Geothermal EnergyGeothermal Energy

The Indigenous, Renewable, Green OptionThe Indigenous, Renewable, Green Option

Dr. Silas M. SimiyuGeothermal Development

Kenya Electricity Generating Company LTDP.O Box 785, Naivasha Kenya

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Presentation outline

IntroductionIntroductionGeothermal Development ProcessGeothermal Development ProcessPrinciples of OperationPrinciples of Operation

Status and development potential in AfricaStatus and development potential in AfricaStages in Geothermal DevelopmentStages in Geothermal Development

Barriers to Geothermal development in KenyaBarriers to Geothermal development in Kenya

ConclusionsConclusions

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World Wide Location Geothermal power plants

In the middle of crops

In forested recreation areas

In fragile deserts

In tropical forests

In game parks with fragile ecosystems

In high population areas

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Benefits of Geothermal Energy

Provides clean and safe energy using little land

Is renewable and sustainable

Generates continuous, reliable “baseload” power

Conserves fossil fuels and contributes to diversity

in energy sources

Avoids importing and benefits local economies

Offers modular, incremental development and

village power to remote sites

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Geothermal and the Environment

Geothermal energy is clean energy and renewable Geothermal power stations emit less greenhouse gases

compared to other sources of energy

0

500

1000

Co

al Oil

Gas

Geo

CO2

0

5

10

Co

al Oil

Gas

Geo

SO2

Emissions (kg/MWhr). From Reed and Renner, 1995

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WHAT IS GEOTHERMALWHAT IS GEOTHERMAL

• Geothermal Energy heat from the Earth

Transmitted: i) Conduction ii) Convection

• fluids via fractures and pores in the rocks

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Geothermal Fields of the World

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Rift Based Geothermal Model

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Manifestations

Sulfur

Hot Springs

Hot Ground

Geysers

Fumaroles

Kenya’s Examples

Geothermal Development Process:Geothermal Development Process:

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Geothermal Development processStage I: Exploration

Objective: Determine the viability of the resourceObjective: Determine the viability of the resourcei) Heat Source –Energy sourcei) Heat Source –Energy sourceii) Fluid Recharge and pathways –Transport mediaii) Fluid Recharge and pathways –Transport mediaiii) Reservoir conditionsiii) Reservoir conditions

-Permeability, density and heat capacity-Permeability, density and heat capacity-fluid chemistry, phase and gases-fluid chemistry, phase and gases

iii) Baseline EIAiii) Baseline EIAMake Decision: Make Decision: GO GO or or NO-GONO-GO

Drill 3 Exploration wells to confirm results (-3,000)Drill 3 Exploration wells to confirm results (-3,000)-Carry out well testing-Carry out well testing-Review results-Review results

Make Decision: GO orMake Decision: GO or NO-GO NO-GO

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Geothermal Development process 2 Stage II: Sizing of the resource

Appraisal Drilling of 6 wells ( depth 2,000 m to 3,000m)Appraisal Drilling of 6 wells ( depth 2,000 m to 3,000m)

Objective: Determine the size of the resourceObjective: Determine the size of the resource-(minimum) extent of resource confirmed-(minimum) extent of resource confirmed

-more accurate hydrological model-more accurate hydrological model-Volume, geometry, boundary conditions of resource-Volume, geometry, boundary conditions of resource-Pressure, Temperature and Overall fluid Chemistry-Pressure, Temperature and Overall fluid Chemistry

Feasibility study to determine viability of the project &Feasibility study to determine viability of the project & Overall Economics: Plant size, type, funding and TariffsOverall Economics: Plant size, type, funding and Tariffs

Complete Environmental Impact assessmentComplete Environmental Impact assessment Including public disclosure.Including public disclosure.

