Geothermal Technologies Office Overview

Transcription

1 Courtesy Ben Phillips Courtesy FORO Energy Courtesy Bill Goloski Courtesy FastCAP courtesy of Trey Ratcliff Geothermal Technologies Office Overview Presentation to METI/JOGMEC/AIST October 14, 2014 Jay Nathwani Geothermal Technologies Office Chief Engineer Jeff Miller Director, DOE Japan Office US Embassy Tokyo

2 What is Geothermal? Geothermal Heat Pumps/ Ground Source Heat Pumps Direct Use Geothermal Geothermal Power (Electricity Generation) Use relatively constant temperature of the earth as heat sink for commercial and residential heating and cooling Use thermal energy (heat) from the earth directly for heating/cooling buildings, greenhouses, aquaculture, pools, spas, etc. Use thermal energy (heat) from the earth to generate electricity Near ambient temperatures (~40-80 F) Shallow depths - trenches to wells hundreds of feet deep Moderate temperatures ( F) Wells hundreds to thousands of feet deep High temperatures (>300 F) as well as low temperatures (<300 F) Wells up to many thousands of feet deep Baseload generation value proposition 2

3 Conventional Geothermal System Hot fluid (water, steam, or both) produced from wells drilled into ground Fluid passed through power plant to generate electricity Fluid (usually) re-injected back into ground 3

4 Enhanced Geothermal Systems 4

5 courtesy of Geothermal Resources Council US Geothermal Landscape what you should know Sector Size: Moderate current installed capacity (3.4 GWe), growing MW/yr Where: Historically concentrated in a few states but that s changing the co-called tyranny of geography Production: Baseload - with flexibility increasingly valued by the market Financial: Investment profile can be risky but improving due to technology Near Term: Lots of upside potential new fields, new concepts, and new technologies. Growth Opportunity: Strong potential for longer term market growth and disruption. 5

6 U.S. Geothermal Growth 3.4 GW (Currently Installed) Developing plants + New Hydrothermal 30+ GW 7-10 GW In- to Near-Field EGS Key current growth in NV, CA, OR, ID, CO, NM 100+ GW Greenfield EGS? 6

7 Where Else Could We See New Growth Potential? Cascadia Snake River Plain South Texas/Gulf Coast Appalachian Basin (and other interior basins) New Mexico/Colorado/Rio Grande Rift Select interior basins Eastern Great Basin 7

8 Private Industry and Government Policy Collaborations Total Nameplate Geothermal Capacity in the U.S. as of January 2014 U.S. Nameplate Capacity (MW) PTC, ITC GRED I, II, III Industry Coupled Case Studies begin PURPA First binary unit online CA reaches 2000 MW Explains strong industry interest in new prospects, new technologies, and drilling 0 CA s GRDA Year Note: PCA (Planned Capacity Additions), pilot plants and utility scale geothermal plants built in the first half of the 20th century and then decommissioned are not included in the above time series. Source: GEA 8

9 Addressing GTO Major the Initiatives Risk Profile Combination of early higher risk, higher costs, and regulatory uncertainty can impair projects Reinforces GTO focus on areas such as drilling cost, success probability, and new technologies 2-4 years 1-2 years 1-2 years Adapted from ESMAP, 2012 Geothermal Handbook: Planning and Financing Power Generation 9

10 courtesy of Baker Hughes courtesy of Geothermal Resources Council courtesy of FastCAP Systems GTO Major Initiatives New Geothermal Opportunities Play Fairway Pathway to next-step drilling validation Accelerating EGS Build upon R&D and demonstration project successes EGS R&D Frontier Observatory for Research in Geothermal Energy (FORGE) FOA Tackling Deployment Barriers Regulatory Roadmap: Streamlining National Geothermal Data System: leveraging access to data Additive Value Low Temp Mineral Recovery Hybrid systems NEW: Subsurface Engineering Crosscut (SubTER) Intra- and inter-agency effort to address common subsurface challenges and better leverage DOE R&D 10

