching quantification of uncertainty and uncertainty reduction. The Subsurface Technical and Engineering RD&D (SubTER) team as an integrated platform was initiated. This crosses DOE subsurface interests seeking to address crosscutting challenges associated with the use of the subsurface for energy extraction and storage. This team includes representatives of all DOE applied technology offices, as well as several other DOE offices focused on policy, research, and development. Through this coordinated approach, DOE can more quickly identify scientific and technology challenges and more effectively leverage funding through multi-office collaborations. Phase I of the Mineral Recovery Program was completed. Phase I projects demonstrated: technical feasibility and economic viability of mineral extraction technologies; assessed current Rare Earth Element and near critical-metal resource bases; and applied R&D of innovative extraction technologies. Phase II projects will be initiated in FY The first-in-the-world hybrid geothermal-solar facility in Fallon, Nevada successfully combined 33 MW geothermal with an additional 2 MW Concentrated Solar Power at the Stillwater Hybrid Geothermal-Solar plant. With Idaho National Lab and the National Renewable Energy Laboratory, GTO entered into agreement with ENEL Green Power to explore potential and quantify the benefits of integrating geothermal energy with solar as a replicable strategy. In FY 2015, the DOE GTO launched GeoVision, a project to outline and define the future of the geothermal industry in the coming decades in the USA. The GeoVision report will highlight the potential economic, environmental, and social benefits of geothermal energy. xii

14 APPA Sponsor Activities Spain has large geothermal resource potential. Appropriate geothermal policy could eventually lead to geothermal use growth rates already experienced in other European countries. Currently, however, the lack of specific support measures implies a low penetration of geothermal use in the renewable energy mix for thermal and electrical use. So far in Spain, no geothermal power plants have been developed. Promising projects, such as in the Canary Islands, have stopped, mainly because of the reform of the electricity sector that took place in Some of those projects are working to be reactivated. This, together with the inherent limitations of the deep geothermal sector with its high upfront costs and the need for public and private support to manage risk associated with geothermal resource investigation has slowed down progress in recent years. However, geothermal energy for power generation present a clear development opportunity for Spain, given the significant potential of existing resources, not only in the Canary Islands but also in the Iberian Peninsula, where the geological context is favourable to development of hydrothermal and EGS projects. The size of the Spanish geothermal heating and cooling market is difficult to quantify accurately, currently the data comes from estimates due to the absence of centralized official statistics that would better characterise the extent of thermal installations in Spain (biomass, solar thermal and geothermal for heating and cooling are not considered in official records). GEOPLAT estimate that the current installed capacity is 225 MW t including traditional direct heat applications (mainly spas and greenhouses), and shallow geothermal systems for heating, cooling and domestic hot water (DHW) linked to open and closed-loop borehole heat exchangers (BHE). Without political intervention and changes in the economic framework, it is expected that the installed direct use capacity will remain constant in coming years since most of the potential existing has already been exploited (although some industrial uses mighy be implemented). Continued moderate growth is expected in shallow geothermal systems. Mostly from growth in heating and cooling installations in the residential and tertiary sectors. The report: Análisis del sector de la energía geotérmica en España (Analysis of the geothermal energy sector in Spain) published in 2015 by the Spanish Geothermal Technology Platform (GEOPLAT), confirms that heating, cooling and electricity generation from geothermal energy are viable energy options for Spain. Geothermal has the capacity to contribute to the Spanish energy mix as a solid, versatile and efficient renewable energy source, with potential to play a valuable role to climate change mitigation policies to be implemented in the 2020 and 2030 scenarios. The report highlights the potential for job creation associated with accelerated deployment of geothermal energy in its various forms. However, in order to achieve significant outcomes, strong governmental support is needed to further enable development of the geothermal sector. CanGEA Through 2015 CanGEA completed the following publications: 1. International Geothermal Support Mechanisms Best Practices Report: The Canadian Gap This report proposes policy and support mechanism best practices for Canada, selected from extensive research of existing international geothermal industry regulation. It will support CanGEA s efforts to inform and influence Canadian decision makers and policy reform. 2. Thermal Springs of Canada: Geochemical Analysis xiii

15 Providing technical data for geothermal and mining developers, this report summarized historical data collected from Canada s 157 known thermal springs, including the approximate location, water chemistry, temperature, and volumetric flow readings of most thermal springs in Western Canada. 3. Temple Gardens Case Study This Case Study highlights one of Canada s cash-flow positive, government-funded thermal spas, heated by a geothermal doublet drilled into a Hot Sedimentary Aquifer. 4. Un-Natural Gas: Canada s Dirty Substitute for Geothermal Power Published in response to Alberta s plan to replace coal power with natural gas, when geothermal resources are cleaner, renewable and could displace significant GHG s. 5. Favourability Maps - Ongoing Geothermal Favourability Maps of all of Canada s provinces and territories will provide publicly available maps, databases, protocols, and tools that may be used as a resource and/or investment tool for assessing and exploiting geothermal resources in Canada. In 2015, CanGEA advanced favourability mapping of the Yukon, which will be published in Government and Regulatory Partnerships In 2015, CanGEA forged new relationships with the newly elected Canadian Liberal government as well as the new Alberta NDP government. With both of those governments, as well as the rest of Canada, CanGEA is making geothermal an important part of the Canadian energy policy reset resulting from a new focus on climate change mitigation and alternative energy sources beyond oil and gas. Events, Education and Advocacy CanGEA hosted a variety of conferences, webinars, and presentations in Events are tailored for the general public (Geothermal 101), and the existing CanGEA membership (policy updates, technology transfer events). Via the powearthful.org campaign, CanGEA is helping the public ask their elected representatives to develop geothermal in Canada. CanGEA believes that education-inspired advocacy will ultimately break down the barriers to geothermal development in Canada. ORMAT Refer to the 2013 report for the latest information from ORMAT. Editor and Contact Brian Carey Executive Secretary IEA Geothermal C/- GNS Science Wairakei Research Centre Box 2000 Taupo 3352 NEW ZEALAND iea-giasec@gns.cri.nz xiv

16 Chapter 2 - Introduction Geothermal is a long term renewable energy source. Even with oil at low prices through 2015 geothermal has an important part to play and nations with a long end game are investing. Few nations are able to utilise geothermal without feed in tariffs, auctions, or other support mechanisms. New Zealand and Iceland are examples where geothermal competes successfully into open energy markets. Geothermal s place as a reliable base load energy source is undeniable. Geothermal energy can provide a good sustainable base for building energy security in an integrated renewables system addressing climate change effects. Ban Ki-Moon Secretary General of the United Nations spoke to the Investor Summit on Climate Risk challenging governments. to create a level playing field for clean energy investment through carbon pricing, removing fossil fuel subsidies, and strengthening stable and predictable regulatory and investment environments. When pollution and environmental aspects are properly accounted for the true benefits of geothermal energy become readily apparent. Research, study and implementation of Engineered Geothermal Systems (EGS) are needed to develop reliable technology to release the vast geothermal energy potential contained within the earth. The interest in supercritical resources is evident amongst several IEA Geothermal (GIA) member countries. Reliable technology needs to be developed to be able to release the extraordinary potential of these high pressure and high temperature resources. The International Energy Agency Technology Collaboration Programmes look for solutions to longterm energy challenges through government and industry collaboration. Government Ministers, technical people and businesses joined together in April 2015 at the World Geothermal Congress in Melbourne Australia. Australia and New Zealand, two of our GIA country members were co-hosts to this important event. Figure 2-1 IEA Booth at the 2015 World Geothermal Congress in Melbourne, Australia GIA members focus their activity on working group (Annex) activity. All country members participate in working group (Annex) 10. The working group activity is subdivided to a task level. Involvement in task work is determined by members current interests, and their research and development programmes. 15

17 The working groups active through 2015 (or part of) were: 1 - Environmental Impacts 7 - Advanced Geothermal Drilling and Logging Techniques 8 - Direct Use 10 - Data Collection and Information 11 - Induced Seismicity 12 - Deep Roots of Volcanic Systems 13 - Emerging Geothermal Technologies More information on working activity follows in Chapters 3 to 7. The IEA Geothermal Implementing Agreement founded in 1997 is in its 4 th term with the goal of promoting the sustainable use of geothermal energy through collaboration, facilitating knowledge transfer, providing high quality information, and communicating geothermal s strategic, economic and environmental value. At the end of 2015 IEA Geothermal had 17 members; the European Commission, 13 member countries (Australia, France, Germany, Iceland, Italy, Japan, Mexico, New Zealand, Norway, the Republic of Korea, Switzerland, the United Kingdom and the United States), and three industry companies or organisations (ORMAT Technologies, the Canadian Geothermal Energy Association and the Geothermal Group of the Spanish Renewable Energy Association (APPA)). IEA Geothermal collects and collates geothermal energy data. This is assembled into annual trend reports. These can be found on our web site under the publications section or more directly at the following address The figure below is data from the 2013 trend report. The data in orange is the direct use geothermal energy data and the data in red is the geothermal electricity data. Figure 2-2 Geothermal capacity and energy data for GIA countries in Electrical data in red and Geothermal heat data in Orange. This diagram is from the IEA Geothermal Trend Report (2013). 16

18 Direct utilisation of geothermal energy as heat, is out-growing electricity generation. Many nations have significant investments in Geothermal Heat Pump technology which is growing rapidly. As examples, Norway has greater than 1330 MW, Korea greater than 900 MW, Germany greater than 2500 MW and Switzerland greater than 1900 MW of capacity and in recent years growth rates in some nations has been as great as 10% per annum. Geothermal energy and storage used for heating and cooling meets new building regulations in a number of countries seeking to promote long term sustainable energy use in residential and commercial environments. The issue of thermal storage is a topic for more research as this is a crucial element. GIA Executive Committee Meetings were held in Melbourne Australia (Business Meeting), Taupo New Zealand in April / May 2015 (33rd ExCo) and in Geneva in October 2015 (34 th ExCo). Figure 2-3 and Figure 2-4 are photos of the IEA-GIA participants at meetings in New Zealand (April, 2015) and in Geneva (October, 2015), respectively. Figure 2-3 Participants attending the 33 rd ExCo meeting in Taupo New Zealand in April Figure 2-4 Participants attending the 34 th ExCo meeting in Geneva in October 2015 (Bendall, Wissing, Ramsak, Lindenburg and Siddiqi absent). IEA seeks to extent its influence beyond the member nations with members participating in international meetings and workshops, and as examples of this, in association with the Geneva meeting on the 30 October, WG 8 held a joint IEA Geothermal and Geothermal ERA-NET direct use workshop on New Concepts - New and Innovative Applications of Geothermal Energy, WG 8 held a networking event in conjunction with CanGEA at the 2015 Geothermal Resources Council annual meeting, WG 11 and 1 held a joint meeting in Taupo New Zealand on 2 nd May 2015, WG 12 held a seminar on 26 th of October in Geneva, Switzerland, and WG 11, in combination with IPGT, held meetings associated with the World Geothermal Congress in Melbourne, Australia Through 2015 there was rationalisation of work effort with WG 7 and WG 11 closing in April On-going aspects of these have been included in WG 13 that was mandated in April 2015 and initialised at a meeting in Hanover Germany in September. 17

19 This report provides a useful source of information on what is occurring in the GIA member countries. Additionally there are many references which will take the reader to up-to-date information. The balance of this report documents status, activities and achievements through 2015 of the working groups and member nations in using geothermal resources. Information on activities in member countries is found in Chapters 10 to 20, and sponsor reports in Chapters 21 and 22. Appendix 1 details the Executive Committee membership at the end of December For the most up to date membership material please visit and download the pdf. Please connect up with IEA Geothermal via our website iea-gia.org or via iea-giasec@gns.cri.nz. References Ban Ki-Moon, 27 January 2016, Remarks At Investor Summit On Climate Risk, New York. Author Brian Carey Executive Secretary IEA Geothermal C/- GNS Science Wairakei Research Centre Box 2000 Taupo 3352 NEW ZEALAND iea-giasec@gns.cri.nz 18

20 IEA Geothermal R&D Programme Chapter 3 - Annex 1 Environmental Impacts of Geothermal Energy Development INTRODUCTION Appropriate environmental management, through assessment and mitigation of effects, is an important prerequisite for realisation of the potential of geothermal energy as a renewable, sustainable, indigenous energy source. Despite its benefits in terms of reduced carbon emissions, potentially there can be some local environmental problems associated with geothermal utilization. It is important, therefore, to research and adopt measures to avoid or minimize adverse impacts and to foster beneficial effects. The goals of Annex 1 (Environmental Impacts) of the International Energy Agency Geothermal Implementing Agreement (IEA- Geothermal) are to: a) encourage the sustainable development of geothermal energy resources in an economic and environmentally responsible manner; b) quantify and seek ways to balance any adverse impacts that geothermal energy development may have on the environment; and c) identify ways of avoiding, remedying or mitigating any adverse effects. Figure 3-1 Participants on an IEA-Geothermal fieldtrip Ten Geothermal Fields in One Day visit Waikite, a protected geothermal system, during meetings at Taupo, New Zealand, April Participating countries in Annex 1 are Australia, Iceland, Italy, Japan, New Zealand, Norway, Switzerland and the United States. Figure 3-1 shows IEA-Geothermal participants visiting a hot spring area during a fieldtrip conducted for the April- May 2015 meeting held in Taupo, New Zealand. GNS Science, Wairakei Research Centre, New Zealand, is the Operating Agent. Chris Bromley, of GNS Science, is the Annex Leader. TASKS OF ANNEX 1 In 2015, Annex 1 activities consisted of four Tasks. Detailed descriptions are given in 19

21 IEA Geothermal R&D Programme previous IEA-Geothermal Annual Reports and are summarised below Task A Impacts on natural features Task Leader: Chris Bromley, GNS Science, New Zealand Description: Natural geothermal features are monitored carefully, and changes documented. Where changes are caused by geothermal developments, techniques are devised to avoid or mitigate the adverse impacts. Beneficial changes are also identified and promoted. Other Participating Countries: Iceland, USA, Japan, Italy Task B Discharge and reinjection problems Task Leader: Robert Reeves, GNS Science, New Zealand Description: Adverse impacts of geothermal developments on the environment may include the effects of: a) reduced air quality due to gas emissions from geothermal power plants; b) contamination by geothermal chemicals of waterways; and c) ground subsidence from pressure decline. Projects investigate problems from discharge of geothermal fluids (eg. scaling, corrosion or contamination), and the adverse effects of gas emissions. Mitigation options such as injection or treatment are studied and published. Other Participants: Iceland, USA, Japan, Italy, Mexico Task C Methods of impact mitigation and environmental procedures Task Leader: Chris Bromley, GNS Science, New Zealand Description: Effective environmental analysis procedures and policies provide early identification and mitigation of issues. Reducing the costs of environmental compliance by stream-lining the process for permitting helps to contribute to the responsible and timely deployment of geothermal projects. Successful mitigation schemes and strategies are identified and documented. Comparison of policies and compliance procedures helps identify processes that are efficient and effective. Other Participants: Australia, Iceland, Italy, Japan, Mexico, Switzerland, USA Task D Sustainable utilization strategies Task Leader: Guðni Axelsson, Iceland Geological Survey (ISOR), Iceland Description: Case histories and reservoir simulation of geothermal developments are studied to identify successful strategies that are. Scenario modelling of long-term reservoir behaviour is undertaken to help select optimum use strategies given different recharge and resource size characteristics. These are compared to determine relative environmental and economic benefits. Recharge factors, recovery times, and optimised (cyclic or staged) operation strategies are investigated. Studies also include the following: a) indicators for a sustainability protocol and b) aspects of improved monitoring of reservoir performance. Other Participants: Australia, USA, Italy, Japan, Mexico, Switzerland, New Zealand, Norway. PROGRESS IN 2015 RELATIVE TO IEA-GIA STRATEGIC PLAN A meeting of Annex participants was held at GNS Science, Wairakei Research Centre, in Taupo, New Zealand, on 2 nd May The agenda included discussions on work plans of Tasks A to D, and the topics of subsidence, sustainability and potential resource utilisation inside protected areas such as national parks. Discussions continued as part the Annex 1 reporting at the Executive Committee meeting in Geneva, Switzerland, on 27 th October,

22 IEA Geothermal R&D Programme Figure 3-2 Waiotapu mud pool, a natural steam-heated feature in New Zealand, visited by participants in April Task A Impacts on natural features Work in this task focussed on improving geophysical tools to monitor changes in heat loss from areas of surface thermal features (especially steaming ground). Work continued with regulators to help identify indicators of relative merit for surface thermal features (Figure 3-2) and from man-made changes in the historical records. This will assist decision makers to assess future geothermal development proposals. Examples were published on the environmental work associated with the expansion or continued operation of the Ngawha, Tauhara and Ohaaki geothermal fields in New Zealand. Work on assessing the bio-diversity of extremophile bacteria (Figure 3-3) associated with thermal features continued, using the database established for the 1000 springs project Discussions canvassed the issues of development of geothermal resource potential located in protected areas, National Parks and nearby hot spring resorts. Papers on monitoring of geothermal vegetation changes in Iceland and New Zealand were presented at WGC Task B Discharge and reinjection Issues discussed included: water management, noise, hazards, visual impact, improved injection strategies, scale treatment and avoidance, and CO 2 and H 2S emissions. Papers on H 2S removal and mitigation methods from USA and New Zealand were published as well as several papers on the results of subsidence research related to production of geothermal fluids. Other topics addressed included worker safety (selection of gas detectors) and noise abatement. Other WGC 2015 papers addressed the issue of mildly radioactive scale treatment in France and the fate of dispersed H 2S emissions in Iceland. 21

23 IEA Geothermal R&D Programme Figure 3-3 Microbial mat containing thermophyllic bacteria (Whangapoa hot spring, Atiamuri) visited by IEA Geothermal participants during their Taupo Volcanic Zone field trip in April Figure 3-4. Ohaaki natural draught cooling tower, constructed in 1989, disperses ~5% by weight in steam noncondensable gases (CO2, H2S and Hg), together with water vapour, from the Ohaaki power plant. Studies reveal no adverse effects on surrounding pastures which are used intensively for dairy farming. This site was included in the April 2015 field trip by IEA Geothermal participants. 22

24 IEA Geothermal R&D Programme Task C Methods of impact mitigation and environmental procedures Discussions at meetings addressed geothermal policy and best-practice planning guidelines. Several publications covered examples from consented projects in New Zealand (Ngawha, Tauhara, Ohaaki (Figure 3-4)) and the application to geothermal policy development in other countries (Kenya, Vanuatu and Papua New Guinea). Other topics addressed included water policy development in the USA for EGS projects, life-cycle analysis of GHG emissions in Europe, and an analysis of the effects of the carbon emissions trading scheme in New Zealand. Annex discussion also covered the possible integration of social and economic protocol issues with Environmental Impact Assessment risk and mitigation. Issues of public perception were also discussed. WGC 2015 publications from Switzerland, Japan, Italy, USA, Canada and Mexico document social acceptance issues and environmental concerns arising from geothermal development proposals Task D Sustainable utilization strategies Discussion at meetings on sustainable utilization included: i) sustainability analysis and indicators (including Ruth Shortall s publications), ii) assessing the potential and boundary conditions of reservoirs, iii) new techniques in simulation modelling, and iv) issues of long-term reservoir performance. Sustainable performance issues included: i) recovery of pressure and temperature after resource depletion; ii) recharge parameters; iii) improved resource assessment reliability; iv) staged development strategies; and v) strategic make-up drilling. Aspects of geothermal resource sustainability were presented in papers by participants or their colleagues at WGC2015 and the New Zealand Geothermal Workshop. WGC2015 sessions on sustainability (9 papers) and reservoir modelling provided examples of the international work that is being undertaken on this topic HIGHLIGHTS AND ACHIEVEMENTS OF ANNEX 1 The highlights for the 2015 year were: Participation at the World Geothermal Congress (April 2016 Melbourne) which included many presentations and reviewed papers on environmental, social and sustainability topics from IEA- Geothermal member countries: Switzerland, France, Japan, Canada, New Zealand, Iceland, Italy, USA and Mexico, in sessions : 3E, 4E, 5E, 6D, 9D, 10D, 7J and 14C. Papers can be downloaded from the IGA conference database. Selected paper titles involving participants are listed in the reference section of this chapter. A poster on Annex 1 activities was prepared for the IEA-Geothermal exhibition booth. Papers were presented by Annex participants and their work colleagues on environmental research, improved environmental sustainability strategies and monitoring methods at the following conferences: a) February 2015 Stanford Geothermal Reservoir Workshop in California, b) October 2015 Geothermal Resources Council Conference in Reno, Nevada, and c) November 2015 New Zealand Geothermal Workshop at Wairakei, New Zealand. Participants conducted outreach activities on environmental issues with non-member countries (e.g., the International Student Energy Summit (10-12 June 2015), held in Bali, Indonesia) The PhD work of Ruth Shortall on indicators of sustainability (collaboration between Iceland, New 23

25 IEA Geothermal R&D Programme Zealand and Kenya) was completed and several papers have been published. Annex participants took part in a collaborative environmental meetings and field trip through the period 29 th April- 2nd May in Wairakei, New Zealand, where future work plans for environmental and sustainability tasks were discussed. Figure 3-5 borefield. Wairakei Terraces recently established spa: cascaded use of separated brine from the Wairakei 2015 OUTPUTS Presentations by participants on aspects of environmentally sound and sustainable development Bromley, C.J. (2015) Annex 1 Update- Geothermal Environmental Tasks, IEA-GIA meeting, Taupo, 30th April 2015, published in members area Bromley, C.J., G. Axelsson, M. Mongillo (2015) Annex 1 Work Plans : sustainable and environmentallysound development strategies addressed through international collaboration, Joint Annex I (Environmental) and Induced Seismicity meeting, Taupo, 2 nd May 2015, published in members area Bromley, C.J. (2015) Annex 1 Update- Geothermal Environmental Tasks, IEA-GIA meeting, Geneva, 24 Switzerland, 27th October 2015, published in members area Bromley, C.J. (2015) Environmental Sustainability: with focus on planning, monitoring, and adaptive management of geothermal resources, in order to achieve sustainable utilization, presentation at Start to Steam seminar and field trip for government officials held on 6th-7th August at Wairakei Research Centre, GNS Science, Taupo, New Zealand Annex 1, Task A, Surface Geothermal Features Bromley, C.J.; Ashraf, S.; Seward, A.M.; Reeves, R.R. (2015) Monitoring and quantifying heat loss from significant geothermal areas via remote sensing. In: Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand, Paper 142.

26 IEA Geothermal R&D Programme Reeves, R., Bromley, C., Milloy, S. (2015) Time series aerial thermal infrared surveys to determine near-surface thermal processes at the Ohaaki Geothermal Field, New Zealand. Proceedings WGC2015 Melbourne, April Annex 1, Task B, Discharge and reinjection problems Bromley, C., Currie, S., Jolly, S., Mannington, W. (2015) Subsidence: an Update on New Zealand Geothermal Deformation Observations and Mechanisms. Proceedings WGC2015 Melbourne, April 2015, #02021 Kelly, S., Paul A. Siratovich, Jim Cole, John Clark (2015) Subsidence at Kawerau Geothermal Field New Zealand. Proc. 37th New Zealand Geothermal Workshop, November 2015,Taupo, New Zealand, Paper 100. Koros, W.; O'Sullivan, J.; Pogacnik, J.; O'Sullivan, M.; Pender, M.; Bromley, C.J. (2015) Variability of geotechnical properties of materials within Wairakei subsidence bowl, New Zealand. Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand, Paper 57. Pogacnik, J.; Koros, W.; O'Sullivan, J.; Pender, M.; O'Sullivan, M.; Bromley, C.J. (2015) Using ABAQUS to simulate the triaxial stress strain behavior of core samples from the Wairakei/Tauhara Geothermal Field. Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand. Paper 149. Kolar, M., Osgood, S., Echt, W. (2015) Coso Case Study: 22 Years of Reliable Sulfur Removal, Trans. Geothermal Resources Council, Reno Nevada September Bierre, E. & Fullerton, R., (2015) Tubular Biofilm Reactor for Hydrogen Sulphide Removal From Geothermal Cooling Water, Trans. Geothermal Resources Council, Reno Nevada September Annex 1, Task C, Mitigating Environmental Impacts of Geothermal Development Bromley, C.J., (2015) Geothermal Energy: the shy monster lurking in your backyard Abstract and invited presentation for International Student Energy Summit, June 10-12, 2015, Bali, Indonesia. Bromley, C.J. (2015) Statement of evidence on environmental monitoring for Northland Regional Council hearing concerning a resource consent application by Ngawha Generation Ltd for expanded operation of Ngawha Geothermal Field : public hearing in Kerikeri on August GNS Science report 2016/ p. Daysh, S., Bromley, C., Dunstall, M, Carey, B. (2015) Tauhara II - Innovative Environmental Permitting for a New Geothermal Plant Adjoining the Taupo Urban Area. Proceedings WGC2015 Melbourne, April 2015, paper Kortright, N.I., (2015) Ohaaki Geothermal Power Station Renewing Resource Consents Comparison with Greenfield Development, Proceedings WGC2015 Melbourne, April 2015, paper Lawson, R., F. Siega (2015) The Emissions Trading Scheme: Challenges and future impacts for Geothermal Power Plants, Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand. Paper Annex 1, Task D, Sustainability and Reservoir Modelling Bromley, C., Axelsson, G., Mongillo, M. (2015) Sustainable and Environmentally-Sound Development Strategies Addressed Through International Collaboration. Proceedings WGC2015 Melbourne, April 2015, #05000 Bromley C.J., Axelsson G. (2015) Adaptable long-term sustainable development strategies by using reservoir simulators, Extended abstract and poster at EGW-2015 European Geothermal Workshop, Strasbourg, October, 2015, 2 p. Bromley, C.J. (2015) Global deployment projections of sustainable & renewable geothermal energy : the good, the bad and the outrageous : from an IEA- GIA perspective. Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand, paper 143. Axelsson, A., Arnaldsson, A., Berthet, J., Bromley, C.J., Gudnason, E. Hreinsdottir, S., Magnusson, I., Michalczewska, K., Karlsdottir, R., Sigmundson, F., Sigurdsson, O.,(2015) "Renewability Assessment of the Reykjanes Geothermal System, SW-Iceland," Proceedings WGC2015 Melbourne, April 2015, paper Shortall, R., B. Davidsdottir, G. Axelsson (2015) Geothermal energy for sustainable development: A review of sustainability impacts and assessment frameworks. Renewable and Sustainable Energy Reviews, Vol. 44, April 2015, p Shortall, R., B. Davidsdottir, G. Axelsson (2015) A sustainability assessment framework for geothermal energy projects: Development in Iceland, New Zealand and Kenya Renewable and Sustainable Energy Reviews, Vol. 50, Oct 2015, p Shortall, R. B. Davidsdottir, G. Axelsson (2015) Development of a sustainability assessment framework for geothermal energy projects, Energy for Sustainable Development, Vol 27, 25

27 IEA Geothermal R&D Programme August 2015, p Additional environmental publications relevant to Task A Luketina, K. Yuafrinaldi Yuafrinaldi, and Sadiq J. Zarrouk (2015) Onekeneke Stream Taupo: Historical changes and their causes. Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand, Paper Additional environmental publications relevant to Task B Addison S.J., I.M. Richardson, G.D. Thomas (2015) Personal Gas Detection Selection and Operation for Geothermal Power at Mighty River Power, Proc. 37th New Zealand Geothermal Workshop, November 2015,Taupo, New Zealand, Paper 160. Norris, T. & Deanda, K. (2015) Progress Report in Silencing ORC Turboexpanders in Geothermal Service, Trans. Geothermal Resources Council, Reno Nevada September Additional environmental publications relevant to Task C Barasa P.J., (2015) Integration of Environmental Management System in Monitoring of Environmental and Social Aspects Associated with Operation of Olkaria II Geothermal Power Plant in Naivasha Subcounty, Nakuru County, Kenya. Proc., 40th Workshop on Geothermal Reservoir Engineering, Stanford University, California, January 26-28, 2015 SGP-TR-204. Crisp, M. (2015) Development of a Geothermal Resource Policy for Papua New Guinea Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand. Paper 43. Daysh, S., B. White, T. Tari and K. McPherson (2015) Effective Environmental Decision Making in the Pacific Takara geothermal project, Efate, Vanuatu, Proc. 37th New Zealand Geothermal Workshop, November 2015, Wairakei, Taupo, New Zealand. Paper 68. Schroeder, J. N., Horner, R. M.,Harto, C. B., Clark, C.E. (2015) Alternative Water Policy Assessment for Enhanced Geothermal Systems - A Case Study, Trans. Geothermal Resources Council, Reno Nevada September Other Significant Environmental papers by IEA Geothermal Countries published in Proceedings World Geothermal Congress 2015 Iceland: Snjolaug Olafsdottira, Sigurdur M. Gardarssona, Hrund O. Andradottira, Halldor Armannsson, Finnbogi Oskarsson (2015) Near Field Sinks and Distribution of H2S from two Geothermal Power Plants in Iceland, paper Mariela A. Aráuz Torres, Throstur Thorsteinsson and Thrainn Fridriksson (2015) Modelling H2S dispersion from San Jacinto-Tizate geothermal power plant, Nicaragua, paper Bjarni Mar JULIUSSON, Ingvi GUNNARSSON, Kristin Vala MATTHIASDOTTIR, Sigurdur H. MARKUSSON, Bjarni BJARNASON, Oli Gretar SVEINSSON, Thor GISLASON, Hildigunnur H. THORSTEINSSON (2015) Tackling the Challenge of H2S Emissions, paper Ásrún Elmarsdóttir, Olga K. Vilmundardóttir and Sigurður H. Magnússon (2015) Vegetation studies at high-temperature geothermal areas in Iceland, paper Thecla Mutia, Ingibjörg Svala Jónsdóttir and Þráinn Friðriksson (2015) Monitoring Protocol for Potential Hydrogen Sulfide Effects on the Moss (Racomitrium lanuginosum) around Geothermal Power Plants in Iceland, paper France: Mathilde Marchand, Isabelle Blanc, Aline Marquand, Antoine Beylot, Sophie Bezelgues-Courtade, Hervé Traineau (2015) Life Cycle Assessment of High Temperature Geothermal Energy Systems, paper Nicolas Cuenot, Julia Scheiber, Wilfrid Moeckes and Albert Genter (2015) Evolution of the Natural Radioactivity on the Soultz-sous-Forêt EGS Power Plant and Implication for Radiation Protection, paper New Zealand: Bruce Willoughby, Catherine Beard and Katherine Luketina (2015) Invertebrate Macro-Fauna in Geothermal Soils under Native Vegetation in the Waikato Region, New Zealand, paper Emily Bierre, Rob Fullerton 92015) Hydrogen Sulphide Removal from Geothermal Power Station Cooling Water using a Biofilm Reactor, paper Sarah Beadel, William Shaw, Roger Bawden, Chris Bycroft, Fiona Wilcox, Joanna McQueen (2015) 26

