PAUL K. NGUGI
PAST, PRESENT AND FUTURE 1956-59 1967-70 1971-1976 1976-1985 1986-2003 2003-2012 Drilling was Drilling Drilling ongoing Two Exploratory GoK & UNDP Decision was to accelerated continued in wells drilled to a entered into an concentrate and about 23 Olkaria II Steam depth of ~950m agreement to Olkaria IV geothermal wells were field ~ 30 wells 140MW planned extensively development at Wells never discharged and later abandoned undertake geothermal resource assessment Olkaria (80km2) after positive well results. Six wells were drilled with positive results. drilled 45 MW (Olkaria I) commissioned between 1981-1985 Most financing was from World Bank by 1992 From 1992, financiers pulled out and no major works undertaken until 1999 Olkaria II 70MW commissioned in 2003 for 2012 KenGen Geothermal Strategy 2008-2018 1500 MW additional geothermal capacity Drilling ongoing Seeking funding to support the development
PROSPECTS IN KENYA KEY PROSPECTS Olkaria Eburru Menengai Longonot Suswa Paka Silali Korosi >4000MW
THE ELECTRICITY SUB-SECTOR INSTITUTIONAL FRAMEWORK Ministry of Energy (MoE) (responsible for policy matters) 70% GoK & 30% Public Generation Function Energy Regulatory Commission (ERC) (responsible for regulating the entire energy sector) Transmission and Distribution function Rural Electrification Authority KenGen (1005MW - 77% Inst. Cap.) IPPs (144MW - 11% Inst. Cap) EPP (150MW 12% Inst Cap) UETCL Imports (~1%) KPLC Geothermal (13 MW) Thermal (131 MW) Hydro Thermal Wind Geothermal (737.28 MW) (152.22 MW) (0.35 MW) (115 MW) RETAIL CUSTOMERS
GEOTHERMAL PROJECT CYCLE PHASE Resource Resource Power Plant Exploration Assessment Constructio ti n Operations STEPS 1. Review of existing information 2. Detailed surface exploration 3. Exploration drilling and well testing 4.Appraisal drilling and well testing 5.Feasibility study and environmen tal impact assessment 6.Production drilling, 7. Power plant design constructions and commissionin g 8.Reservoir management and further development 9.Power plant operations
PHASE EXPLORATION STEP 1 DATA REVIEW 2 RECONNAISSANCE 3 EXPL. DRILLING PREPARATION ACTUAL WORK OUTPUT ACQUIRE DATA Geologist Geochemists Geophysics Reservoir Engineers Env. Scientist $ VARIABLE VARIABLE $ 1 MONTH NEGLIGIBLE GO OR NO GO
PHASE EXPLORATION STEP 1 DATA REVIEW 2 RECONNAISSANCE 3 EXPL. DRILLING PREPARATION ACTUAL WORK OUTPUT L ACQUIRE PERMIT GIVE NOTICE W SEEK FUNDS TRANSPORT ACCOMMODATION STAKE HOLDERS INVOLVEMENT Geologist Geochemists Geophysics Reservoir Engineers Env. Scientist $ NEGLIGIBLE MINIMAL $ 3 (FIELD) +2(OFFICE)=5 M US$ 0.5 MILLION
PHASE RESOURCE EXPLORATION STEP 1 DATA REVIEW 2 RECONNAISSANCE 3 EXPL. DRILLING PREPARATION ACTUAL WORK OUTPUT L ACQUIRE LAND P BUDGETS CIVIL WORKS WATER SUPPLY ACCESS ROAD ACCOMMODATION STORAGE FACILITY DRILL MATERIALS RIGS & CEMENTING WATER PIPELINE ROAD CONTRACT ELECTRICITY DIESEL & BULK CEMENT W 3 WELLS Drilling Geologist Geochemists Geophysics Reservoir Engineers Env. Scientist 12 MONTHS 6 (DRLGN) +3(TESTS)=9 M $ US$ 13 MILLION WELL DISCHARGE GO OR NO GO
PHASE RESOURCE ASSESSMENT STEP 4 APPRAISAL 5 FEASIBILITY PREPARATION ACTUAL WORK OUTPUT L LAND COMPENSATION RE NEW PERMIT P CIVIL WORKS WATER SUPPLY ACCESS ROAD DRILL MATERIALS RIGS & CEMENTING DIESEL & BULK CEMENT W 6 WELLS Drilling Geologist Geochemists Geophysics Reservoir Engineers Env. Scientist 12 MONTHS* 12 (DRLGN) +3(TESTS)=15 M $ US$ 26 MILLION ADEQUATE AREA GO OR NO GO
