2016 Annual Report. IEA Geothermal October 2017

Transcription

1 2016 Annual Report IEA Geothermal October 2017

2 Disclaimer IEA Geothermal do not warrant the validity of any information or the views and findings expressed by the authors in this report. Neither IEA Geothermal (IEA-GIA) nor IEA shall be held liable, in any way, for use of, or reliance on, any information contained in this report. IEA Geothermal, 2016 Annual Report, October 2017.

3 Table of Contents Message from the Chair... i Reflection on David Nieva... ii 1. Introduction Working Group 1 Environmental Impacts Working Group 8 Direct Use of Geothermal Energy Working Group 10 Data Collection and Information Working Group 12 Deep Roots of Volcanic Systems Working Group 13 Emerging Geothermal Technologies Australia European Union Germany Iceland Italy Japan Mexico New Zealand Norway Republic of Korea Spain Switzerland United Kingdom United States of America Appendix 1 IEA Geothermal Executive Committee Appendix 2 - IEA Geothermal Members and Alternates

4 Message from the Chair Dear Reader, Welcome to the 2016 IEA Geothermal Annual Report. This describes the work of IEA Geothermal and our Working Groups, providing you with comprehensive information about our participating nations, markets, technology, research, and statistics. IEA Geothermal is now in its 19th year, with this year characterised by significant activity including two particularly good workshops and the European Geothermal Congress. In April we held the 35 th Executive Committee (ExCo) meeting in Cuernavaca Mexico and, in association with the Instituto de Investigaciones Eléctricas, organised a two day Central and South American Geothermal Workshop. This very successful event drew together 180 participants from across Central and South America. As part of this event we bid farewell to David Nieva, who had served for Mexico on the IEA Geothermal Executive Committee for over 18 years. There is a reflection on David in the section that follows. During September, the 36th ExCo-Meeting was held in Munich, Germany. The meeting was combined with a successful Munich Molasse Workshop and field trip to heat and power plants in the districts in and around Munich. The week following saw IEA Geothermal well represented at the European Geothermal Congress in Strasbourg, France. I would like to thank everyone who has contributed to our work, to preparing this report, and in particular the Working Groups and the Working Group leaders. Please enjoy the read. Lothar Wissing Chair IEA Geothermal i

5 Reflection on David Nieva In April 2016 David Nieva retired from IEA Geothermal after over 18 years of outstanding service to the Executive Committee. David was involved in IEA Geothermal (IEA-GIA) from when Mexico joined, with David attending the 2 nd Executive Committee meeting on the 10 th November 1997 in Taupo, New Zealand. His last in April 2016, some 18.5 years later, was the 35 th Executive Committee meeting in Cuernavaca, Mexico at the Instituto de Investigaciones Eléctricas (IIE) offices where he worked. I remember some of my experiences as an ExCo Member which I regard as some of the most rewarding experiences in my professional life. I want to thank the wonderful people that participated along with me for all those years. David believed that IEA- GIA, being a group composed of government representatives and top officials of private companies, is in an ideal position to positively influence the Research & Development agendas in our countries. A good example of IEA- GIA leadership in this regard was the role it played in initiating a concerted effort to address the issue of induced seismicity. Projects emerged in some of the participating countries, with the goal of increasing our understanding of the underlying mechanisms, and to improve our position to answer the public s questions. IEA- GIA convened international workshops on induced seismicity, one in conjunction with the 30th Stanford University Workshop on Reservoir Engineering, and another in conjunction with the GRC 2005 Annual Meeting in Reno, Nevada. David reflects: I believe that now we are in a better position to give the public an idea of the maximum intensity to expect from geothermal- induced tremors, both on the basis of theory and historical record. David served as an officer for the Executive Committee, being active as chairman for 4 years from March 2003 to March David reflects to my experiences in IEA- GIA, the more memorable ones relate to my time as Chairman when my involvement was more intense. I remember it being a lot of work, but no great challenge because the ExCo members were extremely enthusiastic and capable, really needed little or no leading Nevertheless, we had some trying times, mainly because of circumstances in some of our countries. It was a very real pleasure to farewell David at the tremendously successful April 2016 IEA Geothermal Central and South American Geothermal Workshop held at the Instituto de Investigaciones Eléctricas (IIE) Cuernavaca offices. The photo at the bottom of this page is of some of the 180 attendees at that event. Thank you David for your outstanding and significant service to IEA Geothermal. ii

6 Executive Summary The work of IEA Geothermal (GIA), and highlights from 2016, are presented in this report. 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. Please visit our website participate in our Working Groups join one of our workshops, or become a member of IEA Geothermal. 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, where appropriate conditions are found, geothermal energy is also used to generate electricity. Geothermal energy use grows as nations recognise its value in their renewable energy portfolios. The growth has been in both the heat and electricity sectors. The interest in geothermal heat is booming as value from this renewable energy source is being realised. It is not only heat in the traditional sense but also cooling. The interest is right across sectors from residential to city scale. Large integrated smart city energy systems are being proposed with the potential for very significant reductions in city CO 2 emission footprints. Volcanic geothermal systems that are very hot, superheated or supercritical are becoming the focus of studies seeking to release usable energy from them. The Enhanced Geothermal System (EGS) environment offers enormous potential that is yet to be realised on a large scale. The required technology is expensive, and without incentive support it is not currently competitive. Germany, France, Korea, USA, Switzerland and the European Union are investing significantly in EGS technology and development programmes. It is an exciting emerging technology. There is substantial investment occurring into geothermal energy research and development around the globe. Through 2016, the European Commission led the way spending more than 100 million euros. Nations are investing, for example; Germany committed 20 Million euros to new projects, and spent 12.5 Million euros on ongoing projects, Iceland committed 342 Million ISK (about 2 Million euros) to the IDDP-2 geothermal drilling programme, Korea spent 8.9 Million USD, Japan spend more than 60 Million USD and Switzerland 12 Million USD on geothermal research. In 2016, Italy introduced a novel energy incentive scheme to assist with commercialisation of new geothermal electricity generation technologies. IEA Geothermal had 16 contributing members in 2016; 13 country members; the European Commission; and two industry organization/company sponsors. Two Executive Committee meetings were held; 14/15 th April, Cuernavaca, Mexico and 13/14 th September, Munich, Germany. Working group meetings and seminars were held in association with each of these meetings.iea Geothermal also had a booth at the European Geothermal Congress, rd September. Working Group Activities The Working Groups (WG) active through 2016 were: WG 1 - Environmental Impacts WG 8 - Direct Use WG 10 - Data Collection and Information iii

7 WG 12 - Deep Roots of Volcanic Systems WG 13 - Emerging Geothermal Technologies The Working Groups prepared numerous reports and papers and the bibliographic references can be found at the end of each WG Chapter (1-5). Working Group 1 Four tasks were active through 2016 focussing on: Impacts on natural features; Discharge and reinjection issues; Environmental mitigation methods and procedures; and sustainable utilisation strategies. Numerous individuals and groups within the participating countries have contributed to an increasing number of publications on environmental and social topics, raising awareness of successful mitigation, and beneficial environmental and social outcomes. A number of the papers were presented at sessions at the Stanford Geothermal Reservoir Engineering Workshop, the Geothermal Resources Council Meeting, New Zealand Geothermal Workshop, and European Geothermal Congress. Invited presentations with an environmental component were delivered at the Bali Clean Energy Forum and at a GNS (NZ) -JOGMEC (Japan) collaborative workshop held in Tokyo. A Virtual Special Issue of Geothermics Journal, focussing on Environmental Aspects and Social Acceptability of Geothermal Developments was initiated in June 2016 by Working Group 1. Working Group 8 Five tasks were active through 2016 focussing on: New and innovative geothermal direct use applications; Communication; Guidelines on geothermal energy statistics; Guidelines on statistics for geothermal heat pump applications; and design configuration and engineering standards. Significant progress was made in 2016 towards establishing a best practise and guidelines for the collection of statistical data related to geothermal direct use and heat pump applications. In 2016, Working Group 8 conducted two large workshops and a networking reception. The first event was a Latin America-focussed two-day workshop Opportunities and Benefits of Geothermal Direct Use towards a clean, sustainable and cost-efficient energy supply held in Mexico in April An international networking reception with a series of presentations on Renewable Thermal Facts and Figures was then held in USA in October Finally, a oneday workshop Opportunities and Benefits of Geothermal Direct Use towards a clean, sustainable and cost-efficient energy supply was held in Thailand in November All the presentations can be found on the iea-gia website. Working Group 10 Working Group 10 is working to improve the consistency of the geothermal data collected, extending the data reported to include a number of non GIA member nations and to work collaboratively with other agencies seeking to produce reliable annual geothermal statistical data. The 2014 GIA Trend Report providing key geothermal data was officially published in This report also includes basic data for six non IEA Geothermal-member countries. Geothermal energy data for electricity and heat can be found in the Trend Reports available from the IEA Geothermal website ( iv

8 Working Group 12 There are a number of research workstreams being pursued on very hot geothermal environments in a number of nations; the IPGT Working Group (developing software capable of simulating super-critical reservoir conditions), the GEORG Deep Roots of Geothermal resources project, the EU IMAGE and DeepEGS projects, the Swiss COTHERM project, the EU / ENEL supported DESCRAMBLE project, a Japanese project on super-critical resources and the New Zealand Supermodels and supercritical water-rock interaction projects. Working Group 12 has been actively strengthening cooperation and collaboration across the projects. WG12 participants organised and contributed to Deep Roots workshop sessions held in Iceland, Mexico, Japan and Germany through Two workshops were organised by IEA Geothermal in Cuernavaca, Mexico and Munich, Germany. At the various meetings, participants discussed their deep-root and super-critical-fluid research programmes. Participating countries also presented results at the European Geothermal Congress (Strasbourg, France), New Zealand Geothermal Workshop (Auckland, New Zealand), and Geothermal Resources Council Meeting (Sacramento, USA). The topics presented include: high temperature (450 C) logging tool development, super-critical reservoir simulators, super-critical fluid-rock interaction laboratory experiments, and the effects of cold water injection into super-heated reservoirs. Working Group 13 Working Group 13 covers a broad spectrum of geothermal activity including exploration, drilling, reservoir creation and enhancement, corrosion and scaling, tracers, and the mitigation of induced seismicity. Work is carried out in five tasks: Exploration, Measurement and Logging, Drilling Technology, Reservoir Creation and Enhancement Induced Seismicity Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracer Technology). The Exploration, Measurement and Logging group developed a list of specialist well logging organisations and highlighted the modular open source hardware available through the ZWERG Project. Drilling Technology group collected information for reporting on innovative (non-conventional) drilling technology. Experts from Germany and Japan presented on innovative drilling technologies at the Central and South American Workshop on Geothermal Energy in Cuernavaca, Mexico. The Reservoir Creation and Enhancement task presented at the Cuernavaca Workshop in Mexico, and in conjunction with Munich Executive Committee meetings developed a work programme with the first output targeting a summary on the state of the art in reservoir creation and enhancement in the participating countries. The Induced Seismicity task is focussed on encouraging collaboration and sharing results among countries interested in this topic (Germany, France, Switzerland, Iceland, Japan, USA and New v

9 Zealand). Topics that have attracted interest are: induced seismicity observations, mechanisms and models, and EGS stimulations. The Surface Technology task has a focus on recent developments in above ground geothermal production operations, corrosion, scaling and tracer technologies. It works on collaborating, collating, and presenting material in forums seeking to increase awareness and knowledge transfer to the international community. Through 2016, material was disseminated or formally presented at 6 major forums. National Activities The geothermal programme of each participating member provides the basis for cooperative IEA Geothermal activity. The work that has occurred in each of the participating member countries and the European Commission in 2016 is written up in more detail in chapters 7-19 of this report. The material immediately below is a summary of 2016 activity from each of the participating members. Australia Initial interest and investment in the Australian geothermal energy sector in the 2000 s focused on the potential to develop electricity generation from Engineered Geothermal Systems. The issues around commercial viability of this technology have led to reduced interest in this work. The direct use of geothermal resources, particularly in Perth, Western Australia, continues to progress steadily. This success occurs largely in the absence of supporting policy incentives since direct use geothermal technologies, including ground source heat pumps, remain ineligible under the Australian Commonwealth Government s Small Scale Renewable Energy Target program. Low community awareness of the potential of direct use geothermal is an impediment to the wider deployment of these technologies. In 2016, Ergon Energy announced upgrades to the Birdsville Geothermal Plant. The existing 85kW facility is to be replaced, increasing the net electrical capacity to 200kW. Integration of the new geothermal plant with diesel generation will enable up to 70% of generated electricity to be sourced from geothermal energy, displacing up to 80% of the current diesel usage. The plant upgrade is expected to commence in At the COP Paris Summit in December 2015, Australia committed to a revised greenhouse emissions target reducing by 26-28% by 2030compared to 2005 emissions. This commitment represents a 50% reduction in per capita emissions and a 65% reduction in the emissions intensity of the Australian economy. A National Energy Productivity Plan (NEPP) was produced in December The overall target is to achieve a 40% improvement in energy productivity by This is pivotal to Australia achieving its 2030 emissions reduction targets. With specific reference to geothermal energy, this is a policy area where the geothermal sector, particularly GSHP and district heating and cooling applications, could leverage into government policy. Geothermal R&D in Australia is largely focussed on advancing technologies associated with unconventional geothermal resources, EGS and Hot Sedimentary Aquifers. Government funded 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 Australian Renewable Energy Agency (ARENA). vi

10 European Union In 2016, three new projects were funded under the Horizon 2020 programme: The GEMex project between Europe and Mexico, developing Enhanced Geothermal Systems and Superhot Geothermal Systems. A co-funded GEOTHERMICA project that is focussed on joint innovative demonstration and technology projects that accelerate deployment of geothermal energy. An advanced materials and processes work stream that will start in 2017 seeking to improve performance and cost-efficiency of shallow geothermal use and underground thermal storage. A European Technology and Innovation Platform (ETIP) on Deep Geothermal Energy was also established in This ETIP complements the Heating and Cooling ETIP and joins other existing ETIPs on renewable energy technologies which have an important role of bringing together EU countries, industry, and researchers. The ETIP on Deep Geothermal, together with other stakeholders, had the opportunity to contribute to the strategic targets to reduce the cost of geothermal energy technologies and to make them more efficient. The Declaration of Intent was endorsed in September 2016 by the Strategic Energy Technology Plan Steering Group. Germany The Federal Government energy concept envisages far-reaching restructuring of the energy supply system in Germany by Important goals are the reduction of primary energy consumption by 50% and increasing the proportion of renewable energies to cover 80% of the demand for electricity and 60% of the gross final energy consumption. In Germany, deep geothermal energy is being increasingly used to generate heat. In terms of the prevailing geological conditions and the existing demand, projects involving heating, such as supplying local and district heating systems, have higher prospects for being economically successful than projects only generating electricity. Thirty-three geothermal plants were in operation across Germany as of February Most of these exclusively produce heat, with an installed capacity of 303 megawatts (thermal). Nine generate electricity, either exclusively or supplementary to the heat. The installed electrical capacity is about 37 MW megawatts. The research projects currently being funded encompass all stages of the geothermal energy value chain. BMWi approved 22 new projects in 2016 with allocated funding of around 19.6 million euros, whilst also during 2016 around 12.5 million euros were invested in ongoing research projects. The main themes of R&D funding of geothermal energy in 2016 were: Data collection (GeotIS.de) Corrosion and Scaling (for operating power plants) Advanced drilling technologies (laser, electro-impulse, plasma) Machinery (workover rig, submersible pump, valves) EGS related themes (rock stress models, EGS project) vii

11 District Heating (Munich, urban areas) Stadtwerke München (SWM) intends to provide the entire district heating for Munich from renewable energies by 2040, with the majority being contributed by geothermal energy. The goal is to generate around 50 megawatts of electricity or to extract 400 megawatts of heat. Iceland Iceland s geothermal sector is sufficiently developed for the government to play a more limited role in geothermal development than in previous times, with the successful power companies taking the lead in exploration for geothermal resources, either in existing geothermal fields or in discovery of new fields. In April 2016, the 3 rd Icelandic Geothermal Congress was held in Reykjavik, attracting over 700 delegates from 46 nations. Significant progress was made on the Iceland Deep Drilling Project through The purpose of the project is to determine if it is economically feasible to extract energy and chemicals from hydrothermal systems at supercritical conditions. Well IDDP-2, drilled in Reykjanes from August 2016 to January 2017, reached 4,659 m, where a temperature of 427 C and pressure of 340 bars were measured. Cores suggest permeability at depth. This project gives a hint of exciting times ahead. IDDP-3 is being planned for the Hengill area. Through 2016 the Kjós district heating scheme was being completed and it will commence operation in early Construction of the Þeistareykir power plant continued. Work on reinjecting CO 2 and H 2S emissions from Hellisheiði geothermal power plant back into the reservoir where they will mineralise is on-going through projects Carbfix and Sulfix. This process is significantly faster and cheaper than conventional carbon capture storage methods. Italy A new geothermal electricity generation record was set in Italy during the 2016 calendar year with 5870 GWh generated. No new geothermal capacity was commissioned during The Cornia 2 geothermal plant that was upgraded in 2015 to include a biomass superheater (5 Mwe equivalent capacity increment) for the geothermal steam continues to operate very successfully. During 2016 the 20MWe Monterotondo geothermal plant was committed for construction, with commissioning anticipated in As of the 23 June 2016, the Italian Economic Development Ministry introduced revised electrical energy feed in tariffs, as well as additional premiums for zero emission facilities, plants with greater than 95% H 2S and Mercury abatement, and plants installed in new areas where there are no operating geothermal plants. Fully innovative plants, using non-commercial technology, are incentivised through an all-inclusive tariff of 200 /MWh for fluid temperatures of up to 150 C; reducing linearly to 137 /MWh at 235 C. The installed direct use capacity across Italy reached around 1,400 MW t with energy use of some 10.5 PJ. The main sectors are space heating (42% of total energy) and thermal balneology (32% of total energy), though noteworthy is use in the industrial and agricultural sectors. For example, a new brewery in the Boraciferous region is using geothermal steam, as is a leather company in viii

12 the Amiata region. Geothermal / ground-source heat pumps (GSHPs) constitute the main technology delivering the geothermal heat. There are also important developments in the district heating sector. Two new district networks will be completed soon in Radicondoli and Chiusdino, and two other district projects are planned for Belforte and Travale. These four are all in Tuscany. Japan The Japan Geothermal Association and the Federation of Electric Power Companies of Japan (JOGMEC) recognised the 8th October 2016 as the "Day of geothermal power generation" for Japan. It marks 50 years of operation of the Matsukawa Geothermal Power Plant, Japan 's first geothermal power plant. JOGMEC and Hachimantai city celebrated the registration of the certificate during a Geothermal Symposium in Hachimantai City in September, The 42MW Wasabizawa geothermal power plant is under construction and scheduled to commence operation in The Japanese government supports increased geothermal energy utilisation. in June 2016 JOGMEC established a third-party expert group the Advisory Committee for Geothermal Resources Development that is mandated to support local governments across the country with the provision of expert services, that support quality communication, seeking to assist local leaders and communities to better understand geothermal energy. In 2016, 26 projects applied for geothermal investigation grant subsidies. Seven of the 26 projects were local industry and/or local government projects where 100% of the investigation cost was supported, while 19 were private sector developers where % of the cost was supported. The grant subsidies totalled about 60 million USD. No new geothermal projects were at the stage of estimating production capacity in 2016, which would have been eligible for a 50% equity grant. At the end of 2016, 4 projects at the construction stage had been approved by JOGMEC for liability guarantees for up to 80% of the total loan. GNS Science (New Zealand) and JOGMEC held an international workshop in Japan in June people involved in geothermal energy attended with topics covered including geothermal power generation, direct geothermal use, and R&D projects. JOGMEC have 3 research focuses: Geothermal Reservoir Evaluation and Management, Improved Exploration and Accuracy, and Drilling Technology Development. They conducted airborne geophysical surveys at several areas on the Island of Hokkaido during PDC bits were also fabricated and field tested in Japan during NEDO s geothermal R&D program, which commenced in 2013 seeking to improve geothermal power generation, continues until Mexico In May 2016, a 25.5 MW e condensing steam turbine operated by Grupo Dragón commenced operation in the Domo San Pedro, Nay., geothermal field. This unit has been operating at 20 MW e awaiting more wells to be drilled to fully load the unit with steam. At the end of December 2016 the installed capacity in the Domo San Pedro field increased to 35.5 MW e, and the total for Mexico reached MW, while the Mexican running capacity totalled MW e.. In late 2016 it was announced that the first exploration wells will be drilled in the Ceboruco Geothermal Area, in the state of Nayarit. The exploration permit was awarded to Mexxus RG, a ix

13 joint venture between Mexico s Mexxus Drilling International and Iceland s Reykjavik Geothermal. The plans are to install a 30 MW geothermal power plant at an estimated cost of US$115 million. During 2016, three geothermal exploration permits were awarded to Grupo ENAL and Grupo Dragón, both Mexican companies specializing in the development of geothermal power projects. With the award of these permits, 18 permits in total have been awarded up to the end of 2016: 13 to CFE, two to Grupo Dragón, two to Grupo ENAL and one to Mexxus RG. The permits are valid for three years, with rights of renewal for a further three years. The requirements include drilling at least one exploration well for every 50 square kilometres of permit area. The bilateral GEMex project between Mexico and the European Commission investigating a possible EGS system in Acoculco, Pue., and a superhot geothermal system in Los Humeros, Pue. was initiated in Both sites are permitted to CFE and activities are scheduled to start during Funding from each party is for some 10 million euros over the course of the project. Geothermal applied research conducted by the Mexican Center for Innovation in Geothermal Energy (CeMIE-Geo) is focussed in four strategic areas. Projects have been going for 2 years, with several already being written up in refereed papers, theses, conference presentations, maps, and data entered into data bases. Specifically regarding direct geothermal heat use, which has traditionally not received much attention in Mexico, CeMIEGeo has six projects, covering heat pumps for heating and cooling buildings and greenhouses, food dehydration, water desalination, absorption refrigeration, electricity generation using binary cycles, and cascade uses. The Mexican Geotermia journal on geothermal energy published two volumes in 2016 (Vol and Vol in Spanish). Issues from 2004 to 2017 can be accessed online and downloaded for free. In March 2016, the Mexican Geothermal Association Annual Congress was held in Morelia City, Michoacán. New Zealand The large New Zealand geothermal electricity generators consolidated their position through 2016 by producing more energy from their existing plant capacity than in the previous year. With essentially no growth in demand for electricity across New Zealand, only niche generation projects are able to be developed. A 20 MWe Te Ahi O Maui project at Kawerau was under construction during 2016 and expansion plans for the Ngawha geothermal field continued to be developed as the consents for the project(s) came free from challenge early in There is a shift in focus to direct use of geothermal resources and a draft Geoheat Strategy prepared by the New Zealand Geothermal Association was made publicly available for comment for two months from March to May The strategy outlines activity to increase New Zealand s Direct use by 7.5 PJ per annum (in essence a doubling) by 2030 and in so doing assist in regional development aspirations through an additional 500 jobs in industries using that geothermal energy. The New Zealand Government is in the process of reviewing the New Zealand Energy Efficiency and Conservation Strategy as the current document concluded in August Electric vehicles and process heat targets are being considered as part of the New Zealand COP 21 commitment to reduce green house gas emissions to 30% below the 2005 levels by x

14 The University of Auckland operated the PGCert geothermal diploma course in 2016 with 16 students participating in courses. The 2016 New Zealand Geothermal Workshop was held in Auckland on 23-25th of November. A Drilling Supervisors Workshop was held in March at Rotorua. GNS Science and JOGMEC convened an international geothermal workshop in Tokyo on 2 nd June Norway Geothermal energy use in Norway is dominated by the widespread deployment of geothermal heat pumps. Norway has over 40,000 geothermal heat pumps installed. There is no electricity production from geothermal resources, and there are no deep geothermal energy installations. in 2016 more than 2,500 GHPs were installed which is an increase of 8% on Geothermal heat pumps delivered some 2.3 TWh, being 27% of all the heat pump delivered energy in Norway in GHPs however only accounted for 3.8% of the total number of heat pumps installed in Geothermal energy research in Norway is aligned with the country s energy policy seeking to increase the use of renewable energy resources. Additionally, the Norwegian industrial and academic expertise in off-shore technologies is expected to be readily utilised as part of emerging geothermal technologies. This research sees Norway developing high temperature tools for the DESCRAMBLE project, improving drilling penetration rates in hard rock drilling, developing fibre optic temperature sensing techniques, developing tracers suitable for supercritical geothermal conditions, progressing resource simulation research, and contributing to high temperature, up to 500 C, drilling projects and research. Republic of Korea The total installed capacity of geothermal heat pumps in Korea at the end of 2016 is 1100 MW th The rate of installation has been occurring at about 100 MW th per year over the last decade. At the Pohang pilot EGS site, a doublet system was installed in 2016 and a 2000 m 3 prestimulation test of PX-2 was undertaken in early A large stimulation test is being planned for Investigative work continued at Ulleung Island with downhole temperature profiling where thermal gradients up to 100 C per km have been measured. 3D inversion and interpretation of MT data was completed, which identifies a low resistivity zone matching the temperature gradient anomaly in the 0.8 to 1.5 km depth range, and a conductive body deeper than 1.5 km which is interpreted as the source of the thermal regime. Detailed planning will commence in 2017 for the next phase of the development. Korean geothermal research expenditure was on the order of 9 million USD in 2016, with contributions from government and industry. Spain Geothermal energy for thermal use in heating, ventilation, air conditioning and domestic hot water continues to grow modestly with an accessed total installed capacity of 225 MW th. The growth is mainly in installations in the residential and tertiary sectors. The near zero energy building concept promoted by the European Union is increasing the interest of Spanish public xi

15 administrations in considering geothermal exchange systems in their public buildings. Geothermal energy is also playing a growing role in building rehabilitation work and in new construction as the economic and real estate crises ease. There are two geothermal district heating and cooling systems in operation; one in the Balearic Islands and the other in Madrid. Geothermal power plants have not been developed in Spain. The subsidy framework and the energy auctions are currently unfavourable to this type of renewable energy. There are however, some geothermal exploration permits that have been maintained in the hope that supporting measures might be adopted in the medium term. In the Canary Islands there has been movement in favour of geothermal energy with the Government's decision to develop a series of official documents which characterize the geothermal resource in the archipelago and analyse the conditions for its exploitation. In 2016 the EU Horizon 2020 awarded a geothermal project with Spanish participation in the consortium. This GEOCOND project focuses on advanced materials and processes to improve performance and cost-efficiency of shallow geothermal systems and underground thermal storage. GEOPLAT delivers geothermal training to European technical and installation standards. In 2016, formal training in Design of Geothermal Exchange Systems was delivered in collaboration with the International Association of Geo-Education for a Sustainable Geothermal Heating and Cooling Market. Conferences in 2016 were the GEOPLAT Assembly, Madrid, 18 November 2016 and the 13th National Congress for the Environment in which GEOPLAT participated in the Climate change or renewable energies? workshop. Switzerland Geothermal use is dominated by shallow lower temperature geothermal use with ~2000 MW th of geothermal heat pump technology installed. The use of this technology will continue to grow as the push for renewable heat intensifies over the coming years. Additionally, large infrastructure projects, such as rail tunnels, are being used as geothermal energy sources. There are no geothermal power facilities operational in Switzerland. There are five EGS power projects and five hydrothermal heat or combined heat and power projects in the planning phases. Switzerland is at a turning point in its deep geothermal journey awaiting the vote on the 21 May 2017, which, if adopted will enable further deep geothermal energy research and development in Switzerland. Switzerland s geothermal research expenditure for 2016 was some 12 million USD. With highlights being: ThermoDrill a deep geothermal fast track drilling system. DESTRESS Demonstration of soft stimulation treatments in geothermal reservoirs. DG-WOW Deep geothermal well optimisation workflow RT-RAMSIS Real-time risk assessment and mitigation system for induced seismicity Hydraulic stimulation and fracture tests at the Grimsel test site xii

