Sustainable development of a geothermal project. Fausto Batini Magma Energy Italia Pisa, October 10th, 2013

Transcription

1 Sustainable development of a geothermal project Fausto Batini Magma Energy Italia Pisa, October 10th, 2013

2 Topics Introduction Sustainable geothermal development Geothermal project development Evaluation and ranking of green field projects. Conclusions

3 Magma Energy Italia A subsidiary of Alterra Power Corp. Headquartered in Siena with Italian staff supported by Alterra Power Corp. international experts Two exploration leases in Tuscany: Mensano 215 km² Roccastrada 272 km² P.R. Mensano P.R. Roccastrada

4 Net MW Alterra Power Corporation GEOTHERMAL HYDRO WIND SOLAR Total MW: 566

5 Sustainable geothermal development Environment sustainability : No air emission Low visual impact Resource sustainability: Total reinjection of fluid into the geothermal reservoir No groundwater interference Social responsibility: Communication Transparency Consultation

6 Sustainable geothermal development Zero emission geothermal system

7 Sustainable geothermal development Integrated use of geothermal resources Electricity generation District heating Fish farming Greenhouses SPA Thermal park

8 Sustainable geothermal development Employment oppotunities Law Earth Science Esploration Economic science Operations Drilling Chimistry Science of Communication Construction Physics Architecture Engineering

9 Geothermal Project development 5-7 years > 30 years EXPLORATION WELL FIELD DEVELOPMENT POWER BLOCK ERECTION OPERATION Environmental impact assessment, mitigation and monitoring

10 Geothermal project development GREEN FIELD PROJECT WORK FLOW

11 Exploration lease: Authorization process APPLICATION - Work program - Technical report - Environmental report - Geothermal experience & skills - Maps - Balance sheets To: Region, Energy dept. 60 days Application of competitive proposal ENVIRONMENTAL APPLICATION - Technical report - Environmental report - Geothermal experience & skills - Maps To: Region, Environment dept. Cc: Municipalities Provinces Authorities (archeological, landscapes, environmental) 90 (min.) or 150 or 270 days Environmental Impact Valutation 30 years + 30 (renew.) Exploitation lease NO GO Evaluation of application Comparison with competitors, if any Exploration lease 4 years + 2 (ext.) Execution of explorations Phase 2 : drilling & test 90 (min.) or 150 or 270 days Environmental Impact Evalutation ENVIRONMENTAL APPLICATION - Technical report - Environmental report - Geothermal experience & skills - Maps To: Region, Environment dept. Cc: Municipalities Provinces Authorities (archeological, landscapes, environmental) Execution of explorations Phase 1 : surface exploration - assets excluded from the process of subjection

12 Exploitation lease: Authorization process 60 days 90 (min.) or 150 or 270 days 60 days Communication by the owner of the exploration permit of discovery of geothermal fluids to the competent authority (Region) Submitting the application for exploitation lease to the competent authority If the documentation is not filed within the deadline, the concession may be required in COMPETITION Application submitted in due time Unique process with the approval of the work program, the geothermal project and the environmental impact assessment Selection of the competent authority based on the following parameters: -Completeness and rationality -Modalities for carrying out work program -Guarantees Pubblication on the BURT, on the BUIG and on the Authority web site If the exploitation lease does not cover the entire area of the original research permit, other operators may request concession areas covering part or the entire surface remaining, after the expiry of the exploration lease Exploitation lease 30 years + 30 (renw.)

13 Geothermal Project development Gantt chart for 5 MW project

14 Geothermal Project development Green field project decision stree

15 Evaluation and ranking of green field projects. Main criteria Geo-resource characteristics (Temperature, Reservoir depth, potential, ) Power plant characteristics (technology, size MW, cooling water availability,..) Market (energy price, competition, Incentives ) Associated risks Natural hazards (seismic, hurricane, landslides, ) Value at Risk ($) Country (Political, Economic, Regulatory) Regulatory compliance Permitting processes electricity transmission lines (available capacity,..) exploitation rights (private owners, state,)

16 Evaluation and ranking of green field projects. Geothermal potential estimate Volumetric Estimation Input parameters Reservoir extension Reservoir thickness Fluids temperature Rocks porosity (F) 0.4 Thermal energy within a specific volume (single block) Monte Carlo Simulation Recovery Factor Frecuencia Relativa MW Input parameters randomly sampled between min max n years project life Potencia (MW)

17 Evaluation and ranking of green field projects. Reservoir performance evaluation Well logging and testing PProduction capacity estimate

18 Evaluation and ranking of green field projects. Selection of the approriate technology Dry steam Flash Two phases fluid Binary cycle plant zero Emissions

19 Evaluation and ranking of green field projects. Environmental compliance The main environmetal issues to be evaluated are : air emissions noise pollution, water usage, land usage, waste disposal, subsidence, induced seismicity, impacts on wildlife and vegetation.

20 Evaluation and ranking of green field projects. Policy related issues Strategic plan for renewable energy development Rules and procedures for permitting process approval Economic incentives Domestic Incentives (FIT, Tax Credits, etc.) Renewable Portfolio Standard Small Power Grid Solutions Green Pricing programs International Clean Development Mechanism Carbon Financing Mechanisms Global Environmental Fund

21 Millions Millions Evaluation and ranking of green field projects. Economic evaluation Equity

22 Evaluation and ranking of green field projects. Risk analysis and decision making process

23 Evaluation and ranking of green field projects. Technical risk matrix 100 Low permeability Probability (%) 50 High Gas Content Volcanic hazard Inadequate resource Low Temperature Seismic hazard Cold w ater ingress Rapid reinjection return Self seiling Scaling Subsidence Slope instability Consequence (%)

24 Evaluation and ranking of green field projects. Risk matrix

25 Geothermal Project Development: Decision processes 25

26 Evaluation and ranking of green field projects. Stakeholders and Targets MAGMA ENERGY ITALIA Ministry for Economic Development Land Owners Industry Associations, Trade Unions Tuscany Region Superintendence bodies of architectural heritage Universities 3 Provinces Military and Police Authorities Schools 13 Municipalities: Environmental Associations Media (Local/Regional) 26

27 VIABILITY PROBABILITY Evaluation and ranking of green field projects. Score matrix for the ranking of green field project portofolio 100% 50% AA II CC DD EE FF GG HH LL 0% 0% 50% RESOURCE PROBABILITY 100%

28 CONCLUSIONS The sustainable development of a geothermal project requires: 1. to evaluate the performance of the project according to the most suitable technology that maximize the environmental compliance and the economic attractiveness 2. to assess, mitigate and manage the risks associated to development and operation of the geothermal project 3. involve local stakeholders since the early stage of the project development in order to obtain the social acceptance

29 Thank You! Fausto Batini VISIT GEOELEC.EU