Developing Geothermal Energy in the Pacific Northwest. The Energy Under Our Feet

Transcription

1 Developing Geothermal Energy in the Pacific Northwest The Energy Under Our Feet

2 Geothermal Energy The deeper you go the hotter it gets. AltaRock Confidential 2

3 Using the Earth s Heat Today Hydrothermal Sources On line now Drill wells into fractured or porous rock Pump or self-flow water to surface Direct use of heat Heating and cooling Industrial processes food drying, washing Aquaculture Power Generation Flashed Steam Binary Dry Steam Combined heat and power at Chena Hot Springs, Alaska

4 Binary vs. Flash Flashed Steam Plants- Most geothermal power plants operating today are "flashed steam" power plants. Hot water is passed through one or two separators Released from the pressure of the deep reservoir, part of it flashes (explosively boils) to steam. The force of the steam spins the turbine generator. The geothermal water and condensed steam are directed down an injection well back into the periphery of the reservoir, to be reheated and recycled. Navy I dual flash plant at Coso AltaRock Confidential 4

5 Binary vs. Flash Binary Power Plants - Geothermal water is passed through one side of a heat exchanger Heat is transferred to a second (binary) liquid, called a working fluid The fluid boils to vapor which, like steam, powers the turbine generator. Then condensed back to a liquid and used over and over again. Binary plant at Empire, NV AltaRock Confidential 5

6 Environmental Impact of EGS Plant emissions No plant emissions with binary plants With flash plants, plant emissions extremely low, can be mitigated Drilling and site preparation Relatively small land disturbance Several wells drilled from one 100 ft x 300 ft pad Plant is small, one story high Rock cuttings and reservoir fluids benign with EGS resources Transmission line routing Projects can be located near transmission lines Projects can be located away from scenic areas Altarock Confidential 6

7 The Future of Geothermal Energy The Future of Geothermal Energy: Impact of Enhanced Geothermal Systems (EGS) on the United States in the 21st Century 12 member panel lead by Dr. Jeff Tester through MIT Includes preliminary assessment of US resource Conclusions: Technically feasible today Best resources economic today Resource extends across US 50,000 MW of EGS power could be on line by 2050 with no federal investment 100,000 MW by 2050 ~$350,000,000 net federal investment AltaRock Confidential 7

8 Next Generation Geothermal Technology Enhanced Geothermal Systems Benefits Like hydrothermal Renewable, baseload, low cost to operate, low cost volatility Uses same plant technology and drilling infrastructure as hydrothermal Scalable modular development to very large projects Small footprint Less site specific Low to no resource risk technology based Technically feasible today Challenges High up front cost 75%-80% in wellfield

9 EGS Technology How it works

10 Where Do We Find It? Volcanic areas Thin crust Deep sedimentary basins Deep faulting

11 Volcanic Areas The Cascades Magmatic heat source Mt. Jefferson

12 Thin Crust Basin and Range Crustal thinning brings heat close to the surface in the Basin and Range, the Rhinegraben in Europe. Geothermal well test in the Basin and Range of Nevada

13 Deep Sedimentary Basins Radioactive decay of isotopes in granitic basement rocks is trapped by insulating sediments. Geopressured geothermal power plant test at Pleasant Bayou, LA

14 Deep Faulting Faults extending deep in the earth bring high temperature fluids near the surface. Test of new well for district heating system, Boise, Idaho. Deep faulting brings hot water to shallow depths in Boise, other areas of Idaho.

15 Geothermal Potential of the Pacific Northwest

16 Economics High Temperature System 300 C at 4 km With current technology ~12.5 /kwh With improved technology 9.5 /kwh Areas for technology improvement Conversion cycle efficiency Drilling cost reduction/risk reduction Fewer casing strings Higher hard rock ROP Better measurement while drilling for HT (risk ) Improved stimulation technology Better zone isolation Better reservoir understanding Stress measurement Fracture ID Higher flow per producer Single well test methods AltaRock Confidential 16

17 Economics Low Temperature System 150 C at 5 km With current technology ~21.5 /kwh With improved technology 10.4 /kwh Areas for technology improvement Conversion cycle efficiency Improved HT pumping More efficient binary cycle Drilling reduction/risk reduction Fewer casing strings Higher hard rock ROP Better measurement while drilling for HT (risk ) Improved stimulation technology Higher flow per producer! Better zone isolation Better reservoir understanding Stress measurement Fracture ID Single well test methods Other w ellfield- Pipes, pumps, stimulation Other w ellfield- Pipes, pumps, stimulation % of LCOE, Baseline System Pow er Plant Wells Royalty % of LCOE, Improved System Pow er Plant Wells Royalty Exploration Contingency Exploration Contingency AltaRock Confidential 17

18 Available EGS Power at Cost Supply Curve for EGS Power in the United States Cost in /kw/h Current Technology Near Term Incremental Improvements ,000 1,000,000 1,500,000 2,000,000 2,500,000 Developable Power Assuming 30 Year Project Life in MWe AltaRock Confidential 18

19 GETTING POWER ON LINE Increase capacity at 10% per year Develop hydrothermal first EGS at best sites starting in 2013 EGS expands at 20% per year until 2025

20 250, ,000 Geothermal Development to Reach 20% of US Electric Power Geothermal MW on Line Cum EGS on line CO2 Displaced in metric tons 3,500 3,000 Billions MW Electric Capacity (net) 150, ,000 2,500 2,000 1,500 1,000 CO2 Displaced in Metric Tons 50, Year

21 WHAT DO WE NEED TO GET POWER ON LINE? Land Exploration Development Investment Equipment Rigs Steam turbines Binary power plants People Technical Resource Technical Plant Rig crews Plant operations

22 What We Need -EGS 20% of US Electric Power Supply 2,500 50,000 New Wells Rigs 45,000 2,000 People (Plant Ops) Rig Crews 40,000 Wells and Equipment 1,500 1,000 Technical-Resource Technical-Plant Construction 35,000 30,000 25,000 20,000 15,000 People ,000 5,

23 Millions 10 9 Land and Investment -Geothermal as 20% of US Power Supply Acres of Developable Land Acres of land needed for exploration Investment Private $60,000 Millions 8 $50,000 7 $40, $30, $20,000 2 $10, $0

24 How Do We Make This Happen? QuickTime and a YUV420 codec decompressor are needed to see this picture. Risk reduction Drilling cost reduction Improved stimulation greater flow per producer Increased conversion efficiency Longer reservoir life

25 Geothermal Energy In A Carbon- Constrained Future Using EGS technology we can achieve: 10 percent growth per year in geothermal power on line Reach >100,000 MW by 2045 in the US alone Displace 1.4 billion metric tons per year of CO2 Based on incremental improvements in existing technologies Uses existing infrastructure Future technology improvements could achieve: Major CO2 offsets CO2 sequestration while generating power Significant improvements in efficiency Reductions in cost to less than half cost with current technology AltaRock Confidential 25