28 IEA Geothermal R&D Programme Update on Sustainable Management of Geothermal Vegetation in the Waikato Region, New Zealand, paper Mark C. Smale1 and Susan K. Wiser (2015) A Classification of the Geothermal Vegetation of the Taupo Volcanic Zone, New Zealand, paper Switzerland: Lasse Wallquist and Matthias Holenstein (2015) Engaging the Public on Geothermal Energy, paper Japan: Hiromi Kubota (2015) Social Acceptance of Geothermal Power Generation in Japan, paper Nobukazu Soma, Hiroshi Asanuma and Yasuki Oikawa (2015) Conceptual Study of Overall System Design of Geothermal Energy Systems for AchievingUniversal Use in Japanese Social Condition, paper Italy: Anna Pellizzone, Agnes Allansdottir, Roberto De Franco, Giovanni Muttoni, Adele Manzella (2015) Social Acceptance of Geothermal Energy in Southern Italy, paper USA-Ormat: Gad Shoshan (2015) Binary Geothermal: A Reliable Power Solution During Natural Disasters, paper Canada: Michel Malo, Jean-Philibert Moutenet, Karine Bédard and Jasmin Raymond (2015) Public Awareness and Opinion on Deep Geothermal Energy in the Context of Shale Gas Exploration in the Province of Québec, Canada, paper Mexico: Zayre González, Disraely González and Thomas Kretzschmar. (2015) First Approach of Environmental Impact Assessment of Cerro Prieto Geothermal PowerPlant, BC Mexico, paper PLANS FOR 2016 AND BEYOND Plans for the future include continuing work on the four existing tasks with additional initiatives as listed in the IEA Geothermal strategic plan. Some plans are dependent on funding and availability of expertize. They include: a) an Environmental Special Issue Journal compilation, b) preparation of an international geothermal environmental code-of-practice, c) workshops on sustainability modelling or surface feature protection, d) field trials using targeted shallow reinjection of hot fluids to remedy adverse effects, e) gas sequestration by injection, and f) water treatment to remove potentially toxic chemicals. Some initiatives are summarised below Task A Impacts on Natural Features Establish protocols and methods of drilling/producing/injecting deep beneath protected areas with negligible surface impact. Improve modelling of groundwater changes arising from deep pressure changes. Classify vulnerability of thermal features to reservoir pressure changes Task B Discharge and Reinjection Mitigate corrosion and scale deposition. Document results of subsidence mitigation by injection Monitor casing integrity to protect groundwater Task C Methods and Costs of Adverse Impact Mitigation Streamline environmental impact assessment timeframes. Itemize experience and best practice options for EGS water resource issues Test the use of targeted injection to rejuvenate failed geysers/springs or halt subsidence Task D Sustainability Publish case studies on sustainable utilisation 27

29 IEA Geothermal R&D Programme Investigate permeability changes with time and interference effects Design guidelines for optimum makeup production and injection strategies Improve the use of dual tracers (volume and area) for predictive modelling ANNEX 1 RELATED WEBSITES IEA-GIA website, hosted publications, GEORG (GEOthermal Research Group) Seminar series in Iceland on research on sustainable production methods from deep high-temperature systems: GNS Science hot spring inventory: ACKNOWLEDGEMENTS Fellow participants within the Annex 1 who have contributed to the outputs and discussions are gratefully acknowledged. Author Chris Bromley GNS Science, Wairakei Research Centre, PO Box 2000, Taupo 3352, New Zealand c.bromley@gns.cri.nz 28

30 IEA Geothermal R&D Programme Chapter 4 - Annex 7 Advanced Geothermal Drilling and Logging Annex 7 was closed by decision (Motion BusExCo/2) of the IEA Geothermal Executive Committee in April There were extensive presentations made as part of outputs from this Annex at the World Geothermal Congress in Melbourne Australia in April Please refer to the 2014 annual report for listing of the publications. 29

31 Sponsor Activities - CanGEA Chapter 5 - Annex 8 - Direct Use of Geothermal Energy Figure 5-1 Growing tropical fruit and fish farming using geothermal tunnel water at the Tropenhaus Frutigen, located in the middle of the Western Swiss Alps (Lötschberg base tunnel). (Courtesy of Tropenhaus Frutigen AG) Introduction Geothermal water has been used for millennia for various heating and bathing applications. During the last several decades the use of geothermal energy for a range of heating purposes has become more and more important worldwide, and this has resulted in dramatically increased use. Many applications use geothermal energy; heating buildings, raising plants in greenhouses, drying crops, fish farming, snow melting, bathing, therapeutic use, and industrial processes. Over the last decade cooling using geothermal energy is becoming more important. In 2013, Annex 8 ( Direct Use of Geothermal Energy ) was restructured. The Annex members defined four new Tasks and continued with one from earlier work: A) New and Innovative Geothermal Direct Use Applications, B) Communication, C) Guidelines on Geothermal Energy Statistics, D) Guidelines on Statistics for Geothermal Heat Pump Applications and E) Design Configuration and Engineering Standards (continued). The Geothermal Direct Use Annex also includes large innovative heat pump applications including smart thermal low temperature grids combined with underground storage. The mission is the provision of quality information, communication and knowledge transfer to mitigate the barriers to geothermal direct use seeking to enhance deployment. The main objectives are to collaborate, cooperate, share knowledge and boost awareness increasing the use of existing technologies. Current participants of Annex 8 are the Canadian Geothermal Energy Association (CanGEA), France, Germany, Iceland, Japan, New Zealand, Republic of Korea,

32 IEA Geothermal R&D Programme Switzerland, United Kingdom, and United States of America. Geothermie-Schweiz, the Swiss Geothermal Society, is the Operating Agent. Katharina Link, CEO of Geo-Future GmbH, Switzerland is the leader. Tasks There are five Tasks, described below Task A New and Innovative Geothermal Direct Use Applications (Task Leader: Brian Carey, GNS Science, New Zealand) Geothermal direct use technologies are, in general, mature and competitive. One current focus of is the development of innovative applications, to open up new utilization possibilities, to enhance efficiency, and to reduce costs. Smart cities and energy grids are becoming more and more important particularly in Europe. There is a trend towards larger Geothermal Heat pump systems, (Ground Source Heat Pumps - GSHPs) sometimes combined with other energy sources (e.g., solar thermal energy) and usually incorporating underground energy storage. In the agricultural and industrial sectors there is great potential for new and innovative direct use applications. In many countries in the world, cooling using geothermal energy is becoming at least as important as heating. Figure 5-2. Wairakei Prawn Farm uses geothermal heat to grow fresh water prawns (The energy comes from geothermal water discharged from Wairakei Power Station) Task B Communication (Task Leader: Alison Thompson, CanGEA, Canada) Although the worldwide technical and economic potential of geothermal direct use applications is enormous, knowledge amongst the general public, politicians and decision-makers is in general lacking. The level of awareness varies widely. In some countries, like many in Europe, the potential of GSHP systems for heating residential houses is very well known, but the fact that there are many other applications much less so. Even in a country like New Zealand, which has obvious potential, the many uses for geothermal energy are poorly known compared to geothermal power generation. Clearly, to boost geothermal direct use and to enhance deployment, communication is essential. Activities are concentrating on collecting available information from member countries and cooperating organizations. The exchange of experiences is fundamental to identify barriers and opportunities, and to optimise communication activities. CanGEA have been instrumental in drawing material together. Task C Guidelines for Geothermal Energy Statistics (Task Leader: Jonas Ketilsson, Orkustofnun, Iceland) Geothermal energy statistics, especially direct geothermal use statistics, have been a major point for discussion. The Annex members decided to investigate the reporting of energy statistics. The aim was to overview collection of geothermal energy statistics internationally by various agencies, offices, organizations and associations. The work was seeking to enable successful exchange and interpretation of energy statistics, to increase reliability of the data collected and to decrease fragmentation. 31

33 IEA Geothermal R&D Programme A report, entitled International Collection of Geothermal Energy Statistics Towards reducing fragmentation and improving consistency was published by Orkustofnun in February In the report, the datasets of IEA Geothermal, European Geothermal Energy Council (EGEC) and IGA are referred to as industry statistics. The industry statistics are not consistent and differ from the official statistics provided by IEA, OECD, UNECE, EUROSTAT and the UN. The industry statistics are fragmented, although consistent within each respective association. With time, databases have been developed and questionnaires established by each association. In many cases, the data collection is similar, but often there are differences that result in the data not being interoperable, so when numbers are compared from one association to another, differences will be found which can be difficult if not impossible to resolve. The work of seeking to regularised the data collection is conducted within the scope of the Geothermal ERA-NET supported by the European Commission. Based on the report the next task is to develop guidelines for geothermal energy statistics. A group for this purpose was created Task D Statistics for Geothermal Heat Pump Applications (Task Leader: Yoonho Song, Korean Institute of Geoscience and Mineral Resources (KIGAM), Republic of Korea). Different load factors are applicable to various types of direct utilization, such as heating a residential house, an office building, or a green house, but different load factors are not usually considered when estimating GSHP capacity factors of different applications. In smaller applications as opposed to large-scale district or other heating systems, flow rate monitoring is not often undertaken and the thermal loads for GSHPs are not determined. There is therefore significant uncertainty in the statistics for geothermal energy use in GSHPs, at both a national and global level. In addition, many countries do not separate the statistics for cooling with GSHPs from heating, which causes further uncertainty in the statistics. Consequently, Task D was initiated in 2013 to determine a method for estimating geothermal energy utilization with GSHPs as accurately as possible. If the statistics and the standard load pattern of each application type are determined, it might be possible to establish a recommended method, or develop a reference table for calculating GSHP statistics Task E Design Configuration and Engineering Standards (Task Leader: Rudolf Minder, Minder Energy Consulting GmbH, Switzerland) The Scope of this Task is to collect, characterize and exchange standard design and practice information for applications, with the goal of minimizing the engineering related input. The main issues are quality, reliability of operation, long term efficiency, sustainability, and cost reduction achievable through standardized procedures. Examples of successful cooperation are the dissemination of experience with quality certificated ground source heat exchangers, and the results from long-term monitoring of direct use installations. Task E also includes the collection and distribution of a list of national and international standards, engineering practice and other relevant documents. 32

34 IEA Geothermal R&D Programme and to increase the uptake of direct use technologies Tasks B Communication To enhance deployment of geothermal direct use applications, efficient and targetoriented communication is essential. As a communication activity the Annex organised a direct use get-together at the World Geothermal Congress WGC in Melbourne (Australia) in April As a second 2015 communication event a networking reception was conducted at the GRC in Reno (USA). Figure 5-3. Installation of a ground-source heat pump in an old village in the Grison Alps, Switzerland. (Courtesy of Dr. Roland Wyss GmbH) Progress in 2015 In conjunction with the two IEA Geothermal ExCo Meetings, Annex 8 working sessions were held along with Task meetings to present and discuss results. A Direct Use meeting was organised at the World Geothermal Congress WGC 2015 in Melbourne (Australia) in April 2015 and a networking reception at the GRC in Reno (USA) in October A technology workshop was held in Switzerland in October 2015, this event was a joint event with the European Geothermal ERA-NET. In addition, several papers and reports have been published and conference presentations delivered Task A New and Innovative Geothermal Direct Use Applications In conjunction with the October ExCo Meeting in Geneva (Switzerland) a workshop was organised with the European Geothermal ERA-NET. About 90 experts participated in the New Concepts New and Innovative Applications of Geothermal Energy workshop. This workshop is part of the Annex strategic activity to cooperate, to share knowledge These events contribute to fulfilling the mission of providing information, boosting awareness and increasing the use of existing technologies Task C Guidelines for Geothermal Energy Statistics Work began after the September 2013 IEA Geothermal meeting, with the collection and comparison of international energy statistics. One aspect was to highlight the differences and similarities across the collected data and derived statistics. Based on the results a report was published in The work is done in cooperation with the European Geothermal ERA-NET and with contributions from other relevant institutions and organizations, such as the International Geothermal Association (IGA) and the International Energy Agency (IEA). The report is a step towards mitigating barriers to geothermal direct use Task D Statistics for Geothermal Heat Pump Applications This Task began in September Efforts started by comparing methods used for computing various countries national Geothermal Heat Pump statistics. Each country has its own approach for estimating thermal use, reflecting utilization types and climate conditions. Case studies investigated were from Japan, Republic of 33

35 IEA Geothermal R&D Programme Korea and Switzerland. The preliminary results were presented in two Task Meetings in Paris on April 4 th, 2014 and in Tokyo on October 13 th, Based on the results of the Task Meetings a report was completed and the results presented to the geothermal community at the World Geothermal Congress The report was published in 2015 (Song et al., 2015). The development of recommended methods to develop statistical data to compute national and global GSHP statistics is to be completed. The table will include all types of GSHP, and consider cooling as well as heating. Success will see reduced confusion and comparable statistical data, Task E Design Configuration and Engineering Standards The available engineering and design configuration standards had been previously collected and were updated during The current list includes documents from the following countries: Germany, Austria, Sweden, France and Switzerland and contains about 40 national and 7 international documents. Most of the documents refer to near-surface systems from countries where there are established markets Highlights and Achievements More than 10 Annex and Task meetings and workshops were organised in 2015 providing a range of opportunities for members to contribute and collaborate. Significant for the Annex have been the events organised for International participants and the presence at the 2015 World Geothermal Congress where Annex participants presented important outputs that have been completed. More details of the outputs are documented in the next section. Outputs for 2015 Task A ( New and Innovative Geothermal Direct Use Applications ) organised a wellattended technology workshop on New Concepts New and Innovative Applications of Geothermal Energy. The event took place in Geneva (Switzerland) in October 2015 and was organised jointly with the European Geothermal ERA-NET. The presentations from the workshop can be found on the iea-gia.org website. Task B ( Communication ) conducted a Get- Together at the World Geothermal Congress in Melbourne (Australia) in April The event attracted participants from countries worldwide. A second event, a networking reception was held at the GRC in Reno (USA). Tasks C ( Guidelines for Geothermal Energy Statistics ) and D ( Statistics for Geothermal Heat Pump Applications ) published reports in The Task C report highlights the differences in the data submitted to various agencies collecting geothermal statistical data (IEA, OECD, UNECE, EUROSTAT, UN, IGA, IEA Geothermal, EGEC etc.). Recommendations on rationalisation seeking comparability, transparency, and flexibility, whilst supporting more rigorous comparison and data reporting by the agencies are discussed. The results of Task D on the analysis of methods used for computing national statistics for geothermal heat pump applications from several countries were presented in a poster and an oral presentation at the World Geothermal Congress The compilation of design configuration and engineering standards for Task E has been updated and distributed among IEA Geothermal members. The compilation of Design Configuration and Engineering Standards information (Task E) was updated and made available to Annex members. These standards are 34

36 IEA Geothermal R&D Programme fundamentally important to quality, reliability of operation, cost reduction, long term efficiency and sustainability. The Annex 8 website ( was revised though Plans for 2016 and beyond In 2016, two general Annex 8 meetings will be held in conjunction with the ExCo Meetings of IEA Geothermal to discuss subjects of concern which are not related to any of the Tasks. In conjunction, meetings of the individual Tasks are planned for each half-year. In addition to the existing and recently revised Annex 8 website, web pages for the individual Tasks are in preparation. Tasks A ( New and Innovative Geothermal Direct Use Applications ) and B ( Communication ) will organise several public events in Task A New and Innovative Geothermal Direct Use Applications Two Task meetings are foreseen in 2016 to discuss work topics among the Task members and to organise joint events with other relevant organisations or institutions. In April 2016, a technology workshop on Opportunities and Benefits of Geothermal Direct Use with a special focus on Central and South America will take place in Cuernavaca (Mexico) The focus will be on geothermal facts and figures Task C Guidelines for Geothermal Energy Statistics After the publication of the final report in 2015, work on developing the guidelines will commence in Task D Statistics for Geothermal Heat Pump Applications The results from the analysis and comparison of the different statistical methods used were presented at the World Geothermal Congress in Melbourne (Australia) in April The report is published on the IEA Geothermal website and the IGA publication database. In 2016, Task D will work on developing guidelines for geothermal heat pump statistics targeting publication in Task E Design Configuration and Engineering Standards The list of design configuration and engineering standards will be updated and made available through the iea-gia.org website. Author and Contact Dr. Katharina Link Geo-Future GmbH Frauenfeld Switzerland info@geo-future.expert A further IEA Geothermal technology workshop will be organised in conjunction with the 11 th Asian Geothermal Symposium (ASG) in Thailand on 17 November This will focus on the opportunities and benefits of geothermal direct use and will seek to highlight Asian developments and opportunites Tasks B Communication After the successful events in 2015, Task B will organise a public IEA Geothermal event at the GRC, in Sacramento, USA in October 35

37 IEA Geothermal R&D Programme Chapter 6 - Annex 10 Data Collection and Information Introduction Annex 10 was initiated at the end of 2010, with full activity underway from The main objective is to collect data on geothermal energy use, trends and developments in GIA countries and to publish the data in the GIA Trend Report. The objectives are achieved by GIA member countries providing information to the Annex Leader and sharing the work of the Annex. organizations operating in the field of geothermal energy internationally. All Contracting Parties are obliged to participate and Sponsors have also agreed to contribute. The Operating Agents for Annex 10 are the Leibniz Institute for Applied Geophysics (LIAG), Germany, and the Federal Office of Energy (BFE), Switzerland. The Annex Leader is Josef Weber (LIAG, Germany). Task The task of data collection and information in GIA countries developed out of a growing demand internationally for data on geothermal energy use. The main objective of Annex 10 is to collect and analyze geothermal applications data from GIA countries and to publish the data in an annual Trend Report. Data collection activities started in 2011 with data for To provide trends and allow a comparison with geothermal uses worldwide, additional data, from sources such as the publications associated with the World Geothermal Congress, have also been compiled and analyzed. The GIA Trend Report provides a brief overview of key data on geothermal energy use and shows the development of geothermal energy in the GIA member countries. To expand the data base on geothermal energy uses to include non-gia countries, it is intended to seek collaboration with other institutions and Figure 6-1 Annex GIA Trend Report. (Completed Photo courtesy of B. Ganz) Progress in 2015 Work on the Trend Report for the reporting year 2013 started with data collection in A questionnaire developed by Annex 10 was used to collect information on geothermal power generation and heat use, economic data, CO 2 and energy savings from utilization of geothermal energy, national policy, support mechanisms, project highlights, and challenges. Based on the data and a review of other publications, the fourth GIA Trend Report was published in This report provides key data about geothermal energy use in GIA member countries as well as selected non-gia countries and is available free to download from the GIA website. 36

38 IEA Geothermal R&D Programme Data collection activities continued in It should be noted that the questionnaire used for data collection has been revised in accord with the recommendations in the report International Collection of Geothermal Energy Statistics: Towards Reducing Fragmentation and Improving Consistency (Ketilsson et al. 2015). The purpose of this is to minimize discrepancies between geothermal energy statistics published by various international organizations in order to allow comparability of statistics, reduce fragmentation and increase reliability. A paper on the GIA Trend Report was delivered to the World Geothermal Congress This presented the GIA s data collection activities to this international forum discussing the main aspects covered by the work of Annex 10. Highlights and Achievements of Annex for 2015 Publication of the fourth GIA Trend Report with geothermal key data from 2013 including basic data of five non-gia countries Data collection and analysis is underway on the 2014Trend Report. Oral presentation of Annex 10 s work and Trend Report at the World Geothermal Congress 2015, Melbourne, Australia Geothermal Congress 2015, April 2015; Melbourne, Australia. Plans for 2016 and Beyond Finalization and publication of Trend Report 2014 and data capture for Continued collaboration with other organizations and institutions to expand the data collection to further extend the countries involved and to improve the statistics making them more reliable References Ketilsson, J., Sigurdsson, T. & Bragadóttir, E. R. (2015): International Collection of Geothermal Energy Statistics: Towards reducing fragmentation and improving consistency. Publication of Orkustofnun, Reykjavik, Iceland; /ERA-NET-International-Collection-of- Geothermal-Energy-Statistics.pdf. Author of the Annex Report Dr. Josef Weber Leibniz Institute for Applied Geophysics Section 4 - Geothermics and Information Systems Stilleweg Hannover GERMANY josef.weber@liag-hannover.de Outputs for 2015 Weber, J. & IEA-GIA (2015): Trends in Geothermal Applications. Survey Report on Geothermal Utilization and Development in IEA-GIA Member Countries in 2013, with trends in geothermal power generation and heat use Publication of the International Energy Agency, Geothermal Implementing Agreement: 48 p (available at: Weber, J., Ganz, B., Schulz, R. & GIA Country representatives (2015): The GIA Trend Report, an Annual Survey Report on Geothermal Applications and Developments. Proceedings World 37

39 IEA Geothermal R&D Programme Chapter 7 - Annex 11 Induced Seismicity Figure 7-1 Cross-section illustrating injection-related seismicity at The Geysers, California (from US DOE) General objectives are to reduce the uncertainty associated with both technical and public acceptance issues. Introduction This chapter constitutes the final report for Annex 11 which was closed by a decision (Motion BusExCo/2) of the IEA Geothermal Executive Committee in April Residual tasks were subsequently transferred to Task D in Annex 13 on Emerging Geothermal Technologies also established in April Objectives The principal objective of this Annex is to encourage international cooperation to determine the appropriate steps that need to be taken to help make fluid injection operations, particularly during fracture stimulation, both safe and economic. Fracture stimulation should be a technology that is accepted by the public and useful to the industry. This includes not only steps to allow acceptance of EGS and injection technology by the public, regulators and policy makers, but also to allow induced seismicity to become a useful tool to optimize deep geothermal energy utilisation. Specific objectives are to: Terminology Develop accepted approaches for addressing both technical and public acceptance issues that industry can use as a guide i.e., set out the rules Develop a structure and forward path for approaches to assess risk Identify areas of collaboration and cooperation Identify key roadblocks and new areas of technology development and research A seismic event is an earthquake that can be detected and located using an array of seismometers. It can be natural or induced by activities such as fluid injection, reservoir impoundment, mining, or other activities. An induced event could occur during EGS fluid injection operations stimulating fracture permeability ( hydraulic fracturing ), or longterm fluid withdrawal and injection for energy

40 IEA Geothermal R&D Programme extraction. In the latter case, induced seismicity can also occur due to small stress perturbations (thermal or hydraulic in origin) that arise from conventional geothermal operations (for example, at The Geysers in California (Figure 7-1), and at Wairakei in New Zealand (Figure 7-2). The term induced has been used to include triggered seismic events. A triggered seismic event is one that is a result of failure along a pre-existing zone of weakness. For example, a fault that is already critically stressed may be pushed to failure by a relatively small stress perturbation from natural or man-made activities. Participants The participants in this Annex are: Australia, European Commission, France, Germany, Iceland, Japan, New Zealand, Republic of Korea, Switzerland and the United States of America. In April 2015, at a business meeting held in conjunction with the WGC2015 conference in Melbourne, Australia, Annex 11 was formally closed by the IEA Geothermal Executive Committee. Residual work was transferred to Task D of Annex 13 (Emerging Geothermal Technologies). Until April, the US Department of Energy, Geothermal Technologies Programme (USA) remained the Operating Agent and Ernie Majer (Lawrence Berkeley National Laboratories) remained Annex Leader. Chris Bromley (GNS Science) provided support as assistant leader. Tasks of Annex 11 Details of the tasks listed below are found in the 2014 and earlier Annual Reports. Task A - Updating the Existing IEA-Geothermal Protocol on Induced Seismicity Task B - Development of a Best Practices Document to Address Operational Issues Associated with Induced Seismicity Work Performed in 2015 Papers and presentations on induced seismicity were published in the proceedings of the World Geothermal Congress (Melbourne, April 2015). Examples from participating countries are given at the end of the chapter. A joint IEA-Geothermal/IPGT meeting was convened by Chris Bromley at WGC to give all presenters on the topic of Induced Seismicity the opportunity to meet and to further build collaborative networks. In addition, a number of journal articles on geothermal induced seismicity were published by participants and their colleagues during the first three months of Some of these are listed below. On the 2 nd of May 2015, during an IEA- Geothermal joint Environmental (Annex I) and Induced Seismicity meeting held in Taupo, New Zealand, discussions were held regarding the future work-plan of the residual tasks of Annex 11, and joint work with the IPGT. Annex leader Ernie Majer was unable to attend but provided a brief presentation titled: Potential IEA/IPGT Collaborative Projects. Steve Sherburn (GNS Science) gave attendees an overview of geothermal induced seismicity studies being undertaken in New Zealand. During the meeting it was agreed that the IPGT and IEA Geothermal should continue to work together on common issues. There is still a need to work collaboratively to test and validate existing and emerging techniques for the management and mitigation of induced seismicity, and for developing advanced seismicity traffic light systems. This collaboration will continue under Task D of Annex 13. Table 7-1 lists the residual and ongoing tasks. Task C - Identification of Critical Research and Technology to Meet the Annex Objectives Task D - Identify Results from Field Studies that can be Shared and Placed in a Database to Accelerate Research Results 39

41 IEA Geothermal R&D Programme Status of Annex 11 Tasks Figure 7-2 Cross-section showing seismicity (induced and/or natural) occurring within and beneath the Otupu injection (ESE) & Te Mihi production (WNW) sectors of Wairakei Geothermal Field, New Zealand. A draw-down induced up-flow of recharging hot fluid is inferred along the NW dipping Fault A, at 3-7 km depth (Sepulveda et al, 2015). Table 7-1 Annex 11 residual issues, progress and tasks (April 2015) Issue Current Action Planned Tasks Leader 1) Global Test Sites Establish a suite of test sites in different representative geologic and geothermal conditions to test all aspects of geothermal science and technology and demonstrate scalability. USA is progressing Field Observatory for Research in Geothermal Energy (FORGE) Switzerland is developing a test facility for Induced seismicity research at the Grimsel underground research site a) Each country should define test site conditions & review other scientific studies (e.g. ESFRI, ICDP, EarthScope). b) Hold a workshop to discuss test site plans. Apply to all geothermal technologies and tools. c) Develop a series of international public/privatelyfunded test sites with common standards to bring together a larger research community. Research teams will make proposals for what to do at the sites. Open to international groups as a window of opportunity. Switzerland & USA 40

42 IEA Geothermal R&D Programme Issue Current Action Planned Tasks Leader 2) Hazard and Risk Assessment Develop a framework for hazard and risk assessment for all phases of a project, from site selection to stimulation, operation and decommissioning. Modify existing risk assessments in all countries for improved consistency Moving to physicsbased risk assessment a) Circulate and review questions from DOE/GEISER workshop b) Develop a white paper reviewing methods industry use to perform a hazard study; Maximum possible induced event; Standardization hazard assessment; The importance / relevance of seismic frequency; Characterization of natural seismicity. USA, New Zealand & Switzerland 3) Mitigation Options Develop a set of risk mitigation strategies and best practices to help project stakeholders in all phases of a project. Addressed in updated USA IS Protocol and Best Practices from technical / nontechnical standpoint (education and insurance). Still need accurate geomechanical models a) Review the USA IS Best Practices and GEISER Work Package results as they become available b) Re-assess with new information; compiling and linking case studies; focussing on technical and communication aspects; include synthesis of past events with cause and effect. Transition beyond traditional traffic light systems. c) Explore how to incorporate delayed large events for stimulation and long-term operation. USA & Switzerland 4) Communication This task discusses what should be communicated in general, and at what stage of a project. The updated USA Induced Seismicity Protocol and best practices document has information on communication. a) Distribute and review updated USA Protocol. b) Develop a fact-sheet on Induced Seismicity to discuss what scientists agree on or not agreed on. Submit as article to the IEA s Open Bulletin. c) Consider developing a Wikipedia-style living document. e) Conduct interviews and report on the common experiences of induced seismicity from operators. All participants to revisit regularly Summary Key outputs of Annex 11 work during the first four months of 2015 on geothermal induced seismicity (IS) activities: Presentations to the World Geothermal Conference in Melbourne, Australia, (April 2015); USA (FORGE) and Switzerland (GRIMSEL) advanced development of dedicated underground test sites for IS research; 41

43 IEA Geothermal R&D Programme Collaboration of IEA and IPGT to further efforts at developing advanced traffic light mitigation methods. Key Outcomes Modeling of mechanisms has improved. Induced seismicity is recognized as a useful tool for reservoir management. Regulators recognize that risk mitigation is possible without excessive regulation and are increasingly using adaptive permitting. More researchers are providing regulatory bodies with technical assistance. More data-bases are being shared publically. Induced Seismicity Presentations by Annex 11 participants during 2015 Majer M. (2015) Potential IEA/IPGT Collaborative Projects Annex I & XI joint meeting 3 May 2015, Taupo, New Zealand. Published in the members area Sherburn S., C. Bromley, S. Bannister, S. Sewell, S. Bourguignon (2015) New Zealand Geothermal Induced Seismicity: an overview Annex I & XI joint meeting 3rd May 2015, Taupo, New Zealand. Published in the members area References on Geothermal Induced Seismicity by collaborating researchers from Annex 11 countries during 2015 Bommer, Crowley, H., and Pinho, R, (2015), A risk mitigation approach to the management of induced seismicity, Journal of Seismology. DOI /s z Majer, E., Wiemer, S., Holland, A., Freeman, K., Latest Developments in Best Practices and Mitigation Efforts for Induced Seismicity (Injection related), (2015), Ground Water Protection Conference, Feb 10-11, 2015, Austin Texas. McGarr, A, Bekins, B, Burkart, N., Dewy, J., Earl, P, Ellsworth, W., Ge, S., Hickman, S., Holland, A., Majer, E., Rubinstein, J,. Sheehan, A., (2015), Coping with earthquakes induced by fluid injection. Science, V. 347, DOI: /science.aaa0494 World Geothermal Congress (19-25 April 2015, Melbourne, Australia): Induced Seismicity papers from participating countries Ágústsson, K., S. Kristjánsdóttir, Ó. G. Flóvenz and Ó.Guðmundsson (2015) Induced Seismic Activity during Drilling of Injection Wells at the Hellisheiði Power Plant, SW Iceland, paper Asanuma, H., T. Eto, M. Adachi, K. Saeki, K. Aoyama, H. Ozeki and M. Häring (2015) Seismo-statistical Approach for Risk Evaluation of Seismicity from Geothermal Reservoirs, paper Bannister, S., S. Bourguignon, S. Sherburn and T. Bertrand (2015) 3-D Seismic Velocity and Attenuation in the Central Taupo Volcanic Zone, New Zealand: Imaging the Roots of Geothermal Systems, paper Bruhn, D., E. Huenges, K. Agustsson, A. Zang, X. Rachez, S. Wiemer, J. D. van Wees, P. Calcagno (2015) Summary of the European GEISER Project (Geothermal Engineering Integrating Mitigation of Induced Seismicity in Reservoirs), paper Boese, C., J. Andrews, E. Shalev, J. Kim, A. Lucas and F. Sepulveda (2015) Investigation on the Spatial Variation of 1-D Velocity Models in a Geothermal Environment using a Genetic Algorithm, paper Buijze, L., B. Wassing, P.A. Fokker, and J.D. van Wees (2015) Moment Partitioning for Injection-Induced Seismicity: Case Studies & Insights from Numerical Modeling, paper Cuenot, N. and A. Genter (2015) Microseismic Activity Induced During Recent Circulation Tests at the Soultz-sous-Forêts EGS Power Plant, paper Flóvenz, O., K. Ágústsson, E. Á. Guðnason and S. Kristjánsdóttir (2015) Reinjection and Induced 42