16 Shallow geothermal research focused on quality assurance, quality control, and enhancing efficiency There are a number of undergraduate and graduate level courses in geothermal energy at ETH Zurich, EPF Lausanne, and at the Universities of Geneva and Neuchâtel. The University of Neuchâtel runs the Certificate for advanced studies on exploration and development of deep geothermal systems. The following conferences with geothermal-related content took place in Switzerland in 2016: Geothermie Bodensee, an international conference in St. Gallen. Swiss Geothermal Conference: a two-day international event at Yverdon-les-Bains, focussed on heating, cooling and energy storage SCCER-SoE Annual Conference in Sion, September EPF Lausanne s 13th Greenhouse Gas Control Technology Conference, November 2016, with sessions on geothermal energy. United Kingdom The most significant use of geothermal energy in the United Kingdom is from geothermal heat pump installations which total some 600 MW th. Direct geothermal use is from seven facilities with a total capacity of about 3.2 MW th. These are a district heating scheme in the City of Southampton (capacity 2 MW), a thermal spa in the City of Bath (capacity 1 MW), and five small, mine-water schemes with a cumulative geothermal contribution of 0.14 MW. The Southampton scheme has been under maintenance during There are currently no geothermal electric power generation facilities in the United Kingdom was a year when interest and awareness of geothermal in the UK increased and a number of projects were progressed, including the reporting of four projects completed through the Scottish Government Geothermal Energy Challenge Fund. The projects reported are; a geothermal study for the Aberdeen Exhibition and Conference Centre, a hot sedimentary aquifer study for the Guardbridge Demonstrator project, the Fortissat geothermal mine-water district heating network study, and the Hill of Banchory geothermal project. In February 2016, the UK Department for Communities and Local Government announced a 10.6 Million call to develop a scheme incorporating Enhanced Geothermal System (EGS) demonstration wells in the southwest of England. UK geothermal research is largely concentrated on developing less conventional resources. Research is mainly undertaken in the higher education sector. Topics include; the potential for direct use geothermal from hydrocarbon or shale gas wells. Exploiting the permeability of deep fracture systems as viable geothermal resources. Exploring the extent of palaeokarst within the buried Carboniferous Limestone and its geothermal potential. Quantifying potential thermal resources of disused mine systems. The 5th London Geothermal Symposium was held on the 25th October 2016 at the Geological Society. xiii

17 United States of America The United States remains the world leader in installed capacity, with 3.8 GW. The majority of current and planned capacity is located in the hotter western states, and includes around 80 planned projects. Multiple agencies are involved in advancing the U.S. geothermal sector, led by the Department of Energy s Geothermal Technologies Office, the GEA, and the Geothermal Resources Council. The U.S. Geothermal Technologies Office has programmes in EGS, hydrothermal resources, low temperature and coproduced resources, and systems analysis. Specific goals are to accelerate conventional hydrothermal growth through lower risks and costs of development, developing currently undiscovered resources and lower cost of geothermal electricity, and to develop EGS by demonstrating 5 MW reservoir creation by 2020 and lowering the levelized cost of electricity. In 2016, several large-scale geothermal research projects were in progress. In EGS, the Frontier Observatory for Research in Geothermal Energy, or FORGE, initiated Phase 2 to fully instrument, characterize, and permit candidate sites for an underground laboratory to conduct cutting-edge research on EGS. EGS Collab funding was also announced, which is a collaborative experimental and model comparison effort envisioned as a small-scale field site where the geothermal reservoir modeling and research community will establish validations against controlled, smallscale, in-situ experiments focused on rock fracture behavior and permeability enhancement. In conventional geothermal research, the Play Fairway Analysis project entered Phase 2 in 2016, involving extensive field campaigns. The focus of the project is to address the overarching theme of uncertainty quantification and reduction related to identifying blind hydrothermal systems and areas warranting future exploration. The SubTER Crosscut initiative funded 8 new R&D projects related to advancing the state of knowledge in geothermal exploration and carbon storage. The Geothermal Technologies Office also released funding opportunities for feasibility studies of large-scale deep direct use systems, trying to unlock the potential of systems <150 C. Successful research efforts included stimulating a previously isolated injection well to connect to existing production wells, resulting in an estimated 2.5 MWe EGS reservoir. An advanced drilling system was also developed and demonstrated to drill directionally at temperatures up to 300 C. 1

18 1. Introduction With the ratification of the Paris Agreement in 2016, nations are now planning and developing ambitious efforts to combat climate change (United Nations Framework Convention on Climate Change, 2017). The agreement calls for countries to work together to keep global temperature rise in this century well below 2 C above pre-industrial levels. To do this, countries must substantially reduce and/or mitigate greenhouse gas emissions whilst moving to sustainable energy development (United Nations, 2015). The REN Alliance, a coalition of five renewable energy associations, joined forces in 2016 to demonstrate how renewable technologies working together can meet energy needs at island, rural, city, national and regional levels (IGA, 2016). Geothermal energy is a key player in these efforts. Geothermal energy is a long-term renewable resource with the strong advantage of being a dependable baseload source, independent of the weather and, in the right circumstances, an energy store for energy delivered to the ground. It provides a good base for a nation s energy security in an integrated renewables system addressing climate change effects. Geothermal resource use and investigation continued to grow around the world in 2016, despite continuing low oil prices. Direct use of geothermal energy as heat is out-growing electricity generation globally. Many nations have significant investments in geothermal heat pump technology, which is growing rapidly with growth rates as high as 10% per year occurring in some countries. Geothermal energy and storage are being used for heating and cooling in the move towards near zero energy buildings. Thermal storage is an important element of these systems and future research efforts will reap rewards. To develop non-traditional (very high temperature, supercritical and EGS) geothermal resources, technology development is vital. Research in EGS is needed to release the vast geothermal energy potential contained within the earth and is a focus in several countries, particularly in Europe. Interest in supercritical resources is evident amongst several countries and the European Union, but reliable technology needs to be developed to be able to release the large potential of these high pressure and high temperature resources. 1.1 IEA Geothermal The International Energy Agency (IEA) Technology Collaboration Programmes look for solutions to long-term energy challenges through government and industry collaboration. The IEA Geothermal Implementing Agreement was established in 1997 to promote 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 2016 IEA Geothermal had 16 members. These comprised 13 countries (Australia, France, Germany, Iceland, Italy, Japan, Mexico, New Zealand, Norway, the Republic of Korea, Switzerland, the United Kingdom and the United States of America), one industry company (Ormat Technologies Ltd), the Spanish Geothermal Technology Platform (GEOPLAT) and the European Commission. 2

19 GIA members focus their activities into Working Groups. The working group activity is then subdivided into tasks. Task Involvement is determined by members current interests and their research and development programmes. The five Working Groups active in 2016 were: 1 - Environmental Impacts 8 - Direct Use 10 - Data Collection and Information 12 - Deep Roots of Volcanic Systems 13 - Emerging Geothermal Technologies More information on Working Group activity follows in Chapters 2 to 7. IEA Geothermal collects and collates geothermal energy data as part of Working Group 10. All country members participate in this Working Group. The data is assembled into annual trend reports. These can be found under publications on our website The figure below is from the 2014 trend report and shows direct use energy data as well as geothermal electricity data. Figure 1-1 Geothermal capacity and energy data for IEA Geothermal countries in Electricity data in red and geothermal heat data in orange (IEA Geothermal, 2014). IEA Geothermal is managed by an Executive Committee consisting of one voting representative and an alternate representative from each member country or organisation. Executive Committee meetings were held in Mexico in April 2016 (Figure 1-2), and in Germany in September 2016 (Figure 1-3). Working Group meetings were held in association with these meetings. 3

20 Figure 1-2 Participants attending the 35 th Executive Committee meeting in Cuernavaca, Mexico in April Figure 1-3 Participants attending the 36 th Executive Committee meeting in Munich, Germany in September IEA Geothermal seeks to extend its influence beyond the member nations, with members participating in international meetings, conferences and workshops. For example, in 2016 IEA Geothermal had a booth at the European Geothermal Congress in Strasbourg, France. Figure 1-4 IEA Geothermal Booth at the 2016 European Geothermal Congress This report provides details on the activities carried out by the Working Groups and on geothermal activity occurring in member countries. There are many references to up-to-date information. The status, activities and achievements of the Working Groups and our members in 2016 are described throughout the report. Information on member activity is found in Chapters 7 to 19. Appendix 1 details the Executive Committee membership at the end of December For current membership material please visit 4

21 For more information on IEA Geothermal please visit our website iea-gia.org or 1.2 References United Nations Framework Convention on Climate Change, The Paris Agreement, accessed 11/4/2017. United Nations, Paris Agreement, IGA, Press release: COP22 Renewable energy technologies ready to deliver, accessed 11/4/2017. IEA Geothermal, Trends in Geothermal Applications 2014, IEA-GIA, Author Dr Sophie Pearson-Grant GNS Science 1 Fairway Drive Avalon 5010, New Zealand. s.pearson-grant@gns.cri.nz 5

22 2. Working Group 1 Environmental Impacts Chris Bromley 2.1 Introduction GNS Science, Wairakei Research Centre, Private Bag 2000, Taupo, New Zealand. c.bromley@gns.cri.nz The goals of Working Group 1 (Environmental Impacts) 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. These collaboration activities commenced in 1997 (as Annex 1) when the Geothermal Implementing Agreement was first initiated. The various tasks under this Annex have changed over time, as different environmental and social issues were identified and discussed by participants at meetings and during workshops. To date, outputs have consisted mostly of published papers (including three Geothermics Journal Special Issues), protocols and environmental workshops or conference sessions. In 2016 there were four ongoing tasks for Working Group (WG) 1. They are listed and briefly described below: A) Impacts on natural features: monitoring surface thermal feature and ecosystem changes and devising techniques to avoid or mitigate adverse impacts, while encouraging beneficial effects. B) Discharge and reinjection problems: gas emissions (CO 2 & H 2S); chemical contamination of water, subsidence, scaling and corrosion, and treatment options (e.g. injection). C) Methods of impact mitigation and environmental procedures: analysis of issues, procedures, efficient policies, protocols, effective compliance, and successful mitigation strategies to address social and environmental effects. D) Sustainable utilisation strategies: long-term reservoir simulations, optimized future operational strategies, recharge factors, recovery times, improved reservoir performance, and sustainability protocol indicators. Official participating countries in the Working Group are Australia, Iceland, Italy, Japan, New Zealand, Norway, Switzerland and the United States. 2.2 Progress in 2016 During 2016, progress reports on WG 1 activities were presented at the Executive Committee meetings held in Cuernavaca (Mexico) on 15/4/16, and in Munich (Germany) on 13/9/2016. The recent emphasis has been on networking and connecting researchers, policy makers and operators from different countries in order to increase awareness of environmental improvement aspects and successful strategies to mitigate adverse effects. 6

23 Ongoing projects within participating countries in tasks A to D were reported in Gas emissions, reinjection of non-condensable gases (CO 2) and H 2S abatement technology remain important topics of research, especially within Europe and the USA. Improvements in shallow/surface feature and ecosystem monitoring, using drones, ground penetrating radar, thermal imaging and satellite imagery are also continuing. Subsidence monitoring and improved modelling of reservoir deformation processes is ongoing, particularly in USA, Europe and New Zealand. Researchers looking into policy initiatives, and sustainability, in Mexico, USA, New Zealand, Italy, Switzerland and Germany, have all contributed their study results. In addition to these existing work-streams, there has been a noticeable increase in studies into mitigation and avoidance of the effects of vibration on buildings and residents. For example, social pre-awareness campaigns were undertaken by operators in Japan (e.g. vibroseis contractor). These were discussed at a joint GNS (NZ) and JOGMEC Japan collaboration meeting in May Also, papers on social impacts of drilling-induced vibration in France were presented at the European Geothermal Congress in September (see section 2.6.4). Studies of impacts on society and social considerations have also increased in 2016 (see section 2.6.6). For example, local social benefits (e.g. free steam cooking facilities at Otake, Japan, and Ribeira Grande, Azores) were highlighted. 2.3 Outputs 2016 publications by geothermal environmental researchers from participating countries are shown in the list given in section 2.6 below. They are grouped according to the most popular environmental themes that were addressed: General presentations (all tasks), Surface thermal features & ecosystems (Task A), Gas emissions (Task B), Subsidence & Vibration (Task B), Environmental Policy (Task C), Society (Task C), and Sustainability (Task D). Many of these papers were presented and discussed at the following 2016 conferences (all attended by WG 1 participants): Stanford Geothermal Reservoir Engineering Workshop (Palo Alto, USA), Geothermal Resources Council Meeting (California, USA), New Zealand Geothermal Workshop (Auckland, NZ), and European Geothermal Congress (Strasbourg, France). Papers from these conferences may be downloaded through the conference database. Invited presentations with an environmental component were also given in Bali, Indonesia (as outreach at the Bali Clean Energy Forum) and at a GNS-JOGMEC Japan/New Zealand collaborative workshop held in Tokyo, Japan (see 2.6.1). 2.4 Highlights Selected highlights for the year include: A Bali Clean Energy Forum invited presentation on South-east Asia geothermal potential. This identified and highlighted the intermingling, in the decision-making process, of social and religious issues with environmental issues, with an example from Bedugal, Bali, Indonesia (see section 2.6.1). An IEA Geothermal, WG1-promoted, Virtual Special Issue of Geothermics Journal, focussing on the topic: Environmental Aspects and Social Acceptability of Geothermal 7

24 Developments was initiated. Invitations were sent out in June 2016, and 25 positive responses were received from prospective authors. As evidenced by the papers listed in section 2.6, networking and cooperation amongst numerous researchers, operators, policy-makers and funding-agencies within the participating countries has contributed to an increasing number of publications on environmental or social topics, and helped, through cross-referencing, to raise international awareness of successful mitigation schemes and beneficial environmental or social outcomes (Figure 2-1). Figure 2-1 At a meeting of collaborating research scientists from Japan (JOGMEC) and New Zealand (GNS), the benefits of social improvements and awareness campaigns for geothermal energy developments are discussed. This example is a communal cooking facility at Otake, Japan. 2.5 Future Activities Plans for the future include continuing work on the four existing tasks with additional initiatives as listed in more detail in the IEA Geothermal strategic plan and in the 2015 Annual Report for WG 1. They include: a) compilation of an Environmental and Social Special Issue (VSI) of Geothermics Journal, b) preparation of an international geothermal environmental code-of-practice, and an article on effective protocols and policies for environmental management of geothermal projects. c) running focussed workshops on, for example, sustainability modelling and surface feature protection, d) collating results of field trials for: targeted shallow reinjection of hot fluids to remedy adverse effects; gas sequestration by injection; and water treatment to remove toxic chemicals. 8

25 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 Problems Mitigate corrosion and scale deposition. Document results of subsidence mitigation by injection. Monitor casing integrity to protect groundwater. Task C Polices, Protocols, Procedures and 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 reduce / halt subsidence. Task D Sustainability Publish case studies on sustainable utilisation. Investigate permeability changes with time and interference effects. Design guidelines for optimum make-up production and injection strategies. Improve the use of dual tracers (volume and area) for predictive modelling 2.6 References General presentations (all Tasks) Bromley, C.J. (2016) Annex 1 Update Geothermal Environmental Tasks, IEA-GIA meeting, Cuernavaca, Mexico, 15th April 2016, (16 slides). Bromley, C.J (2016) Working Group (Annex) 1 Geothermal Environmental Tasks, IEA-Geothermal ExCo meeting, Munich, Germany, 13th September 2016, (14 slides). Bromley, C.J. (2016) Geothermal Energy: opportunities in South East Asia ; Invited presentation on behalf of IEA-Geothermal, sponsored by Indonesian Govt., "Bali Clean Energy Forum and Ministerial Meeting"; Geothermal Session convened by NZMFAT; February 11-12, 2016, Nusa Dua, Bali, Indonesia, published in page (32 slides). 9

26 Bromley, C.J. & Bignall G., (2016) Ngawha Geothermal Field: Geology, Geophysics, Conceptual Model, Geochemical Monitoring Trends & Environmental Issues, GNS-JOGMEC Joint Geothermal Workshop, Tokyo 2nd June 2016, presentation published by JOGMEC for participants (26 slides) Surface thermal features & ecosystems (Task A) Harvey, Mark. (2016) Geothermal Field Work Using a Drone with Thermal Camera: Aerial Photos, Digital Elevation Models and Heat Flow, Geothermal Resources Council Transactions, (2016), v.40, Geothermal Resources Council, Davis, California. GRC ID # Sanders, F., A. Seward, A. Mazot (2016) Crown Park Thermal Area, Taupō: Taking a Pulse, Proc. 38th New Zealand Geothermal Workshop, University of Auckland paper 133, 8p. Lynne, B.Y., I.J. Smith, G.J. Smith, K. Luketina (2016) Imaging the Shallow Subsurface of Armstrong Reserve, Taupo, New Zealand, Using Ground Penetrating Radar, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 144 Lloyd, S. Beadel, D. Smith, C. Bycroft, R. Bawden, M. Harvey, J. McLeod, K. Luketina, (2016) Geothermal vegetation, Craters of the Moon, Wairakei, thermal imaging, NIR, NDVI, TIR. Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper Gas emissions (Task B) Stacey, Robert; Norris, Lee; Lisi, Simone, (2016) OLGA Modeling Results for Single Well Reinjection of Non-Condensable Gases (NCGs) and Water, Geothermal Resources Council Transactions, (2016), v.40, Geothermal Resources Council, Davis, California. GRC ID # Benn, Brian; Sonneville, Allen; Morrison, Leslie, (2016) A Novel Retrofit to Improve Efficiency of a Condensate H2S Abatement System at the Aidlin Power Plant: "Ski Slopes", Geothermal Resources Council Transactions, (2016), v.40, Geothermal Resources Council, Davis, California. GRC ID # Batini, F; Lisi, S; Guglielmetti, L; Bellini, F; Trinciarelli, V; Pucci, M., (2016) Well engineering and simulation for Non-Condensable Gases Total Reinjection systems, Proc. European Geothermal Congress 2016, T-EI Subsidence & Vibration (Task B) Koros, W., J. O Sullivan, J. Pogacnik, M. O Sullivan (2016) Modelling of Subsidence at the Wairakei Geothermal Field, New Zealand, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 20. ALI, S. Tabrez, John AKERLEY, Elena C BALUYUT, Nicholas C DAVATZES, Janice LOPEMAN, Joseph MOORE, Mitchell PLUMMER, Paul SPIELMAN, Ian WARREN and Kurt L FEIGL, (2016) Geodetic Measurements and Numerical Models of Deformation: Examples from Geothermal Fields in the Western United States, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR

27 BARBOUR, Andrew, Eileen EVANS, Stephen HICKMAN, and Mariana ENEVA (2016) Sources of Subsidence at the Salton Sea Geothermal Field, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. Maurer, V; Lehujeur, M; Richard, A; Vergne, J., (2016) Ground vibrations caused by geothermal drilling operations: a case study from the Rittershoffen EGS project (Alsace, France), Proc. European Geothermal Congress 2016,T-EI-49. Richard, A; Maurer, V; Lehujeur, M., (2016) Induced vibrations during a geothermal project and acceptability, how to avoid divorce? Proc. European Geothermal Congress 2016, T-EI-134. Heimlich, C; Masson, F; Schmittbuhl, J; Ferhat, G., (2016) Geodetic measurements for geothermal site monitoring at Soultz-sous-Forêts and Rittershoffen deep geothermal sites. Proc. European Geothermal Congress 2016, T-EI Environmental Policy (Task C) Ramirez Bueno, Michell Alejandra; Rocha Ruiz, David Alejandro. (2016) Geothermal Energy Reform in Mexico, Legal Framework, Tools and Outcome, Geothermal Resources Council Transactions, (2016), v.40, Geothermal Resources Council, Davis, California. GRC ID # WALL, Anna M. Ben MATEK (2016) Geothermal Green Bond Certification: Challenges in Investment Screen Criteria Development Using Global Geothermal Carbon Dioxide Emissions Rates. Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. van Campen, B; Archer, R., (2016) Geothermal Resource Management and Reporting: learning from (NZ) petroleum regulator experience, Proc. European Geothermal Congress 2016, P-O-142. Fedeli, M; Mannari, M; Sansone, F., BAGNORE 4: a benchmark for geothermal power plant environmental compliance, Proc. European Geothermal Congress 2016, T-EI-169. Menberg, K; Blum, P; Pfister, S; Rybach, L; Bayer, P., (2016) Life cycle assessment of geothermal power generation, Proc. European Geothermal Congress 2016, T-EI-242. Ravier, G; Baujard, C; Dalmais, E; Maurer, V; Cuenot, N., (2016) Towards a comprehensive environmental monitoring of a geothermal power plant in the Rhine graben, Proc. European Geothermal Congress 2016, T-EI-282. Burnell, John, Bart van Campen, Noel Kortright, Jim Lawless, Jim McLeod, Katherine Luketina, Bridget Robson; (2016) Sustainability of TVZ Geothermal Systems: the Regulatory Perspective; Geothermics 59 (TVZ Special Issue): Society (Task C) Webster D.C. (2016) The Phenomena of Partnership - the Ngāwha Experience, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 62. Climo, M., B. Carey, S. Bendall, A. Seward (2016) Developing a Geoheat Strategy to Increase Geothermal Direct Use in New Zealand: Stakeholder Consultation, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper

28 Climo, M.; Carey, B.; Seward, A.; Bendall, S Strategies for increasing geothermal direct use in New Zealand. Proceedings: Geothermal Resources Council Transactions Sacramento, US; October Lawless, J., S. Darma, B. van Campen, J. Randle (2016) Can Geothermal Regulation Enhance (TECHNICAL) Innovation evidence and case studies from New Zealand and Indonesia, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 11. Chavot, P; Masseran, A, Serrano, Y., (2016), Information and public consultation exercises concerning geothermal projects. The Strasbourg case Proc. European Geothermal Congress 2016, P-O-229. Schwellenbach, E., van Douwe, A., (2016) Acceptance, Communication, citizens initiative, Public Relations, Proc. European Geothermal Congress 2016, P-PA-164. Latham, A. (2016) The Heat Under Your Feet: A Case Study of Communication Practices to Enable Shallow Geothermal Market Development, Proc. European Geothermal Congress 2016, P-PA Martins Carvalho, J; Nunes, J C; do Rosário Carvalho, M. (2016) Direct uses as environmental mitigation measure in Ribeira Grande Geothermal Field (S. Miguel, Azores Islands, Portugal). Proc. European Geothermal Congress SHOEDARTO, Riostantieka Mayandari, Ferry Rahman ARIES, Diky IRAWAN, Faisal PERDANA, Ilham ARISBAYA, Beny INDRAWAN (2016), Raising Public Acceptance of Geothermal Utilization Through Direct Application in Indonesia, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. Ali, S.T., J. Akerley, E.C. Baluyut, M. Cardiff, N.C. Davatzes, K.L. Feigl, W. Foxall, D. Fratta, R.J. Mellors, P. Spielman, H.F. Wang, E. Zemach, Time-series analysis of surface deformation at Brady Hot Springs geothermal field (Nevada) using interferometric synthetic aperture radar, Geothermics, Volume 61, May 2016, Pages , ISSN , Heimlich, C; Masson, F; Schmittbuhl, J., (2016), Geodetic analysis of surface deformation at the power plant of Landau (Germany) related to the event, Proc. European Geothermal Congress 2016, S-GP-64. Ferhat, G, (2016) Surface deformation monitoring at geothermal exploitation: a review and case study of Soultz-sous-Forêts and Rittershoffen sites in the Rhine Graben, France, Proc. European Geothermal Congress 2016, S-GP Sustainability (Task D) Enedy, Steve (2016) Update of Injection Benefit Model for the Geysers, Geothermal Resources Council Transactions, (2016), v.40, Geothermal Resources Council, Davis, California. GRC ID # Burnell, J, van Campen, B., Kortright, N. Lawless, J. V., McLeod, J. Luketina, K. Robson, B.; Sustainability of TVZ Geothermal Systems: the Regulatory Perspective; Geothermics Special Issue on TVZ January

29 3. Working Group 8 Direct Use of Geothermal Energy Katharina Link 3.1 Introduction Rebstrasse 3, 8500 Frauenfeld, Switzerland. info@geo-future.expert Figure 2 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). 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 also becoming more important. In 2013, Working Group 8 ( Direct Use of Geothermal Energy ) was restructured. The Working Group 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 Working Group also includes large innovative heat pump applications including smart thermal low temperature grids combined with underground storage. 13

30 The Working Group s mission is to provide quality information, communication and knowledge transfer to mitigate the barriers to geothermal direct use in order to enhance deployment. The main objectives are to collaborate, cooperate, share knowledge, and boost awareness thereby increasing the use of existing technologies. Current participants of Working Group 8 are France, Germany, Iceland, Japan, Mexico, New Zealand, Republic of Korea, 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 of the Working Group 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 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 3 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: Katharina Link, Geo-Future GmbH, Switzerland) Although the worldwide technical and economic potential of geothermal direct use applications is enormous, knowledge amongst the general public, politicians and decision-makers is generally 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 14

31 there are many other applications much less so. Even in a country like New Zealand, which has obvious potential, the many direct 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 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 Working Group 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. 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 regularise data collection is conducted within the scope of the Geothermal ERA-NET supported by the European Commission. Based on the 2015 report, the next task is to develop guidelines for geothermal energy statistics. This task was created for this purpose 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. 15

32 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: open position) 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. 3.2 Progress in 2016 Working Group 8 organised two working group meetings in conjunction with ExCo Meetings. The working group meetings took pace in Cuernavaca, Mexico, in April 2016 and in Munich, Germany, in September Tasks A and B organised and conducted three large events in 2016 to share knowledge and information about innovative applications, and to boost the awareness and deployment of geothermal direct use (see Section 3). Important progress was also made regarding statistics for geothermal direct use and heat pumps. In this context, the IEA Geothermal Trend Report questionnaire could be updated. 3.3 Outputs Working Group 8 conducted two large workshops and one networking reception. The first two-day workshop Opportunities and Benefits of Geothermal Direct Use towards a clean, sustainable and cost-efficient energy supply targeted Mexican and Latin American experts, project developers and high level decision makers and was linked to the ExCo Meeting in Cuernavaca (Mexico). The interest of those countries in geothermal direct use and heat pump applications has grown exponentially in the last few years. An international networking reception with a series of presentations on Renewable Thermal Facts and Figures was conducted as a side event of the Geothermal Resources Council Annual Meeting (GRC) in Sacramento (USA), on 25 th October Organisation partners were the US Department of Energy and Women in Geothermal (WING). A further one-day workshop on the Opportunities and Benefits of Geothermal Direct Use towards a clean, sustainable and cost-efficient energy supply was organised together with the Asian Geothermal Symposium and took place in ChiangMai (Thailand) on the 17 th of November

