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August 12-13
GEA Direct Use/Small Power Finance Workshop
Klamath Falls, OR, USA
October 4-7
Geothermal Resources Council 2009 Annual Meeting
Reno, NV, USA
October 14-17
Renewable Energy Indonesia 2009
The 5th International Exhibition for all Renewable Energy
Technologies
Jakarta, Indonesia
February 23-25, 2010
Renewable Energy World North America Conference & Exposition
Austin, TX, USA
April 25-30, 2010
World Geothermal Congress 2010
Bali, Indonesia
For more information,
Contact:
Nic Nickels
Baker Hughes
5510 Skylane Blvd.,
Suite #203
Santa Rosa,
CA 95403
707/523-1751
Nic.Nickels@bakerhughes.com
Please visit our website:
www.bakerhughes.com/
geothermal
If you think your friends and colleagues might benefit from this
information, please send this newsletter to them,
subscription is free.
View past issues of the
Geothermal News.
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Welcome to the
Baker Hughes Geothermal Newsletter. Every issue includes industry news on exploration, development and production. Summaries covering geothermal companies, technology, case histories, financing, politics and environmental issues provide useful information for industry professionals. Each issue also includes project updates from around the world.
 Obama and Iceland Minister Discuss Collaboration on Geothermal Energy
During
the NATO summit held in Strasbourg-Kehl in April, Össur
Skarphéðinsson, Iceland’s foreign minister, and U.S. President Obama
held talks, including the topic of increased cooperation between the
two countries in the field of geothermal energy.
President Obama said that the U.S. government is committed to
increasing development of renewable energy resources in the effort
to further curb emissions of greenhouse gases and to create more
environmentally friendly jobs.
Before the end of the NATO summit, the president had designated one of his
chief advisors as a special contact for Iceland.
This commitment supports the charter for the
International Partnership for Geothermal Technology (IPGT)
signed by Australia, Iceland and the U.S. in August 2008. The IPGT
brings international collaboration on policy and the technical
aspects of enhanced geothermal systems, such as deep drilling and
geothermal energy conversion, to confront the challenges of climate
change and energy security.
Geo Texas Wins Geothermal Leases Offshore Texas
The Texas General Land Office and the School Land
Board have awarded three geothermal leases off the Texas coast to
Eugene, Ore.-based Geo Texas Co. Geo Texas was the only bidder for
the leases in the April 7 lease sale.
The company now has the rights to produce geothermal energy on
128,758 acres of state land off the coasts of Galveston, Brazoria
and Matagorda counties.
The terms of the bid require Geo Texas to pay $2.00 an acre bonus
and $3.00 an acre annual rental for the state submerged land. Once
Geo Texas begins to produce electricity, the state’s Permanent
School Fund will earn a 2.05% royalty for the first 10 years of the
lease and 3.8% for years 11 through 30. Even without any energy
production, the state’s Permanent School Fund will earn more than
$386,000 a year.
 Western GeoPower
Acquires Second Geothermal Reservoir in California
Western GeoPower Corp. acquired approximately 3,000 acres of private geothermal leases with a confirmed high-temperature geothermal reservoir at South Brawley, in Imperial County, Calif. The leases grant Western GeoPower the right to develop the geothermal reservoir and build a plant for electricity generation.
GeothermEx, Inc. has reviewed geophysical surveys of the South Brawley leases. Four deep wells plus a sidetrack of a well
(varying in depth from 13,381 to 14,000 ft, 4,079 to 4,267 m) were drilled and flow tested on the property between 1978 and 1982, and a prolonged (34-day) pressure interference test was run during 1982-1983.
Although these wells are now plugged and abandoned, they have confirmed the existence of a high-temperature (up to 278°C or 532°F) reservoir, and pressure interference testing has demonstrated the existence of high flow and storage capacities within the reservoir.
A wellhead productivity of 700,000 pounds per hour (equivalent to about 7 MW) had been demonstrated by well testing. However, these wells had a narrower diameter than is conventional for geothermal wells today and the wells showed major formation damage. New wells with a larger diameter drilled on the property should have a much higher productivity.