44 IEA Geothermal R&D Programme Seismicity in Geothermal Fields in Iceland, paper Gaucher, E., M. Schoenball, O. Heidbach, A. Zang, P. Fokker, J-D van Wees and T.Kohl (2015) Induced Seismicity in Geothermal Reservoirs: Physical Processes and Key Parameters, paper Gunnarsson, G., B.R. Kristjánsson, I. Gunnarsson, and B. M. Júlíusson (2015) Reinjection into a Fractured Reservoir Induced Seismicity and Other Challenges in Operating Reinjection Wells in the Hellisheiði Field, SW-Iceland, paper Hakimhashemi, A.H., J. Yoon, O. Heidbach, A. Zang, G. Grünthal, G. Zimmermann (2015) Forward Induced Seismic Hazard Assessment (FISHA) Based on a Hydromechanical Coupled Fracture Mechanics Earthquake Model The Case of Synthetic Induced Seismicity Catalogue Including Aseismic Displacements of Pre- Existing Fractures, paper Horowitz, F.G., and L. D. Brown (2015) Hypocentric Relocations Aided by Virtual Receivers Constructed Via Seismic Interferometry, paper Julian B.R., G. R. Foulger, A. Sabin, N. Mhana (2015) TOMO4D: Temporal Changes in Reservoir Structure at Geothermal Areas, paper Karvounis, D.C., and S. Wiemer (2015) Decision Making Software for Forecasting Induced Seismicity and Thermal Energy Revenues in Enhanced Geothermal Systems, paper Király, E., J. D. Zechar, V. Gischig, D. Karvounis, L. Heiniger and S. Wiemer (2015) Modeling and Forecasting Induced Seismicity In Deep Geothermal Energy Projects, paper Maurer, V., N. Cuenot, E. Gaucher, M. Grunberg, J. Vergne, H. Wodling, M. Lehujeur, J. Schmittbuhl (2015) Seismic Monitoring of the Rittershoffen EGS Project (Alsace, France), paper Enhanced Geothermal System at Habanero, Australia, paper Meier, P.M., A. A. Rodríguez and F. Bethmann (2015) Lessons Learned from Basel: New EGS Projects in Switzerland Using Multistage Stimulation and a Probabilistic Traffic Light System for the Reduction of Seismic Risk, paper Moeck I., T. Bloch, R. Graf, S. Heuberger, P. Kuhn, H. Naef, M. Sonderegger, S. Uhlig, M. Wolfgramm (2015) The St. Gallen Project: Development of Fault Controlled Geothermal Systems in Urban Areas, paper Mukuhira, Y., H. Asanuma and M. Häring (2015) Progress in Understanding the Physics of Large Induced Seismicity at Basel, Switzerland, paper Norbeck J. and R. Horne (2015) Investigation of Injection-Triggered Slip on Basement Faults: Role of Fluid Leakoff on Post Shut-In Seismicity, paper Schumacher, S. (2015) Why Injection in a Geothermal Sediment Reservoir Causes Seismicity in Crystalline Basement - It is not just Hydraulics, paper Sepulveda, F., J. Andrews, J. Kim, C. Siega, S. F. Milloy (2015) Spatial-temporal characteristics of microseismicity ( ) of the Wairakei Geothermal Field, New Zealand, paper Sewell, S. M, Cumming, W., Bardsley, C.J., Winick, J., Quinao, J., Wallis, I.C., Sherburn, S., Bourguignon, S., Bannister, S (2015) Interpretation of Microseismicity at the Rotokawa Geothermal Field, 2008 to 2012, paper Sherburn, S., C. Bromley, S. Bannister, S. Sewell, S. Bourguignon (2015) New Zealand Geothermal Induced Seismicity: an overview, paper McMahon A. and S. Baisch (2015) Seismicity Associated with the Stimulation of the 43

45 IEA Geothermal R&D Programme Valley, B., and K. F. Evans (2015) Estimation of the Stress Magnitudes in Basel Enhanced Geothermal System, paper Xie, L., K.B. Min, Y. Song, J. Park (2015) Role of Differential Stress in Induced Seismicity in Enhanced Geothermal System: a Review of Previous Hydraulic Stimulation Tests, Paper Authors and Contact Chris Bromley (GNS Science, Wairakei Research Centre, New Zealand) Ernie Majer (Geophysics Department, Lawrence Berkeley National Laboratory, Berkeley, California United States.) 44

46 IEA Geothermal R&D Programme Chapter 8 - Annex 12 - Deep Roots of Volcanic Systems Figure 8-1 IDDP drilling project at Krafla, Iceland, produced 400 O C super-heated steam from molten rock at 2km depth. (photo : Gudni Anderson) Introduction Annex 12 (or Working Group 12) was initiated in 2014, to share international research results related to the large resource potential of the deep roots of volcanic geothermal systems, where temperatures can exceed the critical point (T> 374 o C) and rocks begin to deform in a ductile manner rather than behaving as brittle materials. Such high temperature resources are usually found at depth near tectonic plate boundaries and active or dormant volcanoes. Some of the challenges to utilisation of these resources are the aggressive nature of the fluid chemistry caused by magmatic gases, and the effect on permeability of the ductile-brittle transition as cooling fluids migrate from injection wells into super-critical zones. The minutes of the 31st ExCo meeting held in Paris in April 2014 provided a description of the proposed Annex 12 objectives and tasks, based on a joint presentation by the Icelandic representatives and proposers, Gudni Axelsson and Jonas Ketilsson. The relevance of these studies for future utilization of geothermal resources includes: significantly greater energy output for wells drilled into the roots ; success extends the geothermal resource vertically, rather than laterally, potentially resulting in less environmental effects; and the opportunity to apply reinjection/production doublets or EGS technology if permeability is limited. Many problems will need to be overcome before utilisation of these resources becomes a reality. Objectives To investigate opportunities for innovation and collaboration amongst participants in deep roots research To advance knowledge of the nature and character of heat sources in the roots of volcanic geothermal systems To improve methods for exploration and modelling of the roots 45

47 IEA Geothermal R&D Programme Participants The official participants in this Annex during 2015 were: Iceland, New Zealand, Norway and Switzerland, with strong interest expressed by Japan, Italy, Mexico and the United States of America. The Annex leader is Gudni Axelsson (ISOR) and Chris Bromley (GNS Science) provides support as the assistant leader. The operating agent is Orkustofnun, the National Energy Authority of Iceland. Tasks of Annex 12 The tasks listed below were developed during initial meetings and are subject to change as the work flow develops. Task leaders have not yet been formally assigned Task A Concepts Compilation Compilation of conceptual models of the roots of volcanic geothermal systems and associated research methods. Open-source information from participating countries and worldwide will be made accessible through the IEA-GIA website. This will provide background material for deeproots research and provide information on potential exploration and modelling methods and tools Task B Exploration Advancement Advancement of methods for deep geothermal exploration. Participants are to disseminate information on advances in exploration methods, and to facilitate cooperation among research-groups. In particular, the focus is on enhancing the depth resolution of available methods and using the power of joint interpretation of different data-sets Task C Process Modelling Methods for modelling the conditions and processes in Deep (super-critical) Geothermal Resources. Contribute to revealing the processes of upwards heat transfer. Advance methods applied in conventional geothermal reservoir modelling. Enhance synergy, by avoiding duplication of effort and facilitating sharing of open-source software. The transfer of heat from roots is complicated, involving the flow of magma, flow of fluids (two-phase and/or supercritical), heat transfer, chemical processes, etc., which cannot be simulated with conventional modelling tools. Work Performed in 2015 In March 2015, Gudni Axelsson prepared a brief Annex report summarizing the status and start-up of Annex 12, for the purpose of a Midterm GIA Report submitted to the IEA REWP. Collaboration had been established with an IPGT working group who are developing modelling software capable of simulating super-critical reservoir conditions, and also with the EU supported IMAGE project, the Swiss supported COTHERM project and the New Zealand supported Supermodels project. An Annex meeting and seminar was held at Geneva on 26th of October, 2015 prior to the 34th IEA ExCo meeting. Topics discussed were: Iceland s GEORG deep roots project (Gudni Axelsson), New Zealand s Hotter & Deeper & Supermodels research (Chris Bromley), Japan s Supercritical & Beyond Brittle (Kasumi Yasukawa), Italy s- DESCRAMBLE project (Ruggero Bertani), USA- FORGE research laboratory (Steve Lindenberg), and Switzerland s- Grimsel fracture permeability laboratory (Florian Amman). Power-point presentations were made available to members. Deep Roots Presentations by Participants during 2015 Florian Amann, Joseph Doetsch, Valentin Gischig, Mohammadreza Jalali, Claudio Madonna, Keith Evans, Hannes Krietsch, 26 th October 2015, Grimsel Fracture Stimulation Experiment. Presentation slides Aid the advancement of methods applied in the modelling of physical processes in the roots. 46

48 IEA Geothermal R&D Programme Chris Bromley, 26 th October 2015, Deep Roots of Volcanic Geothermal Systems: New Zealand Research, Presentation slides. Gudni Axelsson, 26th October 2015, GEORG- Deep Roots of Geothermal Systems Research. Presentation slides. Ruggero Bertani, 26th October 2015, DESCRAMBLE Project, Presentation slides. Steve Lindenberg (for Jay Nathwani), 26th October 2015, US-DOE FORGE project. Kasumi Yasukawa (for Asanuma), 26th October 2015, Japan Super-critical Resources and Beyond Brittle projects. Authors and Contact Chris Bromley (Assistant Leader) GNS Science, Wairakei Research Centre Private Bag 2000 Taupo 3352 NEW ZEALAND Gudni Axelsson (lleader) Iceland GeoSurvey (ISOR) Grensásvegur 9 IS-108 Reykjavik ICELAND gax@isor.is 47

49 IEA Geothermal R&D Programme Chapter 9 - Annex 13 - Emerging Geothermal Technologies Introduction The Emerging Geothermal Technologies annex initiated on 21st April 2015 started work at a kick-off meeting in Hanover, Germany, in September The annex covers a broad spectrum of work activity including: exploration, drilling, reservoir creation and enhancement and reservoir management. In addition, it also focuses on issues related to corrosion and scaling in surface facilities and the mitigation of induced seismicity. Some of the topic tasks have been taken on from Annex 3 (Enhanced Geothermal Systems), Annex 7 (Advanced Geothermal Drilling and Logging Technologies) and Annex 11 (Induced Seismicity) which have been closed. The work of Annex 13 is carried out in six tasks: A. Exploration, Measurement and Logging, B. Drilling Technology, C. Reservoir Creation and Enhancement, D. Induced Seismicity, E. Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracers) and F. Geothermal Reservoir Management. The goal of Annex 13 is to provide quality information to facilitate and promote the utilisation of geothermal energy worldwide. The development of innovative technologies is being pushed by expert collaboration between countries and the results made available in documents and presented at relevant conferences and workshops. Current participants of Annex 13 are Germany (LIAG as Operating Agent), Switzerland, Norway (IFE), Korea (KIGAM), New Zealand (GNS Science), Japan, Australia, France and the European Commission. The Leibniz Institute for Applied Geophysics (LIAG) in Hanover, Germany is the Operating Agent, with Josef Weber the Leader. Tasks More details on the six tasks are described in the following sections Task A Exploration, Measurement and Logging Task Leader: Tae Jong Lee, KIGAM, Republic of Korea Geothermal developments are becoming characterized by deeper and/or hotter, and more efficient systems. Many countries want to develop deeper under the ground seeking to encounter higher temperatures from both enhanced geothermal systems (EGS) and for some countries with volcanic activity, developing extremely high temperature use, from for example, super critical regions or ductile rocks deep under the ground. Research trends in exploration, measurement and logging technologies follow the needs of upcoming geothermal development. Most of the exploration, measurement and logging technologies for geothermal developments have come from oil industry work. However more innovative technologies should be developed and applied in geothermal applications. Geothermal exploration technology requires higher resolution and precision to be applied in developing the geothermal resources seated deeper in the earth such as four dimensional (4D) imaging technologies to monitor the reservoir changes with stimulation or circulation of fluid. Task A is targeting sharing information on new and emerging technologies in exploration, measurements, and geophysical logging, and sharing experiences from case studies in various geothermal fields in different countries. By analysing the research and 48

50 IEA Geothermal R&D Programme development trends information on developing technology will be reported and used to suggest possible future development work. For the time being, the focus is 4D time-lapse geophysical imaging and borehole measurement technology in high pressure and temperature environments. Participating countries are Korea, Japan, Germany, and New Zealand. We are expecting more participants and are open to any suggestions for projects in geothermal exploration, measurement and Logging technologies Task B Drilling Technology Task Leader: Manuela Richter, PtJ, Germany Drilling can account for up to 50 % of the total costs of a geothermal project. Task B addresses the question on how to reduce drilling costs and what innovative drilling technologies may be alternatives to the rotary method that is predominantly used. For this purpose Task B includes the compilation of geothermal well drilling performance and cost information. The aim is to identify problem areas, discuss and suggest action points Task C Reservoir Creation and Enhancement Task Leader: Peter Meier, Geo-Energie Suisse AG, Switzerland Reservoir creation and enhancement technologies are of the utmost importance to exploit the enormous worldwide untapped geothermal energy potential. In most countries, there are no naturally occurring hydrothermal reservoirs which can be used for energy production. Even in countries like New Zealand, Iceland and the Philippines such technologies are crucial, as the favourable hydrothermal conditions providing sufficient natural fluid flow for economic geothermal utilisation are limited to only a very few spatially restricted areas. As a consequence in most countries deeper geothermal energy is hardly developed. To utilise the vast quantity of energy stored in the earth, new and innovative technologies to create or enhance artificial reservoirs have to be developed and improved. The objectives of Task C are to: establish a platform for international knowledge and information exchange, collate quality information with the overall goal of accelerating the development of these technologies, and mitigate the technical and non-technical barriers Task D Induced Seismicity Task Leader: Chris Bromley, GNS Science, New Zealand Induced Seismicity risk remains a significant issue for some geothermal projects, particularly those involving deep EGS fracture stimulation, located in densely-populated regions, near fragile historic buildings, or surrounded by people not used to naturally occurring earthquakes. Collaborative research into this topic commenced in 2004 as a task in Annex 1 then to Annex 11, and in 2015 transferred to Task D under Annex 13. The initial work focus was on developing a protocol to assist developers and regulators, as well as providing a forum for research collaboration and information exchange. Through collaboration with IPGT, efforts focussed on establishing consistent data protocols, understanding mechanisms, and improving advanced forecasting methods using a modified traffic-light approach for adaptive response to observed levels of seismicity by modifying injection and stimulation parameters. Aspects of this work are expected to continue under this task. A new research focus is to better understand, through collaborative modelling and data sharing, the key mechanisms behind increased levels of low-magnitude induced seismicity that sometimes accompany long term injection, where pressure transients are minor, but thermal stress transients from cooling are important Task E Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracers) Task Leader: Jiri Muller, IFE, Norway Task E focuses on recent developments in surface technology for geothermal heat and 49

51 IEA Geothermal R&D Programme electricity production, corrosion, scaling and tracer technologies. It is based on the following activity: Collecting and collating available information from IEA Geothermal members Technical presentations at international forums. Increasing awareness of the IEA Geothermal work and knowledge to the international community Collaboration and joint actions with other international bodies dealing with similar aspects and issues Attracting new members from results presented and the benefits derived Commencing cooperation between countries, research organisations and industry Task F Geothermal Reservoir Management Task Leader: open A suitable expert to lead Task F is being sought and we look forward to appointing through Highlights and Achievements of Annex for 2015 In September 2015 a successful kick-off meeting was held in Hanover, Germany. With Tae Jong Lee (KIGAM, Korea), Manuela Richter (PtJ, Germany), Chris Bromley (GNS Science, New Zealand) and Jiri Muller (IFE, Norway) specialists with expertise in the specific task topics accepting leadership. Switzerland offered to lead Task C with Peter Meier (Geo- Energie Suisse AG, Switzerland) being responsible with effect from April Attendees present signalled interest in the various work tasks. Outputs for 2015 As the work has only just commenced the first outputs are not expected until Plans for 2016 and Beyond Task A Exploration, Measurement and Logging Task A is seeking to draw attention of experts and researchers from various countries to the work seeking to increase participation in the Task from as many countries as possible. A review of existing best practice manuals and white papers, such as the IFC-IGA best practice and IPGT white papers will be undertaken. Furthermore, we need to assemble proposals from participating countries and specific experts on new technology for exploration, down hole tools/measurements, and monitoring including 4D imaging in geothermal fields. Suggestions for study topics other than the HT/HP borehole measurements system and 4D time-lapse imaging technologies are sought. Deliverable targets from Task A are an annual technology development report as part of the Annex 13 Annual Report, and every 5 years a technology road map which can be presented at the World Geothermal Congress Task B Drilling Technology In the early stages of the work Task B will focus on collecting and summarising data related to geothermal drilling and publishing it in short reports. The information will be collected mainly from published papers as industry data is difficult to access. It is planned to use the publicly available information to prepare a geothermal well drilling learning curve. The approach will be based on drilling time rather than on drilling costs. It is proposed to organise a workshop in order to get in contact with experts in the field of geothermal drilling seeking to initiate collaboration. The first report comparing alternative (drill bit) and innovative (plasma, laser, electric impulse) methods is expected to be published in October Task C Reservoir Creation and Enhancement Task C was established at the 35 th Executive Committee Meetings in Cuernavaca, Mexico, in April A first Task C session is planned at the IEA Geothermal Central and South American Workshop on Geothermal Energy to 50

52 IEA Geothermal R&D Programme introduce the topic and to provide a first overview of the state of the art. Several aspects and topics are of interest to Task C and will be evaluated as possible first tasks: Exchange of experiences and ideas on reservoir enhancement and creation Collection of EGS potential studies from different countries Worldwide overview of the state of the art Worldwide overview of country-specific challenges Investigation and enhancement of cost effectiveness Development of a worldwide roadmap for EGS (considering country-specific challenges) Overview of worldwide research and development Ongoing exchange in the area of research and development, e.g. stimulation procedures, zonal isolation, modelling, characterisation, cost reduction. Possible routes to commercialisation. Cooperation with Task D regarding Induced Seismicity. In 2016, several workshops and meetings will take place. In addition to the events in Mexico in April 2016, another event is planned in Munich (Germany) on 12 September 2016, a second one in Sacramento (USA) in October 2016 together with the GRC, and a third event in Chiangmai (Thailand) on 18 November 2016 along with an Annex 8 direct use workshop and the 11th Asian Geothermal Symposium Task D Induced Seismicity The initial objective of Task D is to provide continuity with the work previously undertaken by Annex 11 (Induced Seismicity), as reported in Chapter 6. Continuing effort, following the closure of Annex 11, includes ongoing collaboration with IPGT on aspects of seismicity forecasting to assist with avoidance of inducing larger events, through injection and production management. During , an initial objective will be to jointly contribute to a Geothermics Journal peer-reviewed article that summarizes experience to date with induced seismicity that has accompanied long-term injection, and that reviews concepts, mechanisms and models of processes. The overall purpose is to provide a higher level of public assurance regarding the science behind forecast levels of seismicity (number, magnitude distribution, and surface motion effects) for any given geothermal project proposal. This will lead to betterinformed protocols, best-practice procedures and advanced reservoir management tools Task E Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracers) The major focus in 2016 will be to increase public awareness of the activities of Task E and recruit new members. Contact will be made, amongst others, with Geothermal ERA-NET (EU sponsored project) which includes the programme OpERA dealing with corrosion and scaling, and with the ETIP (European Technology & Innovation Platform for Deep Geothermal) under the auspices of EGEC (European Geothermal Energy Council). Awareness of Task E will be created at the European Geothermal Congress (EGC 2016) and at the 11th Asian Geothermal Symposium (AGS11). Japan, Iceland, Italy, New Zealand and Norway already showed interest in the activities of Task E. The collaboration should be extended to other IEA Geothermal member countries including France and Mexico. The leadership in Task E has very good knowledge of corrosion, scale and tracer technology. Expertise in heat and electricity production would usefully complement this expertise. Authors Dr. Josef Weber Leibniz Institute for Applied Geophysics Section 4 - Geothermics and Information Systems Stilleweg Hannover GERMANY josef.weber@liag-hannover.de 51

53 IEA Geothermal R&D Programme Dr. Tae Jong Lee Geothermal Resources Department Korea Institute of Geosciences and Mineral Resources (KIGAM) 124 Gwahangno, Yuseong, Daejeon KOREA Manuela Richter Project Management Jülich Division Energy System Renewable Energies/Power Plant Technology Geothermal Energy, Hydropower, Science Communication Forschungszentrum Jülich GmbH Jülich GERMANY Dr. Jiri Muller Institute for Energy Technology (IFE) P.O.Box 40 NO-2027 Kjeller NORWAY Chris Bromley GNS Science Wairakei Research Centre Private Bag 2000 Taupo 3352 NEW ZEALAND Dr. Peter Meier Geo-Energie Suisse AG Reiterstrasse Zurich SWITZERLAND 52

54 National Activities Chapter 10 - Australia Figure 10-1 Melbourne Convention and Exhibition Centre 2015 World Geothermal Congress Venue Introduction and Overview The use of geothermal energy for both electricity generation and direct use purposes is a recent introduction to the Australian energy mix. This is largely due to Australia s lack of active volcanism, and its relatively mild winter climate in the major settled areas. With recent significant advances in enabling technologies leading to the development of geothermal resources such as Engineered Geothermal Systems (EGS) and Hot Sedimentary Aquifers (HSA) elsewhere, it has been recognised however that Australia has substantial potential in these unconventional geothermal resources. As a result, work is on-going to define and quantify Australia s significant potential in EGS style resources associated with buried high heat-producing crystalline basement and hot sedimentary aquifer-style geothermal resources known to be present in a number of the deep sedimentary basins. Currently electricity is produced from geothermal energy at the small Ergon Energy binary power station at Birdsville, Queensland which has a gross capacity of 120kW and a net output of 80kW. The 98 o C geothermal brine used in this plant is derived from the Great Artesian Basin (also referred to as the Eromanga Basin) which overlies the Cooper Basin. Total exported power generation in 2015 was 1,421MWh, of which 310MWh was provided by the geothermal power plant. This equates to 21% of total exported power output, which reduced diesel consumption by about 82,251 litres and saved about 226 tonnes of greenhouse gas emissions through the year. This is down from a geothermal energy output of 568MWh and 31% of total power supply in 2014; and is a performance decline generally reflective of age-related plant reliability. Australia s annual electricity consumption has been on a declining trend since 2009, with total annual operational consumption in the National Electricity Market of 195 TWh in falling to 180 TWh in This trend reflects a range of factors including increasing energy efficiency, a shift away from energyintensive manufacturing in the wider economy and the increasing deployment of rooftop solar PV generation. Forecasts by the Australian Energy Market Operator (AEMO) suggest that consumption of gridsupplied electricity will remain flat for the next two decades, although projected growth in population and the Australian economy is expected to result in a small overall increase in electricity consumption, estimated at 183,258 GWh in to 184,467 GWh in (AEMO, 2016). Off-grid generation accounted for an estimated 12% of total electricity generation in and is projected to rise in the future (DIIS, 2016) 53

55 National Activities Generation from renewable energy sources in 2015 is estimated at about 14.6% of total generation in Australia. The bulk of renewable generation is from hydro (49.7%) and wind (28%). However rooftop solar PV is increasingly popular, growing by 27% in with an estimated 17% of households in Australia having installed this technology as at October Continued strong growth in the uptake of rooftop solar PV and battery storage technology is expected with forecasts of 20 GW installed capacity by (DIIS, 2016). Geothermal generation constitutes less than 0.001% of total electricity generation. Australia s total installed capacity in direct use geothermal applications is estimated to be 48.1MWth. Highlights and Achievements The 2015 World Geothermal Congress was held in Melbourne Australia from April 19 to 25, 2015, in association with the International Geothermal Association (IGA), Australian Geothermal Energy Group (AGEG), Australian Geothermal Energy Association (AGEA) and the New Zealand Geothermal Association (NZGA). Held every 5 years the World Geothermal Congress is a unique event which brings together members of the geothermal community from across the globe. Five days of technical sessions, networking opportunities, social and cultural events, short courses and supporting pre- and postconference field trips conducted in both Australia and New Zealand attracted over 1600 international delegates from 83 countries to participate in the Congress. During 2015, Ergon Energy advanced planning for an upgrade of the Birdsville facility to increase output to potentially meet 70% of the district s power requirements. The upgrade has the potential to offset diesel usage by up to 80%. Project funding approval is currently being sought however construction of the new plant, using modular waste heat recovery equipment, is forecast to commence in Table 10-1 Status of geothermal energy use in Australia for Electricity Total Installed Capacity (MWe) 1.1 New Installed Capacity (MWe) 0 Contribution to National Capacity (%) <0.001% Total Generation (GWh) Contribution to National Generation (%) <0.001% Target (MWe, % national generation, etc.) na Estimated Country Potential (MWe or GWh) na Direct Use Total Installed Capacity (MWth) 48.1* New Installed Capacity (MWth) 4.3* Total Heat Used (GWh/yr) 91* Total Installed Capacity Heat Pumps (MWth) 35* Total Net Heat Pump Use [GWh/yr] 30.9* Target (PJ/yr, ) na Estimated Country Potential (MWth /PJ/yr/GWh/yr) na na = data not available * indicates estimated values National Programme The Australian Government believes that electricity generation from clean energy sources will play an increasingly important role in Australia s energy future. This is particularly the case following the global agreement on climate change reached in Paris in 2015 and the Government s commitment to reduce emissions in 2030 by 26 to 28 per cent on 2005 levels. The Australian Government is committed to reducing Australia s greenhouse gas emissions and has a range of programs in place to achieve this. The Emissions Reduction Fund (ERF) supports Australian businesses and households to take practical, direct action to reduce greenhouse gas emissions and improve the environment. The ERF reduces Australia s emissions by providing an incentive for businesses, land owners, state and local governments, community 54

56 National Activities organisations and individuals to adopt new practices and technologies to reduce emissions, including from business activities and farming practices. Geothermal energy applications are within the scope of crediting under the ERF. The Australian Government is committed to a Renewable Energy Target (RET) that allows sustainable growth in both small and large scale renewable energy. The RET provides incentives for the generation of electricity from renewable sources through the creation of certificates which are purchased by electricity retailers who sell the electricity to householders and businesses. In June 2015, the Australian Government set a large scale target of 33,000 gigawatt hours (GWh) by This will result in more than 23 per cent of Australia s electricity being derived from renewable sources by 2020, compared with just 14.6 per cent or 15,200 GWh in The Australian Renewable Energy Agency (ARENA) is an independent Commonwealth authority, supporting innovations that improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia. The Government has committed over $1 billion to around 230 renewable energy projects through ARENA, from research and development, to demonstration and early stage commercial deployment. Industry has matched this $1.1 billion investment with $1.6 billion, taking the total investment in renewable energy in Australia through ARENA to $2.7 billion. ARENA continues to administer funding for geothermal projects in Australia. The Australian Government is also providing $10 billion through the Clean Energy Finance Corporation (CEFC) to increase the supply of capital for low emissions energy development, including renewable energy and energy efficiency. The CEFC works across the economy, providing finance for projects that improve energy productivity and sustainability. The CEFC is acting as the cornerstone investor to attract private investment into clean energy in Australia. To date, the CEFC has invested $1.4 billion in projects with a total market value of $3.5 billion. The 50 per cent renewable energy portion of the CEFC portfolio includes investments in wind, solar PV, thermal and concentrated solar thermal, biomass, geothermal, tidal and other renewable energy. In Australia, legislation and regulation of geothermal exploration and development is a State and Territory government responsibility. Industry Status and Market Development At this point the Australian Geothermal Industry remains largely at a precompetitive exploration stage. Other than the Ergon Energy Birdsville Plant discussed above, no commercial scale Engineered Geothermal Systems (EGS) or Hot Sedimentary Aquifer (HSA) units are commercially operational in Australia and hence there are no data available to assess development cost trends. Nationally, to the end of 2015, 21 companies had applied for 155 licence areas (covering 261,000 km2) to progress proofof-concept Engineered Geothermal Systems (EGS) and Hot Sedimentary Aquifer (HSA) projects (see Figure 10-2). The current challenge for the non-conventional EGS and Hot Sedimentary Aquifer sector is two-fold: to prove the resource; and to prove the ability of the technologies to generate sustainable amounts of usable electricity at a commercially viable cost. At a broader scale the geothermal sector is having difficulty in accessing capital for their projects in the current finance market. Industry Status and Market Development At this point the Australian Geothermal Industry remains largely at a precompetitive exploration stage. Other than the Ergon Energy Birdsville Plant discussed above, no commercial scale Engineered Geothermal Systems (EGS) or Hot Sedimentary Aquifer (HSA) units are commercially operational in Australia and 55

57 National Activities hence there are no data available to assess development cost trends. Nationally, to the end of 2015, 21 companies had applied for 155 licence areas (covering 261,000 km2) to progress proofof-concept Engineered Geothermal Systems (EGS) and Hot Sedimentary Aquifer (HSA) projects (see Figure 10-2). The current challenge for the non-conventional EGS and Hot Sedimentary Aquifer sector is two-fold: to prove the resource; and to prove the ability of the technologies to generate sustainable amounts of usable electricity at a commercially viable cost. At a broader scale the geothermal sector is having difficulty in accessing capital for their projects in the current finance market. Figure 10-2 Geothermal licences, applications and gazettal areas as at 31 December Research, Development and Demonstration/Deployment Geothermal R&D in Australia is largely focussed on advancing technologies associated with unconventional geothermal resources (i.e. EGS and HSA). The geothermal sector recognises however that coordinating local research efforts with those of the wider international geothermal community is important, and to this end considerable alignment exists between identified Australian research priorities and international research imperatives including the IEA GIA Research Annexes and International Partnership for Geothermal Technologies (IPGT) which now comprises Australia, Iceland, New Zealand, Switzerland and the United States. 56

58 National Activities Government funded geothermal research is largely conducted by government research institutions and universities, supported by both State and Commonwealth Government funding including the Australian Research Council (ARC) and the Australian Renewable Energy Agency (ARENA). As the principal agency for the funding and support of renewable energy technologies in Australia, ARENA s objectives are to increase the supply and competitiveness of renewable energy in Australia. Geothermal Education No new educational programmes commenced in Future Outlook Key activities scheduled for 2016 includes the progression of advanced planning and procurement of equipment for the upgrade to Ergon Energy s Birdsville geothermal facility. References and Websites AEMO (Australian Energy Markey Operator), National Electricity Forecasting Report for the National Electricity Market. Accessible online at: Electricity-Market-NEM/Planning-and- forecasting/- /media/080a47da86c04be0af93812a548f72 2E.ashx Authors Dr Betina Bendall Alternate Executive Committee Member for Australia IEA GIA Principal Geothermal Geologist Energy Resources Division Department of State Development Government of South Australia Level 6, 101 Grenfell St Adelaide, South Australia 5000 GPO Box 1264 Adelaide, South Australia 5001 T +61 (08) F +61 (08) betina.bendall@sa.gov.au Barry A Goldstein Executive Committee Member for Australia IEA GIA Executive Director Energy Resources Division Department of State Development Government of South Australia Level 6, 101 Grenfell St Adelaide, South Australia 5000 GPO Box 1264 Adelaide, South Australia 5001 T +61 (0) M +61 (0) F +61 (08) barry.goldstein@sa.gov.au DIIS (Department of Industry, Innovation and Science), Energy in Australia Commonwealth of Australia, Canberra. Accessible online at: Error! Hyperlink reference not valid. of-the-chief- Economist/Publications/Documents/energ y-in-aust/energy-in-australia-2015.pdf Lund, J. W., Freeston, D. H. & Boyd, T. L., Direct utilization of geothermal energy: 2010 worldwide review, Geothermics, Vol. 40, Issue 3, pp