33 A huge number of high quality presentations were given at the two workshops and the networking reception. They are all available as PDF documents on the IEA Geothermal website. 3.4 Highlights The two most important highlights of Working Group 8 have been the two large workshops in Mexico and Thailand on the opportunities and benefits of geothermal direct use. In total, more than 300 participants from all over the world attended the events of the Working Group. Figure 4 Participants in the Working Group 8 workshops in Mexico and Thailand. A third highlight is the remarkable progress towards a best practise and guideline for the collection of statistical data of geothermal direct use and heat pump applications. 3.5 Future Activities To fulfil the mission of the Working Group, further workshops will be organised in the next two years. In 2017, a workshop on geothermal statistics of direct use and heat pump applications will be conducted in Florence in conjunction with the ExCo Meeting of IEA Geothermal. A further workshop will be organised together with the Vietnam Ministry of Natural Resources and 17

34 Environment. It will focus on Geothermal Energy Development for a Green Economy. The guidelines for the collection of statistical data for geothermal direct use and heat pump applications will be prepared. 3.6 References All presentations, papers and reports of the Working Group 8 are available at the website of IEA Geothermal, at 18

35 4. Working Group 10 Data Collection and Information Dr. Josef Weber Leibniz Institute for Applied Geophysics, Section 4 Geothermics and Information Systems, Stilleweg 2, Introduction Hannover, Germany. josef.weber@liag-hannover.de Working Group 10 was initiated at the end of 2010, with activity fully underway from The primary objective is to collect data on geothermal energy use, trends and developments in IEA Geothermal countries publishing the data in the Geothermal Trend Report. The objectives are achieved by the member countries providing information to the Working Group Leader and sharing the work of the Working Group. All Contracting Parties are obliged to participate and Sponsors have also agreed to contribute. The Operating Agent for Working Group 10 is the Leibniz Institute for Applied Geophysics (LIAG), Germany with Josef Weber as the WG Leader. The task of data collection and information is important in terms of a growing international demand renewable energy use data and trends. To further enable comparison of geothermal uses worldwide, additional data from sources such as the publications from with the World Geothermal Congress have been compiled and analyzed. The Geothermal Trend Report provides a brief overview of key data on geothermal energy use and shows the development of geothermal energy in the member countries. Work is in progress to expand the database on geothermal energy uses to include non-member countries and to collaborate with other institutions and organizations operating internationally in the geothermal energy sector. 4.2 Progress in 2016 Work on the Trend Report for the reporting year 2014 started with data collection in A questionnaire developed by WG 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 fifth Geothermal Trend Report was published in This report provides key data about geothermal energy use in member countries as well as selected non-member countries and is available as a free download from the IEA Geothermal website. 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. 19

36 4.3 Outputs The Trend Report for the reporting year 2014 (Weber & IEA-GIA, 2016) has been published and was presented at the European Geothermal Congress 2016 in Strasbourg, France. In 2016, there have been several in-person meetings and telephone conferences with representatives of IEA Geothermal and the International Geothermal Association (IGA) in order to expand data collection to non IEA Geothermal-member countries by sharing information on geothermal energy statistics. 4.4 Highlights Publication of the fifth GIA Trend Report with geothermal data from 2014 including basic data from six non IEA Geothermal-member countries. 4.5 Future Activities Finalization and publication of Trend Report 2015 and data capture for Presentation of Working Group 10 activities at the German Geothermal Congress Der Geothermiel ongress in September 2017 in Munich. 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. A joint IEA Geothermal / IGA workshop on energy statistics is planned to be held in Florence in May 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; Collection-of-Geothermal-Energy-Statistics.pdf. Weber, J. & IEA-GIA (2016): Trends in Geothermal Applications. Survey Report on Geothermal Utilization and Development in IEA-GIA Member Countries in 2014, with trends in geothermal power generation and heat use Publication of the International Energy Agency, Geothermal Implementing Agreement: 48 p (available at: 20

37 5. Working Group 12 Deep Roots of Volcanic Systems Chris Bromley 1, Gudni Axelsson Introduction 1 GNS Science, Wairakei Research Centre, Private Bag 2000, Taupo, New Zealand. c.bromley@gns.cri.nz 2 Iceland GeoSurvey, Grensásvegur 9, IS-108, Reykjavik, Iceland. gax@isor.is The transfer of heat from the deep roots of volcanic geothermal systems to shallow depths is complicated. It involves the flow of magma, flow of single-phase, two-phase or supercritical fluids, heat transfer, chemical (water-rock) reactions with gases and brines, and so on. Such processes cannot be simulated with conventional geothermal modelling tools. Developing a strategy for energy utilisation from deep roots therefore requires improved modelling methods, innovation of measurement tools, and better understanding of high temperature water-rock-gas interaction. Advances will be accelerated by collaborative research, close cooperation, and coordination of international research groups. Many of these activities are represented by IEA Geothermal participants. Working Group 12 strategies to address these challenges are as follows: Task A: Compilation of conceptual models of the roots of volcanic geothermal systems and associated research methods, using open-source information from participating countries to provide background material for deep-roots research, including information on exploration and modelling methods and tools. Task B: Advancement of methods for deep geothermal exploration to disseminate information on advances in exploration methods, facilitate cooperation amongst research-groups, and enhance the depth resolution of available methods by using the power of joint interpretation of data-sets. Task C: Methods for modelling conditions and processes in deep geothermal resources, by advancement of methods applied in the modelling of physical processes, revealing the overall process of upwards heat transfer, improving geothermal reservoir modelling, and enhancing synergy by avoiding duplication of effort and improved sharing of open-source software. 5.2 Progress in 2016 Although specific task leaders have not been assigned to each of these objectives, all activities to date have been jointly coordinated by the Working Group leader, Gudni Axelsson (Iceland), and the deputy leader Chris Bromley (New Zealand). Participation from other country representatives (especially Japan, USA, Switzerland and Italy) has also been enthusiastic. Significant progress was made during 2016 by WG12 participants who organised and contributed to four sessions and workshop events held in Iceland, Mexico, Japan and Germany (see section 5.6.1, General presentations). Participants described and discussed their newly-established deep- 21

38 roots and super-critical-fluid research programmes. In addition, researchers from participating countries attended, published and presented their preliminary results at the following international geothermal conferences and workshops: European Geothermal Congress (September 2016, Strasbourg, France), New Zealand Geothermal Workshop (November, 2016, Auckland, New Zealand), and Geothermal Resources Council Meeting (October, 2016, Sacramento, USA). 5.3 Outputs Presentations on Deep Roots research work were made at workshops organised by IEA Geothermal in Cuernavaca, Mexico, and Munich, Germany. They are available through the website and are listed in section (General presentations). Another presentation on a similar Deep Roots theme was made at a collaborative event held in Tokyo, Japan. The topics addressed by researchers in papers published and presented at major international conferences include: high temperature (450 o C) tool development, super-critical reservoir simulators, super-critical fluid-rock interaction from laboratory experiments, and the effects of cold water injection into super-heated reservoirs. These references are listed in section 5.6 under sub-headings labelled: Deep Roots and Deep EGS projects, Supercritical tools/modelling, and Supercritical water-rock interaction. Conference publications can be accessed through searching the conference paper database at: Highlights Key highlights for WG12 in 2016 are listed below: Cooperation has been strengthened between WG12 participants, the IPGT working group who are developing modelling software capable of simulating super-critical reservoir conditions, with the GEORG (Iceland) supported DRG (Deep Roots of Geothermal resources) project, the EU supported IMAGE and DeepEGS projects, the Swiss supported COTHERM project, the EU/Italian supported DESCRAMBLE project, a Japanese supported project on super-critical resources and the New Zealand supported Supermodels and supercritical water-rock interaction projects. Presentations at four sessions and workshop events were held during the year in Iceland, Mexico, Japan and Germany. Participants discussed their newly-established deep-roots and super-critical-fluid research programmes. Nine publications on novel technologies to deal with supercritical fluid resources, including reservoir simulators and fluid-rock-chemical reactions, were published and presented at three major geothermal conferences. 5.5 Future Activities Future plans are to build further on the achievements to date, by communicating and sharing research results amongst participating countries and organisations, thereby reducing duplication of effort and eventually accelerating deployment opportunities for supercritical (deep roots) geothermal resource utilisation. Future plans include organizing an IEA Geothermal workshop on supercritical (deep roots) research and development. 22

39 5.6 References General presentations GEORG February 2016 Deep Roots meeting held in Reykjavik, Iceland, with presentations on the following topics from Icelandic presenters: DEEPEGS, IMAGE, GEOWELL, FUTUREVOLC, IDDP, KMDP, Krafla Magma, supercritical modelling itough2, corrosion, casing design, geophysics, seismicity, fluid-rock interaction, deformation; from Switzerland (COTHERM); from New Zealand (geophysics, modelling); and from Italy (DESCRAMBLE). Presentations can be downloaded from Axelsson, G. and Bromley C.J. (2016) Deep Roots of Geothermal Systems- Understanding and Utilizing presentation at Central and South American Workshop on Geothermal Energy Cuernavaca, Mexico, 21st April 2016, in session titled New and Innovative Projects (iea-gia.org website). Bromley, C.J., and Kissling, W. (2016) Deep geothermal system exploration in Taupo Volcanic Zone, New Zealand A new technical approach for assessing supercritical geothermal resource potential invited presentation at JOGMEC-GNS International Geothermal Collaboration Workshop in Tokyo, 2nd June 2016, Bromley, C.J., (2016), Exploration of Deep Roots of Geothermal Systems in New Zealand- Assessing the Super-Critical Resource Potential, presentation on deep roots research at IEA- Geothermal Munich Molasse Meeting, 15 September, 2016, Munich, Germany. ( Bromley, C.J. and Axelsson, G., (2016) Opportunities For Innovation & Collaboration in Working Group (Annex) 12: Deep Roots, Presentation of Working Group 12 activities, at IEA-Geothermal ExCo meeting, Munich, 13 September, Deep Roots and Deep EGS projects Ingólfsson, H P; Árnason, K; Axelsson, G; Franzson, H; Hreinsdóttir, S; Jónsson, M T; Sævarsdóttir, G A; Gunnarsson, G; Júlíusson, E; Podgorney, R P; Sigmundsson, F; Gardarsson, S M, (2016) Deep Roots of Geothermal Systems - a GEORG Collaborative Project, Proc. European Geothermal Congress 2016, S-O-93. Fridleifsson, G O; Bogason, S G; Stoklosa, A W; Ingolfsson, H P; Vergnes, P; Thorbjörnsson, I Ö; Peter-Borie, M; Kohl, T; Edelmann, T; Bertani, R; Sæther, S; Palsson, B., (2016) Deployment of Deep Enhanced Geothermal Systems for Sustainable Energy Business, Proc. European Geothermal Congress 2016, T-PO Supercritical tools/modelling Stamnes, Ø; Røed, M H; Hjelstuen, M; Kolberg, S; Knudsen, S; Vedum, J; Halladay, N., (2016) Development of a Novel Logging Tool for 450 C Geothermal Wells, Proc. European Geothermal Congress 2016, T-O

40 O' Sullivan, John, (2016), Improvements to the AUTOUGH2 Supercritical Simulator with Extension to the Air-Water Equation of State, Geothermal Resources Council Transactions, (2016), v.40, Geothermal Resources Council, Davis, California. GRC ID # Croucher, M.J. O`Sullivan, J. O`Sullivan1, J. Pogacnik, A. Yeh, J. Burnell, W. Kissling (2016) Geothermal Supermodels Project: an Update on Flow Simulator Development, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper Supercritical water-rock interaction Mountain, B.W., I. Chambefort, L. Sajkowski (2016) Progressive Devolitization of Greywacke from Sub-Critical to Supercritical Conditions, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 64. Passarella, M., B.W. Mountain, T.M. Seward (2016) Basalt-Fluid Interaction at Supercritical Conditions (400 C, 500 bar): an Experimental Approach, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 151. Okabe, T., M. Kato, T. Sato, Y. Abe, H. Asanuma (2016) Current Status of the EGS Project for Water Injection in the Superheated Region at Okuaizu Geothermal Field in Japan, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 67. Tsuchiya, Noriyoshi, Ryoichi Yamada, Masaoki Uno (2016) Supercritical geothermal reservoir revealed by a granite porphyry system, Geothermics, Volume 63, September 2016, Pages , ISSN , 24

41 6. Working Group 13 Emerging Geothermal Technologies Dr. Josef Weber 1, Dr. Tae Jong Lee 2, Manuela Richter 3, Dr. Peter Meier 4, Dr. Katharina Link 4, Chris Bromley 5, Dr. Jiri Muller 6 1 Leader of WG 13, Leibniz Institute for Applied Geophysics, Section 4 Geothermics and Information Systems, Stilleweg 2, Hannover, Germany. josef.weber@liag-hannover.de 2 Task A, Climate Change Mitigation and Sustainability Division, Korea Institute of Geosciences and Mineral Resources (KIGAM), Gwahang-no 124, Yuseong-gu, Daejeon 34132, Korea. megi@kigam.re.kr 3 Task B, Project Management Jülich, Division Energy System Renewable Energies/Power Plant Technology, Geothermal Energy, Hydropower, Science Communication, Forschungszentrum Jülich GmbH, Jülich, Germany. ma.richter@fz-juelich.de 4 Task C, Geo-Energie Suisse AG, Reitergasse 11, 8004 Zurich, Switzerland. p.meier@geo-energie.ch; k.link@geo-energie.ch 5 Task D, GNS Science, Wairakei Research Centre, Private Bag 2000, Taupo 3352, New Zealand. c.bromley@gns.cri.nz 6 Task E, Institute for Energy Technology (IFE), P.O. Box 40, 2027 Kjeller, Norway. jiri.muller@ife.no 6.1 Introduction Working Group (WG) 13 Emerging Geothermal Technologies was initiated on 21st April 2015 and started work at a meeting in Hanover, Germany, in September The working group covers a broad spectrum of activity including: exploration, drilling, reservoir creation and enhancement, corrosion and scaling in surface facilities, the use of tracers, and the mitigation of induced seismicity. Work in WG 13 is currently carried out in five 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, Tracer Technology). Furthermore, it is planned to establish a sixth task on Geothermal Reservoir Management in the near future. The goal of WG 13 is to provide quality information to facilitate and promote the utilization 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 through presentations at relevant conferences and workshops. Current participants of WG 13 are Germany (among others the Leibniz Institute for Applied Geophysics as Operating Agent, with Josef Weber being WG leader), Switzerland (with Christian Minnig as WG co-leader), Norway (IFE), Korea (KIGAM), New Zealand (GNS Science), Japan, Australia, France, the United States and the European Commission. 25

42 6.2 Progress in Task A Exploration, Measurement and Logging Task A is targeted at sharing information on new and emerging technologies in exploration, measurement, and geophysical logging, and sharing experiences from case studies in various geothermal fields in different countries. Participating countries in Task A are Korea, Japan, Germany, and New Zealand Task B Drilling Technology Drilling can account for up to 50 % of the total costs of a geothermal project. Task B addresses the question of 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, and discuss and suggest action points Task C Reservoir Creation and Enhancement 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 C was successfully started at a meeting in September 2016 in Munich. Work tasks have been defined and prioritised. A first publication is under preparation. Current tasks are: Worldwide overview of the state of the art (first priority) Overview of worldwide research and development Ongoing exchange in the area of research and development, eg. stimulation procedures, zonal isolation, modelling, characterisation, cost reduction Worldwide overview of country-specific challenges Development of a worldwide roadmap for EGS (considering country-specific challenges) Furthermore, a project focussed on more general information about the potential of reservoir creation and enhancement is in the planning phase. 26

43 6.2.4 Task D Induced Seismicity Induced seismicity risk is an issue for a number of geothermal projects, particularly those involving deep EGS fracture stimulations, and those located in densely-populated regions, near fragile buildings, or surrounded by people not used to experiencing natural earthquakes. Collaborative research into this topic commenced in 2004 as a task in Annex 1 then switched to Annex 11, and in 2015 transferred to Task D under WG 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 also 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 based on modifying injection and stimulation parameters. Aspects of this work are continuing under this task. A new research focus is to better understand, through collaborative modelling and data sharing, the key mechanisms behind induced seismicity that sometimes accompanies long term injection Task E Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracer Technology) Task E has continued to focus on recent developments in surface technology for geothermal heat and electricity production, corrosion, scaling and tracer technologies. It is based on the following activities: Collecting and collating available information from IEA Geothermal members Technical presentations at international forums Increasing awareness of the work of IEA Geothermal and knowledge transfer to the international community Collaboration and joint activity 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 6.3 Outputs Task A Exploration, Measurement and Logging As the first step a list of tool developers and/or service companies has been compiled serving as an information source for geophysical well logging, especially with a focus on high temperature applications (see Table 1). The list is far from comprehensive and it will be regularly updated. Table 6.1 List of organizations which provide tools and/or services for geophysical logging for geothermal applications Nation Company homepage Korea Japan Germany Korea Institute of Geoscience and Mineral Resources (KIGAM) Geothermal Energy Research and Development Co. (GERD) Antares Karlsruhe Institute of Technology (KIT) ZWERG project 27

44 Nation Company homepage New Zealand Hades Systems USA Schlumberger Bakers and Hughes GE Oil and Gas Tiger Energy services Luxembourg Advanced Logic Technology (ALT) UK Robertson Geologging (RG) Probe Severn Subsea Technologies (Calidus Engineering) Task B Drilling Technology In 2016, information collection and report preparation on drilling technology commenced. New members have joined who have been attracted by this task. In April 2016, Task B organised a session on Innovative Drilling Technologies at the Central and South American Workshop on Geothermal Energy in Cuernavaca, Mexico. Experts from Germany and Japan presented on the development of drilling technologies for different applications Task C Reservoir Creation and Enhancement Task C activities commenced with a workshop session at the IEA Geothermal Workshop on Innovations in Geothermal Energy in Cuernavaca, Mexico in April The kick-off meeting of Task C took place in Munich in September 2016 in conjunction with the IEA Geothermal Executive Committee Meeting. Representatives from all IEA Geothermal member countries participated except from UK and Italy. A first presentation is under preparation that will be made publicly available. It will give an overview of relevant projects and the state of the art of reservoir creation and enhancement in different countries Task D Induced Seismicity During 2016, the primary effort of this task was to encourage collaboration of researchers and to share the results of the considerable amount of funded research undertaken by participants. Countries with a strong interest in this topic include: Germany, France, Switzerland, Iceland, Japan, USA and New Zealand. The reference list in section provides most of the 2016 publications from the groups of researchers. Some outputs are specific to one project or one country, while others represent joint work of individuals from several collaborating organisations, with funding also coming from a variety of sources. The reference list is subdivided into topics that have attracted most interest and collaboration: induced seismicity observations, mechanisms and models, and EGS stimulations. 28

45 6.3.5 Task E Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracer Technology) Task E was presented and discussed in several international forums. These included: European Geothermal Congress (EGC 2016) Workshop at the Munich Molasse Meeting, September 2016 Central and South American Workshop on Geothermal Energy, Cuernavaca, Mexico, April 2016 ETIP (European Technology & Innovation Platform for Deep Geothermal) Geothermal ERA-NET 11 th Asian Geothermal Symposium (AGS11) EERA JP Geothermal New members were recruited. The current members are Japan, Iceland, Italy, New Zealand, USA, Germany and Norway. 6.4 Highlights Task A Exploration, Measurement and Logging The ZWERG Project. ZWERG stands for dwarf in German. This project has been running since 2010 at the Institute for Applied Computer Science, Karlsruhe Institute of Technology (KIT), Germany. The main purpose of the project is to provide standardized basic components that are commonly used in logging probes (Isele, 2015). The project has developed different modules, such as housing modules, electronics housings, dewar flasks (vacuum) and so on. Details of the design parameters, information on the materials, and eventually blueprints for each of the modules will be publically available. Figure 6-1 Schematic diagram for the strategy and workflows of the ZWERG project (Figures provided by Benedict Holbein (KIT), personal communication). As of 2016 GeoKam, a video inspection tool for deep geothermal boreholes, was close to being completed (Spatafora et al., 2016). A laboratory evaluation test will be performed at the Karlsruhe Institute of Technology autoclave that can simulate pressures up to 80 MPa and temperatures higher than 200 C. 29

46 Figure 6-2 Video Inspection probe, GeoKam, function model for 48 MPa and 165 C (Figures provided by Benedict Holbein (KIT), personal communication). The description of each module can also be found in Spatafora et al. (2016). GeoKam provides important component modules, which are expected to have wide application in the development of logging probes. This project is interesting because it is an open source hardware project with modules in a platform that is expected to allow cost effective and faster integration of new modules Task C Reservoir Creation and Enhancement The highlight of Task C was the workshop session at the IEA Geothermal Workshop on Innovations in Geothermal Energy for Central and Latin American Countries with about 180 participants present. Experts in the field of reservoir creation and enhancement have joined Task C as national team leaders or active members. Most of the relevant countries are now actively participating in Task C. 6.5 Future Activities Task A Exploration, Measurement and Logging The geothermal logging tool, tool developers and service company listing will be updated and additional details on the services and tools will be collected; e.g. types of services and tools, and their limits with regard to temperature, pressure, and so on. A review of best practice procedure manuals and white papers, such as the IFC-IGA best practice and IPGT white papers will be undertaken. Work scope of the task can be expanded by discussion among the member countries, and by accepting proposals from participating countries and specific experts on new technology for 30

47 exploration, downhole tools/measurements, and monitoring including 4D imaging in geothermal fields Task B Drilling Technology A summary of innovative drilling technologies and a short report comparing alternative and innovative drilling methods (plasma, laser, electric pulse) compared to conventional rotary drilling will be available in the middle of Task B presented at the largest European trade fair for geothermal energy, GEOTHERM 2017 in Offenburg, Germany in February Task B will continue collecting and summarising data related to geothermal drilling methods and will publish further reports. Information will be collected from published papers and available industry data preparing a geothermal well drilling learning curve. A further step will be organisation of a workshop in 2018 exchanging information, technical know-how and gaining new task members Task C Reservoir Creation and Enhancement A working group meeting of Task C will take place in conjunction with the May 2017 ExCo Meeting in Florence, Italy. To increase international knowledge exchange, a workshop is planned in conjunction with the Geothermal Resources Council (GRC) in Salt Lake City, USA in October Furthermore, workshop sessions will be conducted at the two-day IEA Geothermal Workshop in November 2017 in Hanoi, Vietnam. At least one presentation on current and past projects and the state of the art of stimulation technologies will be published in A list of experts in the field of reservoir creation and enhancement will be compiled Task D Induced Seismicity Efforts to strengthen international collaboration will continue, and lessons learnt will be compiled into a summary document to assist developers, policy makers and the general public to make informed opinions about the risks involved. Outcomes will include improved and informed decisions about protocols and recommended monitoring schemes required for new or expanded geothermal projects Task E Surface Technology (Heat and Electricity Production, Corrosion, Scaling, Tracer Technology) We expect to collect and collate available information as identified in section from technical presentations at international forums, increasing awareness of the work of IEA Geothermal, sharing knowledge with the international community, collaborating, initiating joint actions with international bodies dealing with similar aspects and issues, and attracting interested new members. 31

48 6.6 References Task A Exploration, Measurement and Logging Isele, J., Bauer, C., Dietze, S., Holbein, B., and Spatafora, L. (2015): The ZWERG project: a platform for innovative logging tools. Proceedings World Geothermal Congress 2015, Melbourne, Australia. Spatafora, L., Isele, J., and Holbein, B. (2016): The GeoKam A Tool for Video Inspections in Hot Deep Geothermal Boreholes. Proceedings Workshop on Geothermal Reservoir Engineering, Stanford University, Stanford, California, Feb , Task D Induced Seismicity Induced Seismicity Observations Sepulveda, F., C. Siega, Y.W. Lin, A Urgel, C. Boese, (2016) Observations of Deep and Shallow Seismicity Within the Wairakei-Tauhara Geothermal System, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 126. Boese, T C., M. Bodell, M. Cheng, A. Lucas (2016) Seismic monitoring, geothermal exploration, borehole seismometers, volcano-tectonic earthquakes, American Samoa. Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 84. Mattie, T., D. Dempsey (2016) Analysing Induced Seismicity in Geothermal Reservoirs: a Modification of the Hall Plot, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 40. MCNAMARA, David, Stephen BANNISTER, Pilar VILLAMOR, Fabian SEPLÚVEDA, Sarah D MILICICH, Samantha ALCARAZ, Cécile MASSIOT (2016) Exploring Structure and Stress from Depth to Surface in the Wairakei Geothermal Field, New Zealand, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. Tezel, T; Foulger, G R; Julian, B R. (2016), Relative Microearthquake Locations at the Geysers, Proc. European Geothermal Congress 2016, S-GP-317. Takuya Ishibashi, Noriaki Watanabe, Satoru Ishikawa, Hiroshi Asanuma1, and Noriyoshi Tsuchiya (2016), Permeability Change of Rock Fractures Estimated from the Scale of Microearthquakes in Geothermal Reservoir, Proc. 11 th Asian Geothermal Symposium, Chiang Mai, Thailand, Nov Kristjansdottir, S; Agustsson, K; Gudmundsson, O; Tryggvason, A; Lund, B; Fehler, M., (2016) Induced Seismicity during Reinjection of Wastewater in Hellisheidi Geothermal Field, Southwest Iceland, Proc. European Geothermal Congress 2016, S-GP Mechanisms & models Riffault, J., D. Dempsey, S. Karra, R. Archer (2016) Estimation of Pressure and Permeability Enhancement Distribution Using Induced Earthquake Hypocenter Density for the 2011 Paralana EGS Stimulation, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper

49 RIFFAULT, Jeremy, David DEMPSEY, Rosalind ARCHER, Sharad KELKAR, Satish KARRA (2016) Understanding Poroelastic Stressing and Induced Seismicity with a Stochastic/Deterministic Model: an Application to an EGS Stimulation at Paralana, South Australia, Proc. 41 st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. MUKUHIRA, Yusuke, Hiroshi ASANUMA, Markus HÄRING, (2016) Migration of Shut-in Pressure and Its Effect to Occurrence of the Large Events at Basel Hydraulic Stimulation, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. GHASSEMI, Ahmad, Qingfeng TAO (2016), Thermo-Poroelastic Effects on Reservoir Seismicity, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. MHANA, Najwa, Ceri NUNN, Bruce R. JULIAN, Gillian R. FOULGER, Andrew SABIN (2016) Time- Dependent Tomography Using TOMO4D: Theoretical Advances and Early Applications, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. Gaucher, E; Gesret, A; Noble, M; Kohl, T, (2016) New Bayesian formulation to integrate body-wave polarization in non-linear earthquake location, Proc. European Geothermal Congress 2016, S-GP- 17. Köpke, R; Gaucher, E; Meixner, J; Kohl, T., (2016), A method to interpret induced seismicity clouds as a fracture network, Proc. European Geothermal Congress 2016, S-GP-18. Jupe, A; Francis, D; Gehrmann, M. (2016), Probabilistic approaches in EGS seismic hazard assessment, Proc. European Geothermal Congress 2016, S-GP-71. Ghassemi, Ahmad, Qingfeng Tao, Thermo-poroelastic effects on reservoir seismicity and permeability change, Geothermics, Volume 63, September 2016, Pages , ISSN , Schmittbuhl, J; Stormo, A; Lengliné, O; Justin, C; Hansen, A. (2016) b-value variations and fracture pinning, Proc. European Geothermal Congress 2016, S-GP-330. MATZEL, Eric, Christina MORENCY, Andrea RHODE, Dennise TEMPLETON, Moira PYLE (2016) Virtual Seismometers in Geothermal Systems: Looking Inside the Microseismic Cloud, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR EGS Induced Seismicity NORBECK, Jack, Mark MCCLURE, Roland HORNE, (2016) Revisiting Stimulation Mechanism at Fenton Hill and an Investigation of the Influence of Fault Heterogeneity on the Gutenberg-Richter b-value for Rate-and-State Earthquake Simulations, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. TEMPLETON, Dennise, Jingbo WANG, Meredith GOEBEL, Gardar JOHANNESSON, Stephen MYERS, David HARRIS, (2016) Seismic Characterization of the Newberry and Cooper Basin EGS Sites, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR

50 AGUIAR, Ana C., Stephen C. MYERS (2016), Characterizing Microseismicity at the Newberry Volcano Geothermal Site Using PageRank, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. BAUER, S. J., Q. CHEN, K. HUANG, A. GHASSEMI (2016) Experimental and Numerical Investigation of EGS Shear Stimulation, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. GAUCHER, Emmanuel, Xavier KINNAERT, Ulrich ACHAUER, Thomas KOHL (2016) Propagation of Velocity Model Errors in Earthquake Absolute Locations: Application to the Rittershoffen Geothermal Field, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR GRITTO, Roland, Douglas S. DREGER, O. Sierra BOYD and Taka'aki TAIRA, (2016) Fluid Imaging, Moment Tensors and Finite Source Models at the EGS Demonstration Project at the Geysers, CA. Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. HARTLINE, Craig, Mark WALTERS, Melinda WRIGHT, Corina FORSON, Andrew SADOWSKI, (2016) Three-Dimensional Structural Model Building and Induced Seismicity Analysis at the Geysers Geothermal Field, Northern California, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. HOROWITZ, Franklin G., Applachian Basin GPFA Team, (2016) Risk of Seismicity from Potential Direct-Use Operations in the Appalachian Basin Geothermal Play Fairway Project, Proc. 41st Stanford Workshop on Geothermal Reservoir Engineering, SGP-TR-209. Maurer, V; Vergne, J; Richard, A; Doubre, C; Grunberg, M; Baujard, C; Wodling, H., (2016), Towards the installation of a micro-seismic and a geodetic monitoring network for a geothermal project in urban context: the example of Illkirch-Graffenstaden (Alsace, France), Proc. European Geothermal Congress 2016, S-GP-48. Maurer, V; Grunberg, M; Cuenot N; Richard, A. (2016), Toward calibrating an automatic detection system to monitor micro-seismic activity induced by geothermal projects in the Upper Rhine Graben, Proc. European Geothermal Congress 2016, S-GP-50. Maurer, V; Grunberg, M; Richard, A; Baujard, C; Doubre, C; Lehujeur, M. (2016) On-going seismic monitoring of the Rittershoffen project EGS project (Alsace, France), Proc. European Geothermal Congress 2016, S-GP-51. Kinnaert, X; Gaucher, E; Kohl, T; Achauer, U., (2016), Modelling focal mechanism errors of seismicity induced at Rittershoffen geothermal field (Alsace, France), Proc. European Geothermal Congress 2016, S-GP-88. Lengliné, O; Boubacar, M; Schmittbuhl, J., (2016) Seismicity related to the hydraulic stimulation of GRT1, Rittershoffen, Alsace, France, Proc. European Geothermal Congress 2016, S-GP

51 7. Australia Betina Bendall, Barry A Goldstein Department of State Development, Level 6, 101 Grenfell St, Adelaide, South Australia Introduction betina.bendall@sa.gov.au; barry.goldstein@sa.gov.au The Australian geothermal energy sector has undergone a boom and bust cycle since the early 2000's. Initial interest and investment in the sector focused on the potential to develop electricity generation from Engineered Geothermal Systems as Australia has no active volcanic terrains suitable for exploitation of conventional geothermal energy resources. Activity in the generation sector peaked in with about 10 unconventional geothermal projects at various stages of development across the nation. Technical success was achieved in 2013 with the first generation of electricity from an EGS resource in Australia at Geodynamics Ltd s Habanero field in the Cooper Basin, South Australia and the creation of an EGS reservoir by Petratherm Ltd at Paralana, South Australia. Unfortunately lack of commercial success, largely influenced by a combination of high drilling costs, poor market conditions, retraction of private venture capital for speculative investments, and an uncertain policy environment for renewable technologies, overshadowed the technical achievements made. This led to the contraction of the sector, with most projects either being abandoned or suspended. Investment conditions continue to remain inadequate for the sector to re-commence activities at this juncture. A succinct discussion of these issues is provided by Budd and Gerner (2015). Conversely the development of direct use resources, particularly in Perth, Western Australia, continues to steadily progress. This success occurs largely in the absence of supporting policy incentives since direct use geothermal technologies, including Ground Source Heat Pumps (GSHP), remain ineligible under the Australian Commonwealth Government s Small Scale Renewable Energy Target program. Lack of supporting policy mechanisms and low community awareness of the potential of direct use geothermal constitute major impediments to the wider deployment of these technologies. The following table summarises geothermal energy usage in Australia for the calendar year

52 Electricity Direct Use Total Installed Capacity (MW e) 1.1 Total Installed Capacity (MW th) 48.1* New Installed Capacity (MW e) 0 New Installed Capacity (MW th) 4.3* Total Running Capacity (MW e) N/A Total Heat Used (PJ/yr) [GWh/yr] 91* Contribution to National Capacity (%) <0.001 Total Installed Capacity Heat Pumps (MW th) 35* Total Generation (GWh) Total Net Heat Pump Use [GWh/yr] 30.9* Contribution to National Generation (%) <0.001 Target (PJ/yr) N/A Target (MW e or % national generation) N/A Estimated Country Potential (MW th or PJ/yr or GWh/yr) N/A Estimated Country Potential (MW e or GWh) NA (N/A = data not available) (* indicates estimated values) 7.2 Changes to Policy Supporting Geothermal Development The Australian Government remains committed to its aim of having 20% of Australia s electricity demand in 2020 met by renewable generators. The current target of 33,000 GWh is expected to constitute about 23.5% of demand in 2020 based on current projections (Clean Energy Regulator, 2016). The fundamental policy instrument designed to achieve this is the Renewable Energy Target (RET) which facilitates sustainable growth in the uptake of both small and large scale renewable energy technologies. In 2015, 15,200 GWh were generated from large scale renewable sources while an estimated 8,900 GWh were generated or offset by the small scale component of the RET (Clean Energy Regulator, 2016). The installed capacity of renewable resources is just under 14,000 MW and the Clean Energy Regulator has reported that Australia still requires an estimated additional 6,000 MW of new capacity to meet the 33,000 GWh target. At present, development approvals have been given for about 9,000 MW of additional new capacity. The uptake of small scale renewable technologies particularly rooftop solar PV is very popular within the residential and small business community. Support for the small scale RET will not change and remains uncapped. At the Paris Summit in December 2015, Australia committed to a revised target of reducing greenhouse emissions by 26-28% on 2005 levels by This commitment represents a 50-52% reduction in per capita emissions and a 64-65% reduction in the emissions intensity of the economy which is defined as the volume of emissions per unit of GDP (Department of the Environment, 2015). Australia s greenhouse gas emissions are reducing over time. In 2008, Australia s abatement requirement was estimated at over 1.3 billion tonnes of emissions. By 2015 this had fallen to an estimated 236 million tonnes of emissions reductions (Department of the Environment, 2016). A number of factors have played a role in the overall reduction of emissions including: the 36

53 increasing uptake of renewable energy sources; improving energy efficiency; slowed growth in various energy intensive sectors of the Australian economy including agriculture, heavy manufacturing, LNG and coal industries; and the implementation of the Emission Reduction Fund which is the main policy instrument for achieving the 2030 emission reduction target. A National Energy Productivity Plan (NEPP) was produced in December 2015 as a collaborative effort between the States and the Commonwealth (Commonwealth of Australia, 2015). The Plan identified 34 key measures to be initiated including: energy efficiency incentives which account for wider societal costs and benefits; improved and consistent energy efficiency guidelines and ratings for buildings; best practice Greenhouse and energy minimum performance standards for materials, appliances and technologies; and development of efficiency metrics. The overall target of the NEPP is to achieve a 40 per cent improvement in energy productivity by 2030 and is pivotal to Australia achieving its emissions reduction targets with over 25 per cent of projected energy and emissions savings to be contributed through the NEPP (Commonwealth of Australia, 2016). With specific reference to geothermal energy, this is a policy area where the geothermal sector particularly GSHP and district heating and cooling applications could potentially leverage government policy and funding support in the future. In Australia, jurisdiction for the legislation, permitting and regulation of geothermal exploration and development is a State and Territory government responsibility. The reader is referred to the 2010 Annual Report for a discussion of existing legislation. 7.3 Geothermal Project Development Projects Commissioned Construction is underway on two 150 kw geothermal power plants in the remote community of Winton, Queensland. Electricity from these generators will be used to power all the community s local Government buildings and infrastructure. Local Government Infrastructure Services (LGIS) Queensland is considering plans to build a further four geothermal plants in Quilpie, Thargomindah, Normanton and Longreach, with Ergon Energy providing network services Projects Operational 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. In 2016 Ergon Energy announced the planned upgrade of the Birdsville Geothermal Plant. The existing 85kW net screw expander system is to be replaced increasing the net output up to 200kW. Integration of the geothermal plant with the diesel generator will enable up to 70% of generated electricity to be sourced from geothermal energy, displacing up to 80% of the current diesel usage. 37

54 Upgrade operations at the plant are expected to commence in Research Highlights Geothermal R&D in Australia is largely focussed on advancing technologies associated with unconventional geothermal resources (i.e. EGS and Hot Sedimentary Aquifers (HAS)). 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. 7.5 Other National Activities Geothermal Education No new educational programmes commenced in Conferences No national geothermal conference program was held in Publications Ayling, B., Hogarth, R.A. and Rose, P.E. (2016). Tracer testing at the Habanero EGS site, central Australia. Geothermics Vol 63, Sept 2016, p Li, M.X., Ricard, L.P., Underschultz, J. and Freifeld, B.M. (2016) Reducing operational costs of CO2 sequestration through geothermal energy integration. Int J Greenhouse Gas Control, Vol 44 Jan 2016, p Mohais, R. Xu, C, Dowd, P.A> and Hand, M. (2016) Chapter 27 Enhanced Geothermal Systems In Alternative Energy and Shale Gas Encyclopedia. (Eds: Lehr, J.H and Keeley, J.) John Wiley and Sons. Ricard, L.P., Huddlestone-Holmes, C.R. and Pujol, M., (2016). Reservoir and production engineering challenges for geothermal systems hosted in Australian sedimentary basins. SPE Asia Pacific Oil & Gas Conference and Exhibition, October Perth, Australia, Wu, B., Zhang, X., Jeffery, R.G., Bunger, A.P. and Jia, S. (2016). A simplified model for heat extraction by circulating fluid through a closed-loop multiple-fracture enhanced geothermal system. Applied Energy Vol 183, Dec 2016, p You, Z., Yang, Y., Badalyan, A., Bedrikovetsky, P. and Hand, M. (2016). Mathematical modelling of fines migration in geothermal reservoirs. Geothermics Vol 59 Part A, Jan 2016, p

55 7.5.4 Useful Websites bs/rp/rp1516/climate Future Activity Key activities scheduled for 2017 include the progression of advanced planning and procurement of equipment for the upgrade to Ergon Energy s Birdsville geothermal facility, and the commissioning of the Winton Queensland plant currently under construction. 7.7 References Budd, A.R. and Gerner, E.J. (2015). Externalities are the dominant cause of faltering in Australian Geothermal Energy Development. Proceedings World Geothermal Congress 2015 Melbourne, Australia, April Available at: Clean Energy Regulator (Commonwealth of Australia), (2016). Renewable Energy Target Administrative Report and Annual Statement Available online at: Target-2015-Administrative-Report.aspx Commonwealth of Australia, (2015). National Energy Productivity Plan Available online at: Commonwealth of Australia, (2016). National Energy Productivity Plan : Annual Report Available online at: PP%20Annual%20Report% pdf Department of the Environment, (2015). Australia s 2030 climate change target. Available online at: climate-change-target Department of the Environment, (2016). Australia s Abatement Task: tracking to 2020 April 2016 Update. Available online at: 39

56 8. European Union Susanna Galloni 8.1 Introduction European Commission, DG Research and Innovation, CDMA 00/060, B-1049 Brussels. In 2016 Horizon 2020, the current EU framework programme for research and innovation, continued to offer opportunities for geothermal energy research and innovation (R&I) projects. The 2016 topics are included in the Work Programme 1 and cover the whole range of technology development, from very low TRL (Technology Readiness Level) to market uptake. The contribution from the European Union to ongoing R&I geothermal projects in 2016 exceeded EUR 100 million. Furthermore, in 2016 important developments took place in geothermal energy research and innovation policy, signalling the recognition that geothermal power and heat have the potential to provide real alternatives to replace fossil fuels and to greatly contribute to a low-carbon energy system. 8.2 Major highlights and achievements In 2016, three new projects were funded under Horizon In particular, a coordinated call with Mexico was launched, funded by Horizon 2020 on the EU side and by CONACYT 2 /SENER 3 on the Mexican side, with each part equally contributing EUR 10 million. The project was generated by shared European and Mexican research interests and in the framework of an existing bilateral Agreement on Science and Technology between the European Union and the United States of Mexico. The presence of geothermal fields in Mexico with challenging characteristics as well as the presence of supercritical fluid of high temperature and acidity (SHGS) and fields with low rates of permeability and at the same time high temperatures (EGS), offer the possibility of developing technologies that reduce the risk of extraction and exploitation of geothermal resources. The GEMex project, Cooperation in Geothermal energy research Europe - Mexico for development of Enhanced Geothermal Systems and Superhot Geothermal Systems, was selected and it is being implemented by two complementary consortia: a European consortium and a corresponding consortium from Mexico. The second project funded in 2016 is a co-fund ERA NET project that originates from the good cooperation among countries participating in the Geothermal ERA NET project, that was concluded in 2016, and in the interest of old and new countries to join efforts in funding R&I. The project is called GEOTHERMICA 4 and in April 2017 it will launch a call for joint innovative demonstration and technology development projects to accelerate deployment of geothermal energy. The financial commitment of the participating countries is topped-up with more than EUR 8 million from Horizon 2020 and the total budget for the call is about EUR 32 million. The selected projects are expected to deliver results by In addition, in 2016 a research project on advanced materials and processes to improve performance and cost-efficiency of shallow geothermal systems and underground thermal storage was selected for funding under Horizon This project will start in

57 The ongoing EU-funded projects continued work in 2016 and a number of them were presented in September in Strasbourg at the European Geothermal Congress (EGC2016). The year 2016 marked a milestone for geothermal energy in the development of technology policy. Within the framework of the SET Plan, the European Strategic Energy Technology Plan, which aims at accelerating the development and deployment of low-carbon technologies 5, a European Technology and Innovation Platform (ETIP) on Deep Geothermal Energy 6 was created. This ETIP complements the ETIP on Heating and Cooling and joins the other existing thematic ETIPs on renewable energy technologies. ETIPs have an important role as they support the implementation of the SET Plan by bringing together EU countries, industry, and researchers. The ETIP on Deep Geothermal, together with other stakeholders, had the opportunity to comment and to contribute to the preparation of a Declaration of Intent 7 that sets strategic targets to reduce the cost of geothermal energy technologies and to make them more efficient. The Declaration of Intent was endorsed in September 2016 by the SET Plan Steering Group, the SET Plan decisionmaking body. 8.3 References and Links 1 energy_en.pdf 2 Consejo Nacional de Ciencia y Tecnología 3 Secretaría de Energia

58 9. Germany Lothar Wissing Project Management Jülich PTJ - ESE 4, Division: Energy System - Renewable Energies / Power Plant Technology, Geothermal Energy, Hydropower, Science Communication, Forschungszentrum Jülich GmbH, Jülich. 9.1 Introduction l.wissing@fz-juelich.de The use of geothermal energy offers significant potential and could theoretically meet Germany's energy demands several times over. Considerable efforts have already been made to tap into this potential, from exploration and development of particularly suitable regions and development of drilling technologies, through to systems for converting extracted geothermal heat into electricity. The regions of Germany in which 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. Hydrothermal geothermal energy is already being exploited in these parts of the country to a large extent. There is an especially high natural increase in temperature at increasing depths in these regions. According to information from the German Geothermal Association (BVG), there were 33 geothermal power plants in operation across Germany in February Most of these plants exclusively generate heat, with an installed capacity of 303 megawatts (thermal). Nine of the geothermal plants generate electricity either exclusively or supplementary to the heat. They have an installed electrical capacity of around 37 MW megawatts. Due to technical failures and restricted operating permissions the running capacity is estimated to be 35 MWe. In Germany, deep geothermal energy is being increasingly used to generate heat. In terms of the prevailing geological conditions in Germany and the existing structure of demand, projects involving heating, such as supplying local and district heating systems, have higher prospects for being economically successful than projects for the generation of electricity only. 9.2 Changes to Policy Supporting Geothermal 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 subsidies towards drilling costs. The last amendment to the EEG was adopted by the Bundestag (Lower House of Parliament) in December Since then the feed-in-tariff was fixed at 25.2 Euro-cents per KWh. The market incentive programme (MAP) of the German Government promotes renewable energy systems that provide space heating, hot water, cooling and process heat. It was revised in March It has a section for smaller buildings administered by the Federal Office of Economics and Export Control (BAFA), and one for large buildings and commercial uses, the latter being a premium component of the KfW Banking Group renewable energies program. Several geothermal technologies can be supported by the MAP; it subsidizes the installation of efficient heat pump systems in residential buildings with a repayment bonus, depending on the installation size. 42

59 For heat and power plants using deep geothermal energy, a repayment bonus for the plant can be granted and the drilling cost can be supported depending on drilling depths. Furthermore, part of the exploration risk can be covered within a KfW-program. The geothermal market predominantly comprises small to medium-sized mechanical engineering enterprises, as well as some large-scale enterprises, whose portfolios belong more to the classical energy sector, such as the hydrocarbon industry. 9.3 Geothermal Project Development Table 9.1 Electricity producing geothermal power plants in Germany as of February Region Location MWe MWth Power Plant Upper Rhine Graben South German Molasse Basin 9.4 Research Highlights Landau (3.6) (0.1) ORC Bruchsal Kalina Insheim 4.3 ORC Unterhaching Kalina Dürrnhaar 7.0 ORC Kirchstockach 7.0 ORC Sauerlach ORC Oberhaching ORC Traunreut Kalina In 2011, the 6th Energy Research Programme Research for an environmentally friendly, reliable and affordable energy supply was started. The goals of this programme are to accelerate the modernization process of the German energy supply system, to strengthen German business in international competition, and to secure and expand technological 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 technologies (except for bioenergy). The basic principles for research funding are described in the 6th Energy Research Programme. The potential offered by deep geothermal energy as a continuously available source of renewable energy needs to be further exploited. A lot of research and development work has already been carried out towards this internationally recognised goal. Advances have been made in all areas. There have been continuous improvements in the areas of drilling technology and plant construction and it has been possible to significantly extend the service intervals of thermal water pumps. New methods have also been developed to determine appropriate target areas for drilling. In the field of drilling technology, directional drilling can be carried out with a lot more precision than was possible a few years ago. Due to the major influence of the local conditions in each region, such as the composition of the thermal water or the geological structures, each geothermal heat or power plant is unique. A more individual approach is necessary in the planning phase, compared to other technologies. In view of the significant potential and expected contribution of geothermal energy to a future 43

60 energy system based on renewable energy, the Federal Ministry for Economic Affairs and Energy (BMWi) is continuing to support relevant research projects. Further research is still required in order to economically utilise deep geothermal energy and thus fully exploit the existing potential of the heat. The BMWi primarily provides funding to projects that are dedicated to complete systems such as pumps. The research projects currently being funded encompass all stages along the value chain for geothermal energy. 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 the planning of the project, the exploration of the target region, the drilling/ construction phase and the testing and operation of the completed plants. In particular, deep boreholes must be completed more quickly and less expensively as they account for the main part of the investment costs. The operation of completed heat or power plants needs to be more efficient and reliable with low maintenance needs. Alongside further technical developments in geothermal energy, concepts for improved public relations work are now a fundamental component of successful research projects. And, last but not least, the conditions must be created to allow geothermal energy to be utilized in those areas that have not yet been explored or which are less suited. In the area of geothermal research, the BMWi approved funding for a total of 22 new projects with a funding volume of around 19.6 million euros in 2016 (2015: 21 new projects with around 17.3 million euros). At the same time, around 12.5 million euros were invested in already ongoing research projects (2015: around 13.4million euros). The main themes of R&D funding of geothermal energy addressed in 2016 were: Data collection (GeotIS.de) Corrosion and Scaling (for operating power plants) Advanced drilling technologies (laser, electro-impulse, plasma) Machinery (workover rig, submersible pump, valves) EGS related themes (rock stress models, EGS-project) District Heating (Munich, urban areas) Geothermal Heat for Munich Munich is located in the region of the so-called Molasse Basin in Bavaria. The underlying geological formations here are particularly suited for the extraction of geothermal heat. The rocks are part of Malm, a geological formation that acts like an aquifer for hot thermal water due to its special structure. Stadtwerke München (SWM) intends to provide the entire district heating for Munich from renewable energies by 2040, with the majority being contributed by geothermal energy. SWM, as the coordinator, aims to lay an important foundation for this vision through the GRAME project. But there is still no consistent concept for determining what locations would be best suited for extracting the heat and how it can then be integrated into the existing district heating network. The project partners SWM and the Leibniz Institute for Applied Geophysics (LIAG) completed a three dimensional image of the subsurface in 2016 and are using it to develop a suitable extraction strategy. In general, the results should contribute to the better exploitation of the geothermal resources within the Molasse Basin and the utilization of the potential that will be 44

61 opened up for the generation of both electricity and heat. The goal is to generate electricity of around 50 megawatts or to extract heat in the range of 400 megawatts. The project partners used 3D-seismic surveys to determine the structure of the reservoir and to decide about the most promising locations for future drilling. The measurements were taken over an area of 170 square kilometers. Investigations about the potential for geothermal use on this scale have never been carried out in the region. Conducting 3D-seismic measurements beneath an urban area was also breaking new ground: Amongst other things, traffic or construction work on the surface generate incessant vibrations that influence the measured values. As well as the technological success of the 3D-seismic campaign, high public acceptance for the installation of the geothermal district heating system was promoted. Further drilling activities around Munich are planned. Also, foreign investors are involved to explore and use geothermal heat with new businesses in the Molasse Basin. 9.5 Other National Activities Useful Websites Federal Ministry of Economic Affairs and Energy: BMWi publications in English: 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: Renewable Energy Sources Act: German Geothermal Association (BVG): Geothermal Information System for Germany (GEOTIS): Marktanreizprogramm (Market Incentive Program, MAP): Future Activity The energy concept developed by the German Federal Government in 2010 envisages the farreaching restructuring of the energy supply system in Germany by Important goals in this concept are the reduction of primary energy consumption by 50 percent and increasing the proportion of renewable energies to cover 80 percent of the demand for electricity and 60 percent of the gross final energy consumption. 45

62 If the energy transition continues to run successfully, this concept will lead to an energy system in 2050 that is completely different to the current structure for the supply, distribution and demand for energy. The technologies that will be utilized in the realization of this concept are to a large extent currently either not technically available or are economically infeasible. Energy research thus forms a strategic element of energy policy in order to generate technical innovations in the medium to long term that will enable the successful realization of the energy transition. German Government supports the development of renewable energies with a bundle of support mechanism, e.g. feed-in-tariffs and budgets for research. One of the results is that the renewable energy share of gross electrical consumption is 31.7 % and the renewable-based heating and cooling supply increased to 168 TWh - 0.6% by deep geothermal - 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 eventually use the extracted heat for power generation or heating purposes. 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 on a constant level of about 1 bn per year (heat pumps and deep geothermal power plants). The development of geothermal district heating for the well-known municipality of Munich with the goal to supply up to 100% of 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 6 month found a wide acceptance by the population. This acceptance gives an optimistic view for further geothermal developments in Germany. Beside the geothermal production of electricity, the direct use of heat in densely populated areas is moving into focus due to the commercial success of several district heating operators using geothermal heat as resource. 46

63 10. Iceland María Guðmundsdóttir, Jónas Ketilsson Orkustofnun, Grensasvegi 9, IS 108 Reykjavik, Iceland Introduction Utilisation of geothermal resources has expanded rapidly in Iceland during the last decade and is expected to increase further in the future. Electricity generation is estimated to increase by 12% from 5.0 TWh in 2016 to 5.8 TWh in 2020 and geothermal heat use from 27.1 PJ in 2015 to 34 PJ in A population growth of 36% is expected by 2050, and geothermal utilization is estimated to increase by over 70% by 2050, 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 the harnessing of geothermal resources, both for space heating and electricity generation. 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 83% of primary energy, is derived from domestic renewable sources, with near carbon-free electricity production in This is the result of an effective policy in making renewable energy a long-term priority in Iceland. Nowhere else does geothermal energy play a greater role in providing a nation s energy supply. In Error! Reference source not found. an overview is given of the main production wells in Iceland operated for electricity generation, and by heat utilities that have a natural monopoly license. Auto-producers are excluded, of which there are over 100 in Iceland, although they are only 14% of the final use. However for heat use, main activity producers dominate, with 80% share (23.1 PJ) of total heat use. Figure 10-1 Satellite image of Iceland in winter showing geothermal production wells in operation. Geothermal power plants are shown in red, heat utilities in blue. 47

64 Electricity Direct Use Total Installed Capacity (MW e) 665 Total Installed Capacity (MW th) 2500* New Installed Capacity (MW e) 0 New Installed Capacity (MW th) 0 Total Running Capacity (MW e) 663 Total Heat Used (PJ/yr) [GWh/yr] 33 PJ Contribution to National Capacity (%) 24 Total Installed Capacity Heat Pumps (MW th) N/A Total Generation (GWh) 5067,3 Total Net Heat Pump Use [GWh/yr] N/A Contribution to National Generation (%) Target (MW e or % national generation) Estimated Country Potential (MW e or GWh) (N/A = data not available) (* indicates estimated values) 27 Target (PJ/yr) 4255 MW e Estimated Country Potential (MW th or PJ/yr or GWh/yr) N/A Snow melting 6% Swimming pools 10% Industry Fish farming 3% 6% Final Heat Use in 2016 Greenhouses 2% Industry 3% Agriculture Fish farming 2% 6% Residential 47% Total Final Heat Use: 34 PJ Geothermal energy: 97% C&P Services 42% Inner ring - Eurostat Categorisation Outer ring - IGA Categorisation Space heating 73% Orkustofnun Data Repository: OS-2017-T Figure 10-2 Final heat use in Iceland in % of heat use in Iceland is geothermal heat. 48