11 Subprograms Leverage One Another Crosscutting Research 11

12 Hydrothermal sub-program Technology and Engineering Needs Technology Barriers GTO-Funded Solution Set Goal Peer Review reports Resource Characterization Non-unique signals, blind resources, cost, downhole tools limited by temperature New occurrence models Play Fairway analysis Blind resource signatures Reservoir Access Comparative lack of high performance drilling tools for large diameter, hightemperature, rock drilling, cost High temperature tools Feasibility study for Horizontal wells Hydrothermal Growth Courtesy Baker Hughes Courtesy US Geothermal Sustainability Maintain productivity with minimal thermal drawdown and water losses Rotary steering Remote sensing Leveraging O&G technologies 12

13 Hydrothermal Near-term Tools, Maps, Analysis, Plays Advance Key Innovative Exploration Technologies (IET) Targeted drilling and geophysical techniques Execute Play Fairway Analysis Observational, analytical integration, interpretation, basin and systems evolution 13

14 Low Temperature sub-program Technology and Engineering Needs Technology Barriers GTO-Funded Solution Set Goal Courtesy UTC Power Courtesy NREL Cooling Technologies Air-cooled systems are constrained in hotter areas of the arid-concentrated Western U.S. Fluid Value Lower temperature fluids are inherently less valuable for power generation than hotter; additional uses/revenue sources are needed Leveraging O&G infrastructure Innovative conversion cycles Hybrid cooling cycles Materials Extraction Advanced working fluids Low Temp/Copro Growth Courtesy UTC Power Energy Conversion Improve efficiencies for lower temperatures, operation & maintenance, cost Improved binary system components Hybrid Technologies Coproduction 14

15 The Blue Lagoon (Iceland) Low Temperature Expansion via Direct Use What is Direct Use? Direct use is the utilization of geothermal waters, without a power plant or heat pump, to provide: Space and district heating/cooling; agricultural applications; aquaculture; water heating/chilling; industrial uses and water treatment/desalination. The low-temperature portion of the geothermal spectrum used for direct-use applications, contains the bulk of the readily accessible resource base. About 25% of US energy use occurs at temperatures <100C mostly from burning natural gas and oil. If a resource is located near a direct use application, it may be more economically advantageous to use that heat directly, rather than electricity generation. The Blue Lagoon in Iceland by J.W. Tester, D.B. Fox and D. Sutter, Cornell University

16 Low Temperature Near-term Materials Extraction, Direct-Use, Hybrid Systems Low-Temperature Mineral Extraction - Resource assessment and feasibility (additive value) O&G Well Temp, Gulf Coast Large-scale Direct Use: where does it make technical and commercial sense? Use geothermal hot fluids for heating and cooling Potential displacement of traditional baseload generation on site-by-site basis Large-scale development most likely along Atlantic Coastal Plain where population centers overlie basement granitic rocks with radiogenic heat-producing elements. Other potential basins include the Allegheny, Illinois and Michigan. Courtesy Bloomberg Courtesy Electratherm 16

17 Challenges to EGS Development Technology and Engineering Needs Technology Barriers GTO-Funded Solution Set Goal Hard/Hot-rock drilling, Reservoir Access completion technologies New well geometries and concepts, optimized drilling Rotary steering Reservoir Creation Characterize local stress, zonal isolation, novel fracturing methods, increase fractured volume per well Productivity Increase flow rates without excessive pressure needs or flow localization Stress-field diagnostics Smart tracers Zonal Isolation High-T sensors EGS Success Sustainability Maintain productivity with minimal thermal drawdown and water losses Cross-well monitoring Diverter technologies 17