59 National Activities Chapter 11 - European Union Background Under Horizon 2020, the current EU framework programme for research and innovation, "Secure, Clean and Efficient Energy" challenge, Competitive Low Carbon Energy, there are a number of funding opportunities for geothermal projects. Topic calls for research and innovation projects are published periodically in Work Programmes. The first Horizon 2020 Work Programme covered In 2015 the first geothermal projects, funded under the 2014 calls, started their activities and the 2015 calls were opened. The submitted proposals were evaluated and contracts prepared for the successful projects to start during the first months of In October 2015 the Work Programme was adopted and published. As in the previous work programmes the "Competitive Low Carbon Energy" topics cover a range of technology development, from very low Technology Readiness Level (TRL) to market uptake (ref. data/ref/h2020/wp/2016_2017/main/h20 20-wp1617-energy_en.pdf). This Work Programme includes calls to meet challenges on; materials, retrofitting systems and technologies, EGS and on addressing environmental and social concerns. A coordinated call with Mexico is also published in the Work Programme, this research call addresses both Enhanced Geothermal Systems (EGS) and superhot systems. This coordinated project is expected to start in October Major Highlights and achievements for 2015 The projects that started in 2015 have a total budget of over Euro 80 million, of which more than half is covered by Horizon 2020 grants. Two demonstration projects (GEOTeCH 1 and Cheap-GSHPs 2 ) focus on reducing drilling costs and improving the efficiency of shallow geothermal systems seeking to increase the share of geothermal heat/cool in the heating and cooling market. The project DEEPEGS 3 aims at demonstrating and testing technologies to prove the feasibility of enhanced geothermal systems (EGS) for delivering energy from renewable resources in Europe. A second EGS demonstration project funded under the same call, started in March Finally two research projects, expected to bring technology solutions from TRL 3-4 to TRL 4-5, address the challenge of drilling. The DESCRAMBLE 4 project concentrates on novel drilling technologies to reach high temperature and pressure resources, while the project ThermoDrill 5, among other objectives, aims at increasing the drilling penetration rate (speed of making hole) by combined fluid jetting and rotary drilling. The ongoing projects continued advancing planned activities: During 2015 extensive field campaigns were carried out as part of the Integrated Methods for Advanced Geothermal Exploration project (IMAGE) with the consortium expecting to deliver exciting results during the first half of This project is attracting a very high level of interest from European industry. Member States participating in the Geothermal ERA NET project advanced implementation of joint activities. References 1 GEOTeCH, Geothermal Technology for economic Cooling and Heating: 2 Cheap-GSHPs, Cheap and Efficient Application of Reliable Ground Source Heat Exchangers and Pumps: 3 DEEPEGS, Deployment of Deep Enhanced Geothermal Systems for Sustainable Energy Business: 58

60 National Activities 4 DESCRAMBLE, Drilling in deep, Super- CRitical AMBient of continental Europe: 5 ThermoDrill, Fast track innovative drilling system for deep geothermal challenges in Europe: ct/ Author Susanna Galloni European Commission DG Research and Innovation CDMA 00/060 B-1049 Brussels susanna.galloni@ec.europa.eu 59

61 National Activities Chapter 12 - Germany Figure 12-1 Sauerlach Geothermal Power Plant courtesy Stdtwerke München, SWM Introduction and Overview The use of geothermal energy could, theoretically, meet Germany energy demand several times over. Considerable efforts have been made to tap this potential with exploration and development occurring in the most suitable regions. Development has occurred in advancing both drilling and downhole pump technology, and facilities have been constructed for converting extracted geothermal heat to electricity. operational running capacity of about 35 MWe (February 2016). Refer to Table 12-1 the end of the chapter. Deep geothermal energy is being increasingly used in applications that use heat. Matching the geological conditions, the structure of demand and the economics of projects identifies projects involving direct heat utilization have better prospects for being economically and successfully implemented than do projects that only generate electricity. The regions where the most suitable conditions exist include the Molasse Basin in Southern Germany (mainly in Bavaria), the Upper Rhine Graben in South West Germany and the North German Basin. These areas have high heat flows and high natural temperature gradients, and hydrothermal geothermal energy is being exploited in these parts of the country. Information from the German Geothermal Association (BVG) identified 33 geothermal facilities in operation across Germany as of February Most of these exclusively generate heat, with a cumulative installed capacity of 280 megawatts (thermal). Nine of the geothermal plants generate electricity, either exclusively or in combination with heat energy production. The power plants have an installed capacity of about 40 MWe restricted to an National Programme The energy concept developed by the German Federal Government in 2010 envisages far-reaching restructuring of the energy supply system in Germany by Important goals are the reduction of primary energy consumption by 50 percent and increasing the proportion of renewable energy to cover 80 percent of the demand for electricity and 60 percent of the gross final energy consumption. If the energy transition continues to run successfully the energy system in 2050 will be completely different from the current structure of energy demand, supply and distribution. The technologies used to realise this are to a large extent either currently not technically available or are not economically feasible. Energy research 60

62 National Activities forms a strategic element of the energy policy in order to generate technical innovations in the medium to long term that will enable this energy transition. In 2011, the 6th Energy Research Programme Research for an environmentally friendly, reliable and affordable energy supply commenced. The goals of the programme are to accelerate the modernisation of the German energy supply system, strengthening German international business competitiveness and securing and expanding technology options. The Federal Ministry for Economic Affairs and Energy (BMWi) is responsible for leading the 6th Energy Research Programme and for funding applied research and technological developments in all energy technology areas except for bioenergy. The basic principles for research funding are described in the 6th Energy Research Programme. An overview of research activities and results are published in Innovation Through Research publications (see references at the end of the chapter). The 2015 publication is the first in the series to cover the entire spectrum of research funded topics supported by BMWi in both energy efficiency and renewable energies. Industry Status and Market Development Apart from funding carefully selected research projects, the Federal Government is also creating incentives for new projects by remunerating geothermal electricity under the Renewable Energy Sources Act (EEG) and by offering drilling cost subsidies. In December 2015 the feed-intariff was fixed at 25.2 Euro-cents per KWh. This was an amendment to the EEG adopted by the Bundestag (Lower House of Parliament). The German Government market incentive programme (MAP) promotes renewable energy systems that provide space heating, hot water, cooling and process heat. It was revised in March 2015 and includes programmes for smaller buildings, larger buildings and commercial use. The smaller buildings programme is administered by the Federal Office of Economics and Export Control (BAFA). Commercial use is a key component of the KfW Banking Groups renewable energy program. Several geothermal technologies are supported by the MAP; it subsidizes the installation of efficient heat pump systems in residential buildings using a repayment bonus that depends on the installation size. For heat and power plants using deep geothermal energy, a repayment bonus for the plant is available and depending on the depth drilled the drilling cost can be supported. Further, part of the exploration risk can be covered by a KfW-program. The geothermal market predominantly comprises small and medium-sized mechanical engineering enterprises and larger enterprises, whose portfolios belong more to the conventional energy sector, such as the hydrocarbon industry. Research, Development and Demonstration/Deployment The potential offered by deep geothermal energy as a continuously available renewable energy source needs further realization and research, advancement and development work has been carried out towards this end. There have been improvements in the areas of drilling technology, plant construction and downhole pump technology. New methods have been developed to appropriately determine target areas for drilling and in drilling technology directional drilling can be carried out with more precision than was possible a few years ago. Due to the local conditions, such as the composition of the thermal water or the geological structures, each geothermal production facility has unique aspects. A more individual approach is therefore necessary in the planning phase, compared to other more off the shelf renewable energy technologies. In view of the 61

63 National Activities significant potential and expected contribution of geothermal energy to an energy system based on renewable energy in the future, the Federal Ministry for Economic Affairs and Energy (BMWi) is continuing to support relevant research projects. The BMWi primarily provides funding to projects that are dedicated to complete systems such as pumps. Further research is required in order to economically utilise deep geothermal energy and to fully exploit the heat energy potential. The research projects currently being funded encompass all stages of the geothermal energy value chain. The primary goal is to further reduce the cost of projects in order to make geothermal energy economically viable nationwide. Contributions towards the achievement of this goal are made by technological developments in all project phases: in project planning, the exploration of the target heat source, the drilling, testing and construction phases and the operation of completed facilities. In particular deep boreholes must be completed more quickly and at reduced cost because they account for a significant part of the investment costs. The design and operation of completed heat or power plant facilities needs to be more efficient, more reliable and with lower maintenance requirements. Alongside technical developments in geothermal energy, concepts for improved public relations work are a fundamental component of a successful project. And last but not least, the conditions must be created to allow geothermal energy to be utilised in those areas that have not yet been explored or which are less suited. Major success has in particular been achieved in the Molasse Basin in Southern Germany. Heat from deep geothermal energy can already be reliably utilised in this area. The GRAME project supports the long-term goal of supplying the entire heating requirements in the Munich region using renewable energies. Geothermal energy is set to make a decisive contribution here. The seismic measurements to map the underground for this project began in In the area of geothermal research, the BMWi approved funding for a total of 21 new projects funding 17.3 million euros in 2015 (2014: 15 new projects with around 12.7 million euros). At the same time, around 13.4 million euros was invested in ongoing research projects (2014: around 15.6 million euros) Research Highlights Geothermal heat for Munich Munich is located in the Molasse Basin in Bavaria where the underlying geological formations are particularly suited for the extraction of geothermal heat. The rocks are part of Malm, a geological formation that due to its special structure behaves like a hot thermal water aquifer. By 2040 Stadtwerke München (SWM) intends to provide the entire district heating for Munich from renewable energies, with geothermal energy contributing the majority of the energy. SWM, as the coordinator, aims to lay an important foundation for this vision with the GRAME project. Work is required to determine the best locations for extracting heat from underground and how it is integrated into the existing district heating network. The project partners SWM and the Leibniz Institute for Applied Geophysics (LIAG) are planning to create a three dimensional image of the subsurface and use it to develop the extraction strategy. The results will contribute to optimised exploitation of the geothermal resources within the Molasse Basin and the utilisation of the potential for both direct heat utilization and the generation of electricity. The goal is to extract about 400 megawatts of heat and possibly to generate up to about 50 megawatts of electricity. The project partners are using 3D-seismic techniques to determine the structure of the reservoir and to determine the most promising locations for drilling. The project aims to advance 3D-seismic technology to 62

64 National Activities gather more precise data on the underground structure. The measurements are being taken over an area of 170 square kilometers. Conducting 3D-seismic measurements beneath an urban area is breaking new ground as geothermal investigations on this scale have never before been carried out in this region. Amongst other things, traffic and construction work on the surface, generate incessant vibrations that influence the measured data. Once the measured data has been recorded, a grid of boreholes will be drilled that will take into account the underlying geology and the infrastructure of the City. At the end of the project, a concept design for extracting geothermal heat will have been developed moving SWM closer to achieving its 2040 vision. New pressure retention valve. When pipes or filters in thermal water systems become blocked the transfer of heat is hindered and the efficiency of the plant reduces. To avoid scale deposition and the outgassing of the thermal fluid the company Global Engineering & Consulting- Company (Gec-co) and its academic partner the University of Erlangen- Nürnberg have developed a new controllable pressure retention valve as part of the Pressure Retention Valve project. The valve is installed in a production well at a depth of approximately 500 to 700 metres. It is positioned below the water level in the well and keeps the pressure of the entire water circulation system above the degassing pressure. The company was nominated for the European Geothermal Innovation Award 2015 for this development, which is awarded by the European Geothermal Energy Council (EGEC) and Fair Offenburg. The concept and the innovative idea with its installation below the water level differentiates it from other types of valves available on the market making it ideally suited for the conditions found in deep geothermal wells. Due to its special design, the valve can also be configured with redundancy. On Line Thermal Water Property Determination Before the construction of a new geothermal heat or power plant can begin an economic viability assessment is required to secure investment. The possible thermal output of the proposed plant is important and depends on the physical and chemical properties of the extracted thermal water. The precise evaluation of these properties is the goal of the PETher project that is being coordinated by the Karlsruhe Institute of Technology (KIT) along with partners GeoThermal Engineering (GeoT) and Global Engineering & Consulting-Company. Relevant properties are the specific heat capacity, dynamic viscosity and thermal conductivity. These are dependent on the temperature, pressure, dissolved minerals and gas content of the water. The standard procedure used involves, taking water samples and sending them to a laboratory and this can change the parameters of the samples. Therefore, KIT has developed in situ measurement to evaluate heat capacity and the dynamic viscosity of the thermal water. The measurements are carried out in reservoir-like conditions in the flow of water under in situ pressure and temperature conditions. The next steps for the PETher project is to install a test arrangement in a German geothermal power plant in order to test and further develop the methodology. Advances in Down hole Pump technology The pump is currently the most vulnerable component in a geothermal energy installation. The thermal water is pumped hundreds of meters up the borehole to the surface at fluctuating loads depending on the heat demand required to be met. Submersible pumps, which are installed together with their integrated electric motor in a well below the water level, have become the established pump technology in geothermal energy developments. In 63

65 National Activities comparison to other pump installations, the efficiency of the geothermal pumps is higher and service intervals are longer than for pumps in other service duties. The challenges related to thermal water, pressure and particulate are great. The pump and its metal components are permanently exposed to the corrosive waters, while water-borne particles (e. g. carbonates) can accumulate. The seals must be reliable enough to protect the motor and overheating has to be avoided. Furthermore, geothermal energy applications require significantly higher flow rates and outputs compared to oil extraction. The average lifespan of pumps adapted from the oil and gas business is only a few months. Less than what is required for economically viable geothermal plant operation. The goal of the project is to increase the reliability of the pumps, avoid downtime and further increase their efficiency. Considerable success has already been achieved through the work of Baker Hughes and Flowserve. Baker Hughes has developed a globally unique high temperature test arrangement (HotLoop) to accelerate research. It provides the combination of high temperature and high drive capacity that has so far not been available. The test arrangement produces an accelerated ageing of the pumps and enables wear and damage to be identified more quickly. It has helped engineers to deliver design improvements that have led to improved reliability in the operation of submersible pump systems. Their efficiency has also been improved. A particularly noteworthy improvement involved the radial bearings in the pumps that now achieve significantly longer service times. In the boreholes in Dürrnhaar and Sauerlach, pumps fitted with these radial bearings were successfully deployed for four months without any notable wear. Pumps fitted with conventional bearings only achieve service intervals of between four and six weeks in the same boreholes due to calcification of the bearings. In addition, new Flex pump designs were developed that are more efficient and can flexibly pump variable volumes depending on the time of year heat demand. The insulation and radial bearings in the motors were also redesigned reducing maintenance related downtime. In parallel, the engineers are working on a high temperature pump sensor system. It is designed to precisely monitor the operational condition of a pump. The results achieved are promising developments on the path to improving the economics and operational reliability of downhole pumps required for geothermal heat and power plant facilities. Future Outlook The German Government supports the development of renewable energies with a bundle of support mechanism, e.g. feed-intariffs, funding for research. Results of this are the 2015 renewable energy share of gross electrical consumption is about 32% and the renewable heat and cold energy supply increased to 13.2% in Numerous efforts have already been made to develop the potential of geothermal energy as a continuously available renewable energy source. These include the exploration and exploitation of suitable reservoirs, the development of drilling technologies, and innovations in plant construction to use the extracted heat for power generation or for direct heat purposes. At end of 2015 there were 33 deep geothermal electricity and heating plants in operation, 3 under construction and 30 are planned (BVG). The market for geothermal heat pumps has increased to 320,000 units but the growth rate has slowed down. The investments in geothermal energy remain at a constant level of about 1 Bn per year (heat pumps and deep geothermal power plants). 64

66 National Activities The development of geothermal district heating for Munich with the goal to supply up to 100% of the energy for house heating, attracts a lot of attention in Germany and worldwide. The 3D-seismic measurement campaign in an urban area with thousands of geophones and vibrating trucks over a 6 month period found wide acceptance by the population. This acceptance provides optimistism for the future of further geothermal developments in Germany. Beside the geothermal production of electricity, the direct use of heat in densely populated areas is becoming a focus. Publications and Websites Federal Ministry of Economic Affairs and Energy: BMWi publications in English: ons.html Innovation durch Forschung: Erneuerbare Energien und Energieeffizienz: Projekte und Ergebnisse der Forschungsförderung ikationen,did= html ( Innovation Through Research 2015: Annual Report on Research Funding in the Renewable Energies Sector, English version expected in August 2015) Project Management Jülich (Public Funding Agency): Database of all projects sponsored by the Federal Economics Ministry in renewable energies: 6th Energy Research Programme of the Federal Government: ons,did= html EEG Renewable Energy Sources Act: Renewable-Energy/auctions-for-fundingrenewable-energy.html German Geothermal Association (BVG): Geothermal Information System for Germany (GEOTIS): Author Dr. Lothar Wissing Projektträger Jülich Erneuerbare Energien PTJ-ESE Forschungszentrum Jülich GmbH Jülich Tel.: +49 (0) Fax: +49 (0) l.wissing@fz-juelich.de 65

67 National Activities Region Location MWe MWth Landau ORC Power Plant Type Upper Rhine Graben Bruchsal Kalina Insheim 4.3 ORC Unterhaching Kalina Durrnhaar 7 ORC South German Molasse Basin Kirchstockach 7 ORC Sauerlach 4 5 ORC Oberhaching ORC Traunreut Kalina Table 12-1 German geothermal Power Plant data 66

68 National Activities Chapter 13 - Iceland Introduction and Overview Utilisation of geothermal resources has expanded rapidly during the last decade and is expected to increase further. Electricity generation is estimated to increase by 12% from 5.0 to 5.8 TWh between 2015 and 2020 and geothermal heating from 27.1 to 34 PJ over the same period. A 36% growth in population is predicted by 2050, and geothermal utilization is estimated to increase by over 70% to almost 50 PJ. Iceland s long term objective is to ensure the sustainable utilisation of its resources, and the future implementation of the Master Plan for hydro and geothermal energy resources in Iceland is a step in maintaining and sustaining this objective. Iceland has developed a great deal of know-how and experience in harnessing geothermal resources, both for space heating and electricity generation. With tourism increasing by up to 30% every year, geothermal bathing in natural hot springs continues to become even more popular. When the Bardabunga central volcanic system under the Vatnajökull glacier erupted in 2014 producing an 85 km 2 lava field, the area became a tourist attraction. Construction has started on the Þeistareykir geothermal power plant in north Iceland for Landsvirkjun. The first 45 MW e unit is expected to be online by autumn Figure 13-1 Svartsengi geothermal power plant in SW Iceland Electricity Total Installed Capacity (MWe) 665 New Installed Capacity (MWe) 0 Total Running Capacity (MWe) 663 (estimate) Contribution to National Capacity (%) 24% Total Generation (GWh) 5003 Contribution to National Demand (%) 26,6% Target (MWe, % national generation, etc.) N/A Estimated Country Potential (MWe or GWh) 4255 MWe Direct Use Total Installed Direct Use (MWth) New Installed Capacity (MWth) 2000 (estimate) N/A Total Heat Used (PJ/yr) [GWh/yr] 27,8 [7695] Total Installed Capacity for Heat Pumps (MWth) Total Net Heat Pump Use (PJ/yr) [GWh/yr] Target (PJ/yr, ) Estimated Country Potential (MWth /PJ/yr/GWh/yr) N/A N/A N/A N/A Table 13-1 Geothermal energy use in Iceland for (N/A = data not available) Reykjavik Energy has added the Hverahlid geothermal area, within the Hengill area where the Nesjavellir and Hellisheidi power plants are located, to the existing Hellisheidi power plant as an area for make-up wells. In addition they have drilled an 67

69 National Activities additional make-up well in the Hellisheidi area, following a break in drilling since The IDDP consortium continues to plan for IDDP- 2 on Reykjanes. A recent study published for Orkustofnun reviews the success of drilling high temperature wells in Iceland over past decades. Orkustofnun propose to next study and report on the success of medium enthalpy well drilling. Orkustofnun has completed the work of identifying and defining possible areas for new power projects for both hydro and geothermal, which the steering committee of the third Master Plan will consider and evaluate before submitting the results to the Parliament, for categorizing the areas for utilization, protection or further study. The completion of the third cycle of the Master plan is expected in The feasibility of a subsea cable to the UK is being studied, as well as a North West Atlantic Cable. Iceland has actively participated in supporting geothermal development worldwide, particularly the COP21 event in Paris in December 2015 through the Global Geothermal Alliance Initiative as well as through bilateral cooperation with various nations, in particular through EEA Grants with Romania, Hungary and Portugal, as well as with the European Union and its member states through the SET-Plan and the Geothermal ERA NET initiative, which Orkustofnun coordinates. Orkustofnun continues to support collaboration through IPGT and IEA-GIA as well as IGA through the UNU-GTP programme. Highlights and Achievements Figure 13-2 Satellite image of Iceland in winter illustrating geothermal production wells in operation in year 2014 for geothermal power plants (red) and wells operated by heat utilities with a natural monopoly for distribution of heat. Over 100 production wells operated by small auto-producers are excluded. Figure 13-3 Satellite image of Iceland in summer showing where geothermal is used for various uses like swimming, fish farming, industrial processes and heating greenhouses in year During the 20th century Iceland has emerged from being a nation dependent upon imported oil and coal, to a country where practically all stationary energy, and 85% of primary energy, is derived from domestic renewable sources, with near carbon-free electricity production in the year This is the result of an effective policy in making renewable energy a longterm priority in Iceland. Nowhere else does geothermal energy play a greater role in providing a nation s energy supply. In Figure 13-2 is overview diagram of the main production wells in Iceland operated for electricity generation and by the heat utilities. Auto-producers, of which there are over 100 in Iceland, producing 14% of the final energy use are excluded. However for heat use, main activity producers dominate, with an 80% share (23.1 PJ) of total heat use. In the 1940s, the State Electricity Authority was already promoting geothermal development and had carried out a regional survey of geothermal areas suitable for space heating, and explored promising fields with exploratory drilling. The capital Reykjavik obtained by law a monopoly to operate a geothermal heating service in the city, and took the initiative in production, drilling and establishing the first large geothermal district heating system in Iceland. The State guaranteed construction loans for the system. In 1950, about 25% of all families in Iceland enjoyed geothermal, 40% used coal and 20% oil for heating. The low cost geothermal heating was attractive increasing the migration of people from rural areas to the capital. To balance that, Parliament approved an 68

70 National Activities Act in 1953 on geothermal heating services for communities outside Reykjavik, which permitted the State to guarantee loans up to 80% of the total drilling and construction cost of the heating utilities. Further, to encourage the development, the State established the 1961Geothermal Fund. The fund gave grants for reconnaissance and exploratory drilling carried out by the Geothermal Department of the State Electricity Authority and offered loans to communities and farmers for exploration and appraisal drilling, covering up to 60% of the drilling cost. If the drilling was successful the loans were to be paid back at the highest allowed interest rate, within 5 years of exploitation commencement. If the drilling failed to yield exploitable hot water, the loan was converted to a grant and not paid back. In this way the fund encouraged exploration and shared the risk. Within 10 years many villages used this support and succeeded in finding geothermal water. In 1967 the fund was merged with the Electricity Fund becoming the Energy Fund. The Electricity Fund had supported electrification and transmission in rural areas since the 1940s. Over 350 geothermal loans have been issued leading to the wide spread use of geothermal energy in Iceland. When the oil crisis struck in the early 1970s, fuelled by the Arab-Israeli War, the world market price for crude oil rose by 70%. At the same time, close to people enjoyed geothermal heating in Iceland, about 43% of the nation. Heat from oil served over 50% of the population, the remainder using electricity. In order to reduce the effect of rising oil prices, Iceland began subsidising oil for space heating. The oil crises in 1973 and 1979 (Iranian Revolution) caused Iceland to change its policy, reducing oil use and turning to domestic energy resources; hydropower and geothermal heat. This policy meant exploring for new geothermal resources, and building new heating utilities across the country. It also meant constructing transmission pipelines (commonly km) from geothermal fields to towns, villages and individual farms. This involved converting household heating systems from electricity or oil to geothermal heat. However, despite the reduction in the use of oil for space heating from 53% to 7% from 1970 to 1982, the share of oil still remained about 50% to 60% of the total cost of heating due to rising oil prices. Figure 13-4 Electricity generation by geothermal power plants in Iceland (Orkustofnun, 2016). Today about nine out of ten households are heated with geothermal energy. In Figure 13-3 areas of use are shown that are either auto-producers or buy heat from an activity producer. Total use of geothermal energy amounted to 27.8 PJ in 2015 as can be seen in Figure From an economic perspective, the present value of the estimated savings of house heating with geothermal instead of oil between 1914 and 2014, using 2% real interest rate over the cost price index, is estimated at 2,680 billion ISK (125 ISK/US$) (see Figure 13-6). In 2014 the estimated annual savings for that year amounted to about 4.5% of the GDP of Iceland or 2,300 US$ per capita. Beside the economic impact of this high level of energy security and the avoided cost of importing energy to the country, there are environmental benefits from reduced greenhouse gas emissions by using geothermal energy, compared to fossil fuel based technologies. In 2014 geothermal utilization reduced the anthropogenic release of CO 2 by 5.0 million tonnes for geothermal based electricity generation and 3.4 million tonnes for geothermal based heat use compared to coal. Geothermal use has considerably improved air quality in populated areas over the decades since Icelanders replaced particulate emitting coal and later oil systems with geothermal. For further information about updates to the national policy and legal framework see Ketilsson et al. (2015). Geothermal utilization amounted to 27.8 PJ in 2015 as shown in Figure 13-5 using both IGA (outer) and IEA (inner EUROSTAT) final use categories. Direct use of geothermal accounts for 96% of heat use, the rest is derived from electrically heated district heating systems (1.158 PJ), which are not included in the numbers presented here. Residential use amounted to 12.9 PJ, commercial 11.1 PJ, fisheries 2.0 PJ and industry 1 PJ using IEA categories. Using the IGA categorization; space heating 20.0 PJ, 69

71 National Activities swimming and bathing 2.2 PJ, snow melting 2.0 PJ, fish farming 2.0 PJ, industrial use 1.0 PJ and greenhouses 0.7 PJ. Detailed monitoring of geothermal utilization in Iceland has been set up by Orkustofnun with data from over 53 geothermal based heat utilities (where geothermal energy production is the main business activity) and over 100 auto-producers (where geothermal energy is produced mainly for their own use) of geothermal energy, using a web portal for authentication. The data is accumulated and analysed annually by Orkustofnun with 19 categories of utilization in order to fully disseminate information to the public in accordance with the legal role of the agency and international requirements. Figure 13-5 Geothermal utilization in 2015 with IGA categories (outer ring) and IEA categories (inner ring). In total 27 PJ. Figure 13-6 Avoided cost of using geothermal energy instead of oil. The lower columns show total utility revenues of heating utilities but the higher columns the estimated cost with oil, adjusted to the consumer price index. Within the geothermal industry Orkustofnun participates in several associations and partnerhips, and collaborates with many others like the IEA Geothermal Implementing Agreement (IEA Geothermal), International Geothermal Association (IGA), European Geothermal Energy Council (EGEC), Geothermal ERA NET, and the International Partnership for Geothermal Technologies (IPGT) to name a few. As part of the role of these organizations, data collection on geothermal energy statistics is often the focus of the work, in particular IEA Geothermal, EGEC and IGA. However the industry statistics between these multinational associations are inconsistent, and differ from official statistics. The fact is that the industry statistics are quite fragmented, although consistent within the respective association. With time, databases have been developed and special annual questionnaires have been established within each association which make up what is here referred to as industry statistics. In some cases the data collection is similar but often there are important differences that result in the data not being interoperable across associations and when numbers are compared from one to the other signficant differences can be found which can be difficult to resolve. Orkustofnun is one of few institutions that in the past has both accumulated, interpreted and disseminated both the official statistics and the industry statistics on geothermal data and therefore is able to have a broad overview of the various data being collected by different organisations. Taking into account that the aim of international collaboration is to reduce fragmentation, it is the position of Orkustofnun that this is one of the key issues that needs to be resolved. Orkustofnun can share its knowledge of data reporting to the geothermal community and with time the data fragmentation will hopefully be reduced. Through the Geothermal ERA NET a special Joint Activity called GeoStat has been working on reducing fragmentation and increasing consistency. For further review see the report by Ketilsson et al. (2015). The information Orkustofnun disseminates is based on the heat utilities accounting system after review and extensive collaboration over recent years, which is on going to ensure the reliability of the information. For the first time, categorization of space heating for residential, commercial and public services is possible. Verification of the information is through comparison of the data from Registers Iceland and Iceland Met Office. (Ketilsson et al., 2010). 70

72 National Activities National Programme National Renewable Energy Action Plan for 2020 The Icelandic National Renewable Energy Action Plan (NREAP) was published in 2012 in accordance with Directive 2009/28/EC, which outlines the strategy till 2020 and the goals for geothermal utilization, among other renewable energy sources. Promotion of the use of energy from renewable sources was further stipulated by changing law no. 30/2008 for promotion of electricity generation from renewable resources, taking into consideration Directive 2009/28/EC. Out to 2020 the total use of geothermal energy for heating is estimated to increase by 20% from 27 PJ in 2014 to 34 PJ in Electricity generation from geothermal power plants is expected to increase by 12% from 5.24 TWh in 2014 to 5.8 TWh in 2020, according to the NREAP. This corresponds to about an 80 MW increase in installed electrical capacity. This excludes possible investments required for power intensive industry, which is subject to greater uncertainty, but corresponds to a general increase in electricity demand in other sectors of the country. The binding target for 2020 of 72% renewable energy in the final energy use overall in Iceland was achieved in The Icelandic Government has expressed a strong will supporting various research and demonstration programs for the transition from hydrocarbon fuels, e.g. methane collected from waste-deposits, hydrogen generation and recycled carbon. In the NREAP for 2020 a goal of 10% share of renewables is targeted in this category. Currently oil is still 12% of the primary energy demand, about half is used to operate the fishing fleet and the other half mainly for motor vehicles. All electricity in Iceland is produced from renewable energy sources and 18.8 TWh was generated in One of the possibilities in the transition from hydrocarbon fuels is electric vehicles. It is estimated that 0.6 TWh would be required to power private motor vehicles in Iceland (200,000 in total) with consumption of about 200 Wh/km. The capacity needed is thus about 170 MW, assuming 15,000 km/yr per vehicle. This means that using electricity in transport could result in fossil free from well to wheel vehicle fuel. Carbon dioxide captured from geothermal power plants can also be a source of alternative fuel, by converting it to methanol. Carbon Recycling Ltd. is running a pilot plant at Svartsengi with promising results. Until now, Iceland has been an island, not only geographically, but also economically isolated to a greater extent than many of its European neighbours (Björnsson, 1995). In recent years as well as encouraging energy intensive industry to come to Iceland, to increase the utilisation of the country s energy resources, the export of electricity via HVDC submarine cables is also being studied. The feasibility of interconnecting the country to mainland Europe is under assessment. Not only is there a need for a cable but also for further interconnection of the transmission system on the land. The issue is complex and needs thorough investigation. Figure 13-7 Geothermal utilization in [PJ] plotted against time for the period (Orkustofnun, 2015) Geothermal Energy Forecast The Geothermal Working Group, under the Icelandic Energy Forecast Committee, has regularly developed a multi decade forecast for geothermal utilization in Iceland based on assumptions on the development of Icelandic society. The base assumptions are stipulated by the Energy Forecast Committee and are common to all energy forecasts for Iceland. Orkustofnun compiles the energy statistics data, which in turn are important for the studies on future geothermal utilization forecasts. A new geothermal forecast for the period is being developed. It will describe the assumptions used and the predicted effect geothermal utilization will have on the renewable energy sector in Iceland. Statistics Iceland predict 36% growth in population by 2050, so geothermal utilization, e.g. residential and commercial services, is expected to increase considerably over the next decades. The energy forecast committee has predicted the total cubic meters of heated buildings to increase by 50% until 2050 from the current value of 60 million cubic meters to close to 90 million cubic meters. In total, geothermal use is predicted to increase from 27.1 PJ in 2014 to 48.6 PJ in 2050 (see Figure 13-7). Fish 71