Environment Friendly Power Plant designEnvironment Friendly Power Plant design Make Decision: Make Decision: GO GO or or NO-GONO-GO

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Geothermal Development process 3Stage III: Production drilling and Plant Construction

Drilling of 16 wells ( depth 2,000 m to 3,000m)Drilling of 16 wells ( depth 2,000 m to 3,000m)Construction of steam gathering system and power plantConstruction of steam gathering system and power plantPut in Place Field and Environmental Management Procedures

-Make–up wells (Size, timing and location)-Make–up wells (Size, timing and location)-Reservoir monitoring (Pressure, temperature and fluid -Reservoir monitoring (Pressure, temperature and fluid chemistry)chemistry)-Re-injection. (Maintain reservoir pressure and water mass)-Re-injection. (Maintain reservoir pressure and water mass)-Rehabilitation. (Return the area close to what it was -Rehabilitation. (Return the area close to what it was originally)originally)

Use collected data to carry out the following-Optimization of the first plant for efficiency and productivity-Remedial action if needed in response to reservoir effects-Decision whether to increase capacity to second stage

Principles of Operation:Principles of Operation:Power Generation Power Generation

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Production WellWater and Steam

Injection WellWater

Schematic Diagram of Geothermal system

Separators

Cooling Towers

Generator

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Type of Plants 1:Condensing Dry Steam Power Plant

TurbineGenerator

SteamCondensedSteam (Water)

Electricity

Steam

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Turbine Generator

Steam entry Coiled wirecylinder

Magneticfield

Turbineblades

Electricity

Steam outlet to condenser

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Types of Plant 2:Condensing Flash Steam Power Plant

Separated Water

Steam

CondensedSteam (Water)

HotWater

Turbine GeneratorFlashTank Electricity

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Condensing Flash Steam Plant (Olkaria I & II)

P R OD U C TIONW EL L

GA

S E

XT

RA

CT

OR

C OOL IN G TOW ER S

C H F

IntermediateTemperature

Cold Surface W ater

Surface R ock

H igh T empera tu reR eser vo ir

G A S E S

C ON D E N S ER

H OT C ON D EN S ATE

PU M P

PU M PTU R BIN E GE N E R ATOR

SE PAR ATOR

W ATER

STEA M

M A IN STEAM

C OOL E DC C ON D EN SATE

S TEAM FR OMOTH ER W EL L S

FLOW DIAGRAM

POW ER TR AN SM ISSION(TO N ATION AL GR ID )

GEN ER AT ED ELEC T R IC IT Y

C HF

In term ediateTem perature

C old S urf ac e W ater

S urfac e R oc k

H igh T em pera tu reR eservo ir

CHF

Interm ediateTem perature

C old S urf ac e W ater

S urfac e R oc k

H igh T em pera tu reR ese rvo ir

R E-IN JEC TIONW EL L

R E-IN JEC TIONW EL L

S TA TIO NTRA NS FO RME R

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Type of Plant 3:Non Condensing Flash Steam Plant

SEPARATOR

BACK PRESSURESTEAM TURBINE

ATMOSPHERICDISCHARGE

CONTROL VALVE(GOVERNOR)

PRODUCTIONWELL

REINJECTIONWELL

G

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Types of Plant 4:Binary Cycle Power Plant

Binary Vapor Turbine Generator

Electricity

Binary Liquid

Heat Exchanger

CooledWater

HotWater

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Binary vapor outto turbine

Hot geothermalwater in from

production well

Geothermal water out to injection well

Binary liquid infrom condenser

Binary Cycle Power Plant: Heat Exchanger

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Binary Cycle Power Plant: Aluto Langano –Ethiopia (8MW) & Olkaria III –

Kenya (13MW)

COOLINGWATER / AIR

PRODUCTION

INJECTION

BINARY TURBINE

Isopentane

Steam and water

HEAT EXCHANGER

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Mini-Geothermal Binary Cycle Power Plants: Kapisya – Zambia & Oserian Kenya

Kapisya –Zumbu National park, Zambia (160kW)

Oserian Dev Company Kenya (2 MW)

Binary plant owned by Oserian Flower Farm Commissioned July 2004 Using steam and re-injecting water Steam leased from KenGen from 1 well. Using only one well

Binary plant owned by Zesco Shallow drilled wells of 150-200m Built in 1987 and not commissioned Planed to use water at 90oC Plant being upgraded by KenGen.