18 Snapshot of U.S. Efforts in EGS EERE-funded demonstration projects showing promising results The Geysers, CA. Created man-made reservoir beneath the productive portion of a natural reservoir. Potential to produce 5MW. Greenfield where no geothermal dev t exists Nearfield on the periphery of a hydrothermal field Infield within a hydrothermal field in an unsuccessful hydrothermal well Infield and Nearfield EGS Nearfield EGS Candidate Wells High T, Low Permeability Margins High T Hydrothermal Reservoir Desert Peak, NV. In FY13, successfully stimulated an existing sub-commercial well - first EGS project in US to produce commercial electricity (additional 1.7MW) to the grid. 18 Infield EGS Candidate Wells (unsuccessful hydrothermal wells) 7-10 GW resource potential

19 Desert Peak EGS Demonstration 1 st US Grid-Connected EGS Project, 2013 If we can go to all the hundred or thousands of wells that are unproductive and tinker with them to make them productive, this is a game changer. Paul Thomsen, Former Director of Policy and Business Development, Ormat Technologies MIT Technology Review, 4/2013 Ormat Technologies Desert Peak EGS project successfully supplied 1.7 MW electricity to the grid a first-in-the-nation achievement DOE invested $5.4 million, with a private costshare of $2.6 million Desert Peak represents a near-term opportunity to develop EGS at lower cost and risk; potential for reserve additions at highly competitive costs ($ /kwh) Pathway to larger, more complex and more challenging R&D efforts 19

20 What s Next for EGS? In-Field Stimulations, Horizontal Wells, Replicability Continue to grow existing fields (through in-field EGS) using thermal and multi-stage vertical-well stimulations, high-temperature thermally-degradable packers Integrated EGS R&D: Advance highfidelity subsurface characterization via an integrated technical approach to EGS R&D EGS Field Observatory (FORGE), data availability and the validation and testing of replicable EGS development methodologies. Re-completion of the well at Desert Peak 175-fold increase in well productivity additional 1.7 MW increased power output by nearly 40%. graphics courtesy of Ormat Technologies. 20

21 Frontier Observatory for Research in Geothermal Energy (FORGE) High-risk / high-reward - Drilling technology, well construction and integrity - Advanced characterization tools and methods - Stimulation technologies Highly-integrated technology testing Live data site Explicit partnerships with the research community and other subsurface stakeholders Methodology for reproducing large-scale, economically-sustainable heat exchangers Site Selection & Planning Site Preparation & Characterization Technology Testing & Evaluation Closeout 6-7 Years 21

22 FORGE: Frontier Observatory for Research in Geothermal Energy 22

23 FORGE Structure Phased Approach 23

24 New Selectees for GTO FY14 Funding Opportunities Projects Starting Fall 2014, 32 Projects, $18M Play Fairway Analysis Integrated EGS R&D Value-Added Materials 24

25 Key Market Barriers Many Elements Unique to Geothermal Market Barriers Potential Solution Set Goal Permitting challenges A non-competitive process can doom projects Data Access Creates more prospects, lower risk and cost, more efficient geothermal research and resource development Financing Relatively small size of the Industry + perceived risk = project financing challenges Regulatory road-mapping and streamlining Initiative National Geothermal Data Repository Demonstrations Techno-economic analysis Modeling A Clearer Pathway for Geothermal Development Grid Integration Solutions to supply geothermal electricity to the grid Market reports Working groups 25

26 Launch of the National Geothermal Data System Best-in-class data collection and usability effort Access to 9 million datapoints Tools and Models Addresses a significant obstacle to geothermal development: lack of quantifiable data Nine million interoperable GIS data points in 340 separate web feature and map services Newest Submissions Featured Node Complies with the Administration s Open Data Policy Supports the Energy Department s efforts to reduce cost and risks associated with widespread adoption of geothermal energy 26 Training Free software for data providers

27 Geothermal Regulatory Roadmap The Regulatory Roadmap is a set of flowcharts providing detailed information outlining the requirements for developing geothermal energy projects Includes topics such as land access, siting, exploration, drilling, plant construction and operation, water resource acquisition, and relevant environmental considerations. 27