73 National Activities farming is expected to increase considerably relative to other sectors. Industry Status & Market Development The government has encouraged the exploration for geothermal resources, as well as research into the various ways geothermal energy can be utilised. As stated earlier this work began in the 1940s at The State Electricity Authority, and since its establishment in 1967 has been in the hands of its successor, Orkustofnun. The aim has been to acquire knowledge about geothermal resources and make the utilization of this resource profitable for the national economy. This work has led to great achievements, especially in finding alternative resources for heating homes. Since the electricity market was liberalized with the adoption of EC Directive in 2003 Orkustofnun only contracts research for exploration of domestic resources. According to the Energy Act 2003, the Energy Fund is under Orkustofnun. Geothermal energy is competitive with hydro in Iceland and is not subsidised; providing reliable base load, small surface footprint, green energy at favourable prices; 14.2 ISK/kWh + VAT for 3.5 MWh/a public consumption (of which 9.1 ISK/kWh is for distribution and transmission), but can be considerably lower for the power intensive industry due to a high load factor and no distribution cost. Transmission and distribution costs are high in Iceland due to low population density. For the cost of residential heating see Figure In recent years geothermal has become cost-competitive with hydro electricity, which was not the case a few decades ago (Bjornsson, 1995) when geothermal was not competitive with large scale hydro. Space heating of residential buildings is subsidized by the state as shown on Figure 13-7, for those areas where geothermal based district heating systems are not available. An 8 year lump sum of this state subsidization is available to support home owners transferring to renewable heating (Act No. 78/2002). This has recently been increased by 50% to be equivalent of a 12 year lump sum. In addition, if the project receives other grants it will not in any way affect this lump sum payment. This has stimulated the installation of new geothermal based district heating systems, such as in the town of Skagastrond, operated by RARIK in The Reykjanes Resource Park has continued to grow in recent years. The park is based on the idea that waste fluids from the HS Orka power stations in Svartsengi and Reykjanes can be used by companies as input for their production. The most famous part of the Resource Park is also Iceland s largest tourist attraction, the Blue Lagoon, a spa that utilises waste fluid from the Svartsengi power station. In 2015 construction began at the Blue Lagoon in order to increase the lagoon from 5000 m 2 to 8700 m 2. Other successful companies in the Resource Park include Stolt Seafarm, Orf Genetics and Carbon Recycling International, which uses captured CO 2 from the power station to produce methanol, suitable as fuel. Figure 13-8 Comparison of energy prices for residential heating mid-year 2014 is USD cents per kwh of heat. (Orkustofnun, 2015). Research, Development & Demonstration New and effective exploration techniques have been developed to discover geothermal resources. This has led to the development of geothermal heating services in regions where it was considered not possible for them to utilize geothermal resources. Iceland s geothermal industry is sufficiently developed for the government to play a more limited role than before. Successful power companies now take the lead in the exploration for geothermal resources; either in geothermal fields that are already being utilized, or discovering new fields. The Government supports the Iceland Deep Drilling Project (IDDP) with 342 million ISK. If successful this project could start a new era in geothermal development. The main purpose is to find out if it is economically feasible to extract energy and chemicals out of hydrothermal systems at supercritical conditions. The first well drilled yielded superheated steam after drilling into magma 72

74 National Activities at roughly 2 km depth. The second well is planned to be drilled in Reykjanes. Orkustofnun also supports a few projects coordinated by the Icelandic Geothermal Research Cluster GEORG, e.g. the Deep Roots for Geothermal Systems (DRGproject) aimed at research of the roots of magmadriven high temperature geothermal systems. In recent years Reykjavík Energy has cooperated with other Icelandic power companies, universities in Iceland and foreign universities, on experimental projects aimed at carbon and sulphur sequestration at Hellisheiði power station. The projects, named CarbFix and Sulfix respectively, have shown promise. CO 2 and H 2S gases are captured from the power station s exhausts, and injected into the waste fluids, which are then reinjected into the reservoir. In 2016 the results of the CarbFix project were published, and showed that permanent immobilization of CO 2 can be achieved in just two years, by using this method (Matter et al., 2016). The SulFix project began later and is still underway, currently around 50% of the power station s H 2S emissions are captured and injected into the reservoir. Geothermal Education The United Nations University-Geothermal Training Programme (UNU-GTP) has been operating in Iceland since 1979, with the aim of assisting developing countries with significant geothermal potential to establish groups of specialists in geothermal exploration and development. A graduate programme was started in 2000 in cooperation with the University of Iceland, and several UNU-GTP students have since continued their studies to obtain M.Sc and PhD degrees. UNU- GTP receives its funding from the government of Iceland, 5 M US$/a. Since 1979, 554 scientists have graduated from 53 countries. They have come from countries in Asia (40%), Africa (32%), Latin America (16%), and Central and Eastern Europe (12%). Amongst these have been 107 women (19.5%). Figure 13-9 Fellows of the UNU Geothermal Training Programme in Iceland (Orkustofnun). Iceland School of Energy was established at Reykjavik University which offers postgraduate courses in the field of renewable energy. University of Iceland also has offered specialized post graduate studies in renewable energy, focusing on geothermal energy. Future Outlook Earlier energy developments in Iceland were focused on meeting the basic energy needs of the society for space heating and electricity for the general market. Through the years it has become more and more evident that utilisation of energy resources (as other development) must take into account not only the energy needs and the economic aspects of the development, but also a range of other interests as well. This includes other land uses and the impact of development on the environment and the cultural heritage. The first step towards such an evaluation was undertaken by a collaboration committee of specialists from the Ministry of Industry, the National Power Company, Orkustofnun and the Nature Conservation Council. This committee was active between the 1970s and the 1990s. It discussed plans for various electrical power plants, with special emphasis on nature conservation aspects of the projects. A general view on the energy policy and the nature conservation policy was needed for the country, and this became even more evident in 1994 when the Parliament of Iceland passed the first Act on Environmental Impact Assessment. The Icelandic Government published a white paper on sustainability in the Icelandic society in 1997, in which the need for the development of a long term Master Plan for energy use in Iceland was once again stressed. All proposed projects should be evaluated and categorized on the basis of energy efficiency and economics, as well as on the basis of the environmental impact of the power developments. 73

75 National Activities A Master Plan of this kind is comparable to the planning for land use and land protection in a strategic environmental assessment (SEA) process. It is not supposed to go into the details required for an environmental impact assessment (EIA). The vision is to prepare an overview of the various potential energy projects in hydro and geothermal and to evaluate and rank these based on their energy and economic potential, feasibility, national economy and the estimated impact that each project would have on nature, environment, cultural heritage and the society, as well as the potential for other uses of the areas in question. The Master Plan should be based on the best available scientific information and conclusions should be transparent and reproducible and made available to the public. It was considered of vital importance to establish public confidence in the evaluation process. Figure Flow diagram illustrating the processes of the Master Plan. (Orkustofnun, 2015). The Master Plan aims to identify power projects that rank high from an economical point of view, have a minimum negative impact on the environment, and a positive impact on the society. Such a score card for the energy projects helps decision makers to filter out which of the proposed projects are likely to become controversial and disputed and which ones not. It also directs attention to those project areas that might have protection value and should be left untouched by human development. A method for evaluating and ranking energy options based on impact upon the natural environment and cultural heritage was developed as part of the first phase of the Master Plan for the use of hydropower and geothermal energy in 1999 to The three step procedure involved assessing i) site values, ii) development impacts within a multi-criteria analysis, and iii) ranking the alternatives from worst to best choice from an environmental cultural heritage point of view. The natural environment was treated as four main classes (landscape and wilderness, geology and hydrology, species, and ecosystem/habitat types and soils), while cultural heritage constituted one class. Values and impacts were assessed within a common matrix of 6 agglomerated attributes: 1) diversity, richness, 2) rarity, 3) size (area), completeness, pristineness, 4) information (epistemological, typological, scientific and educational) and symbolic value, 5) international responsibility, and 6) scenic value. The Government decided to use the work on the Master Plan to establish a permanent planning tool, with regular re-evaluation phases followed by subsequent confirmation of the Master Plan by Parliament. For that purpose, a new Act on a Master Plan for Protection and Development of Energy Resources (Master Plan) was passed in Parliament in May According to the Act the Minister for the Environment shall, in co-operation with the Minister of Industry, at least every four years, propose a Master Plan to the Parliament. The Master Plan shall divide the different projects in three categories, projects for utilisation, projects awaiting further research or projects in areas appropriate for protection. A total of 84 potential power projects were evaluated during the second phase in 2011 and a Master Plan ranking 28 hydropower projects and 38 geothermal projects was approved by the Parliament in The flow diagram in Figure illustrates the processes around the Master Plan before the feasibility of a geothermal system is analysed in detail and Figure shows proposed sites of energy development. After the steering committee has decided that resources in a designated area should be harnessed, protected or further studied, the projects themselves can be re-evaluated and hence subject to review again by the Master Plan, or until the municipalities have adjusted their regional plans. The municipalities could also take the initiative to designate a certain area for protection and another area for re-evaluation. This process of re-evaluation is necessary because with increased understanding on the effects of these projects and with technological advancements, assumptions can change. This re-evaluation is relative until either the area has been formally protected or licenses for the power plant have been issued. Administrative 74

76 National Activities bodies can grant licenses relating to projects that are categorized for utilisation, and all research that does not require licensing can be carried out. Administrative bodies cannot grant licenses for projects that await further research if the intended work requires assessment of environmental impact. Research that does not require licensing can be carried out in these areas with the same restriction. Administrative bodies cannot grant any licenses for projects that are in areas categorized for protection except for a limited research license for prospecting on the surface without affecting the environment. The municipalities are required to adjust their regional plans accordingly within 15 years from the decision of the Parliament. In Figure this process is illustrated. The Master Plan only covers projects that have the potential of at least 10 MW electric or a thermal potential of at least 50 MW. The plan is binding for all municipalities and is to be included in their general land use plans. The projects in question are approved by Orkustofnun before submittal to the Steering Committee and can either be state or privately owned. Before presenting the proposal to Parliament, the Steering Committee of the Master Plan must ask for both written comments and publicise the draft proposal. After the confirmation of the Parliament, the Master Plan is valid and binding on all parties for up to four years, unless the Parliament changes its resolution. Figure Proposed hydro (blue), geothermal (red) and wind (yellow) energy options by Orkustofnun, for consideration for the third cycle of the Master Plan (Orkustofnun, 2015). 75

77 National Activities Publications and Websites Bill on changing several Acts in the Field of Resources and Energy, Parliament document 1232, Case 432. Parliamentary Records. Björnsson, S. (ed.) (2009). Geothermal Development and Research in Iceland, 2 nd edition. Reykjavík: Orkustofnun. Björnsson, J. (1995) Legal, Regulatory and Energy Aspects of Geothermal Energy in Iceland. Proceedings of the World Geothermal Congress 1995, Florence/Italy, May 1995, 1, Ketilsson, J., Björnsson, H., Halldórsdóttir, S. and Axelsson, G. (2009). Mat á vinnslugetu háhitasvæða. Orkustofnun OS-2009/09. Reykjavík, Iceland. (In Icelandic). Ketilsson, J., Petursdottir, H., Th., Thoroddsen, S., Oddsdottir, A.L., Bragadottir, E.R., Gudmundsdottir, M., Johannesson, G.A (2015). Legal Framework and National Policy for Geothermal Development in Iceland. Proceedings of the World Geothermal Congress 2015, Melbourne/Australia. Ketilsson, J., Olafsson, L., Steinsdottir, G. and Johannesson, G.A. (2010) Legal Framework and National Policy for Geothermal Development in Iceland. Proceedings of the World Geothermal Congress Bali, Indonesia, April Ketilsson, J., Sigurdsson, T., Bragadottir, E.R, Gudmundsdottir, M. (2015) International Collection of Geothermal Energy Statistics: Towards reducing fragmentation and improving consistency. Geothermal ERA-NET. Orkustofnun. Reykjavik, Iceland. iti---theistareykjum-ny%cc%81tingarl.pdf Orkustofnun, (2015). Unpublished data from the Geothermal Energy Working Group of the Energy Forecast Committee. Sveinbjornsson, B.M. (2014) Success of High Temperature Geothermal Wells in Iceland. Iceland GeoSurvey, ÍSOR-2014/053. Reykjavik, Iceland. Websites Orkustofnun Energy Statistics 2015 (In Icelandic): hroun/virkjunarkostir/theistareykir/ Authors Maria Gudmundsdottir Jonas Ketilsson Orkustofnun Grensasvegi 9 IS 108 Reykjavik Iceland maria.gudmundsdottir@os.is jonas.ketilsson@os.is Oddsdottir, A.L., Ketilsson, J., (2012) Vinnslusvæði hitaveitna, tíðni forða- og efnaeftirlits. Orkustofnun, OS 2012/07. Reykjavik, Iceland (in Icelandic) Orkustofnun Data Repository: Orkustofnun, (2014). Þeistareykir Resource License (in Icelandic). Reykjavík: Orkustofnun. Accessable on Website: 76

78 National Activities Chapter 14 - Mexico Figure 14-1 Domo de San Pedro Geothermal Field Development by Grupo Dragón. Introduction and overview Geothermal and wind are the most important renewable energy sources utilized in Mexico. Although there is some direct use of geothermal energy mainly related to balneology, the most important use is for electricity generation. Geothermal development for electricity generation started in Mexico in 1959, with the commissioning of the first commercial plant in the Pathé field (central Mexico) that was in operation up to That year the first geothermal power plants in the Cerro Prieto geothermal field started to operate. By December 2015 the geothermal-based installed capacity for electricity generation was 931.6MWe, and the running capacity was 883.6MWe. country at December 2015 was 68,044 MWe and the electric generation for the 2015 year was 309,553 GWh. During 2015 there were 227 production wells and 34 injection wells, on average, in the five operating fields. These wells were distributed as follows: Cerro Prieto: 158 production and 23 injection, Los Azufres: 42 production and 6 injection, Los Humeros 22 production and 2 injection, Las TresVírgenes: 3 production and 2 injection, and Domo de San Pedro: 3 production and 2 injection. Key statistics related to geothermal power generation in Mexico for 2015 are shown in Table It is important to note that the total installed electric capacity in the 77

79 National Activities Table 14-1 Status of geothermal energy use for electric power generation in Mexico for Electricity Total Installed capacity (MWe) Running capacity (MWe) Installed capacity out of operation (MWe) 48 1 New installed capacity (MWe) 63.4 Contribution to national installed capacity (%) 1.36 Total generation (GWh) 6331 Contribution to national generation (%) 2.05 Target na 2 Estimated Country potential (MWe) na data not available MWe (4 x 5 MWe back-pressure) and 3 MWe (2 x 1.5 MWe binary) both in Los Azufres and 25 MWe (5 x 5 MWe back-pressure) in Los Humeros. 2 There is no specific target set for geothermal energy. A target of 35% of total installed power generation capacity is set for clean sources by Clean sources are defined by law as those producing little or no greenhouse gas emissions to the atmosphere, and they include geothermal energy. 3 Estimated potential from conventional hydrothermal resources with temperatures > 150 o C. Of these 125 MWe correspond to proven reserves, 245 MWe to probable reserves, 75 MWe to measured, 655 MWe to indicated and 1,210 MWe to inferred resources. From Gutiérrez-Negrín, L.C.A. (2012). There is no recent data for direct geothermal energy use in Mexico; outdated estimates are for 156 MWth of direct geothermal heat utilization, mainly for balneology. The number of balneology sites utilizing geothermal heat is around 165, distributed in 19 states. Highlights and achievements Two 5-MWe back-pressure units commenced operation in the Domo San Pedro geothermal field in February-March These are the first (and only) geothermal power plants owned and operated by a private company (Grupo Dragón) in Mexico. These plants had been previously used and were refurbished by the field operator. Grupo Dragón has awarded to Mitsubishi an engineer procure and construct contract for a new 25.5 MWe (net) flash-type power plant to be installed in the same field. It is expected to commence operation in april In the Los Azufres geothermal field a new 53.4 MWe (gross) (50 MWe net) flash type power plant commenced commercial operation in February, as programmed, whilst four of the seven 5-MWe backpressure units were decommissioned. CFE awarded an international EPC bid for a 25 MWe (net) capacity flash-type geothermal plant in Los Azufres. Construction started in late 2015 and commissioning is scheduled in An additional 25 MWe power plant is under construction in Los Humeros. It is expected to commence operation in late National Program About 55.2% of the electricity produced in Mexico in 2015 was generated by the government-owned utility, Comisión Federal de Electricidad (CFE). 28.8% was generated by privately-owned companies that operate combined-cycle and wind power plants delivering their power to CFE, and the remaining 16% was produced by private operators as self-suppliers, cogenerators, small-producers, exporters, and distributed generation or in rural systems isolated from the electric grid. Geothermal energy has been utilized in Mexico for decades for power generation; the technology is considered mature for conventional (hydrothermal, high temperature) resources and it is set to compete under the same basis as fossil-fuel, conventional hydro and nuclear technologies. However, direct geothermal energy use is underdeveloped in spite of the high potential. 78

80 National Activities A target has been set for 2024, when 35% of the electric power generation in the country should come from clean energy, including geothermal. Working groups are seeking to establish targets for specific technologies but no results are yet available for publication. On 24 December 2015, a new Energy Transition Law (Ley de Transición Energética) was formally passed by the Mexican Congress. This is expected to favourably impact geothermal development in Mexico. Industry status and market development At present there are no special economic incentives for geothermal power generation in Mexico. As mentioned above, power generation from geothermal energy is considered conventional in Mexico, and thus it competes on the same basis as fossilfuel, conventional hydro and nuclear technologies. Therefore, it is fair to say that the main constraint for further geothermal development in this country is its market competition against modern fossil-fuel as well as against lower risk and investment intermittent clean generation technologies. In 2015, the Energy Secretary (SENER: Secretaría de Energía) awarded CFE five geothermal concessions and 13 geothermal permits, based in the 2014 Geothermal Energy Law. The geothermal concessions are for the four geothermal fields that CFE have been exploiting (Cerro Prieto, Los Azufres, Los Humeros and Las TresVírgenes) and a new field that it expects to develop in the near future (Cerritos Colorados, with a forecast minimum potential of 75 MW). The permits are for exploring 13 new geothermal zones within the next 3-6 years which have to some extent already been previously explored by CFE. It is expected that CFE will form joint-ventures or enter agreements with private national and/or foreign developers to explore these areas. Grupo Dragón was awarded the exploitation concession for the Domo San Pedro field and a couple of private developers were awarded exploration permits in other areas. Research, development and demonstration/deployment Most geothermal research activities in Mexico are focused on development and exploitation of resources for power generation. Specifically, they are aimed to improve the knowledge of the fields and the ability to predict their behaviour under continued exploitation. In recent times, effort has been spent in exploration of new areas with geothermal potential. The federal government funds most geothermal research, while private companies undertake exploration in the new areas. In 2014 the federal government launched the Mexican Center for Innovation in Geothermal Energy (CeMIEGeo), which is led by the Center for Scientific Research and Higher Education in Ensenada B. C. (CICESE), with participation from academic institutions, and private and public (CFE) companies involved in geothermal energy in Mexico. CeMIEGeo has been developing 30 specific technical projects, a national system of specialized geothermal laboratories, and a program to promote education and the development of human resources. CeMIE- Geo uses federal funds allocated for each project and has budgeted funding up to After that the Center should be selffunding. Geothermal Education In the past, CFE trained some of their engineers through the geothermal programs offered by Iceland (the United Nations University), New Zealand (the Geothermal Institute of the University of Auckland) and the Baja California University (UABC). In addition, CFE sent young engineers to Japan, for training under an agreement between JICA and the Mexican government. For the most part, mechanical, electrical, chemical and geological engineers are trained on the job, as part of their professional development in CFE and the Instituto de Investigaciones Eléctricas (IIE). Periodic professional 79

81 National Activities meetings (congresses, seminars, etc.) provide a basis for continued education of geothermal personnel. Future outlook The sharp plunge in the international oil prices that occurred in 2015 slowed the development of new geothermal projects in Mexico. However, as mentioned above, it is expected that geothermal energy development will continue in 2016 and beyond. References Gutiérrez-Negrín, L.C.A. (2012) Update of the geothermal electric potential in Mexico. Geothermal Resources Council Transactions, Vol. 36, pp Authors Magaly Flores Armenta, Manager of Geothermal-electric Projects, Comisión Federal de Electricidad (CFE) magaly.flores@cfe.gob.mx Luis Gutiérrez-Negrín, Geocónsul, International Geothermal Association, CeMIE-Geo l.g.negrin@gmail.com David Nieva, Private consultant, david.nieva47@gmail.com Gutiérrez-Negrín, L.C.A., R. Maya-González and J.L. Quijano-León (2015). Present Situation and Perspectives of Geothermal in Mexico. Proceedings World Geothermal Congress 2015, Melbourne, Australia, April

82 National Activities Chapter 15 - New Zealand Figure 15-1 Ngatamariki 82 MW binary power plant (Photo: MRP). Introduction and Overview Both electricity generation and direct use applications feature in the 58 year long history of large-scale geothermal energy development in New Zealand. Electricity generated from geothermal projects has doubled between 2008 and Examples of recently installed projects include Contact Energy s 166 MW Te Mihi project and the 82 MWe Mighty River Power (MRP) Ngatamariki facility (Figure 15-1) developed in conjunction with Tauhara North No.2 Trust. Transpower, the Geothermal Institute Auckland University and GNS Science. In 2015, the share of electricity generation from renewable sources reached 81%, of which geothermal contributed 17%. The New Zealand government target for renewable electricity remains at 90% by 2025, of which about 57% is anticipated to be hydro, about 23% geothermal and 10% wind or biomass. The national target for renewable energy direct use (including biomass) remains an additional 9.5 PJ/yr above 2005 levels by This 2015 update on the status of geothermal energy utilisation in New Zealand, has been sourced mainly from papers prepared by Carey et al. (2015), Climo et al. (2015), and Bromley (2015), along with websites listed at the end of the chapter, including those of the New Zealand Geothermal Association (NZGA), MRP, Contact Energy, The Ministry of Business, Innovation and Employment (MBIE), 81

83 National Activities Table 15-1 New Zealand geothermal energy use in na = data not available; italics = estimated Geothermal Electricity Gross Installed Capacity (MWe) plus retired Operating Capacity (MWe) [gross less retired] Contribution to National Capacity (%) Total Generation (GWh/yr) 7383 Contribution to National Generation (%) Operating Average Capacity factor (%) Target (% national generation by 2025) Estimated New Zealand Potential (TWh/yr, <3.5 km) Direct Use Key status statistics for geothermal development in New Zealand for 2015 are listed in Table Fully operational installed electricity generating capacity is about 1010 MWe. A number of old turbines have been decommissioned, replaced, mothballed or kept in standby mode for backup operation during normal turbine maintenance periods, to make better use of available fluid supply. No new power plants were constructed or commissioned in Regarding reliability of direct heat statistics (Table 1.1), at some sites the installed capacity is still estimated from heat produced, because capacity values are not provided. There are discrepancies between Total Installed Capacity (MWth) 480 Total Heat Used (PJ/yr) 9 Total Installed Capacity Heat Pumps (MWth) 10 Total Net Heat Pump Use [PJ/yr] 0.08 Target (PJ/yr, added , with biomass) Estimated Country Potential 9.5 na industry assessments and official government statistics, so issues remain regarding the collection of reliable data. For example, the installed (operating) directuse capacity for industrial purposes reduced with the closure of part of the pulp and paper mill at Kawerau in 2013, because of a decline in newsprint demand. This is inconsistent with official government statistics, which show increasing direct use. However, the surplus fluid supply was diverted to the TOPP1 power plant installed in Two new geothermal timber drying kilns at Kawerau (Sequal Lumber, website) were commissioned in March Industrial direct geothermal heat use was some 59% of the total geothermal heat used, and included heat or steam supplied for processing: pulp and paper (Kawerau), timber (Tauhara, Kawerau, and Ohaaki), milk (Mokai) and honey (Waiotapu). Bathing and swimming facilities amounted to some 16%. Cascaded use of geothermal brine included aquaculture (prawnfarming) and accounted for 2%. The remainder is mostly attributed to spaceheating, water-heating and green-houses. Highlights and Achievements Geothermal remains a major contributor of renewable energy to the New Zealand electricity market (17% of total generation in 2015). It contributes about 50% of all renewable primary energy supplied. It remains the lowest cost generation option on a per energy unit cost basis (i.e., Long Run Marginal Cost (LRMC) or Levelized Cost of Electricity (LCOE), Figure 15-2) compared to other renewable energy or fossil-fuelled options. This is without subsidy or feed-in tariff and with minimal support from an emissions trading scheme. However, a flattening off in electricity demand between 2008 and 2014 has seen a hiatus in medium-term construction plans for new power-plants (of any type). Consequently, during 2015, no deep geothermal wells were completed, although drilling of a make-up well at Kawerau (KA34) commenced. 82

84 National Activities Figure 15-2 Historical (from 1975) and projected growth in generation fuel-types in New Zealand. Geothermal generation continues on an upwards trend displacing coal and gas. A share of about 23% by 2025 is projected. Historical data is from MBIE (2016) website. The geothermal share averaged 17.2% in (Biogas and Wood are ~1% each; solar PV is reported but remains negligible). Figure Economics of future power plant construction options (NZ$/MWh) versus cumulative demand growth (GWh) in New Zealand. From MBIE website: Interactive Electricity Generation Cost Model (2015). Assumptions are : gas price=$6/gj, carbon tax=$12.5/tonne, discount rate=8%, US/NZ$=

85 National Activities The Ngatamariki, Mokai, Rotokawa, Wairakei-Tauhara and Ngawha power plants all completed a year of reliable operation. A replacement rotor for the 140 MWe Nga Awa Purua turbine at Rotokawa was installed and is performing as designed. The Miraka milk processing and Gourmet Mokai glasshouses (Mokai), and the Tenon (Tauhara) and Ohaaki Thermal Kilns timber drying projects also maintained successful operations throughout the year. Several older Wairakei turbines were retired when Te Mihi was fully commissioned, but a flexible operational regime successfully allows the use of some of these turbines to cover for maintenance outages of the more modern turbines, by making use of the interconnected Wairakei - Te Mihi - Poihipi steamfield pipe network. This helps sustain the maximum permitted fluid utilisation and generation output within the overall Wairakei consented fluid take of 240 ktonnes per day, which is now averaged over a 3 month period. The Ohaaki project continued operation at a reduced level. The maximum consented resource take is 40 kt/day, reduced from 60 kt/day, and the operating maximum capacity is 57 MWe (reduced from 114 MWe). At Kawerau, normal operation of MRP s 100 MWe Kawerau power plant continued, the 23 MW TOPP1 binary power plant, the 8.3 MW Geothermal Developments Ltd KA24 binary plant, the 3.5 MW TG2 binary plant and the Tasman 5 MW back-pressure steam turbine also continued in operation. Ngati Tuwharetoa Geothermal Assets (NTGA) are holding resource consents for additional geothermal fluid take at Kawerau (45 kt/day); MRP have access to an additional 20 kt/day; and the Te Ahi O Maui project (Eastland Generation) was granted 15 kt/day. Eastland is starting its drilling programme for this project. At Ngawha, a resource consent application was granted in September 2015 by Northland Regional Council to Top Energy Ltd for expansion of the existing 25 MW project in two steps each of 25 MWe, with proposed timing of 2019 to During 2015, New Zealand geothermal power plant CO 2 emissions (labelled fugitive ) amounted to about 0.88 Mt CO 2/yr (calculated from weighted average of 119 kgco 2/MWh times 7383 GWh). Direct use estimates remain at 0.17 Mt CO 2/yr, given that about 60% of direct use originates from steam (containing CO 2) from producing geothermal systems, and the rest originates from hot water. The combined net CO 2 savings relative to coal are about 6 Mt CO 2 (eq)/yr. The role of geothermal in national energy policy is summarized in the 2010 to 2014 New Zealand annual reports (IEA-Geothermal website). There were no significant changes during To summarize, there are no government financial incentives such as feedin tariffs, although an emission s trading scheme was introduced in The New Zealand Energy Strategy remains committed to the government target of 90% renewable electricity by 2025, and 9.5 PJ of new direct use renewable energy (geothermal or biomass) by 2025 relative to These targets are aspirational and come with no direct financial incentives or penalties. In April 2015, New Zealand co-hosted (with Australia) the World Geothermal Congress 2015, and used this to show case its recent projects to the world geothermal community. On the 30 th of April 2015, Above Ground Geothermal and Allied Technologies (AGGAT) (website) held a Global Geothermal Conference in Auckland on Above Ground Geothermal and Allied Technologies. Presentations from 13 speakers addressed issues such as: corrosion, silica scaling, material selection, ORC working fluids, surface coatings, turbine design, cooling technologies and control systems. The annual New Zealand Geothermal Workshop was held on th of November at Wairakei (Taupo) and was very well attended with three parallel sessions over three days. 84

86 National Activities Industry Status and Market Development Capital investment in New Zealand geothermal development in 2015 was relatively small, based on the low level of drilling (only 1 well commenced) and the absence of power plant construction. Some minor capital expenditure involved pipeline projects for optimization purposes. For the five previous years from the investment total had amounted to about US$1.2B, of which US$543M was for field development, US$639M for power station construction, US$17M for direct use geothermal plant, and US$66M for R&D and exploration drilling (Carey et al., 2015). Jobs in the industry in 2015 have declined, following the major power-plant construction completions, to an estimated 600 professional (university degree qualified) staff. The major generators have retained most staff in readiness for the next growth opportunity. Current project economics can be assessed from a recently published estimate for the total project installation cost of the planned 20 MWe Te-Ahi-O-Maui power-plant at Kawerau which amounted to NZ$100M, or US$3.3M/MWe. Other recent large project costs have averaged NZ$4.5M/MWe (or US$3M/MWe). Flat demand growth between 2008 and 2014 for electricity (Figure 15-2) and industrial heat has caused a postponement in some new projects. However, the consented 50 MWe Ngawha expansion project in Northland, and the start-up of the 20 MWe project in Kawerau, are examples of the importance of local factors in determining the economics and timing of specific projects. Research and Development The focus areas for government corefunded (GRN) geothermal research, amounting in total to about NZ$4.4M/year, remains unchanged since It is as follows: potential development from deeper resources; resource delineation and geophysical exploration methods; improved simulations of sustainable reservoir performance (modelling); managing geochemical scaling and production chemistry; avoidance of adverse environmental effects; geothermal ecosystems including extremophiles (thermal bacteria); rock-fluid interactions at high temperature and pressure; cements for extreme geothermal environments; and knowledge about resources and technologies for direct use. Industry-funded research activities include applied research projects through collaboration between government-funded and university graduate research programs. These focus on opportunities and practical problem-solving tasks associated with subsidence, scaling, tracer performance, mineral extraction, reservoir simulation and injection technology. Contestable research projects in 2015 ($2.9M/yr) included: a) supermodels - developing code to model on a large regional scale for investigating interactions between neighbouring geothermal systems; b) waste-to-wealth an investigation of mineral potential from brines; c) microbial diversity of geothermal ecosystems, and d) tracking the magmatic signatures of geothermal fluids. 85

