Geothermal Country Update for Iceland

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Geothermal Country Update for Iceland Árni Ragnarsson Iceland GeoSurvey ÍSOR, Reykjavík, Iceland ARGe-C6 conference, Addis Ababa, Ethiopia, 2 nd 4 th November 2016

Outline Energy resources and consumption in Iceland Geothermal space heating Other direct utilization of geothermal energy Geothermal electricity generation New developments 2

Geothermal Resources in Iceland Húsavík Krafla Námafjall Reykjavík Reykjanes Svartsengi Nesjavellir Hellisheiði 3

Energy in Iceland - Highlights During the 20th century Iceland went from a poor country to a country with high standard of living. Harnessing indigenous renewable energy contributed to this development. The share of renewables (hydropower and geothermal) is among the highest in the world (85%). The consumption of primary energy and electricity per capita is among the highest in the world (750 GJ/capita, 53,000 kwh/capita). The policy of the government is to support further development of hydropower and geothermal energy in order to eliminate the present import of fossil fuel for transportation and fishing. 4

Primary energy consumption in Iceland 2015 PJ Ktoe % Oil 13,1 % Coal 1,6 % Hydro 19,0 % Hydropower 49.6 1,185 19.0 Geothermal 173.0 4,132 66.3 Oil 34.2 817 13.1 Coal 4.2 100 1.6 Geothermal 66,3 % Total 261.0 6,234 100 Primary energy consumption 750 GJ/capita 1 PJ = 1000 TJ = 1,000,000 GJ 1kWh = 3,600 kj 1 toe = 41,868 GJ Source: Orkustofnun 5

Primary energy consumption in Iceland 1940-2015 PJ 300 250 200 150 Coal 100 Oil 50 Peat Geothermal Hydro 0 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 6

Production and consumption of electricity in Iceland 2015 Source: Orkustofnun 7 Installed capacity MW % Hydro 1,986 71.7 Geothermal 663 24.0 Oil 117 4.2 Wind 3 0.1 Total 2,769 100.0 Electricity generation GWh % Hydro 13,780 73.3 Geothermal 5,003 26.6 Oil 4 0.0 Wind 11 0.1 Total 18,798 100.0 Electricity consumption GWh % General consumption 3,449 18.3 Energy intensive industry 14,356 76.4 Plant consumption 435 2.3 Distribution losses 188 1.0 Transmission losses 370 2.0 Total 18,798 100.0

Geothermal utilization in Iceland 2014 Industrial process heat 2,0% Fish farming 4,9% Greenhouses 1,4% Snow melting 4,2% Swimming pools 3,5% Elctricity generation 41,4% Installed power Energy consumption MW TJ/year GWh/year Space heating 1.550 19.400 5.389 Greenhouses 45 660 183 Fish farming 85 2.230 619 Industrial process heat 70 910 253 Snow melting 195 1.900 528 Swimming pools 90 1.600 444 Direct uses total 2.035 26.700 7.417 Space heating 42,6% Elctricity generation 663 18.882 5.245 Geothermal utilization total 2.698 45.582 12.662 8

GEOTHERMAL SPACE HEATING

Space heating in Iceland 1970-2015 100% 90% 80% 70% 60% 50% 40% 30% 20% Oil Geothermal 90.0% 10% Electricity 9.3% 0% 0.7 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 10

Geothermal space heating Reykjavík Energy is the owner of the largest district heating system in Iceland. They supply hot water to the capital area and serve about 240,000 people, over 70% of the population of the country. Total number of employees is 450, turnover in 2015 was about 300 million US$. Utilize low-temperature areas within and in the vicinity of Reykjavík as well as high-temperature fields at Nesjavellir and Hellisheidi (co-generation plants). Total installed capacity of the district heating system is 1,100 MW t and annual hot water production was 83 million m 3 in 2015. HS Orka operates a co-generation power plant in Svartsengi (190 MW t and 74 MW e ). They serve about 20,000 inhabitants of the Reykjanes peninsula with hot water and electricity. Nordurorka is an energy company in North Iceland that serves about 23,000 people with hot water (103 MW t ) and electricity, mainly in the town Akureyri. Totally about 30 separate geothermal district heating systems and additionally some 200 small systems in rural areas. 11

OTHER DIRECT UTILIZATION OF GEOTHERMAL ENERGY

Greenhouses Low-temperatur water used for heating greenhouses since 1924. Total surface area now about 194,000 m 2 50% used for growing vegetables (tomatos, cucumbers, paprika). 50% mainly for growing cut flowers and potted plants. Share of domestic production of the total consumption. 75% for tomatoes. 90% for cucumbers. Energy consumption: 3.67 GJ/m 2 in greenhouses with artificial lighting. 5.76 GJ/m 2 in greenhouses without artificial lighting. Artificial lighting and CO 2 enrichment (geothermally produced) is common. 13