65 10.2 Changes to Policy Supporting Geothermal Development Geothermal policy has not undergone significant changes in recent years in Iceland. Geothermal development is mature in Iceland, and most households, over 90%, use geothermal energy for heating. Geothermal power development is not supported by any market incentives in Iceland. The Energy fund, operated by Orkustofnun, supports geothermal development in areas where geothermal is not used for heating, often referred to as cold areas. In the cold areas heating is mainly electrical and subsidized by the government, since it is more expensive than geothermal heating. A lump sum comprised of 16 years-worth of subsidies is available to those who want to establish a geothermal heating system, or other more efficient means of heating, such as heat pumps. One such project is under development in Kjós, just north of Reykjavík. Geothermal exploration had been ongoing for years until a well producing enough water was finally drilled in The construction of the district heating system is underway and it will began operations in early Geothermal Project Development Projects Commissioned Kjós district heating system. Started operations in early IDDP-2 well in Reykjanes, drilling commenced in August Construction of Þeistareykir power plant Research Highlights New and effective exploration techniques have been developed to discover geothermal resources. This has led to the development of geothermal heating services in regions that were not thought to enjoy suitable geothermal resources. Iceland s geothermal industry is now 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 geothermal fields that are already being utilized, or discovering new fields. The Icelandic Government supports the Iceland Deep Drilling Project (IDDP) with 342 million ISK, along with the three largest energy companies in Iceland. 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, IDDP-1 in Krafla yielded superheated steam after drilling into magma at roughly 2 km depth. The second well IDDP-2 was drilled from August 2016 to January 2017 in Reykjanes. For this phase Norwegian company Statoil joined the original partners, and the drilling was made possible with a 20 million grant from the EU Horizon 2020 programme. The drilling was successful and hit supercritical conditions at 4,659 m. The temperature was measured to be 427 C with fluid pressure of 340 bars. Cores were retrieved for further study and the rock appears to be permeable at depth. There are exciting times ahead for this project and the third IDDP well is already being planned for the Hengill area. 49

66 Figure 10-3 Cores retrieved from IDDP -2 (HS-Orka, 2017). Orkustofnun also supports a few projects coordinated by the Icelandic Geothermal Research Cluster GEORG, e.g. the Deep Roots for Geothermal Systems (DRG-project) aimed at research of the roots of magma-driven high temperature geothermal systems. Reykjavík Energy, the University of Iceland, Columbia University and CNRS collaborated on a project called CarbFix, which aimed at injecting CO 2 emissions from Hellisheiði geothermal power plant back into the reservoir where they would mineralise. The project has been ongoing for the last 10 years or so and in June 2016 the results were published in Science. The CO 2 from Hellisheiði which was injected into the reservoir, along with waste water from the power plant, was shown to mineralise in the basaltic rock in under two years, while it is estimated that it takes CO 2 hundreds or even thousands of years to mineralise in sedimentary rock. In addition, this method is up to three times less expensive than conventional CCS methods. Another project called SulFix uses a similar technique to inject H 2S released from the power plant. Currently, around 65% of H 2S and 50% of CO 2 from the power plant is being injected Other National Activities 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 MSc and PhD degrees. UNU-GTP receives its funding from the government of Iceland, 5 M US$/yr. 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%). Iceland School of Energy was established at Reykjavik University which offers postgraduate courses in the field of renewable energy. University of Iceland also offers specialized post graduate studies in renewable energy, focusing on geothermal energy. 50

67 Conferences The third Iceland Geothermal Conference 2016 was successfully held at the Harpa Conference Centre in Reykjavík, between April 26 and 29, Over 700 delegates from 46 countries attended the conference, which focused on direct use, how to develop new opportunities, and how to create value by maximizing the utilization of the geothermal resource. This conference is hosted by the Iceland Geothermal cluster. Other smaller meetings and conferences were also held as usual, such as the GEORG Geothermal Workshop in November Publications Icelandic scientists produce numerous publications on geothermal development and research every year. Publications on projects supported by GEORG research group: Paper on the completion of the IDDP-2 well Completion-websites-IDDP-DEEPEGS2.pdf Paper published on the results of the CarbFix project: Matter et al. Rapid carbon mineralization for permanent disposal of anthropogenic carbon dioxide emissions. Science, vol 352, issue 6291, pp Useful Websites Orkustofnun Data Repository: United Nations University Geothermal Training Programme: GEORG Geothermal Research Cluster: Iceland Deep Drilling Project: Future Activity 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. A Master Plan of this kind is comparable to the planning of land use and land protection in a strategic environmental assessment (SEA) process. It is not supposed to go into the details required for 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 51

68 public confidence in the evaluation process. The Master Plan aims to identify power projects that rank highly 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. The third cycle of the Master Plan, which includes 33 geothermal options, was presented to the minister for Industry in September 2016, and as of May 2017 is under review in parliament. Þeistareykjavirkjun power plant (Figure 10-4) is being developed by Landsvirkjun (National Power Company) in northern Iceland. The first 45 MW phase is expected to start operations at the end of 2017, while a second 45 MW phase will be added in Direct geothermal use is expected to increase with population increases. It is estimated that heat use will reach 50 PJ in 2050 (Figure 10-5). Figure 10-4 Þeistareykir power station under construction in September 2016 (Landsvirkjun, 2016). 52

69 10.7 References Figure 10-5 Geothermal utilization forecast (Orkustofnun, 2015). Orkustofnun (2017). OS-2017-T008-01: Installed Electrical Capacity and Electricity Generation of Geothermal Power Plants [data file] Orkustofnun (2017). OS-2017-T009-01: Primary energy use in Iceland [data file]. Orkustofnun (2017). OS-2017-T010-01: Final Heat Use in Iceland 2016 by District Heating Area [data file]. 53

70 11. Italy Ruggero Bertani, Paolo Romagnoli ENEL Green Power, Geothermal Production, Via Andrea Pisano 120, Pisa, ITALY. Figure 11-1 The first hybrid power plant in the world, with geothermal and biomass, at Cornia Introduction In Italy, geothermal resources are used for both electricity generation and direct uses. Power plants are located in Tuscany, in the two historical areas of Larderello-Travale and Mount Amiata. Direct uses are widespread over the whole Italian territory. To date, Enel Green Power is the only geo-electricity producer in Italy. In 2016, with an installed capacity of 915 MWe, the gross electricity generation reached 5.9 billion kwh, which is a record for electricity produced from geothermal resources in Italy. in 2014 additional units (2X20 MW Bagnore 4) were commissioned. Six units have been renovated to update their technology, two new units were installed in 2010 (Nuova Radicondoli GR2 20MWe and Chiusdino 20MWe) and in 2015, Cornia 2 power plant was upgraded with a biomass-fired boiler superheating of geothermal steam. These amount to a total capacity increase of 85.2 MWe. Regarding direct uses, the installed capacity reached around 1,400 MWt (+33% with respect to 2010), with an energy use of some 10,500 TJ/yr (+19% with respect to 2010). The main sectors of application are space heating (42% of the total energy) and thermal balneology (32% of the total energy), though numerous noteworthy systems also occur in the industrial and agricultural sectors. Ground-source heat pumps (GSHPs) constitute the main technology to exploit and deliver geothermal heat, but important developments have also been observed in the district heating (DH) sector. The contribution of geothermal-source heat pumps (GSHPs) and district heating networks (DHs) are broken down in each final sector. 54

71 The main contribution to the growth of direct uses comes from GSHP systems, which doubled their installed capacity and geothermal energy exploitation. Geothermal district heating networks are also notably expanding. Two DH networks started operation during 2014 in Montieri and Monteverdi Marittimo. In addition, the new district heating project of Grado (a tourist town near Trieste) started operation in the winter of 2015, though data are still unavailable. In the near future, two other networks will be completed in the traditional geothermal areas of Tuscany, namely Radicondoli and Chiusdino. Two other DH projects have also been planned in the same area (Belforte and Travale). Other application sectors have expanded in recent years; in particular, the industrial uses are starting to grow again after a quiet period due to the economic crisis. For example, a new brewery in the Boraciferous region uses geothermal steam to feed its industrial equipment, as does a leather company in the Amiata region. As mentioned above, thermal balneology is the sector that has suffered the most from the effects of the crisis, with a reduction of users by about 5%. However, because of the anticipated recovery of the Italian economy, we expect that all sectors of geothermal direct use will increase in the next few years. Electricity (2016) Direct Use (2015) Total Installed Capacity (MW e) Total Installed Capacity (MW th) 1,372 New Installed Capacity (MW e) 40 MW in end of 2014 New Installed Capacity (MW th) About 300 Total Running Capacity (MW e) Total Heat Used (PJ/yr) 10.5 Contribution to National Capacity (%) Total Installed Capacity Heat Pumps (MW th) 531 Total Generation (GWh) 5,870 Total Net Heat Pump Use [GWh/yr] 906 Contribution to National Generation (%) 2.1% Target (MW th) 2,500 Target (MW e or % national generation) 1,080 Estimated Country Potential (MW th or PJ/yr or GWh/yr) Estimated Country Potential (MW e) 4,000 (N/A = data not available) (* indicates estimated values) 11.2 Changes to Policy Supporting Geothermal Development The electricity needs in Italy are about billion kwh, with a domestic contribution of 86.5%, while the remaining 13.5% is imported. As regards the 280 TWh of domestic electricity generation, 63.0% comes from fossil fuels, 21.5% from hydro and 15.5% from geothermal, biomass, wind and solar. Although geothermal electricity generation contributes only 2.1% of the whole Italian generation, it covers over 30% of the electricity needs in Tuscany, giving a substantial contribution to the green energy generation. 55

72 According to the Bill issued in July 2012, starting from January 1st 2013 new power plants with a capacity exceeding 1 MWe will no longer be granted Green Certificates but will be granted an Incentive Fee. This is similar to an all-inclusive fee which decreases by zonal price of energy and to which additional premiums can be added. In 2015, the average market price of electricity was approximately 4.7 Eurocent/kWh. The value of the net kwh generated from new or recent geothermal power plants awarded with Green Certificates is around 13.7 Eurocent/kWh, while those with a new Incentive Fee was 9.9 Eurocent/kWh (under 20 MWe installed capacity) or 8.5 Eurocent/kWh (over 20 MWe installed capacity). As of 23 June 2016, a new Decree from the Economic Development Ministry has revised the incentives scheme. The incentives will apply only to a limited number of plants, to be officially shortlisted. It is possible to bid for lower incentives in order to enter into the RES quota. This process can be limiting if a great number of plants ask for incentives, but it is unlikely that this will be a problem in the near future because the quota is high enough for planned geothermal development. The standard tariff is in three levels, for: Plants below 1 MW, it is 134 /MWh. Plants between 1 MW and 5 MW, it is 98 /MWh. Greater than 5 MW plants, it is 84 /MWh. An additional premium is offered to plants with special characteristics: 30 /MWh for a total reinjection plant (zero emission). 30 /MWh for the first 10 MW installed in a new area, without existing plants. 15 /MWh for plants with H 2S and Mercury abatement of at least 95% of the emission. Moreover, a plant acknowledged as fully innovative, with a non-commercial technology, is recognized through an all-inclusive tariff of 200 /MWh for fluid temperatures of up to 150 C; the incentive will be reduced using a linear formula from 200 /MWh at 151 C down to 137 /MWh at 235 C Geothermal Project Development Projects Commissioned During 2016 no projects were commissioned. The 20 MW Monterotondo project was approved with Environmental Approval granted and the project awarded the incentive tariff according the 2016 bid. Drilling will start in Generation is expected in Projects Operational The historical trend of electricity generation from geothermal resources in Italy is given in Figure 11-2, where two different increasing phases are shown. The first one was in the period from 1930s to the mid 1970s, related to the development of the shallow carbonate reservoir, with well depths down to about 1000 m. The second one was from the beginning of the 1980s up to now, when the fluid production has increased thanks to the positive results of the deep drilling activity and 56

73 to artificial recharge of depleted shallow reservoirs by means of the reinjection of water and condensed steam. Figure 11-2 Historical trend of electricity generation from geothermal resources in Italy. All of the Italian geothermal fields in exploitation for electricity generation are located in Tuscany (Figure 11-3): Larderello, Travale/Radicondoli, Bagnore and Piancastagnaio (the latter two being located in the Mt. Amiata area). Figure 11-3 Location of the geothermal fields in Italy. 57

74 Figure 11-4 Chiusdino 1 (20MWe) power plant. Figure 11-5 Le Prata (20MWe) power plant. Figure 11-6 Rancia (20MWe) and Rancia 2 (20MWe) power plants. Figure 11-7 Bagnore 4 (40MWe) power plant. 58

75 Figure 11-8 Gruppo Binario Bagnore (1 MWe) power plant. In 2015 the first Geothermal - Biomass combined power plant was built in Italy, at the Cornia 2 power plant. This led to an increase of the output power from 12 MWe to 17.2 MWe, with an overall plant efficiency improvement. Figure 11-9 Cornia superheater. All of the geothermal power plants in Italy are remotely controlled and operated from a Remote Control Station located in Larderello, where 12 people work in shifts (24/7), around the clock), thus ensuring continuous oversight. In this way, every plant operating parameter can be monitored and analyzed with the ability to shut down and restart any unit from the Remote Station. This solution has allowed better plant operation whilst also reducing operating costs Research Highlights The activities carried out over the last five years have been concentrated both in Larderello- Travale and in Mount Amiata areas. Each area is characterized by a different type of mining 59

76 activity depending on the geothermal reservoir characteristics and the level of exploitation. Therefore, while the activity in the Larderello-Travale areas are being targeted at field management optimization to reduce and contrast the natural decline, in Monte Amiata development activities were carried out to increase electricity generation. Since 1980, in order to increase the productivity of individual wells after drilling and to preserve their production life, some stimulation techniques have been developed and are currently being implemented. The aim of these techniques is to improve the permeability of fractured zones and to reduce or eliminate the formation damage (skin factor) by means of acid stimulation. With the experience gained during the operation and maintenance of the wells, different causes of well damage (formation or wellbore) have been identified and different techniques aimed at the recovery of the original productivity have been studied and implemented. Only in this way has Enel Green Power s experience in geothermal field management, gained over decades, allowed obtaining positive results in a continuously increasing number of cases. An important activity in this area was the empowerment of existing geothermal power plant Cornia-2 by using biomass; the existing geothermal power plant (rated 19 MWe) was running at reduced capacity (12 MWe) and steam parameters and original thermal cycle were suitable for biomass firing integration using local biomass. The project consists of a Geothermal / Biomass power plant composed of a superheater boiler for geothermal steam with combustion grate supplied by local forest woodchip, agricultural residues and powercrops. This example is the first innovative geothermal integrated biomass power plant in the world and allows an increase of about 5 MWe electric. In the first geothermal binary power plant (Gruppo Binario Bagnore3) was installed in Italy as an upgrade of Bagnore 3 power plant; this has led to an increase of 1 MWe installed capacity on this group. This new unit is based on an ORC cycle using normal pentane as the secondary fluid. This unit is fed by secondary flash steam at low pressure which is obtained from the partial evaporation for expansion of the liquid phase output from the primary flash unit (20bar). The operating conditions of temperature and pressure of the secondary flash unit are monitored in such a way as to avoid phenomena of scaling due to the possible deposition of the salts contained in geothermal fluid. Two new 20 MWe units (Bagnore 4) were commissioned at the end of 2014; the steam flow rate needed to feed the two new units (about 260t/h) was obtained from the drilling of two new deep wells (4,000m) and the workover of two existing wells that were non-productive because of damage. Since 2011, Enel Green Power (EGP) has begun exploration activity in areas adjacent to the existing exploitation leases. In particular, EGP acquired 4 different exploration leases (Figure 11-10) for a total of approximately 1000km 2. Two are in the north-western part of Larderello (Montebamboli and Montegemoli), one in the southern part of Travale/Radicondoli (Boccheggiano) and the last one on the south-west edge of the geothermal field of Piancastagnaio (Murci). 60

77 Figure New EGP exploration leases All these leases are considered as brown fields with the main purpose to improve the knowledge of the area to understand the possibility of finding a medium-high enthalpy fluid suitable for the production of electricity (temperature higher than 150 C). Up to now surface exploration (2D Seismic and MagnetoTelluric surveys) has been conducted whose interpretation has been used to locate some slim holes and wells for the next phase of deep exploration. In 2015, three slim holes were drilled in the exploration lease of Boccheggiano, with good results that confirmed the possibility of future developments in the area. In next years 2 deep wells and some slim holes will be drilled in the other three areas to complete the exploration phase. DRILLING In the period , a total of 36 wells were drilled in Italy, for a total drilled depth of km. Twenty of these wells were make-up wells drilled in Larderello (7) and Travale/Radicondoli (10) fields and they were relevant to the maintenance programs to contrast natural decline of geothermal production. In Mount Amiata area, four production wells were drilled as part of the development program. Another three wells drilled were for the reinjection/injection program. Also, three wells were drilled for monitoring the shallow aquifers (piezometers) in the Mount Amiata area, as required for the construction of the power plant Bagnore-4. In 2015 the first two examples of multilateral wells for the production of geothermal steam were drilled with success; this technology provides the opportunity to drill two or more production branches from the same well bore, allowing a considerable saving both in terms of cost and environmental impact. NEW EXPLORATION LEASES The general situation of new exploration leases is quite complex. We can synthesize in the following list: 61

78 Released exploration leases 36 (green on the maps) Requested exploration leases 39 (yellow) Requested exploitation lease 2 (blue) Requested for Pilot Plant 10 (purple) The geographical distribution of the regions is shown in the following Figures : Figure Tuscany and Umbria Figure Latium 62

79 Figure Campania Figure Sicily 63

80 Figure Sardinia Figure Lombardia, Emilia and Veneto 64

81 11.5 References Cappetti, G., Parisi, L., Ridolfi, A. and Stefani, G.: Fifteen years of reinjection in the Larderello - Valle Secolo area: Analysis of the production data. Proceedings, World Geothermal Congress, Florence, Italy, May 18-31, vol. 3, pp (1995). Cappetti, G., Fiordelisi, A., Casini, M., Ciuffi, S., Mazzotti, A.: A new deep exploration program and preliminary results of a 3D seismic survey in the Larderello-Travale geothermal field (Italy), Proceedings World Geothermal Congress, Antalia, Turkey, April (2005). Conti, P., Grassi, W., Passaleva, G., and Cataldi, R.: Geothermal Direct Uses In Italy: Country Update for WGC2015, Proceedings of the World Geothermal Congress 2015, Melbourne, Australia, (2015), paper #CUR-18b, Grassi, W., Cataldi, R., and Conti, P.: Country report on geothermal direct uses in Italy , Proceedings of the European Geothermal Congress 2013, Pisa, Italy, (2013), paper #CUR- 18b,1-10. Lund, J.W. and Boyd, T.L.: Direct Utilization of Geothermal Energy 2015 Worldwide Review, Proceedings of the World Geothermal Congress 2015, Melbourne, Australia, (2015), paper #01000, 1-31 Scali, M., Cei, M., Tarquini, S. and Romagnoli, P.: The Larderello Travale and Amiata Geothermal fields: case histories of engineered geothermal system since early 90 s, Proceedings EGC, Pisa, Italy, June 3-7 (2013). 65

82 12. Japan Takayuki Oishi Geothermal Resource Development Department, JOGMEC, Toranomon, Minato-ku, Tokyo Japan Introduction The strategy for electricity supply in Japan has changed significantly following the nuclear power plant accident in Fukushima in The promotion measures for Renewable Energy in Japan have rekindled interest in geothermal development and several companies have announced exploratory research or geothermal power plant construction, but so far none have produced significant results. This is due to not only a long lead time required for developing a geothermal power plant through to construction, but also difficulties in gaining the understanding of local hot spring resort owners who are worried about the impact of the project on hot spring resources. There is also a knowledge gap between geothermal power businesses and local government officials, making it hard for the officials to moderate between concerned local residents and the businesses. To try to bridge this gap, JOGMEC in June 2016 established a third-party expert organization the Advisory Committee for Geothermal Resources Development to support local governments through the provision of consultation services, which it is considered should support better communication. Electricity Direct Use Total Installed Capacity (MW e) 522 Total Installed Capacity (MW th) 2,094 New Installed Capacity (MW e) 0 New Installed Capacity (MW th) N/A Total Running Capacity (MW e) 522 Total Heat Used (GWh/yr) 7,250 Contribution to National Capacity (%) 0.2% Total Generation (GWh) 2,590 Total Installed Capacity Heat Pumps (MW th) Total Net Heat Pump Use (GWh/yr) N/A N/A Contribution to National Generation (%) 0.3% Target (PJ/yr) N/A Target (% of national generation) % Estimated Country Potential (MW e ) 23,470 (N/A = data not available) Estimated Country Potential (GWh/yr) N/A 66

83 Figure 12-1 Total installed capacity of geothermal power plants 1 Figure 12-2 Total production of electricity and average utilization factor of geothermal power plants Changes to Policy Supporting Geothermal Development The Japanese government established a Feed-In-Tariff (FIT) in July 2012 to accelerate the introduction of renewable energy. The FIT system has been successful in bringing a substantial share of renewable energies into Japan's energy mix, but solar energy projects have dominated because solar projects are faster to build compared to larger projects such as wind or geothermal projects, which require a longer lead time from plan through to build. The Cabinet approved the Bill on the Partial Revision of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities. This Bill stipulates a new FIT scheme; geothermal, hydroelectric, and biomass projects will benefit from this slightly more favourable tariff framework. The Ministry of Economy, Trade and Industry (METI) announced the tariff is applicable to projects certified in a given year "in advance", in order to reflect the longer period of time that geothermal, hydroelectric, and biomass projects take to become operational compared with other renewable energy projects. 67

84 12.3 Geothermal Project Development Projects Commissioned Development of geothermal resources takes a long time from exploration through to generation of electricity. In addition, there are risks specific to geothermal resource development which are different to the risks involved in the development of other thermal power plants. In order to assist in managing these risks, JOGMEC supports the development of geothermal resources using three financial support mechanisms; grant subsidies, investing equity capital, and liability guarantees for geothermal development. In 2016, 26 projects applied for grant subsidies. Seven of the 26 projects were local industry and/or local government projects where 100% of the cost for the investigation is supported, while % of the cost is supported for the other 19 private sector developers. In 2016 the total subsidy grant was about 60 million USD. Figure 12-3 Geothermal projects in Japan After initial survey work is completed, developers have to estimate production capacity. At this stage, JOGMEC can invest up to 50% of the equity capital of the company. The first equity capital investments were made in 2015 but no new investment projects were made in At the construction stage, a significant amount of money is required to drill the wells. Therefore, JOGMEC guarantees the loans which private companies borrow from private financial institutions when they are constructing a geothermal power plant. Under this program JOGMEC provides a liability guarantee for up to 80% of the total loan. This support had been applied to 4 projects by

85 J-power announced the replacement of the Onikobe geothermal power plant. It started operation in 1975 with the facilities now degraded due to age. The project is in the environmental assessment process and the power plant is expected to be shut down in 2017 and the new power plant expected to commence operation in Projects Operational Figure 12-4 Onikobe Geothermal power plant (15MW) In 2016, Japan had 522 MW of installed electric generating capacity, about 4 % of the world total. 2 Geothermal power plays a minor role in the energy sector in the country. In 2016, it supplied 2,590 GWh of electricity, representing about 0.3% of the country's total electricity supply. Although no large scale geothermal power plants have been constructed for over a decade, recently some areas have been identified for geothermal power plant construction or operation. The Japanese government is seeking to expand the developable area for geothermal, reduce investment risk, and promote the understanding of local people. These measures have brought new interest in geothermal development, and at least 26 locations across the country are being surveyed for potential geothermal power generation by electric power companies, oil companies, construction companies, local governments, and other entities. In some areas, geothermal power plant construction has commenced, such as the Wasabizawa geothermal power plant (42MW), which is under construction and scheduled to commence operation in Research Highlights Two government enterprises, JOGMEC and NEDO (New Energy and industrial technology Development Organization), started geothermal energy projects in JOGMEC focuses on subsurface investigation and technology development while NEDO is mainly concerned with electricity generation and above-ground equipment technologies. A helicopter airborne geophysical survey began to be conducted in 2013 aiming to acquire basic data for the evaluation of geothermal resources in order to promote geothermal development. Most geothermal resources are located within national parks or in mountainous areas where access for surface surveying is difficult. In fact, about 80% of geothermal resources exist in natural parks in Japan. Airborne geophysical surveying is an effective method to acquire data over a wide area without any modification of the land surface. JOGMEC conducted this survey at several areas of Hokkaido in

86 JOGMEC have 3 R&D project themes; Geothermal Reservoir Evaluation and Management, improved exploration accuracy, and Drilling Technology Development. In the Drilling Technology Development, new PDC bits were fabricated and used for the first field test in NEDO launched an R&D program in 2013 concerned with the improvement of geothermal power generation. The program consists of many projects, including hybrid generation systems, reducing scaling potential in brine, development of facilities, designing support tools, etc. The program has been funded and will continue until Figure 12-5 : Fabricated PDC bit 12.5 Other National Activities Geothermal Education METI started a plan to increase the understanding of local residents about geothermal power generation in bodies have adopted this in Conferences Since Matsukawa Geothermal Power Plant, Japan's first geothermal power plant, celebrated its 50 years of operation, JOGMEC, the Japan Geothermal Association and the Federation of Electric Power Companies of Japan jointly registered the date of October 8 as the "Day of geothermal power generation". JOGMEC and Hachimantai city celebrated the registration of the certificate during the "Geothermal Symposium in Hachimantai" held at Hachimantai City in September, Figure 12-6 Matsukawa Geothermal Power Plant (23.5MW) GNS Science (New Zealand) and JOGMEC held an international workshop in Japan in June people involved in geothermal power attended. In this workshop, speakers explained the current situation of the geothermal power generation, direct use, and R&D projects in both countries Useful Websites Ministry of Economy, Trade and Industry (METI): Figure 12-7 International workshop Japan Oil, Gas and Metals National Corporation (JOGMEC): New Energy and Industrial Technology Development Organization (NEDO): 70

87 12.6 References [1] The Present State and Trend of Geothermal Power Generation of Japan in 2016: Thermal and Nuclear Power Engineering Society (2017) [2] Geothermal Power Generation in the World Update Report: Ruggero Bertani (2015) 71