 FOA for Enhanced Geothermal Systems Demonstrations, DOE (July 30)
The Geothermal Technolgoies Program (GTP) has issued a Funding Opportunity Announcement,
DE-PS36-09GO99019, for up to $10 million in FY2009 and with anticipated additional funds of up to $39 million in FY2010, FY2011, FY2012, FY2013 and FY2014, subject to change and Congressional appropriations.
GTP is seeking projects in a variety of geologic formations that will
quantitatively demonstrate and validate stimulation techniques,
successfully sustain sufficient fluid flow and heat extraction rates
for five to seven years, and produce at least 5 MW per year per
project site/geothermal reservoir. GTP will also consider projects to further characterize, stimulate, and validate under-utilized geothermal resources, particularly in urban and rural regions with high electricity costs, such as Alaska, Hawaii, the eastern U.S.,
and Indian reservations.
White House Releases Fact Sheet on Clean Energy Future
President Obama met with clean energy entrepreneurs and leaders of the research community to discuss his strategy for building a clean energy economy and creating the industries and jobs of the future.
The American Reinvestment Recovery Act (ARRA) and his FY10 budget increase investment in cutting-edge research, the development and deployment of clean energy technologies, and incentives for private sector R&D.
The ARRA includes $39 billion in energy investments at the Department of Energy (DOE) and $20 billion in tax incentives for clean energy, including:
- Creation of an advanced research agency for energy, modeled after the Defense Advanced Research Projects Agency, which developed the Internet Support for Energy Frontier Research Centers—which could lead to breakthroughs in energy storage, super-efficient engines, and inexpensive solar cells
- Support of U.S. manufacturing of advanced batteries needed for plug-in hybrids, renewable energy backup, and other applications
- $1.2 billon for research infrastructure for DOE’s national labs.
The President’s 10-year budget also proposes almost $75 billion to make the Research and Experimentation Tax Credit permanent, stimulating private-sector R&D investment.
Studies have shown that every dollar of tax benefit stimulates as much as an additional dollar of private R&D spending in the short run and two dollars in the long run.
Two-thirds of benefits of the credit are attributable to salaries of U.S. workers performing U.S.-based research, and the credit stimulates R&D spending by more than 11,000 small, medium and large firms
The credit has been extended 13 times with some extensions lasting just six months, and has also been allowed to lapse for almost a year, undermining its effectiveness because companies can’t count on it.
Argentina: Neuquén Province Seeks Bids for Copahue
Power Plant Construction
The province of Neuquén, through its Agency for Investment Promotion and Development (Agencia de Promoción y Desarrollo de Inversiones – ADI-Nqn), has announced a Public Invitation to Investors for the construction and operation of a 30-MW geothermal power plant at the Las Mellizas de Copahue geothermal field, located 380 km northwest of the city of Neuquén and near the city of Caviahue.
The sale of the specifications for this invitation will begin on May 28 and will continue until June 26. The opening of responses to the invitation is planned for July 16, 2009.
ADI-Nqn’s program calls for a two-stage process, the first stage being a pre-qualification to select from the interested commercial groups those that demonstrate adequate technical and economic resources to undertake and finance the Copahue Geothermal Project. In the second stage, the pre-qualified bidders will be invited to present their technical-economic offers and discuss the terms of the concession of the resource for a period of 30 years.
Copahue is Argentina’s most-studied geothermal field. The first geologic and geophysical studies began there in the 1970s. Four exploratory wells, with an average depth of 4,265 ft (1,300 m), were drilled during 1981 and 1998 and demonstrated the presence of a commercially exploitable steam-dominated geothermal reservoir. One of the wells was used to supply steam to a 700-kW pilot plant that operated from 1988 until 1995.
In 1992, a study carried out jointly with the Japan International Cooperation Agency (JICA) determined the technical and economic feasibility of installing a 30-MW power generation plant, producing 230 GWh annually, for which it will be necessary to drill six new wells within the confirmed 1.5 sq. miles (4 sq. km) area. The energy produced will be transported via a new 132-kV transmission line that will be approximately 28 mi (45 km) long.