Bathing and swimming - Spas Natural hot springs have been used for bathing in Iceland for centuries. Swimming is very popular in Iceland and swimming lessons are compulsory in schools. About 165 recreational swimming centers in the country, of that 140 geothermally heated pools, totally 34,000 m 2 Mostly outdoor pools, open to the public throughout the year with water temperature 28-30 C. Limited focus on balneological aspects. The largest pool is Laugardalslaug with 1,500 m 2 outdoor pools, 1,250 m 2 indoor pool and five hot tubs (35-42 C). Health centers: the Blue Lagoon, bathing facility at Mývatn, health facility in Hveragerði and others. A geothermal beach Nauthólsvík - a small part of the North Atlantic Ocean is heated by effluent geothermal water from the Reykjavik district heating system. 14

The Blue Lagoon Effluent brine from the Svartsengi geothermal power plant is disposed of into a surface pond called the Blue Lagoon. Holds 6 million liters of 37-39 C seawater, which is renewed every 40 hours. Is used by people suffering from psoriasis and other forms for eczema, who seek therapeutic effects from the silica rich brine. Skin care products produced from the geothermal brine. One of Iceland s most popular tourist attractions with almost 1 million visitors per year. 15

Aquaculture A slowly growing sector in Iceland for many years. About 60 farms in Iceland produced totally 8,300 tonnes in 2015, mainly arctic char and salmon. Of them 15-20 farms use geothermal energy. Geothermal energy used for smolt production (char, salmon) and production of trout in land-based plants. 16

Fish farming plant at Reykjanes peninsula The plant is breeding warm-water Senegalese sole by using effluent water from Reykjanes geothermal power plant. Indoor land-based plant, 22,500 m 2 The power plant uses a large amount of sea water for cooling and after the cooling process a part of the water at 35 C flows by gravity to the fish farming plant. There it is mixed with sea water that is pumped from wells and used in the farming at about 21 C. The fish is grown to about 400 g before it is slaughtered and transported fresh to markets in Europe. The production capacity is now 500 tons per year, but the planned production after reaching the final stage is 2,000 tons per year. Natural distribution of Senegalese sole 17

Industry - Thorverk seaweed processing plant at Reykhólar Since 1975 the plant has produced 4,000 tonnes of rockweed and kelp meal annually. Harvest seaweed in Breidafjordur Bay using specially designed harvester crafts. Uses 36 l/s of 112 C geothermal water to heat air to 85 C for drying on a belt dryer. The meal products are mainly used as fodder or fertilizer. The 70 C hot return water is partly used by a nearby salt factory. Husavik Reykholar Stykkisholmur Drangsnes Krafla Namafjall Budardalur Reykhólar Reykir Nesjavellir Reykjavik Hædarendi Reykjanes Hellisheidi Hveragerdi Svartsengi 18

Salt production from seawater Nordursalt and Saltverk Nordursalt at Reykhólar has been in operation since 2013. Use 30 l/s of 70 C hot geothermal return water from Thorverk seaweeed processing plant. Use also 115 C hot water from a geothermal well. Saltverk at Reykjanes in NW- Iceland has ben in operation since 2011. Use 10 l/s of 90-95 C hot water from a geothermal well to produce 70-80 tonnes of salt annually. 19

Hæðarendi CO 2 production Commercial liquid carbon dioxide (CO 2 ) has been produced at Hæðarendi, South Iceland, since 1986. Uses 6 l/s of 160 C geothermal fluid from two wells with high gas content (1.4% by weight). The gas discharged by the wells is nearly pure CO 2 Calcite scaling is prevented by a 250 m long downhole hat exchanger. Produces 3,000 tonnes CO 2 annually, which is a large share of the Icelandic market, for use in greenhouses and in food industry. Husavik Reykholar Stykkisholmur Drangsnes Budardalur Krafla Namafjall 20 Reykir Nesjavellir Reykjavik Hædarendi Reykjanes Hellisheidi Hveragerdi Svartsengi Hæðarendi

Drying of fish products Geothermal energy has been used for drying fish in Iceland for about 35 years. Drying of salted fish, cod heads, small fish, stockfish and other products. About 10 small companies are drying totally about 12,000 tonnes of codheads indoors using geothermal water. One of the largest producers, Haustak, buyes 1.3 kg/s of steam from the nearby Reykjanes power plant to produce annually 2,500 tonnes of dried products from 12,000 tonnes of raw material. Dried cod heads are exported to Nigeria for human consumption. 21

Production of methanol in Svartsengi The Icelandic-American company Carbon Recycling International (CRI) has since 2012 operated a plant for producing methanol from CO 2 emissions of the Svartsengi geothermal power plant. The plan is to use annually 4.5 thousand tonne CO 2, which others would be released to the atmosphere, to produce 5 million liters of methanol. Hydrogen used in the process is produced locally by electrolysis of water. The methanol is used to blend with gasoline to fuel cars. Plans for expanding the current production capacity of 1.7 million liters to 5 million liters per year. 22

Snow melting / de-icing Return water from district heating is to an increasing extent used to heat pavements, parking spaces and even streets for snow melting. Spent water at 35 C, sometimes mixed with 80 C hot water when the load is high. Total area covered 1,200,000 m 2, of that 70,000 m 2 in downtown Reykjavik. Common design conditions: Maximum output 180 W/m 2 and annual energy consumption 430 kwh/m 2 67% of the energy comes from spent water, 33% from 80 C hot water. 100 m 2 house area can supply return water for 16 m 2 snow melting area. 23

