phases of geothermal development - esmap day 1... · project development o step 1: gathering and...

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Phases of geothermal development Presented by Dr. Ólafur G. Flóvenz, general director of ISOR – Iceland GeoSurvey at Renewable energy training program Module 3 - geothermal energy

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Page 1: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

Phases of geothermal development

Presented by Dr. Ólafur G. Flóvenz, general director of ISOR – Iceland GeoSurvey

at Renewable energy training program

Module 3 - geothermal energy

Page 2: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

www.isor.is

Total cost per energy unit

123456789

10111213

1 2 3 4 5 6 7 8 9 10

Tota

l cos

t pe

r ene

rgy

unit

(EU

Rcen

ts/k

Wh)

Well output (MWe/well)

Binary system

Flashed condensing plant

Combined condensing and binary system (bottoming cycle)

Page 3: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Project development

O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration drilling O Step 3: Pre-feasibility report O Step 4: Environmental assessment O Step 5: Drilling and testing of confirmation wells O Step 6: Feasibility report O Step 7: Design, construction, production drilling. O Step 8: Testing, commissioning, training O Step 9: Operation

ICELAN

Page 4: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Project Development - Time frame: Geothermal Power Plant

Step Step/ Year1 Reconissance - licensing

2A Surface exploration2B Exploration drilling

3 Prefeasibiliy report X4 Environmental assessment 5 Drilling of confirmation/production wells6 Feasibility report X7 Design and construction of power plant8 Testing, commissioning, training9 Operation

7 81 2 3 4 5 6

Page 5: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Geothermal Power Plant Exploration and Construction Cost

ICELAN

Page 6: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Step 1: Reconnaissance Gather and evaluate existing data

- Information on geothermal field & possible market for energy - Chemical analyses - Gathering of maps, reports and literature - Outline which data are missing - Site visit for first estimate - Recommendations for further exploration - Licenses, environmental, social and legal aspects

Page 7: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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After Step 1:

O We have generated a broad picture of the existing data.

O We have an idea about the possible type and size of the reservoir.

O We know who are the possible customers.

O We have some ideas about financial matters.

O We know the legal and regulatory framework.

O We have idea of the environmental and social impact.

O In view of our knowledge we decide if to proceed to step 2 or abandon the project.

ICELAND GEOSURVEY

Page 8: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Step 2A: Surface exploration O Geological- geothermal and structural mapping.

O Chemical analyses and interpretation.

O Geophysical surface exploration.

O Prepare and collect data for environmental impact assessment.

O Prepare, design, site and finance exploration wells.

Page 9: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

www.isor.is

After step 2A:

O We have a conceptual model of the field, including estimate of possible reservoir temperature, flow of geothermal fluid, chemical composition of the fluid and rough estimate of the possible size of the system.

O We might use volumetric methods to roughly assess the possible energy output.

O Based on the results we either go for step 2B or stop the project.

Page 10: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Step 2B: Exploration drilling Drilling of 1 -3 wells to testing the results of the surface exploration.

Might be slim or relatively shallow wells.

Revision of the results of the surface exploration and possibly additional geophysical exploration.

Page 11: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Step 3: Pre-feasibility report

O A conceptual model based on surface data and drilling

O Evaluation of field capacity

O Basic process design

O Treatment of the geothermal fluid

O Preliminary cost estimate

O Environmental & social evaluation

O Recommendations for next step – EIA

– Financing

– Exploitation license

Page 12: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Environmental Impact and Conceptual design of the Power Plant

O Environmental and Social Impact Study for the Power Plant

O Design of production- and reinjection wells.

O Update evaluation of field capacity

O Update on basic process design

O Update on the fluid treatment

O Recommended field operation

Page 13: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Drilling and testing of confirmation wells O Location of additional wells, are based on pre-feasibility

report

O Design of confirmation wells a test procedure for each well

O Drilling, testing and evaluation of test results

Page 14: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Feasibility report (bankable) - Exploitation license

O Update on field capacity O Process design O All main equipment specified O Investment and Operational cost O Environmental Impact for the

project O Recommendations for next step O Process of licenses completed

Volumetric assessment, using the Monte Carlo method

Page 15: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Detailed design, construction, drilling, supervision O Detail design based on concept

design O Supervision of detail design O Tender documents for civil

construction O Production Drilling O Supervision of drilling

O Manufacturing, delivery and installation of equipment

O Civil construction O Supervision of construction

Page 16: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Operation

Page 17: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

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Financing of Geothermal Projects Geothermal Project Cost estimate for a 70 MWe Power Plant in

Kenya

Notice that by far most of the cost is for production drilling and plant construction

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Page 18: Phases of geothermal development - ESMAP Day 1... · Project development O Step 1: Gathering and evaluation of existing data O Step 2A: Surface exploration O Step 2B: Exploration

www.isor.is IEA-GIA September 30 2009

The end