During the construction period for the 30-MW plant, it will be possible to export up to 5 MW produced from portable generating units, via the existing 33-kV regional transmission system.
To request additional information, direct inquiries to:
adinqn@neuquen.gov.ar
or contact the Vice-Presidency of ADI-Nqn at:
lgalardi@neuquen.gov.ar
Phone: 54-299-4495149; Mobile: 54-9-299-5552842
 Australia: Panax Geothermal to Spud Penola Project’s First Production Well
The Panax Geothermal Penola Project is planning to spud its first production well, Salamander-1, in September 2009.
In the company’s
Q1 2009 report, the project is described as targeting conventional geothermal energy in the form of a hot sedimentary aquifer (HSA) in sandstones, some 3,500 m (11,500 ft) below the surface. The aquifer is associated with higher quality geothermal resources of the “indicated” and “measured” categories—a reflection of the extensive petroleum exploration (>20 deep wells and extensive 3D and 2D seismic surveys), providing a comprehensive database of the HSA, including temperature and reservoir quality.
Because of the project’s close proximity to the national grid, a grid-connected commercial Demonstration Power Plant could be in operation by the end of 2011.
Australia: Greenearth Energy Studies Geothermal Resources in Geelong Area
Greenearth Energy and Hot Dry Rocks Pty Ltd have developed a hot sedimentary aquifer
commercial model for geothermal-based electricity generation southwest of Geelong.
The study shows that over a 20-year life for the proposed geothermal power plant, the levelized cost of electricity would be in the range of $96 to $114 per MW hour; pre-tax revenue and discounted cash flows would be generated; and 1.2 million tons and up to 7.3 million tons of CO2 emissions would be displaced.
Greenearth Energy managing director, Mark Miller, said, "We are pleased to have this roadmap study on the possible economics of establishing a commercial geothermal power plant in the Geelong area, close to the existing electricity power and adjoining industrial markets."
Chile: Geothermal Sites Could Aid Energy Crisis
Mining companies in northern Chile have identified 115 sites that could produce geothermal energy, according to Reuters, reporting on studies by the National Mining and Geology Service. Chile is looking for answers to its energy crisis, which has gotten worse due to Argentina cutting natural gas exports.
GDN, a joint venture between Chilean and Italian investors, is developing a project in Quebrada del Zoquete that could generate 40 MW of power.
"Positive results in the exploration phase would be good news for Chile," said Oscar Valenzuela, GDN’s CEO. "It would open a new opportunity for our country’s geothermal potential, bringing clean energy to the power grid."
Chile: Mighty River Power Invests in Chilean Geothermal Exploration
New Zealand's geothermal developer Mighty River Power has invested USD$6.7 million for drilling in southern Chile, as reported by Bloomberg. GeoGlobal, associate company of the developer, will bid for rights in the north of the country as well.
Chile is seeking geothermal development as a way to decrease reliance on dwindling gas supplies from Argentina.
Chile has "significant resources, in scale much bigger than in New Zealand, and that’s the opportunity, to get in at the front-end of that," said CEO Doug Heffernan.
Dominica: Geothermal Energy Production on its Way
The results of the geochemical survey conducted by West Indies Power (Dominica) Ltd (WIP) in Dominica’s Soufriere region in December 2008 indicate that all of the samples are from geothermal sources.
The geochemical survey was done to determine if the gases and waters were of geothermal origin or just rainwater that had been heated by the underlying hot rocks.
Full results of the survey were to be submitted by the end of April to the Government of the Commonwealth of Dominica, which issued a permit in July 2008 to WIP for the exploitation and exploration of geothermal resources in Soufriere.
Kerry McDonald, CEO of WIP, said, "The results of this sampling scientifically prove that there is a geothermal reservoir underlying the Soufriere area. West Indies Power (Dominica) Ltd.’s next step is to locate and drill sites so that it can determine the size and quality of the geothermal reservoir here in Soufriere."