GEOTHERMAL ELECTRICITY GENERATION

Geothermal power plants in Iceland Plant name Plant size MW Krafla 60 Svartsengi 74.4 Year Unit size MW No of units Type 1978 30 1 DF 1997 30 1 DF Temp. C Press. bar Flow rate t/h Estimated production GWh/yr 172/122 7.2/1.1 400/130 480 1981 6 1 SF 155 4.5 124 1989-1993 1.2 7 B 103 0.12 131 1999 30 1 SF 163 5.5 275 2007 30 1 DS 198 15 288 Bjarnarflag 3.2 1969 3.2 1 SF 182 9.5 45 26 Nesjavellir 120 1998 30 2 SF 188 12 432 2001 30 1 SF 192 12 198 960 2005 30 1 SF 192 12 198 Húsavík 2 2000 2 1 B 122 324 16 Reykjanes 100 2006 50 2 SF 210 18 288 800 Hellisheiði 303 2006 45 2 SF 178 8.5 600 2007 33 1 SF 124 1.05 315 2008 45 2 SF 178 8,5 600 2011 45 2 SF 178 8,5 600 Total 662.6 27 4,418 5,293 611 2,400 SF: Single flash; DF: Double flash; DS: Dry steam; B: Binary 25

Geothermal power plants Nesjavellir 1998-2005 120 MW Húsavík Kalina 2000 2 MW Hellisheiði 2006-2011 303 MW Þeistareykir 200 MW Under development Svartsengi 1976-2007 74 MW Krafla 1978-97 60 MW Reykjanes 2006 100 MW Bjarnarflag 1969 3 MW 26

Geothermal electricity generation 1970-2015 GWh/year 5500 5000 4500 4000 3500 3000 2500 2000 Reykjanes 100 MW Hellisheiði 303 MW Húsavík 2 MW 1500 1000 500 Bjarnarflag 3.2 MW Krafla 60 MW Nesjavellir 120 MW Svartsengi 74.4 MW 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 27

New geothermal power plant at Theistareykir North Iceland The most developed new geothermal project in Iceland is the Theistareykir geothermal field in North Iceland. It has been under exploration since 1999. Landsvirkjun (National Power Company) started the construction work of a 90 MW e power plant in 2015. Commissioning 1 st 45 MW in October 2017 and 2 nd 45 MW in April 2018. 12 wells have already been drilled in the area. Drilling for the second phase is ongoing. The power will go to a planned production plant for silicon metal in the nearby town Húsavík, with an initial production capacity of 33,000 tonnes per year. Geothermal drilling made by Iceland Drilling Ltd (Jarðboranir hf). Turbine, generator and cold end equipment come from Fuji Electric and Balcke Dürr. EIA has been made for a fully developed 200 MW plant. 28

Þeistareykir Geothermal Power Plant 90 MW Undirbúningur 90 MW jarðvarmavirkjunar á Þeistareykjum Drilling area and Steam Supply System Cooling Towers Þeistareykjavirkjun 90 MW stöðvarhús (Ketilfjall í baksýn) Drilling area and Steam Supply System Steam Supply Pipelines Power Station Drilling area and Steam Supply System Steam Separators Reinjection area Access Road Cold Water Pipeline Substation Transmission Lines Source: Landsvirkjun 29

Iceland Deep Drilling Project (IDDP) Iceland Deep Drilling Project (IDDP) was founded in the year 2000 by a consortium of three Icelandic energy companies. International research and cooperation project with participation of over 100 scientists worldwide. Funded by Icelandic energy companies and international companies and funds. The idea is to drill down to 4-5 km depth for geothermal fluid at supercritical state and temperature 400-500 C in order to significantly increase the power output of geothermal wells. Investigate the feasibility of utilizing the geothermal fluid. The output could possibly be 5-10 times the output from a conventional geothermal high-temperature well. 30

IDDP-1 A well (IDDP-1) was drilled in the Krafla field 2008-2009. Drilling was terminated at about 2.1 km depth when drilling penetrated molten rock. The well was very powerful. During testing in 2010 it gave about 30 kg/s of 330 C superheated steam at 17 bar. Several scientific papers have been written based on the testing of IDDP-1. The well was sealed and abandoned in October 2015. Further information is on the IDDP web: http://iddp.is. 31

IDDP-2 Drilling of IDDP-2 started at Reykjanes in mid August 2016. Deepening of an existing 2500 deep well (RN-15) drilled in 2004 During drilling from 2500 to 3000 m there was a total loss of circulation and no cuttings were retrieved at the surface. Directional drilling started at about 2750 m. One permeable zone was detected at 2775 m. Formations are relative hard. A production casing was inserted down to 2941 m. A core sample has just been taken at a depth of about 3650 m. Completing IDDP-2 to 5000 m is estimated to take about 150 days. 32

THANK YOU Photo: Hreinn Hjartarson