88 13. Mexico José M. Romo-Jones 1, Luis C. Gutiérrez-Negrín 2, Magaly Flores-Armenta 3, Juan Luis del Valle 4, Alfonso García 5 1 CICESE - CeMIE-Geo, jromo@cicese.mx 2 Geoconsul, S.A. de C.V. - CeMIE-Geo, l.g.negrin@gmail.com 3 Gerencia de Proyectos Geotermoeléctricos, CFE Generación VI, magaly.flores@cfe.gob.mx 13.1 Introduction 4 Grupo Dragón, jdelvalle@gdragon.com.mx 5 CeMIEGeo-UNAM, agarcia@cemiegeo.org Large hydro, geothermal, and wind are the most important renewable energy sources utilized in Mexico. They represented 24.6% of the installed electric capacity (55,560 MW) supplying the wholesale electricity market in Mexico in This excludes the installed capacity for selfsupplying, co-generation, export and other private projects, which adds an estimated ~13,363 MW. Thus, the total installed electrical capacity in Mexico in 2016 was around 68,923 MW, being ~1.3% higher than in The geothermal-electric installed capacity in 2016 was MW, and the operational or running capacity was MW. This geothermal running capacity represents around 1.30% of the total in the country (Table 13.1). Final electrical energy generation figures for the country during 2016 are still not available. What is already available is the generation for the wholesale electric market, which was 263,152.8 GWh. However, estimated generation by self-suppliers, co-generators, exporters and other private producers in 2016 was around 48,800 GWh, and thus the total estimation for 2016 in Mexico is ~311,953 GWh. With this estimate, geothermal energy contributed ~1.96% to the electric generation in the country (Table 13.1). Geothermal resources in Mexico are used practically only to generate electric energy, although there are some direct uses mainly related to balneology. There is no recent data for direct geothermal energy use in Mexico; outdated estimates are for 156 MW th of direct geothermal heat utilization (Table 13.1). The number of balneology sites utilizing geothermal heat is estimated at around 165, distributed in 19 states. Geothermal development for electricity generation started in Mexico in 1959, with the commissioning of the first commercial plant in Pathé field (central Mexico) that was in operation until That year the first geothermal power plants in the Cerro Prieto geothermal field started to operate. During 2016 there were 224 production wells and 44 injection wells, distributed in five geothermal fields currently in operation: Cerro Prieto, Los Azufres, Los Humeros, Las tres Vírgenes and Domo San Pedro (see Table 13.2). 72

89 Table 13.1 Status of geothermal energy use for electric power generation and direct uses in Mexico in Electricity Direct uses Total Installed Capacity (MW e) Total Installed Capacity (MW th) New Installed Capacity (MW e) 25.5 New Installed Capacity (MW th) 0 Total Running Capacity (MW e) Total Heat Used (GWh/yr) 1,158.6 Contribution to National Capacity (%) 1.30* Total Installed Capacity Heat Pumps (MW th) 0 Total Generation (GWh) * Total Net Heat Pump Use [GWh/yr] 0 Contribution to National Generation (%) 1.96* Target (PJ/yr) N/A Target (MW e or % national generation) Not set a Estimated Country Potential (MW th) 40,589 *,c Estimated Country Potential (MW e ) * Indicates estimated values b a) 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. b) Estimated potential from conventional hydrothermal resources with temperatures > 150 C. Of these, 125 MWe correspond to proven reserves, 245 MWe to probable reserves, 75 MWe to measured, 655 MWe to indicated, and 1210 MWe to inferred resources. From Gutiérrez-Negrín, L.C.A. (2012). c) 0.1 % of recoverable resources using a world average load factor of 0.27, based on Iglesias et al., 2015, for resources between 36 C and 208 C Changes to Policy Supporting Geothermal Development During 2016 there were no changes in the policies related to geothermal energy in Mexico. However, it is worth mentioning that the independent system operator (ISO) of the wholesale electricity market CENACE (Centro Nacional de Control de Energía), conducted two public auctions for CFE (Comisión Federal de Electricidad) to buy electric power, clean energy certificates (CEL: Certificados de Energías Limpias) and energy, effective 2018 and The results of the second long-term electricity auction in Mexico included a geothermal power plant of 25 MW net in capacity that was awarded around 190,000 MWh (2.2% of the total), the same amount of CEL per year (2.1% of the total) and 25 MW of capacity power. This is the project Los Azufres III, Phase 2, which is currently under construction by the CFE in the geothermal field of the same name in central Mexico. According to the Secretary of Energy, the average price for the combination of energy and CEL was US$33.47 per megawatt-hour. This average price is 33% lower than the average price obtained in the first auction, held in March 2016, which was around US$50 per MWh + CEL. As for capacity, the average price was US$32,258 per megawatt per year. 1 This amount is composed of the generation by the CFE s fields ( GWh) and generation by the Domo San Pedro field, which is an estimate. It will be updated when this info becomes available. 73

90 Like in the first auction, the only buyer of energy, CEL, and capacity, is the CFE through one of its subsidiary companies. But CFE also participated in the offer-side of this auction through other subsidiaries engaged in electric generation, one of which includes its geothermal division. These are legally separated companies. CFE had participated also in the first auction with no success Geothermal Project Development Projects Commissioned In May 2016 a new condensing, single flash plant of 25.5 MW started operation in the Domo San Pedro, Nay., geothermal field. It was constructed and installed by Mitsubishi Hitachi Power Systems, contracted by Grupo Dragón, which is the operator and owner of the field. Two backpressure units of 5 MW each operating previously in the field are still installed, but are out of operation since the commissioning of the new 25.5 MW plant. This unit has been operating at 20 MW while more wells are drilled to complete the steam to operate at its full capacity. Thus, by the end of December 2016 the installed capacity in the Domo San Pedro field increased to 35.5 MW, and the total in the country reached MW, while the running capacity in the Domo San Pedro field was 25.5 MW and the total in the country was MW, as reported in Table Projects Operational As of December 2016, there were five operational geothermal fields in the country. Their main features are as follows (see also Table 2 below): - Cerro Prieto, BC. This field is located in north-western Mexico. It is owned and operated by CFE Generación VI, one of the subsidiaries of the government-owned utility Comisión Federal de Electricidad (CFE). The installed capacity is 570 MW composed of four condensing, flash units of 110 MW each, one condensing, low-pressure unit of 30 MW and four condensing, flash units of 25 MW each. The operational capacity is the same (570 MW). During 2016 there were 150 production and 30 injection wells, on average, operating in this field. - Los Azufres, Mich. The field is located in central Mexico, within the Mexican Volcanic Belt (MVB). It is also owned and operated by CFE Generación VI, and has an installed capacity of MW composed of six condensing, flash units (53.4 MW, 50 MW and four 26.6 MW each), seven backpressure units of 5 MW each, and two binary cycle units of 1.5 MW each. The operational capacity is MW, since four of the seven backpressure units and the two binary cycle units are currently out of operation. One additional 25 MW condensing type unit (Project Los Azufres III, Phase 2) was under construction in the field and is scheduled to be commissioned in During 2016 there were 44 production and 6 injection wells, on average, operating in this field. - Los Humeros, Pue. This field is located in the central-eastern part of Mexico, also inside the MVB. CFE Generación VI is the owner and operator of the field, which has an installed capacity of 93.6 MW. It is composed of two condensing, flash units of 26.8 MW each, and eight backpressure units of 5 MW each. The running or operational capacity is 68.6 MW, because five of the backpressure units are out of operation and are used only as backup. One additional condensing, flash unit of 25 MW was under construction in Los Humeros, 74

91 and is programmed to be commissioned in March During 2016, 23 production and 3 injection wells were in operation on average. - Las Tres Vírgenes, BCS. The field is located in the middle of the Baja California Peninsula, in the northern part of the Baja California Sur state, and is also operated and owned by CFE Generación VI. It has only two condensing, flash type power units of 5 MW each in capacity, and its operational capacity is the same (10 MW). One binary cycle plant of 2 MW is planned in the future, to use the abundant production of brine available in the field. In 2016 there were 3 production and 2 injection wells in operation in this field. - Domo San Pedro, Nay. This is the most recent development in Mexico, and is located in central-western Mexico, also inside the MVB. It is owned and operated by Grupo Dragón, and currently has an installed capacity of 35.5 MW. It is composed of one condensing flash power plant of 25.5 MW, and two backpressure units of 5 MW each. The operational capacity is 25.5 MW because the backpressure units have been taken out of operation since April 2016, when the condensing plant was commissioned. During 2016, there were 4 production and 3 injection wells in operation in this field. The main data from each field are reported in Table Table 13.2 Geothermal fields in operation in Mexico in Field Capacity (MW) Owner / Wells in operation Installed In operation Operator Production Injection Cerro Prieto, BC Los Azufres, Mich CFE 44 6 Los Humeros, Pue Generación VI 23 3 Las Tres Vírgenes, BCS Domo San Pedro, Nay Grupo Dragón 4 3 Total Research Highlights In 2016, a bilateral initiative between Mexico and the European Commission granted a collaborative research project to a Mexican consortium with a corresponding consortium from Europe. It is the project GEMex, under the umbrella of the Horizon 2020 initiative of the European Union. The purpose is to investigate two unconventional geothermal types: a possible EGS system in Acoculco, Pue., and a superhot system in Los Humeros, Pue. Both sites are licensed to CFE, for geothermal exploration and exploitation respectively. The Mexican group is led by the Universidad Michoacana de San Nicolás de Hidalgo, while the GFZ German Research Centre for Geosciences leads the European group. The activities should start during Geothermal applied research is conducted by the consortium CeMIE-Geo (Mexican Center for Innovation in Geothermal Energy) and is focussed in four strategic subjects covered in 32 specific projects (Romo-Jones and Group CeMIE-Geo, 2015): Regional resource assessment (4 projects conducted by UNAM, INEEL and UMSNH) Exploration techniques (9 projects conducted by CICESE, UNAM, UMSNH and UdeG) Technological developments (10 projects conducted by UNAM, INEEL and UMSNH) Direct uses of geothermal heat (7 projects conducted by UPBC, INEEL and UMSNH) 75

92 Training Programs: graduate/undergraduate programs and short courses (conducted by CICESE, UNAM, UMSNH, INEEL, UPBC and UdeG) Highly Specialized Laboratory System distributed in our academic institutions (backed by UNAM, CICESE, UMSNH, INEEL) CeMIE-Geo is an academic-industry alliance funded by the Mexican Ministry of Energy (SENER) and the National Council for Science and Technology (CONACYT) in Mexico. It consists of 7 academic institutions, 1 public company (CFE) and 17 private companies. It is led by CICESE, an institution funded by CONACYT focusing on scientific research and higher education. The general purposes are: To expand and strengthen the capability for scientific and technological research in geothermal energy, promoting collaborative use of infrastructure and expertise. To promote innovation and creation of technology-based companies, strengthening technological development in the geothermal sector. To foster education and training of specialists for academy and industry. In 2016 CeMIE-Geo s projects completed 24 months of operation. So far there are several products derived from the activities of these projects, such as 29 refereed research papers, 35 theses (19 undergraduate and 16 graduate), 116 conference presentations, as well as number of maps, data bases and progress reports Other National Activities Geothermal Education Several Mexican universities are offering training in science or engineering in matters relating to geothermal energy. Most of them offer undergraduate programs in geosciences, physics, chemistry, engineering and energy. Specialized graduate programs are available in a few university research institutes or in some research centers funded by CONACYT. The role of CeMIE-Geo in educational matters is to promote the inclusion of geothermal courses in the curricula of undergraduate and graduate programs offered by the academic institutions in the consortium. In addition, they organize short courses taught by international experts. In 2016 they offered one in geophysical exploration by W. Cumming and another in geothermal processes by P. Brown. Finally, a number of students are involved in their project activities, most of them pursuing a degree (BSc., MSc or PhD) Conferences In March 2016 the Mexican Geothermal Association (AGM: Asociación Geotérmica Mexicana), held its 23 rd Annual Congress in Morelia City, Michoacán. The congress gathered around 130 people from the geothermal divisions of the CFE and the Instituto de Investigaciones Eléctricas (IIE: Electric Research Institute), as well as from the universities of Mexico (UNAM: National Autonomous University of Mexico) and Michoacán (UMSNH), and other institutions like the Mexican Center for Innovation in Geothermal Energy (CeMIE-Geo: Centro Mexicano de Innovación en Energía Geotérmica), students, the Secretary of Energy (SENER), Lawrence Berkeley National Laboratory (LBNL) and private companies. During the congress, 29 technical papers were presented orally and 11 as posters. There was also a pre-congress, eight-hour 76

93 workshop on Introduction to Isotopes in Hydrothermal Systems and Introduction to Geothermal Heat Pumps, with 28 attendees. A parallel commercial exhibition during the congress was composed of 12 booths where private companies and public institutions exhibited their products and services Publications The Mexican journal on geothermal energy, Geotermia, published two volumes in 2016: Vol and Vol. 29-2, in January and July, respectively. This is the only journal in Spanish (with abstracts in English) devoted to geothermal energy, and is published every six months by the geothermal division of CFE Generación VI. The journal was founded by the CFE in 1986, and its first number (printed) was issued in January Since 2004 the journal is only published in digital form. Issues from 2004 to 2017 can be accessed and freely downloaded from the websites of the Mexican Geothermal Association (AGM) and the Geothermal Resources Council (GRC): and Useful Websites Asociación Geotérmica Mexicana (in Spanish): Centro de Investigación Científica y de Estudios Superiores de Ensenada (CICESE) (in Spanish): Centro Mexicano de Innovación en energía Geotérmica (CeMIE-Geo) (in Spanish, with parts in English): Comisión Federal de Electricidad (in Spanish): Instituto Nacional de Electricidad y Energías Limpias (INEEL) (in Spanish): Secretaría de Energía (SENER) (in Spanish): Future Activity One condensing power plant of 25 MW is programmed to be commissioned in the first quarter of 2017 in the Los Humeros geothermal field. The remaining three backpressure power units of 5 MW each will be put out of operation, and then the net increase in the installed capacity of the field will be 10 MW. The operational capacity in the field will be around 80 MW, from almost the same amount of steam that currently produces ~69 MW. Another plant of the same capacity is programmed to start commercial operations by the end of It is the above-mentioned project Los Azufres III, Phase 2, which is currently under construction in the field of the same name. As in Los Humeros, the last three backpressure units in Los Azufres will be taken out of operation when the new, more efficient condensing unit comes into operation. Thus, the net increase in installed capacity is going to be around 10 MW. In late 2016 it was unveiled that the drilling of the first exploration wells will start at the Ceboruco Geothermal Area. El Ceboruco is a huge stratovolcano located in the Mexican state of Nayarit. The exploration permit in this area was awarded to Mexxus RG, a joint venture between Mexico s 77

94 Mexxus Drilling International and Iceland s Reykjavik Geothermal, and is now owned by RG. This company plans to install a geothermal power plant up to 30 MW, with an estimated cost of US$115 million. This will be the second privately developed and operated geothermal-electric project in Mexico. In 2016, three new geothermal exploration permits were awarded to the private companies Grupo ENAL and Grupo Dragón, both Mexican companies specializing in the development of geothermal power projects from early phases of development until the installation and operation of geothermal power plants. With these permits, the total areas awarded up to 2016 are 18: 13 for CFE, two for Grupo Dragón, two for Grupo ENAL and one for RG. All of these permits were awarded by the Secretary of Energy under the new Geothermal Energy Law (GEL) that regulates the reconnaissance, exploration and exploitation of geothermal resources in Mexico. According to the GEL, all these exploration permits are valid for three years and can be renewed for another three years. In each case, the awarded company should drill at least one exploration well for every 50 square kilometres of area granted. Regarding direct uses of geothermal heat, CeMIEGeo has six projects under development, dealing with heat pumps for heating and cooling of buildings and greenhouses, food dehydration, water desalination, absorption refrigeration, electricity generation using binary cycles, and cascade uses. Several geothermal heat pumps will be installed in 2017 with an approximate capacity of 70 ton (20 kw) References Gutiérrez-Negrín, L.C.A. (2012) Update of the geothermal electric potential in Mexico. Geothermal Resources Council Transactions, Vol. 36, pp Gutiérrez-Negrín, L.C.A. (2016) Mexico: Exploratory Drilling, more Exploration Permits, Second Electricity Auction. IGA News 105, October-December 2016, pp 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 Iglesias, E.R. et.al. (2015) Summary of the 2014 Assessment of Medium- to Low-Temperature Mexican Geothermal Resources. Proceedings World Geothermal Congress 2015, Melbourne, Australia, April Romo-Jones, J.M. and Group CeMIE-Geo (2015). The Mexican Center for Innovation in Geothermal Energy (CeMIE-Geo). Proceedings World Geothermal Congress 2015, Melbourne, Australia, April SENER, Reporte de avances de energías limpias, Primer Semestre

95 14. New Zealand Chris Bromley GNS Science, Wairakei Research Centre, Private Bag 2000, Taupo, New Zealand Introduction Highlights for the 2016 year are that the electricity generation plant installed in recent years have successfully run at near maximum capacity, providing a valuable contribution to national electrical energy generation of 17.5%. Operators have been actively optimizing their plants by modifying pipeline configuration, adjusting well operation for changes in discharge enthalpy, and adjusting injection strategy wherever and whenever necessary. A hiatus in large-scale electricity projects has meant a temporary change in focus, particularly for the largest two operators, Contact Energy and Mercury (formerly Mighty River Power), and their respective Maori Trust partners. But staff have generally been kept on and the companies are actively looking for geothermal heat projects to host or to supply (Brian White, 2016, 2017). The following table provides information on geothermal energy use for New Zealand during Electricity generation data is from a reliable government source ( while the direct use information is estimated assuming negligible changes from the 2015 data. Electricity Direct Use Total Installed Capacity (MW e) 1068 Total Installed Capacity (MW th) 480* New Installed Capacity (MW e) 0 New Installed Capacity (MW th) 0 Total Running Capacity (MW e) 998** Total Heat Used (PJ/yr) 9* Contribution to National Capacity (%) 11 % Total Installed Capacity Heat Pumps (MW th) 10* Total Generation (GWh) 7434 Total Net Heat Pump Use [PJ/yr] 0.08* PJ/y Contribution to National Generation (%) 17.5% Target (PJ/yr) +9.5* PJ/y Target (MW e or % national generation) 20-25% Estimated Country Potential (MW th or PJ/yr or GWh/yr) N/A Estimated Country Potential (MW e or GWh) 4000 MWe (note direct use is the same as 2015) (N/A = data not available) (* indicates estimated values) (** excludes mothballed or de-commissioned turbines but includes standby (operational) turbines) 14.2 Changes to Policy Supporting Geothermal Development No changes to national strategy, legislation, or regulatory environment occurred during 2016, and no new market incentives were announced. However, following the signing of the Paris Climate Change Agreement, the government has announced its intention to revisit policy enabling 79

96 increased use of electric vehicles (hence increased demand for renewable power) and renewable industrial process heat. Also the New Zealand Energy Efficiency and Conservation Strategy expired in August 2016 with the Government agencies responsible for this strategy beginning consulting on a revised document in December The revised strategy will be released in A draft Geoheat Strategy prepared by the New Zealand Geothermal Association was made publicly available for comment for two months from March to May The strategy outlines activity to increase New Zealand s geothermal direct use by 7.5 PJ per annum (in essence a doubling) by 2030 and in so doing assist in regional development aspirations through an additional 500 jobs in the industries using that geothermal energy. An update on strategy development was presented at the Geothermal Resources Council Meeting (Climo et al 2016a) and at the New Zealand Geothermal Workshop (Climo et al 2016b). Adjustments to existing permitting arrangements (through Regional Council consent amendments) were approved for the Wairakei and Rotokawa Geothermal Fields to enable more efficient use of available geothermal fluid. This was achieved by averaging fluid extraction and injection quantities over longer periods of time (e.g. 3 months, instead of daily limits) in order to accommodate fluctuations due to maintenance downtime. The justification was that the potential adverse effects on resource sustainability are long-term rather than short-duration processes. The planned Ngawha expansion project (2 by 25MW) was given regulatory approval in early 2016 after an Environment Court appeal challenging the granting of a consent was settled out of court Geothermal Project Development Projects Commissioned No new geothermal projects were commissioned in New Zealand during the 2016 reporting year Projects Operational Geothermal operations continued normally (near maximum generation capacity) at Wairakei- Tauhara, Mokai, Rotokawa, Ngatamariki, Kawerau and Ngawha, while Ohaaki has continued to operate at reduced capacity owing to constraints on fluid supply, as described in previous annual reports. Large industrial direct use applications (paper manufacture, timber drying, space heating, aquaculture, milk processing and horticulture) at Kawerau, Tauhara, Ohaaki, Wairakei and Mokai, continued as per previous years. Smaller-scale direct-use applications for bathing, building heat, tourist facilities, etc, also continued at a similar level to previous years. The Geothermal Heat Pump Association (GHANZ) has been undertaking some excellent work with heat pump systems ( The building sector in Christchurch has seen a significant uptake of aquifer energy systems during the rebuild of government agency and commercial sector buildings after the 2010 and 2011 earthquakes. 80

97 14.4 Research Highlights The geothermal resource potential of New Zealand is assessed to be about 4 GWe (or 30 TWh/yr) from conventional hydrothermal 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. Further refinement of these assessments remains a research priority to assist with planning future power supply and heat utilisation options. During 2016, the focus areas for government core-funded (GRN) geothermal research, amounting in total to about NZ$4M/year, did not change significantly. Key topics were 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 and extremophiles (thermal bacteria); rock-fluid interactions at high temperature and pressure; knowledge about resources and technologies for direct use; and social, economic and policy aspects of geothermal energy use Shorter term contestable research projects at GNS Science (a Crown Research institute focussing on Earth Sciences) in 2016 included: supermodels - development of improved simulator code (NZ$5M over 4 years) and tracking the magmatic signatures of geothermal fluids. Industry-funded research activities included applied research projects through collaboration between government-funded and university graduate research programs. These focused on opportunities and practical problem-solving tasks associated with subsidence, scaling, tracer performance, mineral extraction, reservoir simulation and injection technology Other National Activities Geothermal Education The University of Auckland continues to operate the PGCert geothermal diploma course (16 students in 2016). 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 University of Canterbury runs a geothermal graduate program (Geothermal Energy Systems Engineering Group at Department of Mechanical Engineering, and Geothermal Resource Research Group at Department of Geological Sciences). Regular geoscience and engineering professional training courses are run by GNS Science and universities in several geothermal nations, particularly Indonesia and The Philippines. In 2016, collaborative research was also undertaken with Japan (reservoir modelling) and USA (extremophile organisms) Conferences The 2016 New Zealand Geothermal Workshop was held in Auckland on 23-25th of November ( Papers can be accessed through the IGA website. 81

98 A Drilling Supervisors Workshop was held in March 2016 at Rotorua. This included an update of the NZS2403 Code of Practice for deep geothermal wells and a review of the newly enacted Health and Safety at Work Act. GNS Science and JOGMEC convened an international workshop in Tokyo, Japan on 2 nd June participants attended where speakers presented on the status of the geothermal power generation, direct use, and R&D projects in each country Publications Publications that document recent geothermal research and operational history from New Zealand can be found in the following conference and journal proceedings for 2016: NZ Geothermal Workshop, European Geothermal Congress, Stanford Geothermal Workshop, Geothermal Resources Council conference, Journal of Volcanology and Geothermal Research, and Geothermics Journal Useful Websites Future Activity Projected growth in geothermal electricity generation for New Zealand out to 2025 relative to other generation options is plotted in Figure Additional minor contributions come from solar power (PV) which is expected to grow from the present 0.1% contribution to 0.5%, and bio-gas generation which contributes about 1 %. Coal-fired generation is expected to reduce to near zero, and gas-fired to about 9%, resulting in more than 90% renewable generation, which is a 2025 target set by the government. Some drilling activity at Kawerau commenced in May 2016, and construction of the Te Ahi O Maui (TAOH) (Eastland Generation) ~20 MW binary power plant (using Ormat as EPC contractor) at Kawerau (using up to 15 ktonnes/day fluid for 35 years) is expected to be completed and commissioned by late NTGA (Kawerau) also has consents in place for an expansion of fluid take and injection (45 kt/day) for heat and power utilisation, but no firm plans have been announced yet. Mercury (formerly Mighty River Power) also have consents in place for additional fluid (20 kt/day) to sustain production of their existing 100 MW Kawerau power plant. The Sequal Lumber operation using geothermal steam kiln for timber drying is currently doubling in capacity 82

99 (from 2 kilns to 4 kilns). Putauaki Trust, landowners on the eastern side of the Kawerau resource, are planning a new geothermal-heated, milk-processing factory, modelled on the Miraka plant at Mokai, and this is expected to be commissioned by Well drilling and construction of the two 25 MW binary power plants planned at Ngawha (Ngawha III expansion), located north of Auckland, is expected to occur over the next 3 years. Drilling should start in 2018, with commissioning by 2020 to The operators, Top Energy, are also planning some industrial direct use facilities in the project area and have funded improvements to local commercial spa (Nga Waiariki pools). Makeup drilling for steam supply and supplementary reinjection capacity has been an ongoing activity during 2016, and this is anticipated to continue over the next few years at Kawerau, Rotokawa and Mokai geothermal fields, in particular. The Tauhara II, 250 MW, project remains suspended at the planning stages. Consents were originally granted in Financial commitment by Contact Energy awaits improved economic indicators. Several other proposed projects (eg, 45 MW at Tikitere) also await financial commitments by the joint venture partners, and approvals through the normal resource consent process. As noted previously, future long-term growth in demand for geothermal power may result from large-scale electric vehicle conversions, off-shore cable connections, or energy-intensive industry growth. These would all be subject to normal market drivers and constraints. The New Zealand government signed the Paris Climate Change Agreement in April 2016, and announced that it is exploring the establishment of targets for renewable heat and electrified transport in addition to its existing targets for renewable electricity. Figure 14-1 Updated plot of actual and projected growth (assuming 0.5%/yr demand increase from mid-2016) in generation fuel-types in New Zealand. Increased geothermal and wind generation is displacing coal and gas. The 83

100 geothermal share of 17.5% in 2016 is projected to grow to as much as 24% by 2025, if investment conditions are favourable. Historical data source: MBIE (2017) References NZGA Newsletters: Brian White (2016) Back to the Future Article in Energy Perspectives 2016 (p26) Brian White (2017) On the cusp of change Article in Energy Perspectives 2017 (p34) Climo, M.; Carey, B.; Seward, A.; Bendall, S. 2016a. Strategies for increasing geothermal direct use in New Zealand. Proceedings: Geothermal Resources Council Transactions Sacramento, US; October Climo, M., B. Carey, S. Bendall, A. Seward 2016b Developing a Geoheat Strategy to Increase Geothermal Direct Use in New Zealand: Stakeholder Consultation, Proc. 38th New Zealand Geothermal Workshop, University of Auckland, Paper 10. GNS Science website with Google based map - database of Geothermal Use throughout NZ: Above Ground Geothermal and Allied Technologies GHANZ 2016 New Zealand Geothermal Heat Pump Association Geothermal Institute 2016 University of Auckland, Engineering Faculty, PGCert and NZ Geothermal Workshop: MBIE (2017) Ministry of Business, Innovation and Employment, New Zealand Energy Quarterly: Geothermal news websites:

101 15. Norway Jiri Muller 15.1 Introduction Institute for Energy Technology, P.O. Box 40, 2027 Kjeller, Norway. Geothermal energy use in Norway 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. 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 in having one of the largest shares of renewable energy both in its total primary energy supply 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. There is a strong lobby from academic institutions (universities and research institutes) and industry to promote geothermal energy (including deep geothermal) to the politicians and the public. The umbrella organisation is the Norwegian Centre for Geothermal Energy Research (CGER) established in At the end of 2016 there were 10 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 3,600 GHP installations in 2011 (Figure 15-1). For 2014, 3,000 were installed and since then the annual installation is about 2,500. NOVAPs statistics cover approximately 90% of the Norwegian heat pump market. According to NOVAP, in ,571 GHPs were installed (mainly fluid-to-water ), which is an increase of 8% from In comparison, in ,542 air-to-air heat pumps were installed. However, air-to-air heat pumps are less effective then GHPs, and provide relatively less heat. Though GHPs accounted for only 3.8% of all installed heat pumps (2016), they delivered 27% of total heat. In 2016, all heat pumps in Norway delivered 7,5 TWh renewable heat, about 30% (2,3TWh) of which came from GHPs. 85

102 Number of installed Geothermal Heat Pumps (source NOVAP) Figure 15-1 Ground Heat Pumps (GHPs) sales statistics from NOVAP. Cumulative number of GHPs (source NOVAP) Figure 15-2 Geothermal Heat Pumps (GHPs) sales statistics from NOVAP 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 ( 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 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 to 10 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 15-3). 86

103 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. 240 Average borehole depth Year Figure 15-3 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. Electricity Table 15.1 Geothermal energy use in Norway in Direct Use Total Installed Capacity (MW e) 0 Total Installed Direct Use (MWth) na Contribution to National Capacity (%) 0 Total Generation (GWh) 0 Contribution to National Demand (%) 0 Total Heat Used TJ/yr Total Heat Used TWh/yr Total Installed Capacity for Heat Pumps (MWth) , (The data is based on gross estimates. na=data not available ) 87

104 15.2 Changes to Policy Supporting Geothermal Development The Norwegian geothermal community was not successful in obtaining a prestigious national project (run by RCN) FME (environmentally friendly energy research centre) for geothermal energy ; however the Research Council of Norway (RCN) has increased its financial support to geothermal research projects through its programme ENERGIX (see Section 15.4) Geothermal Project Development See section 15.4 Research highlights Research Highlights SINTEF SINTEF is engaged in Horizon 2020 EU project DESCRAMBLE (headed by ENEL) which deals with drilling in a continental crust supercritical geothermal reservoir in order to test and demonstrate novel drilling techniques. Figure 15-4 Bulkhead with temperature probe and pressure port constructed for the DESCRAMBLE project In another project INNO (financed by RCN), SINTEF (together with IRIS) tackles issues related to fundamental processes in hard rock penetrations CMR CMR has ongoing activities related to distributed fibre optical sensing. Figure 15-5 DTS Temperature Samples 88

105 IRIS IRIS is involved in EU Horizon 2020 project GeoWell (headed by ISOR in Iceland) where they lead activities related to risk assessment for geothermal wells. Furthermore, IRIS takes part in a feasibility study on Deep Geothermal Drilling in Ålgård (Western Norway, close to Stavanger) with the objective to assess the feasibility to utilize deep geothermal energy for heat and electricity production in the Ålgård region IFE IFE is involved in EU FP7 project IMAGE (headed by TNO in the Netherlands) where IFE develops and qualifies new tracers suitable for supercritical conditions. Figure 15-6 Experimental setup at IFE for monitoring flow of tracer at supercritical conditions UiB (University of Bergen) UiB is engaged in basic and applied research in geological characterization, mathematical modelling and computation geoscience. This work is supported by RCN and Statoil. Figure 15-7 Simulations of fractured reservoirs from UiB 89

106 Statoil Through its internal programme GEOMAGMA, Statoil is interested in going deeper and hotter targeting high temperature ( C). The company is heavily involved in the IDDP-2 project in Iceland Other National Activities Geothermal Education Figure 15-8 Going deeper and hotter Please refer to previous Norway country reports Conferences CGER will host international conference GeoEnergi in May 2017 with participation from international scientific guests, politicians and media. The conference was a follow-up to the successful GeoEnergi 2011, 2013 and The keynote speaker is Guðmundur Ómar Friðleifsson, HS Orka who will talk about the IDDP2 project in Iceland Useful Websites Future Activity The geothermal community in Norway is determined to continue expanding its activities. This concerns more than academic institutes and universities. Small Norwegian enterprises which are spin-offs from a declining oil industry are motivated to penetrate emerging domestic and international geothermal markets. They are encouraged and co-financed by the Norwegian governmental organizations (RCN, ENOVA, INNOVATION NORWAY) which support development and deployment of renewable energies. 90

107 16. Republic of Korea Yoonho SONG, Tae Jong LEE Climate Change Mitigation and Sustainability Division, Korea Institute of Geoscience and Mineral Resources (KIGAM), Gwahang-no 124, Yuseong-gu, Daejeon 34132, Korea Introduction Geothermal utilization in Korea is primarily direct use, especially with ground-source or geothermal heat pump (GHP) installations, because there are no high temperature resources associated with active volcanoes or tectonic activity. GHP installation in Korea has increased rapidly since the middle of the 2000 s, with more than 100 MW t of new installations occurring annually, and the total installed capacity is estimated to have exceeded 1,000 MW t at the end of 2016 (See Table 16.1 below). A doublet at the Pohang EGS pilot project site was made in 2016 with the help of side tracking of well PX-1 down to 4,382 m (MD). A pre-stimulation test at the 4,348 m deep (MD) well PX-2 was performed in early 2016, and side tracking of PX-1 was directed to the trend of micro-seismicity distribution detected during the pre-stimulation. Figure 16-1 Pumps for pre-stimulation (left) and assembly with well head of PX-2 (right) (Photo courtesy of NexGeo, Inc.). Table 16.1 Geothermal utilization in Korea as of December 31, Electricity Direct Use Total Installed Capacity (MW e) - Total Installed Capacity (MW th) 43.7 Total Running Capacity (MW e) - New Installed Capacity (MW th) 0 Contribution to National Capacity (%) - Total Heat Used (PJ/yr) [GWh/yr] [164.9] Total Generation (GWh) - Total Installed Capacity Heat Pumps (MW th) 1,102.3* 91

108 Electricity Contribution to National Generation (%) Direct Use - Total Net Heat Pump Use [GWh/yr] 807.3* Target (MW e or % national generation) 200 MWe Target (PJ/yr) N/A Estimated Country Potential (MW e or GWh) 19,600 MWe (N/A = data not available; * indicates estimated values) Estimated Country Potential (MW th or PJ/yr or GWh/yr) N/A 16.2 Changes to Policy Supporting Geothermal Development The Second National Energy Master Plan, which was set up in 2013, is still active and no major changes were made. The target of new and renewable energy supply by 2035 remains 11% of total primary energy consumption. Table 16.2 shows geothermal R&D expenditures for the past five years. There was a considerable decrease of R&D investment in 2016, which resulted from the fact that the government funding to Pohang EGS project ended in 2015 although actual field development is still under way. Table 16.2 Geothermal R&D expenditure for the period (in *US$ 1,000) Government 11,056 7,259 11,603 9,232 6,464 Industry 3,577 1,628 15,171 5,772 2,530 Total 14,633 8,887 26,775 15,004 8,994 *Exchange rates (in KRW/USD) are as of July 1 st each year such as 1,174 (2012), 1,165 (2013), 1,029 (2014), 1,140 (2015), and 1,168 (2016) Geothermal Project Development Projects Commissioned No new projects were commissioned in But there is on-going planning of project initiation for geothermal power generation at the remote Ulleung island in the East Sea according to temperature measurements and geophysical surveys made from 2014 until 2016 (See Research Highlights) Projects Operational The pilot enhanced geothermal system (EGS) project in Pohang had a doublet system installed in 2016 as a result of side tracking of PX-1, called PX-1A (4,382 m MD). After completing PX-2 down to 4,348 m (MD) and taking core at the depth of 4,220 m by the end of 2015, a pre- 92

109 stimulation test with injection of surface water of 1,970 m 3 was done in early 2016 (See Figure 16-1). Maximum well head pressure was 89.2 MPa and maximum instantaneous flow rate 46.8 L/sec (Park et al., 2017). 357 micro-seismic (MS) events were detected by borehole geophone located at 1,360 m depth in well PX-1, however most of them were not detected by the MS monitoring system with borehole accelerometers at 130 m depth or surface seismometers because the magnitude was of the order of Mw 0.0 or less. Locations of events were estimated by hodogram analyses of P wave arrival at borehole geophones, and side tracking of PX-1 was designed to direct towards these event locations. Hydraulic stimulation with massive water injection is scheduled in early 2017 and detailed interpretation will follow Research Highlights In 2014, the Korean government initiated an exploration program for geothermal power generation at Ulleung island, which is a volcanic island located in the East Sea and has an area of 72.9 km 2 (Figure 16-2). Currently, almost all of the electricity in the island depends on diesel power plants. Korea Institute of Geoscience and Mineral Resources (KIGAM) made temperature measurements at two boreholes in 2011, which showed a fairly high geothermal gradient, and the goverment decided to support geophysical surveys and additional boring for temperature measurements. Exploration of geothermal resources at the island, including a three-dimesional (3-D) magnetotelluric (MT) survey, interpretation of gravity and magnetic data, and two gradient holes drilled down to a depth of 1 km were carried out from 2014 until In 2016, KIGAM measured temperature profiles down the two gradient holes and performed 3-D inversion of the MT data. Figure 16-2 shows a location map of MT survey stations and the four boreholes, along with the location of the island. The depth of the boreholes GH-1 and GH-2 drilled in 2011 are 600 m and 500 m, respectively. Boreholes GH-3 in 2014 and GH-4 in 2015 are 1 km deep. In total 22 MT measurement were made during the two-year campaign. As we can see from the location map, topographic variation of the island is so steep that a grid-type survey couldn t be made, instead survey stations were located along valleys or rather gentle slopes away from villages. Figure 16-2 Location map of the Ulleung island, MT sites, and four temperature holes 93

110 Figure 16-3 shows temperature profiles down the four boreholes. The temperature gradients in boreholes GH-1 and GH-2 are as high as almost 100 C/km, while that at borehole GH-3 is around 60 C/km, and GH-4 shows about 80 C/km. This remarkable variation of the temperature gradients in the small island indicates the existence of thermal convection through a permeable zone, possibly a deep fracure zone with East-West direction although there is no surface manifestation. Figure 16-3 Temperature-depth profiles of the four boreholes at Ulleung island (Lee et al., 2016). Figure 16-4 shows depth slice images of the resistivity distribution as a result of 3-D inversion of MT data incorporating conductive sea in the model and static shifts in the inversion. From 0.8 to 1.5 km depth we can see a clear low resistivity zone running East-West which matches the temperature gradient anomaly. Therefore one can expect there to be a deep fracture zone which serves as a conduit of thermal water convection. For the zone deeper than 1.5 km there is a conductive body which can be interpreted as a source of the thermal regime. 94

111 Figure 16-4 Depth slice images of resistivity distribution as a result of 3-D inversion of MT data measured at Ulleung island (Lee et al., 2016). According to these survey results, there will be a detailed geothermal development plan including exploration well drilling to confirm the existence of a convective regime. There will also be planning of a geothermal power generation project starting from the later part of Because the island is far from the mainland, and thus procurement of drilling rigs and materials could be an issue, a careful plan of both budget and time should be made Other National Activities There are regular geothermal courses in Seoul National University at both undergraduate and graduate levels that have been running since There are also many small seminars about general geothermal topics and geothermal power generation. Reflecting the progress of the EGS pilot plant project, special sessions at the domestic conferences have been organized focusing on drilling, stimulation and economic aspects Future Activity Geothermal utilization in terms of GHP installation will continue to rapidly increase for the next few years: more than 100 MW t annually is expected. This is due to active subsidy programs and the special Mandatory Act. There are concerns about the low performance or malfunctioning of GHP systems because the rapid increase in market may accompany bad installations without proper design and performance validation. Long-term performance modeling and validation are 95

112 important tasks to keep GHP installations growing especially for large systems (bigger than 1 MW t capacity). Statistics of geothermal utilization are another issue. In Korea, official statistics on geothermal energy deal with GHP only and thus other direct uses including space heating, spas, and greenhouse heating are not included in the national statistics. We have been reporting other direct use statistics to IEA-Geothermal with the help of hot spring survey data. For GHP statistics, there is no official distinction between heating and cooling, but just a lump sum of all energy production throughout a year, which does not consider what pure geothermal contribution is yet. Efforts are needed to establish a revised method of collecting official statistics on geothermal uses that is compatible with international standards such as IEA statistics. The EGS pilot plant project in Pohang site is still under way although overall progress is rather slow compared to the original schedule due to some technical and budgetary issues. The project team expects that a circulation test following massive hydraulic stimulation at both wells of the doublet will be done in 2017, and then we can estimate actual capacity of the engineered reservoir. Geothermal potential in the Ulleung Island is promising, so the special purpose company founded for development of renewable energy in the island is currently preparing a detailed geothermal power generation plan. The project is planned to start by the end of 2017 targeting power plant commissioning by References Lee, T. J., Kim, M. S., Park, I. H., and Song, Y., 2016, Geoelectrical structure of Ulleung Island, Korea deduced from 3D MT interpretation, Presented at AGU Fall Meeting, San Francisco, December 12-16, Park, S., Xie, L., Kim, K.-I., Kwon, S., Min, K.-B., Choi, J., Yoon, W.-S., and Song, Y., 2017, First hydraulic stimulation in fractured geothermal reservoir in Pohang PX-2 well, Proceedings, 42 nd Workshop on geothermal reservoir engineering, Stanford University, Stanford, California, February 13-15,

113 17. Spain Margarita de Gregorio, Paloma Pérez Spanish Geothermal Technology Platform, Doctor Castelo 10, 3 C-D , Madrid, SPAIN Introduction margadegregorio@geoplat.org; pperez@geoplat.org Geothermal power plants haven t been developed in Spain so far. The current subsidy framework and the new Spanish renewable energy auctions are unfavourable. The production of electricity from geothermal sources is not eligible to receive any kind of subsidy (like other novel renewables such as ocean energy). Furthermore, another limitation for the deep geothermal sector is the lack of detailed knowledge about geothermal resource potential in Spain. Nevertheless, the installed capacity of geothermal energy for thermal use has kept on growing modestly over the last three years, mainly due to growth in heating and cooling installations in the residential and tertiary sectors. Electricity Direct Use Total Installed Capacity (MW e) 0 Total Installed Capacity (MW th) New Installed Capacity (MW e) 0 New Installed Capacity (MW th) Total Running Capacity (MW e) 0 Total Heat Used (PJ/yr) [GWh/yr] Contribution to National Capacity (%) 0 Total Installed Capacity Heat Pumps (MW th) 225* Total Generation (GWh) 0 Total Net Heat Pump Use [GWh/yr] Contribution to National Generation (%) Target (MW e or % national generation) Estimated Country Potential (MW e or GWh) 0 Target (PJ/yr) 0 Estimated Country Potential (MW th) <50,000* 0 (N/A = data not available) (* indicates estimated values) 17.2 Changes to Policy Supporting Geothermal Development In early 2016, the Spanish government held its first energy auction (500 MW of wind power and 200 MW of biomass). In autumn 2016, the Spanish government announced plans to hold a new renewable energy project auction (3000 MW for any new solar PV or wind power plants), eagerly awaited from the national industry and international players, with high expectations that the auction design would be simplified and/or consider some characteristics of the Spanish market reality. None of those auctions concerned geothermal. 97

114 However, there are still some exploration permits which have been maintained in the hope that better supporting measures for geothermal energy will be adopted in the medium term Geothermal Project Development Projects Commissioned Geothermal heating & cooling projects The sector of shallow geothermal for HVAC (heating, ventilation, and air conditioning) and DHW (domestic hot water) in Spain maintains a slow but growing development. This is helped by a 'building rehabilitation' trend, where geothermal is starting to play a little role in Spain, and also by recovery in the housing sector. According to the information provided by the Spanish Association of Heating and Cooling Networks (ADHAC), in 2016 in Spain there were two geothermal district heating & cooling systems: One of these systems is in Balearic Islands and the other one is in Madrid. Geothermal R&D projects The EU Research and Innovation programme, Horizon 2020, awarded one geothermal project in 2016 with Spanish participation in its consortium. This geothermal project is: GEOCOND - Advanced materials and processes to improve performance and costefficiency of Shallow Geothermal systems and Underground Thermal Storage 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 o Coordinator: UNIVERSITAT POLITECNICA DE VALENCIA (Spain) o Spanish Participants: AIMPLAS - ASOCIACION DE INVESTIGACION DE MATERIALES PLASTICOS Y CONEXAS; EXTRULINE SYSTEMS S.L. o More info: Research Highlights In 2016, geothermal energy for heating and cooling applications and production of domestic hot water (DHW) in buildings has experienced a subtle change in trend. The installation of these geothermal exchange systems has been intensified in all types of buildings (both in new construction and building renovation) compared to previous years, in which the economic and real estate crisis was intensely manifested. Likewise, there is increased commitment from public administrations to have geothermal exchange systems in public buildings, given the need to ensure that the new public buildings fit into the concept of zero energy consumption buildings promoted by the European Union. However, during 2016, geothermal energy for power generation has continued in stand-by mode. The requested exploration permits are either maintained or expired due to the impossibility of promoting projects in the current renewable power auctions. Only in the Canary Islands has there been a clear movement in favor of geothermal energy with the Government's decision to edit a series of official manuals which characterize the geothermal resource in the archipelago and analyze the conditions for its exploitation. It should be borne in mind that, in addition to the geothermal uses for air conditioning traditionally used by large hotels in the Canary Islands, 98

115 geothermal power generation can play a key role in the island's energy transition. A massive uptake of interruptible renewable energy sources such as wind power and solar photovoltaic energy would require the use of renewable energy base load power that is 100% dispatchable, such as geothermal Other National Activities Geothermal Education GEOPLAT is the entity in charge of carrying out official geothermal training in Spain, whose aim is the certification of training with European recognition in order to promote safe, secure and sustainable development within the Spanish geothermal sector. In 2016, the second course of formal training in Design of Geothermal Exchange Systems was made, in collaboration with the International Association of Geo-Education for a Sustainable Geothermal Heating and Cooling Market (GEOTRAINET), which was well received by industry ( It will be held every year in the future, in line with the pursuit of excellence of geothermal energy in Spain, which is the driving force behind all actions of GEOPLAT Conferences GEOPLAT Assembly 2016 (Madrid, 18 November 2016) Participation of GEOPLAT in the 13 th National Congress for the Environment CONAMA 2016 (Madrid, 28 November to 1 st December 2016). o Organization and participation in the technical workshop: Climate change or renewable energies? &id=334&op=view o Presentation of the GEOPLAT technical paper (poster): Geothermal energy in Spain, enormous accessible potential Paneles/ _panel.pdf Publications Análisis del sector de la energía geotérmica en España (GEOPLAT, December 2015) Síntesis del Estudio Parque de Bombas de Calor en España (IDAE, 2016) GEOPLAT Yearbook Useful Websites GEOPLAT Website: GEOPLAT Blog: Spanish Institute for Diversification and Saving of Energy (IDAE): 99

116 17.6 Future Activity The Spanish Geothermal Technology Platform (GEOPLAT), jointly with the National Institute of Qualifications of the Spanish Ministry of Education (INCUAL), has begun to develop the basis for qualification of professionals to manage the installation and maintenance of heat exchange geothermal systems. This qualification will serve to create advanced vocational training courses as well as vocational training courses for the unemployed. In addition, it will officially accredit experienced installers with the corresponding title. This official qualification will help to advance the professionalization of the sector, which implies an extension of the knowledge to install this type of renewable heating and cooling system, guaranteeing quality standards in the installations References 2016 Census on the existing DHC networks in Spain (ADHAC): CORDIS - Community Research and Development Information Service National Institute of Qualifications of the Spanish Ministry of Education (INCUAL) 100

117 18. Switzerland Katharina Link 1, Gunter Siddiqi 2 1 Geo-Future GmbH, Rebstrasse 3, CH-8500 Frauenfeld. info@geo-future.expert 2 Swiss Federal Office of Energy, Mühlestrasse 4, CH-3063 Ittigen. gunter.siddiqi@bfe.admin.ch 18.1 Introduction 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 co-produced 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 an Energy Strategy 2050, which comprises several measures and incentives for geothermal energy. Geothermal legislation has continued to work its way through parliament. Both chambers of parliament voted on the new energy law and its package of measures in autumn The Swiss population will vote on the new law on 21 May 2017, which, once approved, would enter into force on 1 January The adoption of this law is crucial for the further development of geothermal energy in Switzerland. Table 18.1 Status of geothermal energy use in Switzerland (figures from 2015) Electricity Direct Use Total Installed Capacity (MW e) 0 Total Installed Capacity (MW th) 26.7 New Installed Capacity (MW e) 0 New Installed Capacity (MW th) -3.9 Total Running Capacity (MW e) 0 Total Heat Used (PJ/yr) [GWh/yr] 0.78 (215.9) Contribution to National Capacity (%) 0 Total Installed Capacity Heat Pumps (MW th) Total Generation (GWh) 0 Total Net Heat Pump Use [GWh/yr] Contribution to National Generation (%) 0 Target (PJ/yr) N/A Target 2050 (GWh/yr) Estimated Country Potential (MW th or PJ/yr or GWh/yr) N/A Estimated Country Potential (GWh/yr) N/A (N/A = data not available) 101

118 18.2 Changes to Policy Supporting Geothermal Development Since 2008 Switzerland has been operating a geothermal guarantee scheme for geothermal power projects. Under this scheme up to 50% of the actual subsurface development cost may be reimbursed to project developers in case of a failure to find a suitable geothermal resource. Additionally, geothermal power production is remunerated by a feed-in tariff. The Swiss government has developed the Energy Strategy 2050, which targets reducing energy consumption, improving efficiency, and enhancing the utilisation of renewable energies. Several measures and incentives aim to boost the development of geothermal energy, e.g.: Increase coverage of the geothermal guarantee scheme for geothermal power projects from 50% to 60% and extending the eligible costs to include exploration expenses Direct financial support for exploration Direct financial support for heat projects (via Switzerland s levy on carbon in fossil fuels used for stationary heat supply) Higher feed-in tariffs for power production with EGS technology: bonus of 7.5 Rappen/kWh (1 Rappen ~ 1 US Cent); the feed-in tariff for hydrothermal projects continues unchanged but now for a period of 15 years instead of 20 years Capacity (MWe) Feed-in tariff (Rappen/kWh) 5 MW MW MW 28.0 >20 MW 22.7 The Energy Strategy 2050 also includes an action plan coordinated energy research. Financial support for geothermal research and innovation has grown considerably in the last 2 years from about US$ 5 million to US$ 12 million per year. In addition, in early 2017 the Swiss Federal Council has decided not to impose a ban on hydraulic stimulation. But, the highest regulatory and industry standards have to be upheld Geothermal Project Development Projects Commissioned The following projects are in the planning phase in 2016: Project name Project developer Technology Energy use Haute Sorne (JU) Geo-Energie Suisse AG EGS Etzwilen (TG) Geo-Energie Suisse AG EGS Triengen (LU) Geo-Energie Suisse AG EGS Power (and heat); Permit granted Power (and heat); Planning phase Power (and heat); Planning phase Pfaffnau (LU) Geo-Energie Suisse AG EGS Power (and heat); 102

119 Project name Project developer Technology Energy use Planning phase Avanches (VD) Geo-Energie Suisse AG EGS Lavey-les-Bains (VD) GEothermie 2020 Geothermie Schlattingen (TG) Geothermie Oftringen (AG) JV of regional energy utilities, cantons and communities Services Industriels de Genève (SIG) and Canton of Geneva Grob Gemüse GmbH Erwärme Oftringen AG Combined heat and power - hydrothermal All geothermal applications considered Hydrothermal Hydrothermal, heat storage Power (and heat); Planning phase Heat, power; permitting stage Heat, cold, power; seismic completed, planning of drilling Heat agriculture; Underground system completed, long term test Heat; planning phase EnergÒ Vinzel EnergÒ SA Hydrothermal Heat; planning phase Projects Operational There are no geothermal power projects in operation in Direct and indirect use projects in operation in 2016 are found below, all figures are from 2015: Heating project Capacity [MW] *) Heating energy [GWh/yr] Heat energy without heat pump contribution Lötschberg base tunnel, Frutigen, direct Tunnel water NA 2.00 See left Riehen (BS), direct 1.5 MW 4.18 See left Riehen (BS), heat pumps Bassersdorf (ZH) Itingen (BL) Kloten (ZH) Seon (AG) Furka Railway tunnel, Oberwald (VS) Gotthard road tunnel, Airolo (TI) Ricken railway tunnel, Kaltbrunn (SG) Lötschberg base/railway tunnel, Frutigen (BE/VS)

120 Hauenstein railway tunnel, Trimbach (SO) Mappo Morettina, road tunnel, Minusio/Tenero (TI) Thermal spas in operation in 2016, all figures from 2015: Thermal spa Capacity [MW] *) Heating energy [GWh/yr] Andeer (GR) Baden (AG) Currently (2016) under undergoing reconstruction Bad Ragaz (SG) Bad Schinznach S3 (AG) Brigerbad (VS) Kreuzlingen Lavey-les-Bains (VD) Leukerbad (VS) Lostorf (SO) Currently not in operation (2016) Ovronnaz (VS) Saillon (VS) Stabio (TI) Val d Illiez (VS) Vals (GR) Currently not in operation (2016) Yverdon-les-Bains (VD) Zurzach (AG) Total Research Highlights Research and innovation is funded by the Swiss National Science Foundation (fundamental research), the Swiss Federal Office of Energy (applied research, piloting and demonstration) 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 engage in geothermal research and innovation. 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 104

121 SCCER-SoE, has a focus on geothermal energy and particularly on technologies required to unlock Engineered Geothermal Systems. The SCCER s are set up along the lines of a publicprivate partnership with industry players encouraged to participate. R&D funds for 2015 have been at a level of US$ 10 million (incl. funds for piloting) with slightly higher levels at US$ 12 million expected in A highlight are research activities of the SCCER- SoE on controlled hydraulic stimulation experiments at the Grimsel Test Site, an underground laboratory in the crystalline basement of the Alps. As of 1 January 2017 Switzerland is once again a fully associated member of the EU research framework program, Horizon Hence, the Swiss Federal Office of Energy, via its dedicated funding program for geothermal energy research and innovation, cooperates with European funding agents in the European Commission through the European Research Area Network GEOTHERMICA, as well as the International Partnership for Geothermal Technology (with the USA, Iceland, Australia and New Zealand). The longest standing backbone of Switzerland s international engagement is the IEA s Geothermal Technology Collaboration Program. Industry engages in geothermal development activities mostly in the areas of hydrothermal project development, subsurface heat storage, and EGS. Financial information is not available. Geothermal research highlights in 2016: ThermoDrill (International) fast track innovative drilling system for deep geothermal challenges in Europe ( DESTRESS (International) Demonstration of Soft Stimulation treatments of geothermal reservoirs ( DG-WOW Deep Geothermal Well Optimisation Workflow RT-RAMSIS Real-Time Risk Assessment and Mitigation System for Induced Seismicity Hydraulic stimulation / fracking tests at the Grimsel Test Site Research activities in the area of shallow geothermal applications especially concentrate on quality assurance and control, as well as enhancing efficiency Other National Activities Geothermal Education The University of Neuchâtel runs a successful and popular Certificate for Advance Studies on Exploration & Development of Deep Geothermal Systems (CAS DEEGEOSYS). Through the SCCER-SoE, the significant number of tenured and tenure-track professorships at ETH Zurich, EPF Lausanne, and at the Universities of Geneva and Neuchâtel has given rise to a number of undergraduate and graduate level courses in geothermal energy Conferences In 2016, a number of geothermal conferences and conferences with significant geothermal interest took place in Switzerland: - Geothermie Bodensee: an international conference, St.Gallen (SG) - Swiss Geothermal Conference: a two-day international event at Yverdon-les-Bains (VD), focus in 2016 on heating, cooling and energy storage 105