PHASE RESOURCE ASSESSMENT STEP 4 APPRAISAL 5 FEASIBILITY PREPARATION ACTUAL WORK OUTPUT DATA PROCESSING AND W COLLATION P CONSULTANTS CONSULTANTS BANKABLE DOCUMENT 6MONTHS* $ 6 MONTHS US$ 2 MILLION GO OR NO GO
PHASE POWER PLANT DEVELOPMENT STEP 6 PRODUCTION DRILLING 7 PLANT/STEAM/TRANSMISSION PREPARATION ACTUAL WORK OUTPUT L ACQUIRE LAND ACQUIRE GEO. LICENSE SECURE PPA CIVIL WORKS WATER SUPPLY ACCESS ROAD W P DRILL MATERIALS RIGS & CEMENTING DIESEL & BULK CEMENT SECURE FINANCES P Drilling Geologist Geochemists Geophysics Reservoir Engineers Env. Scientist 12 MONTHS* VARIABLE $ VARIABLE ADEQUATE STEAM
PHASE POWER PLANT DEVELOPMENT STEP 6 PRODUCTION DRILLING 7 PLANT/STEAM/TRANSMISSION PREPARATION ACTUAL WORK OUTPUT L LAND COMPENSATION GEOTHERMAL LICENSE SECURE PPA CIVIL WORKS WATER SUPPLY ACCESS ROAD SERVICE POWER LINE W P CONSULTANTS CONTRACTOR CONSULTANTS CONTRACTOR PROJECT TEAM SECURE FINANCES F ELECTRICITY 12 MONTHS* 30 MONTHS $ VARIABLE
PHASE OPERATIONS STEP 8 MONITORING 9 PLANT O& M PREPARATION ACTUAL WORK OUTPUT DESIGN OF A MANAGEMENT PROGRAM GEOCHEMISTRY RESERVOIR ENGINEERS OPERATION STAFF SUSTAINABLE OPERATIONS VARIABLE $ VARIABLE VARIABLE
INFRASTRUCTURE : DRILLING AND CIVIL CAPACITY
INFRASTRUCTURE : EXPLORATION AND WELL TESTING Temperature ( C) 0 100 200 300 400 0 111 222 333 th(m) 1000 444 556 Production casing 667 Vertical dept 2000 778 889 1111 1222 1333 1444 1556 1667 1778 1889 2111 Temp on 17.8.07 pre-injection Temp 18.8.07 injection Temp 18.8.07 9 hrs heating Temp 23.8.07 3 days heating Temp 24.8.07 6 days heating Temp on 28.8.07 10 days heating Press 17.8.07 pre-injection Press 18.8.07 injection Press 18.8.07 9 hrs heating Press 23.8.07 3 days heating Press 24.8.07 6 days heating Press 28.8.2007 10 days heating Temp 4.9.07 17 days heating Press 4.9.07 17 days heating Open hole 2222 2333 2444 2556 2667 2778 3000 2889 0 100 200 300 400 Pressure (ba)
FUNCTION ORGANIZATION CHART Management Function Training Geotechnical Geology Geophysics Geochemistry Reservoir Engineering Safety & Environmental Science Consultancy, Research & Dev. Drilling and Engineering Logistics Drilling Engineering Rigs Operations Logistics Services Equipment Maintenance Drilling Water Management Projects Projects Engineering Civil Works Planning & Monitoring Support Functions Legal Procurement Financial Management Human Resource Administration i i Security Transport
TECHNOLOGY DRILLING
Surface Rock Cold Surface Water Intermediate Temperature Surface Rock Cold Surface Water Intermediate Temperature Surface Rock Cold Surface Water Intermediate Temperature High Temperature Reservoir TECHNOLOGY: POWER PLANT DESIGN (CONVENTIONAL CONDENSING) POWER TRANSMISSION (TO NATIONAL GRID) COOLING TOWERS STEAM FROM OTHER WELLS MAIN STEAM STEAM SEPARATOR WATER TURBINE STATION TRANSFORMER GENERATED ELECTRICITY GENERATOR GASES GAS EXTRACT TOR COOLED CCONDENSATE HOT CONDENSATE PUMP CONDENSER CHF PUMP CHF CHF High Temperature Reservoir PRODUCTION WELL High Temperature Reservoir RE-INJECTION WELL RE-INJECTION WELL FLOW DIAGRAM
TECHNOLOGY: POWER PLANT DESIGN (DOUBLE FLASH CONDENSING) Pressure equalizing tank Turbine Water Draining Expansion Tank Separator Separator Circulating water pump Backfilling Pump Water Ring Vacuum Pump Water Settling Tank SYSTEM CHARACTERISTIC Double flash Condensing turbine Water ring vacuum pump gas ejector
LEGAL AND REGULATORY FRAMEWORK GEOTHERMAL ACT ENVIRONMENTAL ACT WATER ACT PROCUREMENT AND DISPOSAL ACT BANK REGULATION COMPANY POLICY ERC PPA
INTEGRATION OF PROJECTS WITH SOCIAL PROGRAMS
FUNDING DONOR GOK ON LENT DONOR GOK GUARANTEES OR COLLATERALS PPP KenGen INVESTMENT BONDS & COMMERCIAL LOANS