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GRC Annual Mtg., 2017, Salt Lake City Japan Renewed Emphasis Hiroshi Asanuma Leader, Geothermal Team Fukushima Renewable Energy Research Institute (FREA), National Institute of Advanced Industrial Science and Technology (AIST)

Potential of hydrothermal resources (Stefansson(2012)) USA Indonesia 27,790 30,000 Japan 23,470 Mexico Phillipines Iceland NZ Italy 6,000 6,000 5,800 3,650 3,270 0 10,000 20,000 30,000 40,000 [MW]

Composition of electrical source in JPN (FEPC(2015)) Nuclear Renewables Hydro Geothermal (0.2%) LNG Oil Coal

Obstructive factors of geothermal development in Japan 1. National Parks ( no drillings, no exploration, no researches policy) 80% of the geothermal energy in Japan exist inside national parks where no exploitation had been allowed. 2. Hot springs Some of the owners of hot spring make strong campaign against geothermal development in afraid of degradation of the springs. 3. Cost High initial cost and long lead time prevent private sectors to invest to geothermal developments. 4. Size of hydrothermal systems Power generation around 20-30 MW is the most suitable from sustainability (~ 30years) point of view in Japan. 5. Reservoir management Some of the operators find difficulties in prevention of scale deposition, maintenance of sustainability and treatment of acid fluid.

Obstructive factors of geothermal development in Japan

FIT in Japan (started in 2012) 1JPY=0.9 METI Type Capacity etc. Price (JPY/kWh) PV ~10kW 25~30+TAX 10years Effective period 10kW~2MW 21+TAX 20years Wind ~20kW 55+TAX 20years 20kW~ 18+TAX 20years Offshore 36+TAX 20years Geothermal ~15MW 40+TAX 15years 15MW~ 26+TAX 15years Replace 15MW~ (all the facilities) 20+TAX 15years Replace 15MW~ (surface facilities) 12+TAX 15years Hydro 200kW~1MW 29+TAX 20years 1MW~30MW 20~27+TAX 20years Hydro(existing waterline) 200kW~1MW 21+TAX 20years 1MW~30MW 12~15+TAX 20years Biomass Wood biomass 21+TAX 20years Construction waste 13+TAX 20years General waste and other biomass 17+TAX 20years

Geothermal power stations in Japan (in the end of 2016) 40 power plants(518mw) 12 areas, 14 units 10MW~ 3 + 1 units 1MW~10MW 22 units ~1MW On-going projects 19 PJs 7 PJs 18 PJs 2015 10MW~ 1MW~10MW ~1MW Takigami 25MW Otake 12.5MW Hatchobaru 55+55+2MW Obama Spring 0.14MW Yamakawa 30MW Suginoi 3MW Kuju 0.9MW Ogiri 30MW Mori 25MW Onuma 9.5MW Sumikawa 50MW Uenotai 28.8MW 2014 Shichimi Spring 0.02MW 2013 Abo Tunnel 0.003MW 2014 Yumura Spring 0.03MW Beppu Spring 0.5MW Goto-en 0.09MW Kirishima Kokusai Htl 0.1MW 2017 Oguni Waita 2MW Oguni Matsuya 0.06 MW 2014 Toya-ko Spring 0.07MW 2014 Matsukawa 23.5MW Kakkonda 50+30MW Onikobe 12.5MW Tsuchiyu Spring 0.2 MW Yanaizu- Nishiyama 30MW Hotel Sunvalley 0.02 MW Hachijojima 3.3MW LEGEND 10MW 1 MW < 1MW 2015 2016

History of geothermal power generation and government fund Fund for R&D (Billion Yen) Capacity Fund Capacity (MW) NEDO TSC (2016)

Funding scheme in Japan MEXT MOE ANRE METI Basic scientific study Environmental issue Subsurface issue Surface issue JSPS JOGMEC NEDO FS of innovative technologies JPN/US Joint Research KAKEN HI -R&D -Exploration -Loan guarantee Academia Industry METI: Ministry of Economy, Trade and Industry ANRE: Agency for Natural Resources and Energy JOGMEC: Japan Oil, Gas and Metals National Corporation NEDO: New Energy and Industrial Technology Development Organization MOE: Ministry of the Environment MEXT: Ministry of Education, Culture, Sports, Science and Technology JSPS: Japan Society for the Promotion of Science KAKENHI: Grant-in-Aid for Scientific Research

On-going large government-funded geothermal projects NEDO FA Title Period Research and Development of Geothermal Power Generation Technology Advanced Research Program for Energy and Environmental Technologies/Development of nextgeneration technologies of geothermal power generation No. of PJ Budget (USD) 2013-2017 18 50 MM 2014-2017 3 6 MM JOGMEC Technology for exploration of geothermal reservoirs 2013-2017 1 17MM METI MEXT Technology to evaluate and manage geothermal reservoirs International Joint Research Program for Innovative energy Technology Grant-in-Aid for Scientific Research, Specially Promoted Research 2013-2017 1 15 MM 2015-2019 2 3.5 MM 2013-2017 1 4 MM FY30 (2018.4.1~2019.3.31) METI budget request 24MM USD (a) Exploration technologies (b) Drilling technologies (bit and rig) (c) Reservoir management and control (EGS) (d) High performance power generation system (e) Development of supercritical geothermal system (preparation of drilling of a proof-of-concept borehole)

Outline of projects JOGMEC: Technology to evaluate and manage geothermal reservoirs - Development of a manual for EGS operation (recharge injection type) through experimental study at Yanaizu-Nishiyama (Oku-aizu geothermal area) Location : Fukushima Prefecture Operator :(Power generator) Tohoku Electric Power Co.,Inc. (Steam supplier) Okuaizu Geothermal Co.,Ltd. Installed Capacity : 65MW Operation start : May 1995 Yanaizunishiyama Geothermal Plant Fukushima Aizuwakamatsu Tokyo 500,000 Produced Energy (MWh) 450,000 400,000 350,000 300,000 250,000 200,000