87 National Activities Geothermal Education and Workshops The University of Auckland operates the Geothermal Institute PGCert diploma course, with about 20 to 50 participants. Government-sponsored scholarships target the training needs of countries such as Indonesia, Philippines, Mexico, Kenya and the Caribbean. There is also a Master of Energy program and other short courses. The Geothermal Institute organised the 37 th New Zealand Geothermal Workshop, held in Wairakei. The University of Canterbury also runs a geothermal graduate program. Regular geoscience and engineering professional training courses are run by GNS Science and universities in several developing geothermal nations, particularly Indonesia. The NZGA has a number of interest groups who are taking a lead in developing a forward program. They include: geothermal heat pumps (Geothermal Heat-pump Association of New Zealand (GHANZ, 2016)), geothermal tourism, and power generation. GHANZ runs workshops, maintains a website and improves information dissemination on geothermal heat pumps. A large New Zealand contingent participated in the World Geothermal Congress held in Melbourne in April The event hosted jointly by the Australian and New Zealand Geothermal Associations saw many international participants travel to New Zealand after the conference to join the geothermal field trips, participate in the IGA Board Meeting, The Heavy Engineering Research Association above Ground Geothermal and Allied Technologies workshop and the IEA-GIA Executive Committee and Annex meetings. On the 9 th of July, 2015, a workshop titled From Waste to Wealth: Mineral Recovery from Geothermal Brines ( Science/Energy-Resources/ Geothermal- Energy/Research/From-Waste-to-Wealth) was held in Rotorua, and on the 9 th of June 2015, GHANZ held a Christchurch Groundwater Energy Seminar to support the use of ground-source heat-pumps in new buildings constructed as part of the post-earthquake rebuild. These are listed at workshop_papers.html#national. Future Outlook The geothermal resource potential of New Zealand is assessed to be about 4 GWe (or 30 TWh/yr) from conventional convecting systems at depths of up to 3.5 km, mostly located within the Taupo Volcanic Zone (TVZ). The deeper, hotter, and unexplored roots (3.5-5 km) of the TVZ have an estimated additional potential of at least 10 GWe. Although relatively flat demand for electricity for several years has caused the current hiatus of investment in geothermal drilling and large-scale power-plant construction, several smaller projects are proceeding. They include commitment to a 20 MWe unit at Kawerau (Te-Ahi-O-Maori, Eastland Group) and two 25 MWe units at Ngawha (Top Energy, Northland). These are expected to be commissioned over the period. Drilling of 3 wells for the Kawerau project is expected to commence in The planned geothermal capacity growth of 50 MWe at Ngawha, will make the Northland Region more energy sufficient, as well as provide for long-term local demand growth, and reduce the current constraint of transmitting base-load power through the bottle-neck of the Auckland isthmus. Electricity demand growth over 2015 was showing signs of an increase, but it is still too early to determine whether or not there will be a return to the long-term average of about 1% per annum (Figure 15-2). Other small geothermal projects may also proceed as economic factors prove more favourable, and as more Rankine-coal-fired units are shut down or Continuous Combined Heat and Power (CCHP) gas plants are mothballed or converted to peaking units. The economics of future non-peaking new power plant construction in terms of LRMC 86

88 National Activities or LCOE is illustrated in Figure 15-3 (from MBIE website). Assuming 1%/yr average demand growth rate does eventuate, then the additional 4,300 GWh of non-peak generation required by 2025 could be met by selecting just the lowest-cost geothermal projects. Assuming 90% average generation capacity factor (for new projects) this could be accomplished by installing about 490 MWe. Most of this is already identified and planned. [Note, however, that for the past 10 years, growth in wind has maintained generation at about one third that of geothermal generation, so it seems likely that, in practice, a proportion of future growth will also come from renewable, but variable, wind generation, see Figure 15-2] Two power companies announced that 540 MWe of CCHP gas-fuelled capacity at Otahuhu and Southdown were moth-balled at the end of 2015, and the last 500 MWe of Rankine coal-fired turbines at Huntly will also be decommissioned (by about 2022). These decisions were stated to be a consequence of growth in renewable energy installations and reduced demand growth. However, security of supply in dry hydro years will remain an issue. Future long-term growth in demand for geothermal may result from electric vehicle conversions, offshore cable connections or energy-intensive industry growth. These would all be subject to normal market drivers and constraints. A transmission line improvement between Wairakei and Whakamaru has relieved Central North Island transmission constraints. This facilitates future investment in more low-cost geothermal generation in the Taupo area. There remains one large planned and consented project in this area, Tauhara II (250 MWe), but future expansions of other projects are also possible. Other projects that remain in the planning stages include several in the Rotorua region: Taheke (two of ~35 MWe), Tikitere (~45 MWe), and Rotoma-Tikorangi (~35 MWe). NTGA (Kawerau) also has consents in place for a ~20 MWe project (heat and power). Together, these plans could potentially amount to an additional 450 MWe by 2025 (a potential 45% growth in capacity over the next 10 years). Such a prediction is supported by the independent future generation scenario report of Transpower (2015) where their Scenario 2 ( high geothermal access ) anticipates significant increases in geothermal capacity (totalling 560 MW) in the following sequence: 250 MW (2018), 80 MW (2020), 130 MW (2022), and 100 MW (2025). Direct use of geothermal fluids and heatpump deployment are expected to grow steadily over the next 10 years. The focus of GHANZ and NZGA are to increase awareness of opportunities. More process industries requiring heat may become established to make use of the growing supply of primary produce such as wood, dairy and horticultural crops. NTGA (Kawerau) supplied a new timber drying customer (Sequal Lumber) in 2015 and continues to investigate development of a large greenhouse complex and other direct use options. Norske Skog Tasman (NST), New Zealand Forest Research Institute Limited (SCION) and others continue to research opportunities for wood-based biofuels using geothermal energy for process heat. Through 2015 a Geoheat strategy looking to foster direct geothermal use has been drafted using a consultative process. The strategy hosted by the New Zealand Geothermal Association will proceed to public consultation in 2Q Geothermal New Zealand, which is a coalition of project construction companies and consultants, continues to promote New Zealand geothermal capability to the international geothermal sector. References and Websites Bromley, C.J Geothermal, where to now? Article in Energy NZ, Autumn, Vol.9, No 2, April 2015, ISSN , energygas_autumn_2015. Carey, B.; Dunstall, M.; McClintoch, S.; White, B.; Bignall, G.; Luketina, K.; Robson, B.; Zarrouk, S. 87

89 National Activities New Zealand Country Update Proceedings World Geothermal Congress 2015, Melbourne, Australia, April, Updated version from the lead author: 2015 New Zealand Country Update Updated 23 Sept Climo, M.; Hall, J.; Coyle, F.; Seward, A.; Bendall, S.; Carey, B Direct Use: Opportunities and Development Initiatives in New Zealand Proceedings World Geothermal Congress 2015, Melbourne, Australia, April 2015, Websites: Above Ground Geothermal and Allied Technologies MainMenu. Contact Energy 2015 geothermal generation presentation: cenergymedia/contactenergy/files/pdfs/corporate/ce n-wairakei-site-tour-presentation.pdf. Eastland GHANZ 2016 New Zealand Geothermal Heat Pump Association Geothermal Institute 2016 University of Auckland, Engineering Faculty, PGCert and NZ Geothermal Workshop: GNS Science 2016 Geothermal online database & statistics: geothermal/ IEA-Geothermal Ministry of Business, Innovation and Employment 2016 New Zealand Energy Quarterly: Mighty River Power 2016 Quarterly Operational Reports: Investor- Centre/Reports-and-Presentations.aspx. New Zealand Geothermal Association 2016 Newsletters, papers, conference presentations, and submissions: New Zealand Geothermal Workshop Sequal Lumber Top Energy /september/consents-granted-for-ngawhapower-station-expansion/ Transpower 2015 New Zealand Annual Transmission Planning Report: n-planning-report Acknowledgements Brian White (NZGA Executive Officer) is gratefully acknowledged for his numerous contributions, depth of knowledge, and insight regarding New Zealand geothermal development. 88

90 National Activities Chapter 16 - Norway Introduction and overview Norway is a young nation when it comes to the utilisation of geothermal energy. Geothermal energy use is dominated by the relatively widespread deployment of geothermal heat pumps. There is no electricity production from geothermal resources and there are no deep geothermal energy installations in operation. Preliminary planning for utilizing deep geothermal energy in a district heating system in mainland Norway has commenced and geothermal energy use is being investigated for Ny Ålesund, Svalbard, a remote settlement in the Artic, where geothermal will replace fossil fuels. As the third-largest exporter of energy in the world and with an electricity supply almost totally dominated by hydropower, Norway is unique with respect to energy resources having one of the largest shares of renewable energy both in its total primary energy supply (TPES) and in electricity supply. Although energy use per capita is close to the average for European countries, the electricity consumption ratio is very high (23 MWh per capita) being second only to Iceland. Figure 16-1 Plus House Larvik (Courtesy of Snøhetta) There is a strong lobby from academic institutions (universities and research institutes) and industry to promote geothermal energy to the politicians and the public. The umbrella organisation is the Norwegian Centre for Geothermal Energy Research (CGER) established in At the end of 2013 there were 17 partner organisations from universities, research institutes and industry involved. The reason for establishing geothermal energy in Norway is alignment with the country s energy policy of increasing the use of renewable energy resources. Additionally, the Norwegian industrial and academic expertise in off-shore technologies could be readily utilised in an emerging geothermal industry. To date all geothermal installations in Norway are geothermal heat pumps (GHP). Statistics from the Norwegian heat pump organization (NOVAP) identifies a peak of 3600 GHP installations in 2011 (Figure 16-2). For were installed and during 2015 about NOVAPs statistics cover approximately 90% of the Norwegian heat pump market. 89

91 Heatpumps sold Average borehole depth National Activities The majority of the GHP systems in Norway are vertical closed loop systems extracting heat and/or cold from crystalline rocks through borehole heat exchangers (BHE). The Geological Survey of Norway (NGU) collects statistics on GHP boreholes in the GRANADA database ( er_ngu.php). The data base is incomplete because of delayed reporting by drillers and not all boreholes drilled are registered. GRANADA borehole statistics show a similar trend to the NOVAP data, with maximum installations in 2011 and a decrease from 2011 to Year Figure 16-2: Heat pump sales statistics for Norway from 2010 to Source: NOVAP A typical Norwegian GHP is based on one or more boreholes drilled to between 50 and 300 meters. A trend towards deeper boreholes has been observed in the last 5 to10 years, partly due to reduced drilling costs for deeper boreholes. The average borehole depth in fields with 4 or more boreholes increased to more than 200 meters in 2009 and to about 230 meters in 2014 and 2015 (Figure 16-3) Year Figure 16-3 Average borehole depth for fields with 4 boreholes or more for Norway from 2000 to Source: GRANADA/NGU European Union guidelines for calculating renewable energy from heat pumps from different heat pump technologies (2013/114/EU) pursuant to Article 5 of Directive 2009/28/EC of the European Parliament is used in calculating the total annual energy use from GHP installations. Europe is divided into three climate zones. Norway is situated in the cold climate zone. The default HHP value for equivalent full load operation hours for GHPs is now 2470 hours. Previously, in calculations for national energy savings from GHPs annual operation in heating mode was 4000 hours. Norway spans over 13 degrees of latitude, some of which is north of the Polar circle, with no sunshine in the coldest season. In addition, there is a large diversity in the climate zones from coastal, high mountains and inland. There are large differences in building heating and cooling demands depending on location, building type and age. It is worth noting that new buildings have lower heating demands than older established buildings. A typical Norwegian GHP system uses a 115 mm diameter borehole with a single 40 mm U tube installed. Some BHEs use alternative collectors, such as coaxial arrangements or collectors with a rougher surface which produce turbulent flow at lower flow rates. The Norwegian drilling industry has historically been dominated by Norwegian companies, but in the last few years some companies from Finland and Sweden have started servicing the market. 90

92 National Activities Figure 16-4 Plan of BHEs in the central Oslo area from GRANADA. Source: GRANADA/NGU Table 16-1 summarises the status of geothermal energy use in Norway in Electricity Total Installed Capacity (MWe) Contribution to National Capacity (%) Total Generation (GWh) 0 Contribution to National Demand (%) Direct Use (2014 data) Total Installed Direct Use (MWth) Total Heat Used TJ/yr Total Heat Used TWh/yr Total Installed Capacity for Heat Pumps (MWth) na , Table 16-1 Geothermal energy use in Norway. (The data is based on gross estimates. na=data not available) Highlights and achievements As the third-largest exporter of energy in the world, with a domestic electricity supply almost totally dominated by hydropower, Norway is unique with respect to energy resources having one of the largest proportions of renewable energy both in total primary energy supply and in electricity supply. Norway has set ambitious targets to reduce global greenhouse gas emissions by 30% relative to 1990 levels by 2020, and to become carbon-neutral by Meeting the 2020 target will be challenging because both the country s electricity supply and energy use in buildings are essentially already carbonfree. For more details see 16.3 National Programme below. National Programme In 2002 Enova SF was established as a public enterprise to promote energy saving and renewable energy. Enova is funded through an Energy Fund made up from grid levies and state budget. Today the Energy Fund is about 5 billion Euro. Over the last decade, Norway has strengthened its energy Research & Development (R&D) efforts through a tripling of government funding. A new national collective R&D strategy for the energy sector, ENERGI 21, was launched in 2008 and revised in The strategy vision is to be the leading energy and environmentally conscious European nation. ENERGI 21 (2011) has adopted a low priority for deep geothermal energy, 91

93 National Activities which effects government funding for the geothermal sector. A revision to ENERGI 21 is in preparation and CGER have lobbied for a higher priority to be accorded to deep geothermal energy. In 2008, the Norwegian Parliament adopted the Climate Agreement to increase energy research, development and deployment (RD&D) by 600 million NOK (80 million Euro) for carbon capture and storage, and non-fossil energy systems. Public funding for energy RD&D is amongst the highest in the world. To develop expertise and promote innovation in targeted energy R&D areas, eight centres for environmentally friendly energy research (FME) were established under the auspices of the Research Council of Norway in For eight years each centre receives annual funding of million NOK ( million Euro). Geothermal energy was not a priority area in 2009 but a revised Climate Agreement was approved in 2012 with a specific decision to establish a research centre (FME) in geothermal energy. A call for new FME centres was launched at the end of 2014, and the Norwegian geothermal sector together with University of Bergen (project coordinator) have prepared an application with valuable assistance from Iceland, Italy and Statoil. There is increasing interest in GHP technology, particularly for larger buildings after the building code with strict energy efficiency requirements was introduced in 2007 (Revised in 2010). The energy performance requirements are expected to reduce energy used for heating by about 25%. The regulations specify that a minimum of 60% of the energy required for heating and hot water systems in new and refurbished buildings, greater than 500m 2, must be supplied other than by electricity and fossil fuels. This opens up the opportunity for medium sized facilities to adopt GHP technology. School buildings are one such example. The next revision of the building code will be in 2015 targeting energy passive houses or active houses producing energy. Legislation also contributing to increased interest in GHP technology is the energy labelling scheme. From 2010, this scheme requires buildings to have an energy certificate and energy consumption label when built, leased or sold. This scheme promotes increased knowledge and awareness of building energy consumption. Passive buildings and plus energy buildings Zero Emission/Energy Buildings (ZEB) and Plus Energy Buildings are given significant attention in Norway. In February 2009, the Research Council of Norway assigned the Norwegian University of Science and Technology (NTNU) to host the Research Centre (FME) on Zero Emission Buildings (ZEB). By the end of 2017 ZEB will develop products and solutions for existing and new buildings that will stimulate market penetration of zero emission buildings covering construction, operation and demolition. In order to achieve Zero Emission/Energy Buildings (ZEB) or Plus Energy Buildings, a combination of energy sources is required. Geothermal energy may be part of such an energy system, typically in combination with Photovoltaic (PV) and / or Solar Thermal (ST) energy harvesting. ST-energy is stored in the geothermal borefield and batteries store the PV energy. There are currently three ZEB-projects where geothermal energy is included or planned, two smaller projects in the South- East of Norway, and one large project in Western Norway. The multi-comfort project Plus House Larvik (Figure 16-1 and Figure 16-5) is a pilot 200 m 2 family house in Larvik. The house in the garden has a characteristic tilt towards southeast and a sloping roof surface clad with solar panels and collectors. These elements, together with geothermal energy, serve the energy needs of the house and generate enough to power an electric car year-round. The well-known Norwegian architectural company Snøhetta (designed amongst others the Oslo Opera House, and the cultural building on the 92

94 National Activities World Trade Center Memorial site) has designed the Plus House Larvik ( Figure 16-5 Plus House Larvik 93

95 National Activities Skarpnes is a complex of flats in the early design phase located in Arendal. The pilot phase has 5 single family houses. The total project consists of 17 villas, 20 flats and 3 townhouses. Both the villas and the apartments are planned with a combination of energy-efficient technology that makes the homes energy self-sufficient. There are PV solar cells for electricity and geothermal boreholes for heating and cooling, and hotwater supply. The villas have individual boreholes, and the apartments share a common borefield. Zero Village Bergen is a large complex with dwellings, kindergarten and business area. The first phase consists of 490 homes, with a potential for 800 units. Two energysolutions are being considered: Solar collectors, ground source heat pump and PV panels for electricity Solar collectors, BioCHP and PV panels for electricity The facilities will share a common central energy area that should provide the required annual heat energy of about 2200 MWh and electricity of 850 MWh. Industry Status and Market Development Statoil is engaged in deep geothermal R&D and exploring EGS opportunities. Statoil is a partner in the Icelandic DeepVision consortium executing the Iceland Deep Drilling Project (IDDP). IDDP is focussed on the feasibility of economically extracting energy and chemicals from supercritical hydrothermal conditions. A deep geothermal well IDDP2 will be drilled at HS Orka s Reykjanes site in Statoil is a partner in two EU Horizon 2020 research projects, GeoWell on innovative materials and designs for long-life hightemperature geothermal wells and DEEPEGS on deployment of deep enhanced geothermal systems for sustainable energy business. In addition to this, Statoil is a core consortium partner in NEWGEN, one of five FORGE (Frontier Observatory for Research in Geothermal Energy) proposals being reviewed by DOE. Refer to IEA-GIA Annual reports from previous years for further details. Research, Development and Demonstration/Deployment Refer to previous IEA-GIA Annual reports for further details. CGER hosted the international conference GeoEnergi 2015 in Bergen in the first week of September with participation from international scientific guests, politicians and media. The conference was a follow-up to the successful GeoEnergi 2011 and In the same week CGER, in collaboration with University of Bergen, hosted the annual meeting of the EERA Joint Geothermal Programme which is an umbrella organisation of European academic institutes and universities. Geothermal Education Refer to previous IEA-GIA Annual reports for further details 1.7 Future Outlook Shallow geothermal energy (Geothermal heat pump technology) is used widely in Norway. Deep geothermal energy is a relatively new concept for the Norwegian public, politicians, funding agencies, press/media, industry and research organizations. CGER continues to promote geothermal energy in Norway seeking to raise awareness and acceptance as an important component in the renewable energy mix. CGER is an active member of EGEC (European Geothermal Energy Council) through which it gains access to a valuable network of international geothermal organizations. In addition several CGER partners are members in international organisations tabulated below and disseminate information from the groups meetings and work programmes. 94

96 National Activities International Group EERA JP Energy Storage EERA JP Geothermal Energy IEA Energy Storage IA IEA Geothermal Energy IA Norwegian Organisation CMR, IFE, SINTEF IFE, IRIS, SINTEF, UiB/CMR/UNI NGI IFE In addition several CGER partners are taking part in EU research programmes related to geothermal energy in FP7 EU Horizon 2020 programme. References and Websites IEA Energy Policies of IEA Countries, Norway 2011 Review OECD/IEA (2011) Author Institute for Energy Technology, P.O. Box, 40, s 2027 Kjeller, Norway Jiri@ife.no Acknowledgment: The author thanks Kirsti Midttømme (CMR, CGER) for valuable contribution to this report. 95

97 National Activities Chapter 17 - Republic of Korea Figure 17-1 Drill rig at Pohang EGS pilot plant project site. Box, contains 1.6 m long, fractured core taken at a depth of 4,220 m of the second well which reached 4,348 m (MD) on December 2015 (Photo courtesy of KIGAM). Introduction and Overview Geothermal utilization in Korea is primarily direct use from ground-source or geothermal heat pump (GHP) installations as mainland Korea has no high temperature geothermal resources associated with active volcanoes or tectonic activity. Rapidly increasing GHP installation has been occurring in Korea since the middle 2000 s, with more than 100 MW t installed annually. At the end of 2015 the total installed capacity is estimated to have exceeded 900 MW t (Table 17-1). This successful deployment has made the general public and the energy sector aware of the potential of geothermal energy, and especially its advantage in supplying base load energy. Information from low-temperature geothermal power generation including enhanced geothermal systems (EGS) in Europe, Australia and US has interested decision makers and industries in Korea to investigate geothermal power generation from EGS. Table 17-1 Status of Geothermal Energy Use as of Dec (estimates) Direct Use Total Installed Capacity (MWt) excl. GHP New Installed Capacity (MWt) excl. GHP Total Heat Used in GWh/yr [TJ/yr] excl. GHP Total Installed Capacity GHP (MWt) New Installed Capacity of GHP (MWt) Total Heat generated with GHP in GWh/yr [TJ/yr] [593.6] [2,407.7] The progress of the EGS pilot project in Korea has been delayed due to budget 96

98 National Activities limitations and technical difficulties, so that the target of a MW sized binary power plant might be achieved by the end of 2016 but realistically later. The second well PX-2 reached a final depth of 4,348 m (MD) in December Wireline logging and prestimulation are scheduled for early The original target depth was 4,500 m, but well instability including lost circulation, lead the project team to terminate drilling at 4,348 m. Depending on the results of the wireline logging and stimulation decisions will be made about drilling a third well or performing a side track from the first well to intersect the propagating reservoir direction. Exploration for geothermal resources at Ulleung island, a remote location in the East Sea, continued through This included addtional magnetotelluric survey work and temperature gradient hole drilling. Intermediate temperature measurements from the gradient holes identified a high possibility of thermal fluid convection through a fracture zone. The final geothermal exploration report will be completed in mid 2016 and detailed development planning will be provisioned by the end of National Programme The Second National Energy Master Plan was developed in 2013 and was officially announced at the beginning of The six major issues in this Master Plan are: 1) Transition to energy policy focused on demand management, 2) Build a distributed generation system, 3) Strike a balance with environmental and safety concerns, 4) Enhance energy security and energy supply stability, 5) Establish a stable supply system for each energy source, and 6) Shape energy policy to reflect public opinion. The National plan for renewable energy was revised in 2014 according to the Master Plan which led to the creation of The 4th Basic Plan for New and Renewable Energy which established new renewable energy R&D and deployment policies. The target of new and renewable energy supply by 2035 is 11% of total primary energy. The total primary energy at the end of 2015 reached around million ton of oil equivalent (toe) (KEEI, 2016) of which geothermal heat provided 71,682 toe (covering only 0.025%). The status and prospects of geothermal energy in the national target still do not seem significant. Fortunately however, the importance of geothermal utilization is getting more acknowledgement by the government and the public, and geothermal s share of market stimulating incentives has become significant. It is out of this that there has been remarkable progress in GHP installations in recent years. R&D investments and industry matching funds for the last five years are shown in Table Figure 17-2 shows an increasing trend of GHP installation over the last ten years. Note that we do not include the trend of energy uses because there were no estimates before 2011 of pure geothermal uses of GHP taking into account electricity required to operate GHP. Table 17-2 Geothermal R&D expenditure for the period (in *US$ 1,000) Government 8,364 11,056 7,259 11,603 9,008 Industry 4,548 3,577 1,628 15,171 5,772 Total 12,911 14,633 8,887 26,775 14,780 *Exchange rates (in KRW/USD) are as of July 1 st each year such as 1,147 (2011), 1,174 (2012), 1,165 (2013), 1,029 (2014), and 1,140 (2015). 97

99 National Activities Figure 17-2 Increasing trend of GHP installation. (Data based on Report of Korea Energy Management Corporation (KEMCO, 2015); estimates for 2015 are based on the amount of subsidy and data reported under the Mandatory Act ) Industry Status and Market Development The geothermal industry in Korea is focused on GHP design and installation. According to official reports, there are more than 100 small businesses in the GHP sector, about 20 companies are quite active with over 50% market share. There are two industry associations; the Korea Geothermal Energy Association (registered by the Ministry of Trade, Industry and Energy) and the Korea Groundwater and Geothermal Energy Association (registered by the Ministry of Land, Infrastructure and Transport). Both of these organisations focus on the GHP sector. The main drivers of the rapid increase in GHP installations are active government subsidy programs and a special Act for new and renewable energy ( Mandatory Act ). There are several subsidy programs; 'Building Deployment Program (formerly Deployment Subsidy Program)', 'Regional Deployment Program (formerly Rural Deployment Program)', and a 'Residential House Program (formerly 1 Million Green Homes by 2020 Program) through which the government subsidizes up to 50% of the total installation cost based on applications made to an annual pre-allocated budget. Another powerful subsidy program which was enacted in 2010 is the Greenhouse 98 Deployment Program under which the central government subsidizes 60% and local government 20%, meaning a rural farmer pays only 20% of the cost of a GHP installation for greenhouses or aquaculture operations. According to the Mandatory Act reporting, GHP installations totalling 98 MW t were completed in 2014 and 113 MW t in Installations typically are realized two or three years after planning. Research, Development and Demonstration/Deployment Almost all the geothermal research activities in Korea are initiated through government funding. R&D activities can be categorized into two areas: Shallow geothermal utilization using various GHP types, and Geothermal power generation. For shallow geothermal utilization, there have been several successful R&D projects including sampling and measurement of subsurface thermal properties for borehole heat exchangers resulting in a large database, and simulation of thermo-hydrochemical (T-H-C) coupled behaviour in borehole heat exchangers under groundwater flow. There is also research

100 National Activities into the efficiency of various types of borehole heat exchangers, utilizing groundwater thermal energy, and aquifer thermal energy storage. In 2014 the Korean government initiated an exploration program for geothermal power generation at the remote Ulleung island. This is a volcanic island, covering 72.9 km 2, located in the East Sea. Currently, all the electricity in the island is generated by diesel power plants. Temperature measurements made at two boreholes in 2011 showed a fairly high geothermal gradient and the goverment decided to support geophysical surveying and additional well drilling for temperature gradient measurements. Exploration has included 3-D magnetotelluric surveying and analysis, interpretation of gravity and magnetic data, and two temperature gradient holes drilled through 2014 and 2015 to a depth of 1 km. Temperature measurements from the gradient holes identify the high possibility of thermal fluid convection through a fracture zone. The final geothermal exploration report will be completed mid 2016 and a detailed development plan will be provisioned by the end of There are two academic three-year research projects that started at the end of 2013: 1) Development of an EGS simulator and 2) Four-dimensional geothermal reservoir imaging technology. The two research projects are led by academia and aim to achieve cutting edge technologies for EGS development. Geothermal Education There are regular geothermal courses at Seoul National University at both undergraduate and graduate level that have been running since There are also many seminars on geothermal topics including geothermal power generation. Reflecting on the progress of the EGS pilot plant project, special sessions have been organized at domestic conferences focusing on drilling, stimulation and economic assessment. Future Outlook GHP capacity will continue to rapidly increase over the next few years at more than 100 MW t annually. This is due to active subsidy programs and the Mandatory Act. There are concerns about poorer performance or malfunction of GHP systems because the rapid increase in the market may be accompanied by substandard installations without proper design and performance validation. Longterm performance modelling and validation are important to support the growth in GHP installations especially for large systems (bigger than 1 MW t in capacity). Geothermal utilization statistics are another issue. In Korea, official statistics on geothermal energy account for only GHP installations. Other direct use including space heating, spas, and greenhouse heating are not included. Korea has been reporting other direct use statistics to IEA- Geothermal with the help of hot spring survey data. For GHP energy statistics, there is no distinction between heating and cooling, all energy produced is lumped together, which does not quantify the pure geothermal contribution. Efforts are needed to establish and revise use data collected through the official statistics that are compatible with the international standards such as the IEA statistics. Geothermal power generation is expected to be realized within the next few years through the success of the EGS pilot project. Active participation from industry is critical in up-scaling and commercialization, which is currently affected by the absence of a legal framework that supports geothermal power generation. Fortunately, geothermal power generation has been included in the RPS with a REC of 2.0 from September 2014, and it is expected that industry will get more interested in investing in geothermal in the near future. A Korean technical roadmap on greenhouse gas reduction technology states that there could be 200 MW e of geothermal capacity installed by 2030 (KETEP, 2011). This is some one percent of the theoretical potential. The outcome of the EGS pilot 99

101 National Activities project, if successful, will be an initialization milestone for the roadmap. It is expected that the pilot plant project could be scaled up to about 10 MW e by References and Websites Korea Energy Economics Institute (KEEI), 2016, Monthly energy statistics, Vol. 32, No. 7, 102p., Korea Energy Management Corporation (KEMCO), 2015, New & Renewable Energy statistics 2014 (2015 Edition), 135p. (in Korean) Korea Institute of Energy Technology Evaluation and Planning (KETEP) (2011) Strategic roadmap for greenhouse gas reduction technology Geothermal. Ministry of Knowledge Economy, 86p. (in Korean) Authors Yoonho Song Geologic Environment Division Korea Institute of Geoscience and Mineral Resources (KIGAM) Gwahang-no 124, Yuseong-gu, Daejeon 34132, Korea song@kigam.re.kr Tae Jong Lee Geothermal Resources Department Korea Institute of Geoscience and Mineral Resources (KIGAM) Gwahang-no 124, Yuseong-gu, Daejeon 34132, Korea megi@kigam.re.kr 100