El Salvador: First Icelandic Geothermal Power Plant
Operating at Full Capacity
A geothermal binary power plant, engineered and constructed under an EPCM contract by Icelandic geothermal company Enex for LaGeo in El Salvador, is operating at full capacity. The power plant generates 9.3 MW of renewable energy and is the first geothermal power plant fully engineered and constructed by an Icelandic company outside of Iceland.
All tests have been completed and the plant has entered a one-year service guarantee period. The contract with LaGeo, worth more than USD$13 million (1.6 billion ISK), was performed in close cooperation with LaGeo, which undertook a large portion of the civil works.
The power plant is located at the Berlin geothermal area in El Salvador, where two existing flash-steam power plants are producing close to 100 MW. The binary power plant uses conventional ORC (Organic Rankine Cycle) technology that alternately vaporizes and condenses a working fluid.
"Active geothermal project development in Iceland for the last 10 years and the coinciding development of new and improved technology has created a solid base for export of know-how that has become a valuable asset, especially since geothermal energy is a recognized part of the renewable energy mix," said Thor Gislason, CEO of Enex.
Geysir Green Energy, an Icelandic geothermal investment company, holds 96% of shares in Enex.
Indonesia: Greenearth Energy Establishes Indonesian Geothermal Entity
Greenearth Energy’s subsidiary Green Earth Power, partnering with Geo Energy Pty Ltd, International Investment Resources LLC, and Indonesia’s Santini Group, has established PT. Geo Power Indonesia, a geothermal exploration and development company.
Green Earth Power Pty Ltd will initially hold 40% of PT. Geo Power Indonesia with the balance split equally between the partner companies.
Based in Jakarta, PT. Geo Power Indonesia aims to establish a suite of geothermal exploration and development opportunities across the Indonesian archipelago. Greenearth Energy’s managing director, Mark Miller, said, “Indonesia provides Greenearth Energy with a unique proposition in quite possibly the world’s most highly sought-after geothermal resource landscape. We have a significant prospect with Indonesia’s geothermal potential assessed at over 27,000 MW with only just
over 1,100 MW developed to date."
Kenya: French Development Agency Finances Olkaria 2 Geothermal Plant
Power generating company KenGen received a 20 million euro (USD$27 million) credit facility from the France Development Agency (AFD) to partly finance the extension of a third unit at the Olkaria 2 geothermal power station, according to the Kenya Broadcasting Corp.
The project’s power supply is expected to be added to the national grid by May 2010.
The funding comes at a time when the company is working to increase the generation of power in the country by 500 MW in the next five years. Kenya has a potential of generating over 3,000 MW from the geyser-rich Rift Valley, but only 163 MW of this resource has been tapped, including 115 MW by KenGen and 48 MW by Orpower 4.
Netherlands Antilles: West Indies Power begins Geothermal Exploration
West Indies Power (WIP) is beginning geothermal exploration in Saba. CEO Kerry McDonald stated, "West Indies Power is excited about starting its geothermal exploration work on Saba. This geophysical work will show us where to drill and take the first steps to develop geothermal power on the island of Saba."
Nevis: Geothermal Project Updated at Caribbean Climate Change Forum
A two-day e-Parliament forum, called Climate
Change and Energy Access, brought together 19 legislators in Georgetown,
Guyana, from The Bahamas, Barbados, Belize, Dominica, the Dominican
Republic, Haiti, Jamaica, St Kitts and Nevis, St Lucia, Trinidad and
Tobago, and Guyana. The legislators heard expert presentations on solar, wind, hydro and geothermal energy.
The legislators agreed that Caribbean countries should promote trade in energy within clusters of Caribbean states, and were particularly inspired by the example of the planned export in geothermal energy from the island of Nevis.
The first phase of this project will see a 40-MW power station in operation in 2010, which will export power to St Kitts in 2011.
In the second phase, capacity will be doubled in 2014 to 80 MW so that power can be transmitted using high-voltage direct current lines to other islands—initially the Virgin Islands, but there has also been interest from the Dominican Republic and Puerto Rico.
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