Outline of projects JOGMEC: Technology to evaluate and manage geothermal reservoirs Production Well Power Plant Injection Well Recharge Well Takiyagawa fault Sarukurazawa fault Chinoikezawa Hanging wall fault Geothermal Reservoir Chinoikezawa fault Magma Body Chinoikezawa Foot wall fault 22 37 Superheated region 10T Pad 45 Acidification region Legend High temperature region 34 Chinoikezawa southeast fault Production well Suspended well Injection well Estimated fault(-1000m) Feed points Oku-aizu Geothermal Area Superheated region Acidification region

Outline of projects JOGMEC: Development of PDC bit for geothermal wells (a) Development of PDC cutter (diamond composite) (b) Design of bit face (location of cutter, liquid flow ) (c) Manufacture of prototypes (d) Field test

Outline of projects NEDO: Research and Development of Geothermal Power Generation Technology - 4 subtasks (a) Environmentally-friendly and high-functioning power generation system (b) Small binary system for low enthalpy geothermal resources (c) Environment conservation technologies for power plant (d) Innovative technologies - Focus on scale problem (10 projects among 17 projects) Simulator of H 2 S diffusion (CRIEPI) NEDO interim appraisal document (2017) Monitoring system of hot springs (Onsen) (AIST)

Outline of projects NEDO: Research and Development of Geothermal Power Generation Technology Flash cycle Binary cycle Hybrid cycle power generation system (Toshiba) Design of power plant with ecological landscape concept (SHIMZU, Sight and Landscape Design Institute, Hosei U.) NEDO interim appraisal document (2017)

Outline of projects NEDO: Advanced Research Program for Energy and Environmental Technologies/Development of next-generation technologies of geothermal power generation - Investigation of innovative technologies which has potential to drastically increase geothermal power generation after 2030 - Focused study on core technologies - Planning of following national projects toward 2030 - Five projects have been funded (1-2 years, 0.8$ MM/year) (a) Cutting-edge study to develop subduction-origin supercritical geothermal resources (FY2015-2016) (b) Development of innovative technologies to dramatically increase the capacity of geothermal power generation by preventing injectivity decrease of wells and utilizing acidic geothermal fluids (FY2015-2016) (c) Research of a Multi-beam laser surface treatment for ultra corrosion-resistant turbine to realize the hot dry rock geothermal power generation (FY2015-2016) (d) Feasibility study of laser drilling under supercritical conditions (FY2016-2017) (e) Innovative drilling technologies for supercritical geothermal development (FY2015-2017)

Outline of projects NEDO: Advanced Research Program for Energy and Environmental Technologies/Development of next-generation technologies of geothermal power generation Development of subduction-origin supercritical geothermal resources (AIST, Fuji Electronics, Geo-E and Tohoku U.)

NESTI2050 (CAO)

Roadmap of supercritical geothermal development by CAO/METI 1 Understanding of the state of supercritical geothermal reservoir, and evaluation of electric power potential 2 Evaluation of the materials and equipment necessary for supercritical geothermal power generation 3 Development and economical evaluations of supercritical geothermal power generation systems 2018 2020 2030 2050 Detailed feasibility study Investigation of technological feasibility of reservoir creation and extraction of thermal energy Investigation of technological feasibility of new materials and tools Investigation of economical feasibility supercritical geothermal power generation Preparation of exploratory drilling *Preparation of equipment *Determination of drill site *Drilling plan Preparation of new material and equipment for exploratory borehole Exploratory drilling *Presence of supercritical resources *Estimation of amount of energy *Experiments in borehole *Determination of Spec. of materials and equipment Evaluation and preparation of demonstration *Experimental facility *Downhole tools and monitoring system *Simulator *New materials *New tools *Design of power generation system *Engineering investigation for commercial power generation Demonstration experiment *Demonstration of power generation *Pilot plant *Sustainability Commer cializa tion *Superborehole (~ 5) *20-30 years of power generation *Economy (<10C/kWh ) *Large nationalwide potential (>100GW) 4 Evaluation of methods for minimizing environmental impact and ensuring safety Investigation on minimization of environmental burden and ensuring safety *Evaluation methodology of environmental burden *HSE management Evaluation of environmental burden Point of evaluation Engineering/ economical feasibility Equipment, safety,and consensus High quality data Performance for demonstration Commercial technology

Partners of Super-critical Project (JBBP) Leading institute Academia Industry

Outline of projects MEXT: Grant-in-Aid for Scientific Research, Specially Promoted Research - Science and Technology of Geothermal Energy Frontier (Tohoku University and AIST) is on-going - Basic study to understand response of rock mass to liquid injection in brittle-ductile transition zone. 70~ 100 C 400 C 450 C 500 C 570 C Tohoku University Tohoku University Team

Outline of projects MEXT: Grant-in-Aid for Scientific Research, Specially Promoted Research Science and Technology of Geothermal Energy Frontier Watanabe et al. (2016)

Summary Japanese geothermal research and development - Re-activated after tragedy of March 11, 2011 - High expectation of the government to satisfy base-load energy demand in 2030 - A number of difficulties/restrictions unique in Japan (a) Coexistence with hot springs (b) Social acceptance (c) Lack in human resources both in academia and industry (d) Lost knowledge/know-hows after 10 years of interruption - R&D in both short and long range view (a) High resolution exploration/monitoring technologies (b) EGS(recharge injection type) (c) High performance binary/hybrid system (d) Scale prevention/removal technologies (e) Environmentally friendly design technologies (f) Development of supercritical geothermal resources - Importance of international collaboration