102 National Activities Chapter 18 - Switzerland Introduction and Overview Switzerland s uptake of shallow geothermal continues unabated and unconstrained by natural potential. The theoretical potential for direct use geothermal and geothermal for power generation is considered very large. Yet arguably, realistic estimates of the technical and economic potential (with support mechanisms) is limited to between 1 and 20 TWh along with associated coproduced heat. In the wake of the major incident at the Fukushima Daiichi Nuclear Power Plant due to the 11 March 2011 earthquake and tsunami, the cost reduction in renewables and political instabilities in North Africa and the Middle East, Switzerland is in the process of developing and implementing Energy Strategy Geothermal legislation has continued to work its way through parliament. The final votes in both chambers of parliament are expected in 2016 with a possibility of a referendum. Total Installed Capacity Heat Pumps (MWth) Total Net Heat Pump Use [GWh/yr] Target (PJ/yr, ) Estimated Country Potential (MWth /PJ/yr/GWh/yr) Na Na The produced heat (Figure 18-1) is actual operating data and the data for any given year depends on the heating degree days for that year and especially 2014 were characterised by a very warm winter. Figure 18-1 Geothermal energy utilization in Switzerland (Actual operating data). Table 18-1 Status of geothermal energy use in Switzerland for Electricity Total Installed Capacity (MWe) 0 New Installed Capacity (MWe) 0 Contribution to National Capacity (%) Total Generation (GWh) 0 Contribution to National Generation (%) Target (MWe, % national generation, etc.) Estimated Country Potential (MWe or GWh) Direct Use Total Installed Capacity (MWth) 26.7 New Installed Capacity (MWth) -3.9 Total Heat Used (PJ/yr or GWh/yr) 0.78 [215.9] Highlights and Achievements The 2015 year was characterised by several highlights and achievements Deep geothermal energy sector: 3 deep geothermal projects developed further in 2015: 2015 saw the continued execution of the hydrothermal direct heat geothermal project in Schlattingen (Canton Thurgau, in the north of the country, for an agricultural business). The two wells have been connected to heat plant, and the long term fluid flow has been evaluated in a production test. The EGS project in Haute Sorne received the building permit in June This is an important milestone towards the realisation of a new reservoir creation concept. In contrast to massive 101

103 National Activities stimulation in a borehole, Geo-Energie Suisse AG will use multi-stage hydraulic stimulation in horizontal wells in combination with open-hole packer technology. The pilot project in the Canton Jura aims at proving the technical feasibility of the concept and producing up to 5 MWe by A further highlight was a comprehensive study and seismic exploration campaign in the Canton of Geneva (GE) to investigate the potential for cascaded use of geothermal energy. The next milestone of this project GEothermie 2020 will comprise drilling exploration wells commencing in 2016/2017. In 2015, several cantons passed laws regulating the exploration and exploitation of the deep underground. In the past, the lack of a legal framework was one of the main non-technical barriers for the development of deep geothermal projects in Switzerland. A number of R&D activities are well under way through the Swiss Competence Center for Energy Research on "Supply of Electricity" (SCCER SoE - ) whose remit includes geothermal energy. Geothermal highlights are the experiments at the Grimsel underground test site ( Near-surface geothermal (heat pump) sector: The near-surface geothermal heat pump sector is very well established and enjoyed an annual compound growth rate of about 7% in By the end of 2015, a total of some 90,000 ground source heat pumps systems have been installed in Switzerland (reference 1). Quality assurance is one of the main aspects for further improvement. The following four achievements and highlights focus on that aspect: A technical norm for groundwater utilisations has been published (SIA 384/7), similar to the existing one for ground source heat exchangers (SIA 384/6). It is available in German or French _2015_d/F/Product/ A new quality label has been developed and published in 2015, Waermepumpensystemmodul ( This quality label not only considers the heat pump and the underground heat exchanger separately, but considers the whole system including connections between the different components. In 2015 tools that measure temperature and temperature deviations of boreholes (for GSHP systems) have been investigated and compared. Results have been published in German on the website of the Swiss Federal Office of Energy blikationen/stream.php?extlang=de&name= de_ pdf. On behalf of the Swiss Federal Office of Energy, Geothermie Suisse, the Swiss geothermal association ( ran a series of 5 workshops across Switzerland. The workshops are a continuing education scheme for ground source heat pump experts and were designed to improve the flow of information and to share knowledge among the stakeholders (drilling companies, geologists, public authorities). R&D activities focus on the development of smart thermal (low temperature) grids. Several grids (e.g. in the city of Zurich) are under construction in In addition, a project thermal networking has been launched by the Swiss Federal Office of Energy. National Programme In 2013, Switzerland s government developed a completely revised Energy Act along with important modifications to other acts of parliament. They constitute the first set of measures to implement Switzerland s 102

104 National Activities Energy Strategy In 2015, the legislative commission of the Council of States (upper chamber of parliament) and the plenary Council of States have reviewed the proposed Energy Act. For geothermal power projects, the Energy Act will feature an expansion of Switzerland s geothermal guarantee scheme both, in terms of scope and budgets. Also a new support mechanism for exploration activities has been put forward; here project developers can receive an investment grant covering up to 60% of the cost required to prove the existence of a geothermal reservoir. To promote direct use of geothermal energy, the Council of States has followed the National Council and approved a modification of the CO 2 Act which would explicitly mandate the federal government to support direct use geothermal energy projects as long as they help to reduce CO 2 emissions from the use of fossil fuels in buildings. In 2016, both chambers of parliament will pass a final vote on the first set of measures in support of Switzerland s Energy Strategy Pending a national referendum in 2017, the revised Energy Act is likely to come into force in One of the main features of Switzerland s Energy Strategy 2050 is the phasing out of nuclear energy over approximately the next years, which today supplies around 40% (25 TWh) of the country s electricity demand. One of the consequences is an ambitious drive to increase the share of power from new renewables from today s 2.8 TWh to some 4.4 TWh and then 14.5 TWh by 2020 and 2035 respectively. The Government is currently developing a legal and support framework that paves the way for geothermal power to provide about 1 TWh by 2035 from zero today. Further aggressive targets for end-users in terms of energy efficiency and reduced greenhouse gas emissions are expected to fuel growth for indirect and direct heat supply from geothermal energy. While targets are discussed in terms of consumption, no targets are given for individual sources on the supply side. While near-surface geothermal utilization is a market driven application, Switzerland encounters severe challenges in developing geothermal resources suitable for direct use and combined heat and power use. Industry Status and Market Development Market conditions for industry players in the ground source heat pump sector are increasingly challenging (reference 3). Due to the success of ground source heat pump deployment, many players have entered a market which based on anecdotal evidence suggests early signs of consolidation. Most shallow geothermal drilling companies compete on price, yet quality assurance has been maintained at a high level because of quality labelling schemes for heat pumps and drilling companies, and norms and guidelines (SIA 384/6 for ground source heat pumps and SIA 384/7 for groundwater applications) provided by the Swiss Federal Office of the Environment for geothermal heat pump applications. A number of gaps have been identified for ground source heat pump schemes; checks and controls are not widely implemented, completion (installation, backfilling and testing) of ground source heat pumps pose the biggest risks. In addition, the lack of spatial planning regulations in Switzerland suggests a poorly regulated legal framework for the deployment of deep ground source heat pumps. In general, ground source heat pumps are problemfree to depths of about 150 m. At depths greater than 250 m, risks are higher and problems are observed. In general, the Swiss Molasse Basin is well suited for the wide-spread uptake of ground source heat pumps; the Molasse Basin straddles about 50% of the country by area and serves as the deep underground for more than 75% of its population (see reference 3). Currently, the Swiss Federal Government does not have any direct incentive schemes for utilizing geothermal energy for heating purposes. A number of Switzerland s 26 cantons have support schemes that are in effect investment subsidies for geothermal heat pumps. 103

105 National Activities Switzerland s industry is less advanced in developing deep geothermal resources. This covers the entire value chain from exploration, drilling, facilities and operation of geothermal heat and power plants. There are only a very few players in a practically non-existent market. Besides, development is constrained by lack of financial resources, lack of skilled human resources and deficits in the legal and regulatory framework. It should be noted, however, that most of the core competencies for overcoming those barriers exist, and notably cantonal administrations and legislators are willing to work with developers in designing and implementing business friendly legal and regulatory frameworks. Complimentary to these efforts, the Swiss Federal Government continues to implement feed-in tariffs and a geothermal guarantee scheme for geothermal power plants. The requisite funds for financing the feed-in tariffs and other related measures such as the geothermal guarantee derives from a surcharge that end customers pay for power transmitted via the high voltage grid. Since the revenues resulting from the surcharge are determined by the power transmitted via the high voltage grid, there is a cap on the annual subsidies available which in effect results in a wait-list for projects. The wait-list has a substantial turn-over because many announced projects (mostly photovoltaic or wind energy) do not materialize. Feed-in tariffs remain in effect for 20 years. Since feed-in tariffs are governed by the Energy Ordinance there is one unusual side effect on the feed-in tariff for geothermal power: the power required for artificial lift is not subtracted from the power supplied to the grid subject to the feed-in tariff. This feature stems from an analogy to power from biomass. The energy required to mobilize bio-feedstock to the factory gate is not subtracted from the power supplied to the grid. Hence artificial lift, the energy necessary to deliver hot water/steam to the power plant is also discounted. Table 18-2 Feed-in tariffs for electricity from geothermal energy resources (Reference 4). Installed capacity Feed-in Tariff (Rp./kWh) 5 MW MW MW 28.0 >20 MW 22.7 US$ 1.05 = CHF 1 or 100 Rappen (Rp.) Owing to the large gaps in the knowledge of Switzerland s deep subsurface (only 11 wells have been drilled in the country to depths greater than 3000 m), the Federal Government has instituted a geothermal guarantee scheme for geothermal power projects (reference 5). The scheme is underwritten by a CHF 150 million fund that has been financed by the grid surcharge. Geothermal power projects can apply for a geothermal guarantee and once qualified may be reimbursed for up to 50% of the total subsurface development cost of a project if it fails. Research, Development and Demonstration/Deployment Research and innovation is funded by the Swiss National Science Foundation (fundamental research), the Swiss Federal Office of Energy (applied research) and the Commission for Technology and Innovation (market-driven research). Some of the federally funded Swiss Federal Institutes of Technology have allocated funds to be used for geothermal energy research and innovation. Of the five institutes, ETH Zurich, EPF Lausanne and the Paul Scherrer Institute have some geothermal research work underway. Eight new Swiss Competence Centers for Energy Research (SCCER) officially launched in 2014 have been established to initiate research and innovation in fields deemed critical for Switzerland s Energy Strategy One of the SCCERs, SCCER Supply of Electricity or SCCER-SoE, has a focus on geothermal energy and particularly on technologies required to unlock Engineered Geothermal Systems. 104

106 National Activities The SCCER s are set up along the lines of a public-private partnership with industry players encouraged to participate. Since 2015, R&D activities have been established in the new institutions. R&D funds for 2015 are at a level of US$ 10 million (including funds for deployment activities). Despite ongoing political discussions in 2015 between Switzerland (as a non-eu member) and the EU regarding the free movement of labour, Switzerland continues to participate on a self-funding basis in R&D programs organised by the European Commission. Similarly, the dedicated funding agency for geothermal energy (located in the Swiss Federal Office of Energy) cooperates with European funding agents in the European Commission enabled Geothermal ERA-NET, as well as the International Partnership for Geothermal Technology (with the USA, Iceland, Australia and New Zealand). Naturally, Switzerland participates in the IEA s Geothermal Technology Collaboration Program. Industry classifies a large part of their geothermal development activities in the areas of hydrothermal project development and EGS as research and innovation. Financial information is not available. Geothermal Education The University of Neuchâtel is running a successful, oversubscribed Certificate for Advance Studies or CAS DEEGEOSYS - Exploration & Development of Deep Geothermal Systems. At ETH Zurich one full professorship related to geothermal energy and other subsurface energy applications has been filled in the Earth Science Department. One other professorship in the field of Mechanical Engineering continues to be advertised. With the establishment of the SCCER SoE, a number of tenure-track professorships at the EPF Lausanne, at the Universities of Geneva and Neuchâtel have been filled with incumbents who took up posts in Future Outlook Beyond 2015 a number of policy changes will be progressed; most notably the revised Energy Act will be discussed in the upper chamber of parliament in For the last 6 years Switzerland s utility industry has been in dire straits. In 2015, some of the larger Swiss power supply companies (e.g. Axpo, BKW) stopped work and engagement in deep geothermal energy. The distortion in neighbouring European energy markets due to highly subsidized renewable energy has caused havoc in established long-running and profitable Swiss businesses. Margins have eroded, asset write-downs are the norm and industry players have not been able to adapt to or compete well in the new world. Publications and Websites 1 Statistik der geothermischen Nutzung in der Schweiz Ausgabe 2015 (2016). Published by the Swiss Geothermal Association geothermie-schweiz stik-schweiz-ausgabe-2015_ pdf [Document only available in German] 2 Energiestrategie 2050 Erstes Massnahmenpaket Zusammenstellung der Massnahmenbeschriebe (2012) ublikationen/stream.php?extlang=de&nam e=de_ pdf [Document only available in German; deep geothermal enery support program pp ] 3 Qualitätssicherung Erdwärmesonden by Dr. Walter Eugster, dipl. Natw. ETH wnloads/eugster-qs-ews_eugster.pdf [Document only available in German; presentation on Quality Assurance in Ground Source Heat Pumps] 105

107 National Activities 4 Energy Ordinance (730.01) Appendix pdf [Document available in German and French] 5 Energy Ordinance (730.01) - Appendix pdf [Document available in German and French] Authors Gunter Siddiqi Swiss Federal Office of Energy Postfach CH 3003 Bern Switzerland gunter.siddiqi@bfe.admin.ch Katharina Link / Annex 8 Lead for Switzerland Geo-Future GmbH Rebstrasse 3 CH-8500 Frauenfeld info@geo-future.expert 106

108 National Activities Chapter 19 - United Kingdom Introduction and overview A number of direct use geothermal proposals continued to be evaluated during 2015, however no additional geothermal power generation or direct use from deep sedimentary aquifers was added during the year in the UK. There is currently no power generation and direct use is restricted to; a district heating scheme in the City of Southampton, where a 2 MW capacity installation extracts brine at 76 ᵒC from a Triassic sandstone aquifer at a depth of 1.8 km, although it is not known if the scheme is currently operating while a new electric pump is fitted; a thermal spa in the City of Bath (1.0 MW), and five, small, mine water schemes (total geothermal contribution of 0.14 MW). The Scottish Government approved five feasibility projects funded out of the Geothermal Energy Challenge Fund. The Challenge Fund was established to support feasibility studies exploring the capacity of Scotland s geothermal resources to meet the energy needs of local communities. Grants totalling 234,025 were offered to five projects, but only four took up the offer resulting in 185,235 total grant funding. The four projects, which reported in February 2016, were; Aberdeen Exhibition and Conference Centre: to conduct a feasibility study for the installation of a deep geothermal single well system to provide heat to the new centre and associated buildings. Guardbridge geothermal technology demonstrator project: to conduct a feasibility study to investigate whether a geothermal district heating system, accessing a Hot Sedimentary Aquifer (HSA) underlying a brownfield site at Guardbridge in northeast Fife, can be developed in a cost-effective manner. Fortissat Community minewater geothermal energy district heating network: a feasibility assessment for a potential minewater geothermal energy system in the vicinity of the James Hutton Institute s (JHI) Hartwood Home Farm, North Lanarkshire. Hill of Banchory geothermal energy project: a feasibility study to explore the deep geothermal potential at Banchory, Aberdeenshire from at least one pair of deep boreholes drilled into the Hill of Fare Granite. Geothermal Engineering Ltd were awarded 858,060 from the UK Government s Heat Network Small Business Research Initiative competition to part fund the development of a deep geothermal single well heat system at the Crewe campus of Manchester Metropolitan University. Elsewhere, additional geophysical data were collected as part of a feasibility study for direct use geothermal at Auckland Castle, county Durham. In 2013 the Department of Energy and Climate Change (DECC) established the Heat Networks Delivery Unit (HNDU) to support local authorities in England and Wales in exploring heat network opportunities. Grant funding is available to meet up to 67% of the estimated eligible external costs of heat mapping, energy master planning, feasibility studies and detailed project development. Feasibility studies can cover the sources of heat supply including renewable options such as geothermal. By the end of 2014, 6,403,249 grant funding had been made available to 82 local authorities and additional grant funding of 2,983,369 was made available in 2015, although there are no figures on the extent of geothermal feasibility studies. 107

109 National Activities Table 19-1 Status of geothermal energy use in the UK for Electricity New capacity installed in 2015 (MWe) Total Installed Capacity (MWe) 0 Direct Use New capacity installed in 2015 (MWth) Total Installed Direct Use (MWth) 3.0 Total Heat Used (TJ/yr) [GWh/yr] 55.3 [14.8]+ Geothermal / Ground source heat pumps New capacity installed in 2015 (MW) Total Installed Capacity for Heat Pumps (MW) Total Net Heat Pump Use [GWh/yr] * + Note this is lower than previous years due to maintenance of the plant at Southampton. * in calculating the net heat pump use it has been assumed that the hrs/year heating equivalent full load is 1800 hrs/year for domestic systems and 1500 hrs/year for commercial systems.. National programme The UK Renewable Energy Strategy was launched in 2009 with a target of 15% of energy from renewables by It also aims to reduce the UK s carbon dioxide emissions by over 750 million tonnes by The lead scenario envisages more than 30% of electricity generated, 12% of heat generated and 10% of transport energy from renewables. Most of this will be wind, biomass, biofuels and electric vehicles, but with a significant input to domestic heating from ground source heat pumps. Geothermal electricity is expected to have a minor role. The UK Renewable Energy Roadmap was published in 2011 and identified 8 technologies that have the greatest potential for the UK to meet its renewable energy targets. One of those identified was ground source and air source heat pumps. Incentives introduced included the Renewable Heat Incentive that, after consultation in 2013, covers domestic and non-domestic ground source heat pumps and deep geothermal heat (see below for the tariff rates). Prior to March 2014 an interim grant fund was in place which targeted social housing providers, known as the Renewable Heat Premium Payment (RHPP) Legislation and regulation The UK Government's Electricity Market Reform (EMR) programme will replace the Renewables Obligation (RO) incentives for large scale renewable electricity generation by The new mechanism is known as Contracts for Difference (CfD). Each renewable technology has a 'strike price' in /MWh of renewable electricity generated. When the market price of the electricity is below the strike price the generator receives a payment equivalent to the difference between the strike price and the market price. However, if the market price is above the strike price the generator has to pay back the difference between the two prices. This variable top-up is designed to reduce the risk and increase the level of certainty for renewable generation. In December 2013 the strike price for geothermal for 2015/16 was set at 145/MWh. It has not yet been decided how CfDs for less established technologies (that includes deep geothermal) will be allocated. A Feed-in Tariffs (FITs) scheme was introduced on 1 April Through the use of FITs, the Department for Energy and Climate Change (DECC) seeks to encourage deployment of additional small-scale (less than 5MW) low-carbon electricity generation. There was no geothermal electricity generation in The Renewable Heat Incentive (RHI) was introduced in July 2011 and pays a tariff for renewable heat. After consultation in 2013 the scheme (from April 2014) covers, 108

110 National Activities amongst other technologies, domestic and non-domestic GSHP and deep geothermal heat. The rates in 2015 were as follows; Non-domestic GSHP has a 2 tiered tariff comprising 8.7 p/kwh for the first 1314 hours of use (tier 1) and 2.9 p/kwh thereafter (tier 2) Domestic GSHP tariff is 18.8 p/kwh payable for 7 years, but note that new build properties other than self-build are not eligible Deep geothermal (defined as from a minimum depth of 500 m) tariff of 5.0 p/kwh. In the summer of 2014 the UK government consulted on underground drilling access for onshore oil and gas and deep geothermal. Under existing regulations permissions had to be obtained from all land owners under whose land the drilling may have extended. For projects involving deviated or horizontal drilling, the large number of permissions led to lengthy delays in project starts. Under the new proposals, land owner permissions will not be required where the underground access is 300 m below ground level. These proposals became law as part of the Infrastructure Act Progress towards national targets By the end of 2015 there were 409 accredited non-domestic ground source heat pump installations receiving the RHI with a combined capacity of 32.5 MWth. This represents percentage increases of 109% in accredited installations and 210% in capacity over 2014 levels. Eligible heat generated was 53 GWhth. The domestic RHI was introduced in April 2014, but installations commissioned since July 2009 are eligible. By December 2015 there were 6522 accredited domestic ground source heat pump installations receiving the RHI, an increase of 123% over 2014 levels. Heat paid for under the domestic scheme was 91,582 MWhth Government support/incentives for R&D Geothermal Engineering Ltd were awarded 858,060 from the UK Government s Heat Network Small Business Research Initiative competition to part fund the development of a deep geothermal single well heat system at the Crewe campus, Manchester Metropolitan University. The Scottish Government approved grant funding of 185,235 for four geothermal feasibility studies. Industry status and market development Despite an upturn of interest in direct geothermal for district heating, taking projects forward to the development stage is still proving challenging in the UK. There is no publicly funded drilling insurance scheme and the perceived risk associated with deep drilling has meant it is very difficult to raise private sector finance. Seismic reflection data were collected in Stoke-on-Trent as part of ongoing investigations for a deep geothermal option for a district heating scheme. Cornwall Council are very supportive of developing geothermal within the county, particularly CHP from EGS. Two companies, EGS Energy Ltd and Geothermal Engineering Ltd, continue to work towards developing EGS and have the necessary planning permissions and environmental consents in place. Research, development and demonstration/deployment Geothermal research in the UK is at a low level when compared to research into other renewable technologies. The government has been supporting technologies such as wave and tide where it sees the UK can develop a commercial advantage that can be exported. 109

111 National Activities Government funded Government funding for early stage research is distributed through the Research Councils. Additional funding may Institute Cambridge University Cambridge University Industrial partner BP City-scale modelling of geothermal energy Arup also be available from the European Commission and is included here. The projects tabulated below were funded in 2015, but this is not an exhaustive list. Project title Subject area Funder Numerical modelling of EGS reservoir development GSHPs Deep geomechanics Schlumberger EPSRC Glasgow University Cluff Geotherma l Ltd A conceptual hydrogeological model for fault-related geothermal energy resources in northern England Geothermal potential of northeast England NERC Glasgow University Parsons Brinckerho ff Optimisation of groundwater-based cooling systems for large public buildings in London and other cities Open loop GSHP Glasgow University Geothermal reservoir modelling: highenthalpy systems in eastern Africa. East geothermal Africa Glasgow University Glasgow University Glasgow University Southampton University Conceptual hydrogeological model for caldera-associated high-enthalpy geothermal reservoirs in eastern Africa Deep geothermal resources associated with major faults in northern England and Scotland The scope for deep geothermal energy to combat fuel poverty in Greater Glasgow East geothermal Deep permeability Africa fault Hot sedimentary aquifer Foundations as an energy source Energy piles performance NERC EPSRC/ RAERF Durham University Durham University BP Assessing the UK s low enthalpy geothermal resources with specific focus on deep sedimentary basins Multiphysics simulation of geothermal enginnering Hot sedimentary aquifers Fracture systems in crystalline rocks Durham University The geological characterisation and permeability measurements of surface and subsurface fractures in the southern Negros geothermal production field, Negros Oriental, Philippines EPSRC Engineering and Physical Sciences Research Council NERC Natural Environment Research Council RAERF Royal Academy of Engineering Research Fellowship Hydrogeothermal 110

112 National Activities Geothermal Education There are no specific higher education course devoted to the exploration and exploitation of geothermal energy in the UK. However, earth science and renewable energy university courses will often have modules on aspects of geothermal energy. Future Outlook Interest and awareness in geothermal continues to increase, but funding to develop projects remains challenging. In late 2015 Cornwall and Isles of Scilly Local Enterprise Partnership announced their intention to open a call in early 2016 for a European Regional Development Fund grant of up to 10.6M. The call will only be open to proposals that include the drilling of enhanced geothermal system demonstration well(s). These should be consistent with first well/s that would be required for an enhanced geothermal system (electricity generation from an enhanced or engineered geothermal resource, created by increasing the permeability of the hot rocks at depth). It is the intention that the funding will kick-start a geothermal CHP industry in Cornwall.. References and Websites Batchelor T., Curtis R, Ledingham P. and Law R Country update for the United Kingdom. Proceedings World Geothermal Congress 2015, Melbourne, Australia, April Renewable Energy Association Deep Geothermal Group - Ground Source Heat Pump Association - Authors and contacts Jon Busby Team Leader Renewables, Energy Storage & Clean Coal British Geological Survey Keyworth Nottingham NG12 5GG UK tel +44 (0) fax +44 (0) jpbu@bgs.ac.uk Oliver Sutton Technical Energy Analysis Science and Innovation Area 6A Department of Energy & Climate Change 3-8 Whitehall Place London SW1A 2AW UK tel +44 (0) oliver.sutton@decc.gsi.gov.uk Contracts for Difference maintaining-uk-energy-security-- 2/supporting-pages/electricity-marketreform Renewable Heat Incentive g_energy/renewable_ener/incentive/incent ive.aspx and/generating-energy/getting-moneyback/renewable-heat-incentive-rhi2 111

113 National Activities Chapter 20 - United States of America Figure 20-1The Stillwater geothermal plant is the first hybrid solar-geothermal facility in the USA. In 2014, ENEL Green Power added 2 MW of concentrating solar power to the existing geothermal plant and solar photovoltaic field, for a total installed capacity of ~60 MW. Source: ENEL Green Power North America Introduction and Overview The U.S. Department of Energy (DOE) Geothermal Technologies Office (GTO) is committed to developing and deploying a portfolio of innovative technologies for clean, domestic power generation. The GTO researches, develops, and validates innovative and cost-competitive technologies and tools to locate, access, and develop geothermal resources in the United States. The DOE vision is to provide the nation with an abundant, clean, and renewable baseload energy source. DOE goals: Accelerate Near Term Hydrothermal Growth: Lower risk and costs of development and exploration Lower levelized cost of electricity (LCOE) to 6 cents/kwh by 2020 Accelerate development of 30 GWe of undiscovered hydrothermal resources Secure the Future with Enhanced Geothermal Systems (EGS): Demonstrate 5 MW reservoir creation by 2020 Lower LCOE to 6 cents/kwh by 2030 National Program By developing, demonstrating and deploying innovative technologies, GTO efforts are helping stimulate the growth of the geothermal industry within the renewable energy sector and encouraging quick adoption of technologies by the public and private sectors. The GTO portfolio invests in activities along the span of technology readiness to facilitate the growth of installed electrical capacity: 112

114 National Activities Research and Development invests in innovative technologies and techniques to improve the process of identifying, accessing, and developing geothermal resources. Demonstrations enable technologies and techniques to be field tested and validated Deployment activities focus on reducing non-technical barriers and conducting analysis on the impact of our investments. The GTO works in partnership with industry, academia, and DOE s national laboratories on research and development activities focused on the areas of enhanced geothermal systems, hydrothermal and resource confirmation, low-temperature and coproduced resources, and systems analysis. Research, Development and Demonstration/Deployment Enhanced Geothermal Systems EGS potential is currently estimated to be on the order of GWe in the United States alone. DOE investments in EGS research, development, and demonstration projects aim to produce a clear and replicable pathway for EGS reservoir creation and ultimately the commercialization of EGS. Recent EGS Demonstration investments have yielded significant success and the promise of further advancement in the upcoming years EGS Demonstrations The AltaRock EGS demonstration project, at Newberry Volcano near Bend, Oregon, is the site of cutting-edge research on EGS development. AltaRock, one of five EGS demonstration projects in the GTO portfolio, was funded through the American Recovery and Reinvestment Act (ARRA) in The project, which was completed in 2015, achieved numerous technical firsts including: the first multi-zone EGS stimulation; increasing the volume of rock that is available for fluid circulation and, ultimately, heat extraction; and five years of field work culminating in the confirmed creation of an EGS reservoir in the low permeability rock surrounding the injection well. Another GTO EGS demonstration project is the Raft River site in Idaho where the University of Utah is demonstrating stimulation techniques to create an EGS reservoir adjacent to an existing well. Following initial thermal and hydraulic stimulation operations, geothermal brine has been continuously injected into the well since April In October 2015, the team had observed a substantial increase in well injectivity (370%) FORGE FORGE is advancing the fundamental understanding of the subsurface. FORGE is a DOE branded initiative intended as a field laboratory finding a commercial pathway towards EGS. FORGE is envisioned as a laboratory where the community can: Gain a fundamental understanding of the key mechanisms controlling EGS reservoir creation and sustainability; Develop, test and improve new techniques in an ideal and well characterized EGS environment; and Rapidly disseminate and share technical data among researchers, developers, local stakeholders, students, and other interested parties. During 2015, five teams, each of which proposed a specific site, were selected for Phase 1 participation. Following two subsequent down-selects over the next several years, one final FORGE team and site will emerge and move into the final operations phase of this initiative. Upon selection, this final site will be fully instrumented and characterized, with the 113

115 National Activities primary focus on annual competitive solicitations according to DOE s EGS roadmap. DOE s FORGE initiative is designed to leverage the knowledge and experience in the geothermal and subsurface community to resolve EGS challenges Hydrothermal Exploration Play Fairway Analysis The Hydrothermal Program is focused on reducing the cost of exploration and development of geothermal resources. The development of advanced exploration tools and technologies is seeking to accelerate the discovery and utilization of the U.S. Geological Survey's estimated 30,000 MWe of undiscovered hydrothermal resources in the western United States by increasing both exploration and well confirmation success rates. The approach is shown diagrammatically in Figure The concept of a Play Fairway analysis (PFA) was used to identify potential locations of blind hydrothermal systems that warrant future exploration and to describe geothermal opportunities in riftzone settings. This approach incorporates the regional or basin-wide distribution of known geologic factors besides heat flow that might control the occurrence of a geothermal system. Conducting PFA in unexplored or underexplored basins or regions or using new play concepts in basins with known geothermal potential is central to this effort. In 2015 Phase I of the PFA effort concluded, with promising results and additional phases are planned. Highlights and accomplishments of PFA Phase I include: Teams framed scenarios of heat, permeability, and fluid, defining one or more plays in each study area (fairway) Teams mapped, evaluated, and weighted indicators of heat, permeability, and fluid (the play, as defined in each project) in existing datasets Teams quantified the uncertainty inherent in existing datasets, including data quantity and coverage, quality, spatial accuracy, and time of data collection Teams have generated Favorability Maps (called different things by different teams, but this is the GTO term) that highlight promising areas for future research Teams have also considered socioeconomic and technical factors, such as land position, permitting timelines, and industry partnerships in prospective areas, and have loosely quantified the potential economic impact of future R&D. In December 2015, GTO selected six teams to continue with PFA Phase II for an additional $4.5 million. The projects selected for Phase II (data collection, updating maps, and methodology) will begin work in early 2016 and will have just over a year to complete Phase II activities. The projects selected for additional funding will continue to address the overarching theme of uncertainty quantification and reduction SubTER In 2015, DOE initiated a Subsurface Technical and Engineering RD&D (SubTER) team as an integrated platform to cross DOE subsurface interests and to address crosscutting challenges associated with the use of the subsurface for energy extraction and storage. This team includes representatives from all DOE applied technology offices and several other DOE offices focused on policy, research, and development. Through this coordinated approach, DOE can more quickly identify scientific and technology challenges and more effectively leverage funding through multi-office collaborations. 114