122 - SCCER-SoE Annual Conference in Sion (VS) from September EPF Lausanne s 13 th Greenhouse Gas Control Technology Conference in November 2016, the world s premier CCS conference with sessions on geothermal energy Publications See the publication website of the SCCER-SoE ( Useful Websites Geothermie-Schweiz (Swiss Geothermal Association) Fachvereinigung Wärmepumpen Schweiz FWS (Swiss Heat Pump Association) Swiss Competence Center for Energy Research Supply of Energy (SCCER SoE) Felslabor Grimsel (Grimsel Test Site) Geo-Energie Suisse AG (EGS projects) Future Activity Geo-Energie Suisse AG is planning to realise at least one EGS project for power and heat production. The hydrothermal projects in Western Switzerland (Geneva, EnergeÔ Vinzel, and Lavey-les-Bains) will continue. But, future activities fundamentally depend on the outcome of the vote on Switzerland s Energy Strategy 2050 on 21 May References Geothermal statistical data are from: Link, Katharina; Blum, Andreas and Wyss, Roland: Statistik der geothermischen Nutzung in der Schweiz Ausgabe Schlussbericht, 28. Juli

123 19. United Kingdom Jon Busby 1, Alison Auld 2 1 Team Leader Renewables & Energy Storage, British Geological Survey, Keyworth, Nottingham, NG12 5GG, UK. jpbu@bgs.ac.uk 2 Science and Innovation, Department for Business, Energy and Industrial Strategy (BEIS), 1 Victoria Street, London, SW1H 0ET, UK. Alison.Auld@beis.gov.uk Figure Well head at the Southampton geothermal site Introduction 2016 was another year when interest and awareness of geothermal in the UK increased and a number of projects were progressed but no new capacity was added. There is currently no power generation and direct use is restricted to a total capacity of about 3.14 MW. It comprises 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. However, this scheme has been under maintenance while a new electric pump is fitted but is expected to be at a higher capacity by There is also a thermal spa in the City of Bath (1.0 MW), and five small, mine water schemes (total of 0.14 MW [geothermal contribution]). In February, the results of the Scottish Government s Geothermal Energy Challenge Fund were published. The Fund was established to support feasibility studies exploring the capacity of 107

124 Scotland s geothermal resources to meet the energy needs of local communities. Grants totalling 185,235 funded four projects as follows; Aberdeen Exhibition and Conference Centre was a study undertaken by Geothermal Engineering Ltd to install a Deep Geothermal Single Well (DGSW) to supply heat to a low temperature heat network and to a commercial development. Peak outputs from the well were estimated between 400 and 600 kw and the estimated costs are 2.3M. The DGSW is considered as an alternative geothermal heat source in regions where low permeability rocks are found at depth. The Guardbridge geothermal technology demonstrator project investigated the potential of a faulted Devonian sandstone as a Hot Sedimentary Aquifer (HSA) to supply heat to a local network. The study, led by the University of St Andrews, predicted flow rates of 5 to 20 l/s at a temperature of 25 ᵒC. Capacity was estimated as 0.42 MW, to supply 2,867 MWh of heat per annum at a development cost (including the heat network) of ~ 2M. The project has moved forward to a development stage with the collection of 3 lines of seismic reflection data in the autumn. The Fortissat Community minewater geothermal energy district heating network was 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, led by the JHI. The estimated heat supply was between 5,500-20,000 MWh per annum with development costs between 5M- 10M depending on the size and capacity of the heat network and geothermal system. The Hill of Banchory geothermal energy project was conducted by the Hill of Banchory Geothermal Energy Consortium. It assessed the deep geothermal potential at Banchory, Aberdeenshire from a pair of deep boreholes drilled into the Hill of Fare Granite. The heat-only project estimated temperatures of ᵒC between depths of km, depending on the geothermal gradient, and considered flow scenarios between 5-50 l/s. In February, the UK Department for Communities and Local Government announced a European Regional Development Fund call of 10.6M to develop a scheme incorporating Enhanced Geothermal System (EGS) demonstration wells in the southwest of England. Electricity Direct Use Total Installed Capacity (MW e) 0 Total Installed Capacity (MW th) 3.14 New Installed Capacity (MW e) 0 New Installed Capacity (MW th) 0 Total Heat Used (TJ/yr) [GWh/yr] 55.3 [14.8] + Total Installed Capacity Heat Pumps (MW th) 598 New capacity installed in 2015 (MW) 63 # Total Net Heat Pump Use [GWh/yr] 952* + Note this is lower than previous years due to maintenance of the plant at Southampton. # These are data from 2015 as the 2016 data were not available at the time of submission of the report. * 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. 108

125 19.2 Changes to Policy Supporting Geothermal Development 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. The strike price for geothermal in 2016 was set at 145/MWh. The Feed-in Tariffs (FITs) scheme was introduced on 1 April Through the use of FITs, the Department for Energy and Climate Change (DECC) hopes 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, amongst other technologies, domestic and non-domestic GSHP and deep geothermal heat. The rates in 2016 were as follows; Non-domestic GSHP has a 2 tiered tariff comprising 8.95 p/kwh for the first 1314 hours of use (tier 1) and 2.67 p/kwh thereafter (tier 2) Domestic GSHP tariff is 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 5.14 p/kwh Geothermal Project Development Projects Commissioned No new projects were commissioned in Projects Operational The only operating deep geothermal project is in the City of Southampton which contributes heat to an inner city district heating network. This scheme has been under maintenance, and therefore at reduced capacity, whilst a new electric pump is fitted Research Highlights UK geothermal research is largely concentrated on developing the potential of less conventional resources as deep hot sedimentary aquifers are only found in a few regions and often not in regions of high heat demand. Much research is undertaken within the Higher Education sector, usually as part of PhD programs, as follows; Investigating the potential for hydrocarbon wells or shale gas wells for direct use geothermal. This could involve the exploitation of co-produced water or the potential 109

126 refurbishment of the well after the production of hydrocarbons has ceased. (Durham University, Glasgow University). Exploiting the permeability of deep fracture systems as viable geothermal resources. (Glasgow University). Exploring the extent of palaeokarst within the buried Carboniferous Limestone and its geothermal potential (Durham University). Quantifying the potential of the thermal resource within disused mine systems in the UK (Newcastle University, Glasgow University, British Geological Survey) Other National Activities Geothermal Education There are no specific higher education courses 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 Conferences The principal UK geothermal energy conference was the 5th London Geothermal Symposium, held on the 25th October 2016 at The Geological Society. Jointly organised by BritGeothermal (Charlotte Adams), EGS Energy Ltd. (Guy Macpherson-Grant) and Town Rock Energy Ltd. (David Townsend), it was attended by around 80 delegates who listened to 16 presentations Publications Bailey. M. T., Gandy, C. J., Watson, I.A., Wyatt, L.M. & Jarvis A.P Heat recovery potential of mine water treatment systems in Great Britain. International Journal of Coal Geology, 164, Beamish, D. & Busby J The Cornubian geothermal province: heat production and flow in SW England: estimates from boreholes and airborne gamma-ray measurements. Geothermal Energy, pp 25, DOI /s Burnside, N. M., Banks, D. & Boyce, A. J Sustainability of thermal energy production at the flooded mine workings of the former Caphouse Colliery, Yorkshire, United Kingdom. International Journal of Coal Geology, 164, Burnside, N. M., Banks, D., Boyce, A. J. & Athresh, A Hydrochemistry and stable isotopes as tools for understanding the sustainability of minewater geothermal energy production from a standing column heat pump system: Markham Colliery, Bolsover, Derbyshire, UK. International Journal of Coal Geology, 165, Busby, J Thermal conductivity and diffusivity estimations for shallow geothermal systems. Quarterly Journal of Engineering Geology and Hydrogeology, 49, Farr, G., Sadasivam, S., Manju, Watson, I. A., Thomas, H. R., Tucker, D Low enthalpy heat recovery potential from coal mine discharges in the South Wales Coalfield. International Journal of Coal Geology, 164,

127 Taylor, K, Banks, D. & Watson, I Heat as a natural, low-cost tracer in mine water systems: The attenuation and retardation of thermal signals in a Reducing and Alkalinity Producing Treatment System (RAPS). International Journal of Coal Geology, 164, Westaway, R Repurposing of disused shale gas wells for subsurface heat storage: preliminary analysis concerning UK issues. Quarterly Journal of Engineering Geology and Hydrogeology, 49, Westaway, R. & Younger P. L Unravelling the relative contributions of climate change and ground disturbance to subsurface temperature perturbations: Case studies from Tyneside, UK. Geothermics, 64, Younger, P. L., Manning, D. A. C., Millward, D., Busby, J. P., Jones, C. R. C. & Gluyas. J. G Geothermal exploration in the Fell Sandstone Formation (Mississippian) beneath the city centre of Newcastle upon Tyne, UK: the Newcastle Science Central Deep Geothermal Borehole Quarterly Journal of Engineering Geology and Hydrogeology, 49, Useful Websites Renewable Heat Incentive Contracts for Difference Renewable Energy Association Deep Geothermal Group Ground Source Heat Pump Association Future Activity Interest and awareness in geothermal continues to increase, but funding to develop projects remains challenging. The project to develop EGS demonstration wells in the southwest of England with part funding from a European Regional Development Fund grant of 10.6M was given the go-ahead in late 2016 with a start-date of March It is the intention that the funding will kick-start a geothermal combined heat and power industry in Cornwall. The city of Stoke-on-Trent are investing in a District Heat Network and have conducted feasibility studies to enable private sector investment in a deep geothermal heat source for the scheme. A deep geothermal single well will be drilled in 2017 to supply the heat for an outdoor swimming pool (the Jubilee Pool) at Penzance in Cornwall, southwest England. 111

128 There is continued interest in mine waters as a source of low carbon heat. The Coal Authority are looking to develop existing mine water treatment schemes for their heat and 5 opportunities are currently underway. In 2014 the UK Government allocated 31M to establish new research centres called the Energy Security & Innovation Observing System for the Subsurface (ESIOS) project. It is expected that this project will set up two centres, with work beginning in 2017, the second of which will be focussed on geothermal energy research References BSIRA Heat pump market; United Kingdom. Report 59122/11 112

129 20. United States of America Lauren Boyd Enhanced Geothermal Systems Program Manager, Geothermal Technologies Office, Energy Efficiency and 20.1 Introduction Renewable Energy, Department of Energy, USA. The United States remains the world leader in installed geothermal capacity, at 3.8 GW. Ninetyfive percent of this capacity is in California and Nevada. According to the Geothermal Energy Association (GEA), 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 Department of Energy s (DOE) Geothermal Technologies Office (GTO), which engages in research, development, and demonstration (RD&D); the 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. Electricity Direct Use Total Installed Capacity (GW e) 3.8 Total Installed Capacity (MW th) New Installed Capacity (MW e) New Installed Capacity (MW th) Total Running Capacity (MW e) N/A Total Heat Used (GWh) Contribution to National Capacity (%) 0.23% Total Installed Capacity Heat Pumps (GW th) 16.8 (2015) Total Generation (GWh) 17,417 Total Net Heat Pump Use [GWh/yr] N/A Contribution to National Generation (%) (N/A = data not available) (* indicates estimated values) 0.43% Target (PJ/yr) N/A 20.2 Changes to Policy Supporting Geothermal Development The Production Tax Credit, a federal incentive that provides financial support for the development of renewable energy facilities in the U.S., expired in December Geothermal Project Development The 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. 113

130 The U.S., through the GTO, has programmes in: Enhanced Geothermal Systems (EGS) Hydrothermal Resources Low Temperature and Coproduced Resources Systems Analysis With goals for the future of EGS: Demonstrate 5 MW reservoir creation by 2020 Lower levelized cost of electricity (LCOE) to 6 cents/kwh by 2030 Along with near-term goals to accelerate conventional hydrothermal growth: Lower risk and costs of development and exploration Lower LCOE to 6 cents/kwh by 2020 Accelerate development of 30 GWe of undiscovered hydrothermal resources Projects Commissioned in FORGE As the next step for EGS development, GTO has initiated Phase 2 activities for one of DOE s largest geothermal initiatives, the Frontier Observatory for Research in Geothermal Energy, or FORGE. The ultimate FORGE field laboratory, dedicated to cutting-edge research on enhanced EGS, could unlock access to a domestic, geographically diverse source of clean energy with the potential to supply power to up to 100 million homes in the United States. 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. In 2016, two teams were selected under Phase 2 to fully instrument, characterize, and permit candidate sites for an underground laboratory to conduct cutting-edge research on EGS EGS Collab GTO announced funding for the multi-lab, multi-year EGS Collab effort. This EGS Laboratory Call is focused on GTO s vision for longer-term, transformational enhanced geothermal systems by establishing a collaborative experimental and model comparison effort, the EGS Collab. Over the next three years, the Collab will act as the bridge between laboratory scale stimulation/rock mechanics studies and the large field-scale of the future FORGE site. The EGS Collab is envisioned as a small-scale field site where the geothermal reservoir modeling and research community will establish validations against controlled, small-scale, in-situ experiments focused on rock fracture behavior and permeability enhancement. The EGS Collab will provide the opportunity for reservoir model prediction and validation, in coordination with in- 114

131 depth analysis of geophysical and other fracture characterization data with an ultimate goal of understanding the basic relationship between stress, seismicity, and permeability enhancement. Identification and quantification of other parameters impacting permeability, as well as understanding how these parameters change throughout the EGS development phases, is expected and critical to achieving commercial viability of EGS. This effort will address critical and fundamental barriers to EGS advancement by facilitating direct collaboration between the geothermal reservoir modeling community, experimentalists, and geophysicists in developing and implementing well-field characterization and development, monitoring, and stimulation methods Play Fairway Analysis GTO initiated Phase 2 of its Play Fairway Analysis (PFA) effort. The concept of the PFA has been used to identify potential locations of blind hydrothermal systems and 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. 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. The projects selected for Phase 2 funding will continue to address the overarching theme of uncertainty quantification and reduction. All of the teams had extensive field campaigns in Phase 2, collecting new data. The teams deployed a wide variety of geothermal exploration tools in 2016 including magnetotelluric, seismic, shallow temp probes, LIDAR, chemical sampling, and field mapping. Finding more effective exploration methods will address a major barrier to increased geothermal energy production by lowering the high upfront risk and cost of project development. By improving success rates for exploration drilling, this data-mapping tool will help attract investment in geothermal energy projects and significantly lower the costs of developing geothermal energy SubTER DOE continued efforts under the Subsurface Technical and Engineering RD&D (SubTER) team, an integrated platform formed to cross DOE subsurface interests and to address crosscutting grand challenges associated with the use of the subsurface for energy extraction and storage purposes. 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. In 2016 GTO and the Office of Fossil Energy (FE) announced the selection of eight new R&D projects to receive federal funding under DOE s SubTER Crosscut initiative. The new projects are focused on furthering geothermal energy and carbon storage technologies, and will be funded by GTO and FE s Carbon Storage program. The project selections fell under two objectives: (1) deploy and validate prototype carbon storage monitoring, verification, and accounting (MVA) technologies in an operational field environment, and (2) identify and validate new subsurface signals to characterize and image the subsurface, advancing the state of knowledge in geothermal exploration. 115

132 Mineral Recovery GTO launched Phase 2 activities for its Mineral Recovery Program in Critical materials like rare-earth elements and lithium play a vital role in many clean energy technologies, including solar panels, wind turbines, electric vehicles, and energy-efficient lighting. More of these materials which are of high value or critical to U.S. businesses and other national interests may become available and economically recoverable through this and recently completed research. Under Phase 2, four projects were selected to assess the occurrence of rare-earth minerals and other high-value, critical or strategic materials that may be dissolved in higher-temperature fluids associated with geothermal energy extraction. Examining how to economically recover these dissolved materials represents one of a range of R&D efforts GTO is pursuing to secure and diversify the supply of critical materials, identify substitute materials, and develop better ways to recycle these materials. Results from this work will enhance current applications of geothermal energy, support planned development, and potentially open additional U.S. regions for future projects Deep Direct Use GTO released a Deep Direct Use (DDU) funding opportunity for R&D projects led by the private sector, universities and national labs to pursue feasibility studies of large-scale DDU systems. DDU systems are an emerging technology area in the geothermal sector that draw on lower temperature geothermal resources. Deeper than geothermal heat pumps and other conventional direct-use systems, DDU is deployable at a similar temperature range between 37 C and 148 C but at a much larger scale. DDU maximizes system efficiencies and return on investment. This new technology could result in large-scale, low-temperature geothermal applications that create greater opportunities for geothermal resource development throughout the United States, an everywhere solution. Although direct use is the oldest, most versatile and most prevalent form of geothermal energy, deep direct use systems have not been developed in the U.S. largely due to technical, cost, and institutional barriers. GTO s funding opportunity could help unlock these lower temperature geothermal applications for near-term deployment and support the goals of improving energy efficiency in manufacturing while reducing the energy bills of businesses and institutions nationwide Projects Operational at the end of GeoVision GTO continued the Geothermal Vision Study (GeoVision), a multi-year, multi-stakeholder research initiative. The goal of GeoVision is to conduct credible analysis of potential geothermal growth scenarios through 2050 across multiple market sectors relative to a business-as-usual case. The GeoVision Study will help GTO develop a research, development, demonstration, and deployment (RDD&D) roadmap to chart a course for meeting the necessary cost and performance targets used in the modeled improvement scenarios. 116

133 20.4 Research Highlights At the Raft River Geothermal Field in Idaho, U.S., a GTO awardee demonstrated stimulation techniques that connect a previously isolated injection well to the existing production wells. This effectively makes existing geothermal reservoirs larger, and adds more electricity to the grid. Specifically, the larger reservoir will yield an astonishing 2.5 MW electric, approximated through innovative reservoir testing, and eliminate the need to drill another $3 million-$4 million injection well closer to the main well field. The team s success at the Raft River EGS project demonstrates the importance of low pressure thermal stimulation as a primary and very effective mechanism for improving well injectivity, in conjunction with strategic high-rate stimulation techniques. A GTO awardee developed and successfully demonstrated an advanced drilling system designed for sub-critical conditions. This technology can drill directionally at extremely high temperatures (300 C). The system uses a high-temperature lubricant in the drilling fluid, a full metal drill bit to break the formation, and a full metal drilling motor known in the drilling industry as a metal-to-metal motor. During a directional drilling demonstration, the metal-to-metal motor operated for a continuous 270 hours the longest time that a system like it has ever operated Other National Activities Geothermal Education GTO conducted its 2016 Student Competition. More than 100 teams of high school and university (undergraduate and graduate) students were invited to explore the future of geothermal energy and design and create infographic. For the Challenge, GTO and its partners selected the theme, What is the Future of Geothermal Energy? How Will It Impact You? Following the end of the competition, one high school team, one college team, and one grand prize winner were selected. The competition helped increase awareness about geothermal systems and the role this renewable energy source plays in the future of energy choices, as well as aid in honing the students skills as science communicators and researchers Conferences GTO attended the 2016 GRC Annual Meeting. The meeting provides an international forum for the exchange of new and significant research information on all aspects of geothermal resource characterization, exploration, development, and utilization Useful Websites GTO Website: energy.gov/eere/geothermal FORGE Website: energy.gove/forge USGS Geothermal Publications: energy.usgs.gov/otherenergy/geothermal.aspx GEA Website: GRC Website: 117

134 20.6 Future Activity GTO will kick off the final phase of FORGE in the near future. Phase 3 will be dedicated to the full implementation of FORGE at a single site. This phase will be managed by an innovative collaborative research and strategy team, and executed via annual R&D solicitations designed to improve, optimize, and drive down the costs of deploying EGS. In this phase, partners from industry, academia, and the national laboratories will have ongoing opportunities to conduct new and innovative R&D at the site in critical research areas such as reservoir characterization, reservoir creation, and reservoir sustainability. Play Fairway Analysis will enter Phase 3 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. Mineral Recovery Phase 3 will commence with the 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 award projects under the DDU funding opportunity, kicking off R&D into reducing barriers and increasing the deployment of lower temperature geothermal applications. GTO will finalize work on the GeoVision Study in 2017, illustrating the geothermal potential and impacts in 2020, 2030, and GTO will continue efforts to develop near-term 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. 118

135 Appendix 1 IEA Geothermal Executive Committee Chair Dr Lothar Wissing ForschungszentrumJülich GmbH Project Management Organization D Jülich GERMANY l.wissing@fz-juelich.de Vice-Chair Betina Bendall Department of State Development Government of South Australia GPO Box 1264 Adelaide SA 5001 AUSTRALIA Betina.Bendall@sa.gov.au Vice-Chair Chris Bromley GNS Science Wairakei Research Centre Private Bag 2000 Taupo 3352 NEW ZEALAND c.bromley@gns.cri.nz Vice-Chair Jiri Muller Institute for Energy Technology P.O. Box 40 NO-2027 Kjeller NORWAY Jiri.Muller@ife.no Executive Secretary Brian Carey GNS Science Wairakei Research Centre Private Bag 2000 Taupo 3352 NEW ZEALAND iea-giasec@gns.cri.nz 119

136 Appendix 2 - IEA Geothermal Members and Alternates Country / Name Delegate Contact Alternate Contact (where different) AUSTRALIA Barry Goldstein Director Energy Resources Division Department of Premier and Cabinet South Australia (DPC) Government of South Australia GPO Box 1264 Adelaide SA 5001 AUSTRALIA barry.goldstein@sa.gov.au Betina Bendall Vice-Chair Energy Resources Division Department of Premier and Cabinet South Australia Betina.Bendall@sa.gov.au EUROPEAN COMMISSION Susanna Galloni Research Programme Officer European Commission DG Research and Innovation K3 CDMA 00/060 B-1049 Brussels BELGIUM Susanna.galloni@ec.europa.eu Matthijs Soede European Commission matthijs.soede@ec.europa.eu FRANCE Philippe Rocher BRGM 3, Avenue Claude Guillemin BP Orléans Cedex 02 FRANCE p.rocher@brgm.fr Philippe Laplaige ADEME Centre de Sophia Antipolis 500 route des Lucioles Valbonne FRANCE philippe.laplaige@ademe.fr GERMANY Lothar Wissing Chair Forschungszentrum Jülich GmbH Project Management Organization D Jülich GERMANY l.wissing@fz-juelich.de Manuela Richter Forschungszentrum Jülich GmbH ma.richter@fz-juelich.de GEOPLAT Margarita de Gregorio Spanish Geothermal Technology Platform Doctor Castelo 10, 3 C-D Madrid SPAIN margadegregorio@geoplat.org Paloma Pérez GEOPLAT pperez@geoplat.org 120

137 Country / Name Delegate Contact Alternate Contact (where different) ICELAND Jónas Ketilsson Orkustofnun Grensásvegur Reykjavik ICELAND jonas.ketilsson@os.is Guðni Axelsson Iceland GeoSurvey Grensásvegur 9 IS-108 Reykjavik ICELAND gax@isor.is ITALY JAPAN MEXICO NEW ZEALAND Paolo Romagnoli Nobuyasu Nishikawa Jose Manuel Romo Jones Chris Bromley Vice-Chair ENEL Green Power Geothermal Production Via Andrea Pisano Pisa ITALY paolo.romagnoli@enel.com Director General Geothermal Resource Development Department Japan Oil, Gas and Metals National Corporation (JOGMEC) Toranomon Twin Building Toranomon, Minato-ku Tokyo JAPAN nishikawa-nobuyasu@jogmec.go.jp Technical Representative at CEMIE-Geo Depto. de Geofisica Aplicada, CICESE Carretera Ensenada-Tijuana #3918, Fraccionamiento Zona Playitas, Ensenada B.C., Mexico. GNS Science Wairakei Research Centre Private Bag 2000 Taupo 3352 NEW ZEALAND c.bromley@gns.cri.nz Ruggero Bertani Kasumi Yasukawa Thomas Kretzschmar To be appointed ENEL Green Power Geothermal Production Via Andrea Pisano Pisa ITALY ruggero.bertani@enel.com Renewable Energy Research Center Fukushima Renewable Energy Institute National Institute of Advanced Industrial Science and Technology (AIST) Central 7, Higashi 1-1-1,Tsukuba, Ibaraki ,JAPAN kasumi-yasukawa@aist.go.jp Representative of Specialized Laboratories System at CEMIE-Geo Depto. de Geologia, CICESE Carretera Ensenada-Tijuana #3918, Fraccionamiento Zona Playitas, Ensenada B.C., Mexico. tkretzsc@cicese.mx NORWAY Jiri Muller Vice-Chair Institute for Energy Technology P.O. Box 40 NO-2027 Kjeller NORWAY Jiri.Muller@ife.no Carsten F. Sørlie Statoil Limited Arkitekt Ebbells veg 10, 7053 Ranheim, Norway cso@statoil.com 121

138 Country / Name Delegate Contact Alternate Contact (where different) ORMAT Technologies, Inc. Shimon Hatzir Vice-President Engineering ORMAT Technologies, Inc Neil Road Reno, Nevada UNITED STATES Shatzir@ormat.com To be appointed REPUBLIC of KOREA Yoonho Song Geothermal Resources Department Korea Institute of Geoscience & Mineral Resources (KIGAM) 92 Gwahang-no Yuseong-gu Daejeon KOREA song@kigam.re.kr Tae Jong Lee KIGAM megi@kigam.re.kr SWITZERLAND Gunter Siddiqi Swiss Federal Ministry of the Environment, Transport, Energy and Communications UVEK Federal Office of Energy (BFE) Division of Energy Economics/Energy Research CH 3003 Berne SWITZERLAND gunter.siddiqi@bfe.admin.ch Christian Minnig Swisstopo Swiss Geological Survey Seftigenstrasse 264 CH-3084 Wabern Switzerland Christian.Minnig@swisstopo.ch UNITED KINGDOM Alison Auld Science and Innovation for Climate and Energy Directorate Department for Business, Energy & Industrial Strategy Level 6 Spur 1 Victoria Street London SW1H 0ET UNITED KINGDOM Alison.auld@beis.gov.uk Jonathan Busby British Geological Survey, Kingsley Dunham Centre, Keyworth, Nottingham NG12 5GG. jpbu@bgs.ac.uk UNITED STATES OF AMERICA Lauren Boyd Program Manager Enhanced Geothermal Systems (EGS) Office of Energy Efficiency and Renewable Energy US Department of Energy 1000 Independence Ave, SW Washington, DC UNITED STATES of AMERICA Lauren.Boyd@ee.doe.gov To be appointed - 122

139 Executive Secretary IEA Geothermal C/ - GNS Science Wairakei Research Centre Ph: +64 IEA Geothermal 8211 E: iea-giasec@gns.cri.nz 123