KenGen is putting up a 2.5 MW Mini-Geothermal binary plant at EburruUse both steam and water from 1 well. Condense steam to water for community

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Lake Baringo Borehole blowout

Principles of Operation:Principles of Operation:Direct Uses Direct Uses

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Heating Heat Exchanger

Hot water outto buildings

Hot geothermalwater in from

production wellGeothermal water out to injection well

Cold clean water in

to be heated

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Heat Pump in Winter

Heat is collected from underground & transferred to the building

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District Heating

Heat

Exchanger

Plant

Injection Well Production Wells

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Geothermal Energy Utilization:Direct Use –Oserian Green houses (Kenya)

i) Cut Roses Green house Heating ~100 hectares, ii) Refrigeration of cut flowers storage and processing stores, iii) Injection of CO2 to aid in photosynthesis, iv) Fumigation of soils and sterilization Sterilization of liquid recycled plant fertilizers

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Geothermal Energy Utilization:Direct Use II

Fish Farming Hot bath/spa

Crocodile Farming

Swimming Pool

Geothermal Use: Geothermal Use: Status and Potential in AfricaStatus and Potential in Africa

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Geothermal Resources in Africa

Potential in the great African Rift > 7,000 MW. Kenya’s geothermal potential is in excess of 3,000 MW

Currently only Kenya (130 MW), Ethiopia (8 MW) and Zambia (0.2 MW)have power stations.

There are plans to install another 1,000 MW in Eastern Africa over the next 10 yearsGeothermal energy in North African countries is mainly for greenhouse heating and irrigation

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Kenya’s Geothermal Potential

Kenya’s geothermal power potential is estimated at over 3,000 MW. Most of Kenya's Geothermal potential areas (>20 fields) occur within the Kenya Rift. Current installed geothermal power: KenGen 115 MW and IPP’s 15 MW. From above values, only a small fraction of the estimated resource has been harnessed.

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YEARS

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HYDRO

WINDGEOTHERMAL

THERMAL

IMPORTS

Kenya‘s Planned Capacity Expansion

Geothermal can meet all Kenya’s capacity expansion requirements for the next 15 years

Kenya’s Geothermal Potential

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Why slow exploitation of Geothermal ?Barriers to geothermal development

Technological Constraints: Manpower (development and retention) & Equipment

Large up-front investment in exploration, appraisal and production drilling

Funding Constraints: Long financial closure

Commercial & Legislative Framework Risks: Country, Market, Corruption, Level Playing Field etc

Environmental & Social issue: Pollution, Land

Kenya’s Experience

Overcoming Barriers:Overcoming Barriers:Financing Geothermal Projects Financing Geothermal Projects

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Development requirements

It is all about MONEY!!

Projects are only worth developing if they create adequate net through life benefit for the developer, whether government or private

This requires a guaranteed revenue stream and manageable risks in resource supply

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Financing Geothermal Development-1

Resource Exploration: Geo-scientific surface studies and exploratory drilling.

Resource Assessment: Drilling of appraisal wells and well testing

Power Plant Development: Drilling of production wells, steam pipelines and Power Plant construction

In Kenya it’s usually the responsibility of the government

Both the Government & to a lesser extent private sector

Shouldered by the Government and Private sector

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Current/Future Policy on Funding Options: Resource Exploration and Assessment

Research and Development fund set aside by GoK

Retention of the differential in interest on on-lent funds from GoK

Contracts, consultancies and steam sales

Grants from research programs through individual staff’s proposal writing efforts.

Carbon Credit mechanism.

Risk Guarantee Fund (GEF?)

Utilization of the fuel levy fund.

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Future Funding Options: Power Plant Construction stage - 1

Offering competitive bidding to private and public institutions – local & international. Strategic alliances e.g. KenGen does all the field development work and sells steam to IPPs.

Carbon credit earned from displacing fossil fuels Early Generating units to provide cash stream Demonstrated capacity to generate a portion of the funds required for the investment; typically 25% Government offloading shares to the public

Kenya’s Experience

Overcoming Barriers:Overcoming Barriers:Human Capacity Development Human Capacity Development

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Geothermal Training in AfricaGeothermal Training in Africa

Geothermal technology -specialized field.Development of a Geothermist takes many years;

On-job and focused need based trainingIn the world, training facilities have been offered at:

Inst. for Geothermal Res., Pisa, ItalyKyushu, JapanDiploma Course, Auckland University. UNU-GTP IcelandShort Course Training in Kenya, KenGen/UNU

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Trained v Installed MW

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3000

3500

Asia L. America Europe Africa

Trained

MW

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UNU Fellows from Africa by 2006