116 National Activities Figure 20-2This diagram illustrates the progress of the GTO initiative - Department of Energy investments in adapting play fairway analysis to geothermal exploration could yield a potential 30 gigawatts of additional power from energy hidden deep in the Earth. Representing the geosciences, research, modelling, technology development, policy, and stakeholders, the participating DOE program offices are involved : Fossil Energy Energy Efficiency and Renewable Energy Nuclear Energy Environmental Management Science Through ongoing engagement with key stakeholders to help identify high priority technology areas for federal advancement, DOE has developed a comprehensive research, development, and deployment (RD&D) strategy focused around four core pillars: 1. Wellbore Integrity New sensors and adaptive materials are needed to ensure sustained integrity of the wellbore environment. 2. Subsurface Stress and Induced Seismicity Radically new approaches are needed to guide and optimize sustainable energy strategies and reduce the risks associated with subsurface injection. 3. Permeability Manipulation Greater knowledge of coupled processes will lead to improved methods of enhancing, impeding, and eliminating fluid flow. 4. New Subsurface Signals DOE seeks to transform our ability to characterize subsurface systems by 115 focusing on four areas of research: new signals, integration of multiple data sets, identification of critical system transitions, and automation. A critical component of all pillars will be R&D testing at Energy Field Observatories. Field tests are critical to the validation of new results and approaches at commercial scale to validate tools, technologies, and methodologies and measure progress Low Temperature & Coproduced Resources GTO is working towards a goal of widespread production of low-temperature power by 2020 and beyond through surface and down-hole technology advances, improved education and outreach, and increased collaboration between government and industry Mineral Recovery GTO is investing in RD&D innovations to extract critical or other high value materials found in geothermal brines. Geothermal fluids could be a key pathway for supplying a growing domestic demand for these materials, which are predominantly imported today. In addition, unlocking costeffective and accurate processes for extracting such materials from geothermal brines can create a new revenue stream for geothermal developers. GTO concluded Phase I activities for its Mineral Recovery

117 National Activities Program. During Phase I projects demonstrated: technical feasibility and preliminary economic viability of several innovative mineral extraction technologies; conducted an initial resource assessment of rare earth elements and near critical-metal resources in the US. GTO will initiate Phase II projects in FY Hybrid Systems DOE is exploring the potential of using hybrid applications to raise power plant outputs at low cost. In 2015, industry partners began work to quantify the potential benefits of combining geothermal and solar thermal systems. Positive results could enhance deployment of these clean, renewable energy technologies in regions where the resources overlap. The research team is evaluating both the technical and economic aspects of hybrid power generation by combining geothermal energy with concentrating solar power (CSP) technology. The work utilizes data from the operating Stillwater geothermalphotovoltaic hybrid plant in Fallon, Nevada, where CSP was installed this year Desalination Over the past year, GTO has continued to invest in developing technologies that use thermal energy for desalination of impaired waters. These technologies have the potential to allow for geothermal heat to be used directly in cleaning produced waters, which will provide additional water supply for stressed regions and mitigate the hazards from induced seismicity. Reverse osmosis, which is the current standard for desalination technology, uses electricity to create a pressure difference that drives water across a membrane to remove dissolved salts. Both Forward Osmosis (FO) and Membrane Distillation (MD), the two technologies that GTO is currently funding, also drive water across a membrane, but they do so by making use of the low-grade temperature difference. This approach has been shown to reduce the overall operating expenses when it comes from a geothermal resource. During 2015, both of GTO s two desalination projects advanced their scope from proof of concept to prototype development, with plans for field testing at a geothermal site in Figure 20-3 Proposed Forward Osmosis System Idaho National Laboratory Systems Analysis GTO s Systems Analysis Program supports projects that solve non-technical barriers to geothermal deployment. The program is primarily focused on environmental issues; policy, regulatory, financing; economic analysis and validation; and data and tools that support geothermal exploration and development GeoVision Study In summer 2015, GTO launched a massive effort to produce an analytical report outlining a vision for the future of the geothermal industry in the coming decades. This GeoVision report will highlight the potential economic, environmental, and social benefits of geothermal energy. Stakeholders and visionaries from 116

118 National Activities academia, national laboratories, and the private sector have come together to conduct the study that will produce this report. GTO initiated this vision study at a meeting of industry experts in August 2014, and again in January The key objectives of the study are to provide a rigorous analysisdriven assessment of the future for a full continuum of geothermal energy technologies, and to further advocate for the continued RD&D efforts by DOE in this space. By engaging the geothermal industry in this dialogue, GTO anticipates a product that will benefit the entire industry and unify it moving into the future. Industry Status The United States remains the world leader in installed geothermal capacity, at 3.7 GW. Ninety-five percent of this capacity is in California and Nevada. According to the Geothermal Energy Association, additional capacity is under development among 80 projects nationwide, with the predominance of activity located in the hotter western states. Multiple agencies are involved in advancing the U.S. geothermal sector. Leading the sector is the GTO, which engages in RD&D; the Geothermal Energy Association (GEA), who advocates for expanded use of geothermal resources for power and direct use; and the Geothermal Resources Council (GRC) as a scientific, educational and cultural organization and US affiliate of the International Geothermal Association. Future Outlook As noted above, during 2016, FORGE will be reviewed to select a subset of participants for the next step in evaluating potential FORGE sites, drawing closer towards a replicable, commercial pathway to EGS. GTO will continue efforts to develop nearterm exploration tools to lower the upfront risk of exploration, and establish reproducible methods for commercially developing, and sustaining, geological heat reservoirs. This will allow geothermal energy to compete on an equal footing with conventional electricity sources. Play Fairway Analysis will enter Phase II in The selected awardees projects will gather additional geophysical data to further validate their Play Fairway exploration methodology. The GTO will continue to work closely with other DOE program offices to advance the SubTER initiative, to better leverage internal resources. Next generation advances in subsurface technologies will enable increases up to 100-plus gigawattselectric (GWe) of clean, renewable geothermal energy, meeting about onetenth of America s energy demand. Mineral Recovery Phase II will commence with research projects assessing the occurrence of rare earths and other valuable materials dissolved in geothermal or other high-temperature fluids and validating methods for extracting them. GTO will also ramp up work on the GeoVision Study in 2016, illustrating the geothermal potential and impacts in 2020, 2030, and References and Websites al.aspx Author Timothy Reinhardt Program Manager Systems Analysis and Low-Temperature and Coproduced Resources Programs Geothermal Technologies Program, EE-2C Office of Energy Efficiency and Renewable Energy US Department of Energy 1000 Independence Ave. SW Washington, DC 20585, USA Timothy.Reinhardt@ee.doe.gov 117

119 Sponsor Activity Chapter 21 - Spanish Geothermal Technology Platform Figure 21-1 Drilling works at the new IKEA located in Alcorcón, Madrid (courtesy of TELUR Geotermia y Agua) Introduction General Description of the Spanish Geothermal Technology Platform The Spanish Geothermal Technology Platform (GEOPLAT) is a stakeholder group for scientific, technical and sector relevant organisations in the geothermal energy sector. GEOPLAT provides a framework for involvement in the development of geothermal energy, led by the industry, to work in a coordinated way seeking to ensure the commercial uptake and continuous growth of geothermal energy, in a competitive and sustainable manner. The activities of the Spanish Geothermal Technology Platform are subsidized by the Ministry of Economy and Competitiveness (MINECO). The Platform has the institutional support of the Institute for Energy Diversification and Saving (IDEA) and the Spanish Centre for Industrial Technology Development(CDTI) Mission and Strategic Objectives GEOPLAT is identifying and developing sustainable strategies for the promotion and marketing of geothermal energy in Spain. GEOPLAT covers R&D activities, identification and evaluation of resources, and the technology associated with use of this renewable energy form. Sustainability and regulatory framework aspects are considered in the activities of the Platform, as well as collaboration with similar platforms, both nationally and in Europe. The specific objectives of GEOPLAT are: To provide a framework within which, all sectors involved in the development of geothermal energy, led by the industry, work together in a coordinated way to ensure the commercial uptake of this renewable energy and its continuous growth, in a competitive and sustainable form. To spread the potential of geothermal energy and in particular the results and recommendations of the Platform to related sectors. 118

120 Sponsor Activity To participate in international forums and activities related to geothermal energy. To analyse the current status of geothermal energy in Spain, considering all stages of the value chain, from the different types of resources to the end uses, taking into account the technologies that allow its use. To identify barriers (regulatory, financial, technological, etc.) that hinder the implementation of geothermal energy, and to set out strategies and sustainable alternatives, in particular technology related, in order to help to reduce risk and to promote development. To promote coordination between different actors in the sciencetechnology-company chain, to encourage business participation in the development of geothermal energy action plans, in R &D and in marketing. To promote training at all levels related to geothermal energy, to raise awareness, to mobilize society and mobilize national, regional and local government interes. To identify R&D needs and to recommend funding for research in strategic areas of geothermal energy, considering the steps and technologies involved. Highlights for 2015 The size of the Spanish geothermal heating and cooling market is difficult to accurately quantify, due to the lack of official statistics. Nevertheless, certain indicators allow an estimate of the installed capacity of geothermal energy for thermal use to be made, with GEOPLAT estimating 225 MW of GHP capacity installed. Modest growth has occurred over the last three years, mainly in heating and cooling installations in the residential and tertiary sectors. There has also been progress in geothermal district heating & cooling systems. According to the Spanish Association of Heating and Cooling Networks (ADHAC), there are three geothermal district heating & cooling systems in operation. In 2015 the Spanish Government has, for the first time, committed to geothermal R&D activities through participation (and obligation for co-funding jointly with the European Commission) in the ERANET Cofund - GEOTHERMICA established in 2012 ( This European initiative co-finances R&D projects for geothermal energy production using funds from the European Commission and the subscribing Member States. In Spain there are several initiatives to be funded by the ERANET, the implementation of which will be strategic for the geothermal sector in Spain. It is also worth mentioning the relatively high level of participation of Spanish public and private stakeholders in several Horizon 2020 projects which have recently commenced under the EU Horizon Low Carbon Economy (LCE) program. No geothermal power plants have so far been developed Spain. The new renewable energy subsidy framework is unfavourable, towards production of electricity from geothermal sources as this kind of facility is not eligible for subsidy support. The Order IET/1045/2014 of 16 June 2014 (which completes the regulatory implementation of the new legal and financial regime applicable to electricity generation facilities based on renewable energy, cogeneration and waste) doesn t include the production of electricity from geothermal energy. The high investment required for deep geothermal development and the need for support from both the public and private sector in order to manage risk associated with geothermal resource investigation are also impediments. Nevertheless, geothermal energy for power generation presents as a clear opportunity for development in Spain given the potential. The Spanish geological frame is favourable for the development of Enhanced Geothermal Systems (EGS). 119

121 Sponsor Activity Status of GEOPLAT s Geothermal Activities in 2015 Collaboration with other public bodies and institutions with competences in the geothermal sector Synergies with the Spanish Ministry of Economy and Competitiveness (MINECO): o Close cooperation in the promotion of R&D support tools. o Advice on Spanish participation in the European Research Area (ERA) NET Cofund GEOTHERMICA (ERA- NET Cofund GEOTHERMICA cofinances R&D&i projects (research, development and innovation) in electricity production from geothermal energy by European Commission and the Member States funds). Close collaboration with the Spanish Centre for Industrial Technology Development (CDTI). o Promotion of CDTI financing instruments for industrial technology development. Collaboration with public administrations and Autonomous Regions. Involvement in other Spanish and European Technology Platforms. Members of Inter-Platforms Group on Smart Cities (GICI). Active involvement in the Spanish Alliance for Energy Research and Innovation (ALINNE). Activities at the European level Horizon 2020 (EU Framework Programme for Research and Innovation): o Definition of the Spanish geothermal R&D priorities to be included in the Work Programmes of Horizon This is mainly in the Energy challenge, but also providing comments on other challenges such as the Environment. European Strategic Energy Technology Plan (SET-Plan): o Collaboration with CDTI and MINECO in the preparation of the European Innovation Partnership on Smart Cities and Communities (EIP- SCC). o Participation in forums organized by CDTI to define the Spanish position. European Technology Platform on Renewable Heating and Cooling (RHC- Platform): o President of the Geothermal Panel. o o Member of the Board. Participation in the elaboration of several documents within the RHC- Platform. Communication and dissemination Representation in national and international forums. Participation in the European Forum on Science, Technology and Innovation (Transfiere Forum). Establishing official geothermal energy training in Spain, using standardized parameters issued by the European geothermal training Committee. Development of the first Technological Capabilities Map of the Spanish geothermal sector ( The Spanish Geothermal Technology Platform (GEOPLAT) in December 2015 published the report Análisis del sector de la energía geotérmica en España (title in English: Analysis of geothermal energy sector in Spain). This report confirms that heating, cooling and generation of electricity from geothermal energy is a viable energy option for Spain; with the capacity to contribute to the Spanish energy mix as a solid and versatile renewable energy, with potential to contribute to climate change mitigation policies to be implemented in Spain in the context of 20/20/20 energy policies and National Renewable Action Plans. Geothermal energy for power generation The report shows the economic activity that could be generated by the geothermal energy sector for power generation in Spain. This indicator is calculated including the Spanish market value of the imports of the sector and adding the exports generated by companies in Spain. 120

122 Sponsor Activity Analysing the value that the Spanish companies could bring to a deep geothermal energy project, it is concluded that over 40% of it would be provided by domestic firms. The assessment identifies that as the market develops in Spain this number could reach 50%. With regard to exports, it is estimated that Spanish companies could provide engineering services, EPC contracting, as well as other services, such as the execution of surveys and drilling. These services could be provided for flash steam technology plants of a limited size (< 20 MW). The main focus market is Latin America. According to the experts consulted, Spanish companies could obtain more than 40% of the investment value from these plants, which will have a positive impact on the national economic activity. Geothermal for thermal energy Due to the moderate level of commercial implementation of geothermal facilities for thermal energy in Spain, almost all installer companies are local. The level of the exports of the Spanish companies of the geothermal sector for thermal generation is low. It is expected that in the coming years the exports will increase with the growth of the world market. The Spanish companies will then take advantage of the growth of the European market to increase their sales abroad. Due mainly to the growth of the domestic market, it is estimated that the economic activity generated by the sector in Spain could reach 164 million euros in 2030 with a compound annual growth rate (CAGR) of 11.5% for the period Review of active geothermal projects and their status Geothermal heating & cooling projects The Spanish use of shallow geothermal for HVAC (heating, ventilation, and air conditioning) and DHW (domestic hot water) sector maintains a slow but growing position helped by a 'building rehabilitation' trend, where geothermal is starting to play a small role. In Spain there are already three geothermal district heating & cooling systems ( AsociacionPerso8_ pdf) Geothermal R&D projects In 2015 the EU Research and Innovation programme, Horizon 2020, awarded funding for one geothermal project which includes Spanish participation in the consortium. This geothermal project is: CHPM Combined Heat, Power and Metal extraction from ultra-deep ore bodies o Topic: LCE Developing the next generation technologies of renewable electricity and heating/cooling o Funding scheme: RIA - Research and Innovation action o EU contribution: EUR ,5 o Coordinator: MISKOLCI EGYETEM o (Hungary) Spanish Participants: LA PALMA RESEARCH CENTRE FOR FUTURE STUDIES, S.L. o More info: /199012_en.html At a national level, the funding of the Spanish geothermal R&D projects approved in 2015 (calls for companies proposals launched by the Spanish Centre for the Development of Industrial Technology, CDTI) was 372,247, of which 232,915 was the CDTI contribution. Planned Activities for 2015 and Beyond The development of the sector is occurring at different rates; there is progress in geothermal energy for heating and cooling, but geothermal energy for power production remains static. Having this in mind, the Platform is seeking to continue to contribute to the development of the 121

123 Sponsor Activity Spanish geothermal sector using all means within its reach. GEOPLAT maintains close collaboration with the Spanish Ministry of Economy and Competitiveness (MINECO) and the Spanish Centre for the Development of Industrial Technology (CDTI) to promote the competitiveness of geothermal technologies. In addition, GEOPLAT collaborates with the Spanish Institute for Energy Diversification and Saving (IDAE) and with various regional administrations to support and promote the geothermal sector. GEOPLAT maintains joint work activity with national technology platforms linked to the field of geothermal energy to maximize synergy opportunities in the sector in Spain. Furthermore, GEOPLAT will continue to stimulate R&D activities related to geothermal energy in Spain in the European market through the collaboration with the European Technology and Innovation Platforms: RHC-ETIP (European Technology and Innovation Platform on Renewable Heating and Cooling) and DEEP Geothermal- ETIP (European Technology and Innovation Platform on Deep Geothermal Energy). In the near future GEOPLAT will have new training initiatives and will reactivate the Platform working groups. GEOPLAT works to create as much added value as possible for the stakeholders of the Spanish geothermal sector. Comments of the Geothermal market; Opportunities and Constraints Marketing Initiatives and market Stimulation Incentives The Spanish Institute for Energy Diversification and Saving (Instituto para la Diversificación y Ahorro de la Energía, IDAE) has developed financing programmes to promote of the use of geothermal energy for thermal use in domestic, industry and hotel sectors: GEOTCASA Programme. Financing geothermal installations in building submitted by the ESCOs (Energy Service Companies). In 2015, GEOTCASA financed 12 geothermal installations in buildings, with a total installed capacity of 1,292 kw. GIT GEOTCASA Programme. Financing to authorised firms of Large Thermal Installations running on geothermal in the building sector. In 2015, GIT-GEOTCASA, financed 1 project of 724 kw of installed capacity. PAREER - CRECE Programme - (Aids for Energy Rehabilitation of existing buildings), will continue to promote comprehensive measures to encourage energy efficiency and use of renewable energies in the existing building. It contributes also to the achievement of the objectives set out in Directive 2012/27 / EU on energy efficiency, and in the National Energy Efficiency Action Plan. Reference and websites GEOPLAT - Spanish Geothermal Technology Platform APPA, documentation pertinent to APPA Geothermal Department (Low and High Enthalpy) IDAE, documentation pertinent to IDAE Geothermal Department CDTI, Spanish Centre for Industrial Technological Development Authors and contacts Margarita de Gregorio Spanish Geothermal Technology Platform - GEOPLAT- Secretariat C/Doctor Castelo 10, 3C-D Madrid, SPAIN margadegregorio@geoplat.org Tel:

124 Sponsor Activity Chapter 22 - CanGEA Figure 22-1 Canadian Potential Geothermal Operations Figure 22-2 Present State of Canadian Geothermal Operations. Introduction and Overview Geothermal resources have been a part of Canada s rich heritage for generations. First Nations groups first used this resource for healing and spiritual purposes and regarded natural hot springs and pools as sacred waters. Later, as the Canadian frontier moved westward, early pioneers and settlers discovered the hot springs and 123 pools of the Canadian Rockies. The significance and importance of the springs were recognized and helped to form Canada s first national park in 1887: Banff National Park. As energy prices soared in the early 1980s, governments turned their attention towards finding new and renewable sources of energy. As such, the Canadian federal

125 Sponsor Activity government, through the Ministry of Natural Resources and the Geological Survey of Canada (GSC), initiated studies to explore Canada s geothermal energy potential for electricity production. Unfortunately, as energy prices returned to affordable levels, this early exploratory work was abandoned and no formal report was published at the time. For the most part, Canada s geothermal power sector lay dormant for the following two decades while interest in the industry continued to grow outside of Canada s borders. In response to that interest, the GSC published Geothermal Energy Resource Potential of Canada in 2011 and announced that Canada has enormous geothermal energy resources that could supply the country with a renewable and clean source of power and it is particularly attractive as a renewable base load energy supply. While there is no geothermal power currently produced in Canada, there is substantial interest in geothermal power production from Canadian industry. In 1984, BC Hydro constructed the Meager Creek pilot project (now owned by Ram Power Figure 22-3), which produced as much as 200 kw of power before being cancelled in Figure 22-3 Former drilling activity at Meager Creek, B.C. (source: info@ram-power.com) In 2007, the Canadian Geothermal Energy Association (CanGEA) was formed to provide the Canadian geothermal energy industry with a forum to promote geothermal energy development in Canada. CanGEA is the collective voice of Canada's geothermal energy industry. As a non-profit industry association, it represents the interests of its member companies with the primary goal of unlocking the country's tremendous geothermal energy potential. As Canada s government is not yet as involved in the geothermal industry as industry would like, CanGEA is filling the role as best as possible. Figure 22-1 is a snapshot developed by CanGEA of the possible geothermal resources across Canada, in contrast with the present state of Canadian operations (Figure 22-2). Geothermal Mapping Activities in 2015 Following the guidelines set out in the Global Protocol and the Canadian Geothermal Code for Public Reporting, CanGEA is facilitating the development of Geothermal Favourability Maps of all of Canada s provinces and territories. The purpose of the project is to provide publicly available maps, databases, protocols, and tools that may be used as a resource and/or investment tool for assessing and exploiting geothermal resources in Canada. Geothermal Favourability Maps of Alberta were completed in 2012, and British Columbia s were completed in 2014, indicating the potential to meet BC s power demands, and much of Alberta s (accessible with current technology between m deep and a recovery factor of 5%). Maps of the Yukon will be published in In conjunction with the Geothermal Favourability Maps, a web portal has been established that hosts the publicly accessible Canadian National Geothermal Database (CNGD). The CNGD is currently being hosted on the CanGEA website. Both the Alberta and British Columbia reports are available on the CNGD. National & Provincial Strategy & Legislation In light of the absence of national targets or a national strategy for geothermal energy, CanGEA has maintained since 2008 that 5,000 MW of power and heat could be developed with current technology by The latest research findings are reassuring 124

126 Sponsor Activity as more than 10,000 MW of resources have been identified in Alberta and British Columbia. CanGEA is working to enable the development of this vast resource by working to influence policy evolution. International Geothermal Support Mechanisms Best Practices Report: The Canadian Gap (2015) was produced in partnership with the National Resources of Canada (NRC) Industrial Resources Assistance Program, to define International best practices for Canada and help focus CanGEA s efforts to inform and influence Canadian decision makers and policy reform. Germany and France are held as best practice examples for Canada s unconventional HSA (Hot Sedimentary Aquifer) development, citing the FIT (Feed in Tariff) and CHP (Combined Heat and Power) production programs in place. For conventional geothermal resources, the U.S. is proposed for best practice, citing the massive geothermal development in the U.S. following PURPA (Public Utilities Regulatory Policy Act) legislation. Finally, CanGEA highlights the U.S. best practice of the inclusion of geothermal energy in a broad array of tax incentives, loan guarantee programs, and production tax incentives to de-risk and spur geothermal investment and development. The lack of such policy is a major impediment to geothermal investment in Canada to date. Currently, there exists federal legislation that allows geothermal developers to receive the same preferred tax treatment as other users of environmental equipment. Access to tax incentives such as the CEE (Canadian Exploration Expense) are available for geothermal power projects, but are still not available for direct use projects. On a provincial level, British Columbia is the only province that has geothermal-specific legislation. However, BC Hydro s 2013 Integrated Resource Plan and previous Government of British Columbia documents acknowledge existing deficiencies with the province s geothermal leasing processes. In Alberta, there remains no avenue whatsoever to obtain a geothermal exploration permit or geothermal lease. Without creating new legislation, the Northwest Territories and Saskatchewan have established interim approaches. In the Northwest Territories some permitting is available through the Mackenzie Valley Land & Water Board, and in Saskatchewan development is being facilitated through the utilization of Use of Space Agreements that are borrowed from oil and gas legislation. In 2015, CanGEA forged new relationships with the newly elected Canadian Liberal government as well as the new Alberta NDP government. With both of those governments, as well as the rest of Canada, CanGEA is making geothermal an important part of the Canadian energy policy reset caused by a new focus on climate change mitigation and alternative energy sources beyond oil and gas. The campaign was launched in the fall of 2015 and provides a platform for the general public to request geothermal development in Canada via letters. In 4 months of operation, 179 letters were sent to taxpayers' elected officials as a result of this campaign. Figure 22-4 Radium Hot Springs (source: flickr/ Danny Nicholson, cc) 125

127 Sponsor Activity Industry Status & Market Development The Canadian industry covers several aspects of the geothermal supply chain: turbine manufacturers, surface and subsurface engineering companies, drillers, etc. For a country without any geothermal power generation, Canada s geothermal energy supply chain is very well developed. Technology crossovers between the exploitation of natural resources like oil, gas and minerals, and geothermal made this development possible. An effort by CanGEA is underway to bring awareness to these companies of the geothermal market, where they could help and which synergies they could exploit. Companies that exist to solely serve the geothermal market are Deep Earth Energy Production Corp. and Borealis GeoPower. Figure 22-6 is a map showing current projects in Canada. The costs of developing and executing these projects are hardly quantifiable, as no power project has been completed yet. It is notable that there are many different types of geothermal energy and its sources available in Canada, ranging from volcanic to hot sedimentary aquifers to EGS in hot dry rocks; possibly even offshore geothermal. High-temperature resources, which are suitable for electricity generation, are restricted to the western provinces. Due to the wide range of geologic settings, cost calculations have been rather widespread. The geographic dimensions of Canada and the fact that some geothermal resources are located in remote areas without infrastructure also add a premium on to expected costs. In an effort to encourage and support geothermal development in Canada, CanGEA published the Thermal Springs of Canada: Geochemical Analysis in Canada s thermal springs, besides being economically important tourist attractions, also contain valuable exploration data that can be interpreted and applied in the discovery of geothermal and solution mining resources. This report summarized historical data collected from Canada s 157 known thermal springs, including the approximate location, water chemistry, temperature, and volumetric flow readings of most thermal springs in Western Canada. Of special interest to the Mining sector, this document includes single sample readings for silica, sodium, potassium, calcium, magnesium, lithium, chlorine, sulphate, and bicarbonates. A growing international trend is to harvest these valuable commodities via the co-production of geothermal power and heat Direct Use Direct-use geothermal has achieved consistent growth globally in the last decade, primarily through the increase in geothermal heat pump installations and geothermal direct-use for bathing and swimming. However, for many countries with direct-use potential Canada included there is a general absence of technical and economic data surrounding subsurface geothermal conditions and suitable utilization of direct-use applications, especially for regions further away from surface manifestations. As a follow-up to the 2014 report, Direct Utilization of Geothermal Energy: Suitable Applications and Opportunities for Canada, CanGEA released the Temple Gardens Case Study in 2015, highlighting one of Canada s profitable direct use projects. Figure 22-5 Temple Gardens Thermal Waters, Moosejaw, SK The geothermal resource at Temple Gardens (Figure 22-5) was discovered in 1910 during a natural gas drilling operation. The discovery well was capped, and a 126

128 Sponsor Activity follow-up geothermal well doublet was ultimately drilled in 1989, supported by various city, federal and public interest-free financing. The resort now hosts over 200,000 annual visitors, accounting for $61 million in gross sales. Naturally occurring hot springs can be found in all Western Canadian provinces and 157 have been identified so far. Only 12 sites have been developed as hot spring destinations, which are used by the public for bathing. These sites, in addition to Temple Gardens, represent a total installed capacity of 8.8MW t. Geothermal heating and cooling using geothermal heat pumps (GHP) is present throughout the country with a total installed capacity estimated to be 1,458MW t. The status of geothermal energy use in Canada for 2015 is presented below. Table 22-1 Geothermal Energy Use in Canada for 2015 Electricity Total Installed Capacity (MWe) 0 New Installed Capacity (MWe) 0 Contribution to National Capacity (%) 0 Total Generation (GWh) 0 Contribution to National Generation (%) 0 CanGEA Target (MWe) by ,000 Estimated Country Potential (MWe) 10,686* Direct Use Total Installed Direct Use from hot springs (MWt) CanGEA Estimated Direct Use (MWt) New Installed Capacity (MWt) ,000 Total Installed Capacity (MWt) 1,458 Total Net Use (PJ/yr) Installed Capacity Per Capita 41 (MWt/m people) * Estimated Country Potential includes indicated and inferred resource potential only in the provinces of Alberta, and British Columbia at 2.5km at a conservative 5% recovery factor. Mapping of the rest of the country is underway. In 2015, CanGEA initiated and organized Technology Transfer Workshops with the Oil and Gas industry and the Carbon Capture and Storage industry. These events educate and emphasize opportunity and synergy between geothermal and these partner industries. In order to raise the awareness for geothermal energy and its possible applications in Canada, Geothermal 101 events were introduced throughout the year. These events are targeted at the general public and feature presentations, networking receptions and lunch and learn workshops. Also in 2015, CanGEA published Un- Natural Gas: Canada s Dirty Substitute for Geothermal Power in response to Alberta s plan to replace coal power with natural gas. Geothermal is much cleaner than both coal and natural gas and has less social impacts, while offering the same base load capacity. In this report, CanGEA highlights the benefits of geothermal over fossil fuel resources such as coal and natural gas, as well as other renewable resources. CanGEA has elaborated a 5-point plan for properly investigating the merits of geothermal in Alberta, including funding demonstration projects, and improving Canadian policy to make geothermal investment as attractive as other energy sources. Throughout 2015, CanGEA focused on Northern Canada and furthered work on the Remote, Northern Communities and First Nations Geothermal Opportunities and Applications project. The primary goal of this project is to bring geothermal energy to the northern and remote communities of Canada. In partnership with the Canadian Northern Economic Development Agency, the Government of Yukon s Department of Energy, Mines and Resources Energy Branch, and the Yukon Geological Survey, CanGEA is currently developing maps and reports that will identify sources and possible applications of geothermal energy in the Yukon Territory. 127

129 Sponsor Activity Geothermal Projects in Canada Power generation projects Project Developer Province/ Territory Play Type Canoe Reach Borealis GeoPower British Columbia Orogenic Belt Lillooet Alterra Power British Columbia Magmatic/Plutonic South Meager Ram Power British Columbia Magmatic/Plutonic Ft. Liard Borealis GeoPower Northwest Territories Sedimentary Basin Rafferty Deep Earth Energy Production Corp. Saskatchewan Sedimentary Basin Pebble Creek Tecto Energy British Columbia Magmatic/Plutonic Lakelse Borealis GeoPower, Enbridge, Kitselas First Nations British Columbia Extensional Ross River Kaska First Nations Yukon Territory Extensional Swan Hills Devon, Borealis GeoPower Alberta Sedimentary Basin Direct use projects Project Developer Province/ Territory Play Type Ft. Liard Acho Dene Koe First Nation, Northwest Territories Sedimentary Basin Borealis GeoPower Con Mine City of Yellowknife Yellowknife, Northwest Territories n/a Takhini Hot Resort Development Group Springs (Yukon) Inc. Geothermal Park Yukon Territory? 6 Figure 22-6 Overview of Active Canadian Projects Research, Development & Demonstration Currently, there are several research organizations and academic institutions in Canada providing ongoing research in the field of geothermal. A description of these groups is provided here: The Canadian Geothermal Research Council (CanGRC): CanGRC is a non-profit organization dedicated to serving Canada's geothermal research community. It does not exist as a government lobby group, nor is it intended to represent the unified voice of the research community - it simply exists to raise awareness about geothermal research in Canada, to showcase Canadian geothermal research and to elevate communication within the research community. Website: Helmholtz Alberta Initiative (HAI): HAI is an independent international research partnership that effectively amalgamates the scientific and technical expertise of the Helmholtz Association of German Research Centres (Germany) and the University of Alberta (Canada), to jointly develop solutions to key challenges in fields such as energy and environment, ecosystem and resource informatics, and health. Research in 2015 included EGS and Alberta's Paleozoic Aquifers. Website: Physical Volcanology Group: Simon Fraser University s Physical Volcanology Group concentrates on physical volcanology and the processes controlling persistently active volcanoes. Current research integrates the study of geophysical signatures with geochemical and remote sensing data to investigate precursory signals to volcanic activity and the mechanisms that trigger eruptions. Website: Earth Mine Energy Research Group (EMERG): EMERG is developing a multidisciplinary research project with close cooperation with McGill and Laval 128