28 Systems Analysis Near Term Techno-Economic Analysis and Validation, Regulatory Streamlining, Data Sharing Geothermal Vision Study Validation of GTO-funded efforts, including tracking of commercial and emerging commercial projects Collaboration with CEQ, BLM, NFS, state regulators and industry to identify opportunities to responsibly optimize the geothermal development permitting process Life-cycle analysis of environmental impact of geothermal (GHG, water, footprint) Tools to enable public sharing of GTO-funded RD&D data and results 28

29 Key Results on Funded Projects 2013 The Geysers EGS demonstration project in northern California successfully drilled a new and distinct reservoir in a very low permeability, high-temperature region, yielding a sustained 5 MW resource. Desert Peak EGS demonstration project became the first grid-connected EGS project in America to generate commercial electricity, with an additional 1.7 MW at the existing well-field. Florida Canyon Mine Low Temperature project demonstrated the ability to take advantage of geothermal power generation as a byproduct of gold mining to generate electricity for less than 6 cents/kwh. This patented plug-and-play technology is the first in the nation to employ costfree geothermal brine at a mine operation. An innovative exploration project at Caldwell Ranch in California culminated in the confirmation of an initial 11.4 MW of equivalent steam 50% more than early estimates from three previously abandoned wells. First geothermal project where an abandoned steam field has been successfully re-opened for production. The Geothermal Regulatory Roadmap an online public tool that outlines federal, state, and local regulation for geothermal development in selected geothermal-rich states was cited in the White House Report to the President, issued in May 2013, as a best practice. 29

30 Key Results on Funded Projects 2014 Oregon Institute of Technology: Commissioned 1.5 MW of newly-installed geothermal power on campus, from a $1 million GTO award with $4 million match by Johnson Controls. Pagosa Verde: GTO s $3.9 million geothermal exploration project in Colorado is being matched by a $1.98 million state bond, with a bill signing by Colorado Gov. Hickenlooper on May 30. National Geothermal Data System: Deployed best-in-class geothermal data system June FY14, and GEA award. FastCAP: GTO s $2.2 million investment has succeeded in development and commercialization of a cutting-edge power system for geothermal exploration in high vibration, extreme drilling environments. Surprise Valley Electrification Corp: * a non-profit rural cooperative, plans to go online with a low-temperature, 3 MW geothermal power plant later this year, funded with $2M in GTO Recovery Act funds, matched by a $3M Oregon Department of Energy Business tax credit. Waste heat from the plant will be used for aquaculture, green house farming, and district heating. * Expected 30

31 Key Results on Funded Projects 2014, CONT D SNL Drilling: Developed and licensed a first-of-a-kind, high-temperature (480 F), elastomer-free drilling motor for use with pneumatic down-the-hole-hammers, for drilling in high temperature geothermal formations. Raft River (Idaho) EGS Demonstration Project: * Will complete two phases of thermal stimulation that commenced in FY 2013, and will complete a large injection volume hydraulic stimulation of an existing sub-commercial well. Through this combination of wellbore thermal conditioning and hydraulic stimulation, this is targeted to become a commercial production/injection well. Bradys (Nevada) EGS Demonstration Project: * Will have completed final stimulation stages by the end of FY. AltaRock EGS Demonstration Project: * in Oregon will accomplish re-stimulation of an existing well and completing a production well into the stimulated reservoir. * Expected 31

32 Key Anticipated Results on Funded Projects 2015 Simbol groundbreaking:*originally funded for $3 million in Recovery Act funds to study methods of extracting valuable minerals from geothermal brines, this project will break ground in October 2014 on construction of a commercial lithium extraction plant in the Salton Sea area in CA projected to be operational by EGS demos:* Four of five EGS Demonstration projects completed, with increased injectivity, comparable to commercial hydrothermal wells measured in EGS target wells. Supercritical CO2:* First-ever CO 2 geothermal thermosiphon test is expected at the Cranfield, MS site. Commercial hybrid cycle CSP-Geothermal binary power plant demonstration* completed, in cooperation with National lab and industry partners. Will quantify potential benefits of different operating strategies and integration schemes of commercial hybrid plants in real-world conditions. * Expected 32

33 Questions? 33