Country No. Trained

Retired Available

Algeria 3 3 0

Burundi 1 1 0

Djibouti 1 1 0

Egypt 3 0 3

Eritrea 3 1 0

Ethiopia 22 10 11(8 MW)

Kenya 41 5 36(130 MW)Tanzani

a1 1 0

Tunisia 6 0 6 (Low Temp)Uganda 6 2 3

Totals 86 24 59

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Kenyans Trained at UNU-GTPKenyans Trained at UNU-GTP

41 people trained 7 Geophysics 5 Reservoir Engineering 6 Geochemistry 5 Geology 3 Geothermal utilization 4 Drilling 5 Environment 3 Power Plant

36 Still active in geothermal 4 teaching at Universities 2 Out of the Country 3 Not active

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KenGen’s Geothermal Training KenGen’s Geothermal Training Programme Programme (Since 1982)(Since 1982)

Progressive Graduate Technical staff training 1 year geothermal course -New Zealand (Theory)After 2 years on job, -6 months practical training

course–Iceland. 3 months specialized courses at Kyushu -Japan and

Pisa -ItalyLong specialized courses in USA and Japan (PhD)All contracts/consultancies have a training component

Encourages advanced training in Geothermal TechnologyStaff retention through Keeping them busy when backOut of 26 graduate technical staff on the project, there

are 4 PhD and 15 Msc holders

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KenGen’s Geothermal Training KenGen’s Geothermal Training Programme Programme (Since 1982)(Since 1982)

KenGen training policy -1 course per staff per year. KenGen Geothermal Training School established 1988

Catering for KenGens internal training needs (esp. technicians)

Recently affiliated to United Nations University (Iceland) where joint short courses are offered to ARGeo members

Training centre -linked to other International Centres in USA and support by the Global Environment facility of GEF.

The East African Rift Countries Tanzania, Djibouti, Kenya, Eritrea, Uganda and Ethiopia formed ARGeo; a regional network of geothermal agents Pool resources, including manpower & Equipment Create partnering required so that trained Africans can

train others through the training centre in Kenya

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KenGen- UNU Geothermal Training Centre

First course held in November 2005 Potential contribution of geothermal to

national energy needs Geothermal project management Focused on decision makers (PS’s,

CEO’s etc) Second course to be held November 2006

Geothermal resource exploration and appraisal

Participants from: Rwanda, Zambia, Burundi, Tanzania, Djibouti, Kenya, Eritrea, Uganda and Ethiopia

Facilitators: KenGen, UNU-GTP, ArGeo and GEF

Kenya’s Experience

Overcoming Barriers:Overcoming Barriers:Lab and equipment Pool Lab and equipment Pool

Development Development

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Introduction I

The ability to carry out exploration and development depends on; Appropriate equipment that are easily accessible The total cost for an optimum equipment pool exclusive of

labs is about US $ 4,249,000 This cost of equipment was beyond our means without a

revenue stream Need for long term plan to ensure continued acquisition and

availability through maintenance and upgrade From the Beginning KenGen determined

What were the priority equipment Which ones were available in other accessible organizations How much can the owner charge for the service What are the maintenance and running costs if we buy

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How equipment have been acquired by KenGen before

Started by use of limited internal resources to buy equipment in a prioritized stepwise manner (Over 5 years).

A number of agencies, assisted KenGen to buy equipment. Some acquisition were tied to project

funding/contracts/research Equipment is handed over after the project Equipment is abandoned after the project Lead to a wide array of working and non working equipment.

Depending on the contract, some issues were overlooked Equipment Compatibility with existing ones Equipment maintenance and spare availability Environmental working conditions of the equipment Data sharing, processing and interpretation

KenGen ended up with many un-serviceable equipment

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Low availability of equipment:Identified Causes

Lack of proper maintenance and Service caused byPoorly trained maintenance staffNo budget for equipment maintenanceLack of accountability by equipment custodian

Lack of planning for equipment upgrade Under-utilization of many of such equipment

Projects occur once in a whileLack of coordination of activities in the

country/regionLack of knowledge of existence of potential users

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Our Experience

Developed service, maintenance and upgrade schedulesDid proper recruitment of trainable staff & allowed

them to make mistakesTrained our technicians in instrument

maintenance and ServiceEvery equipment was amortized, had a budget

and was ensured that it made money Insisted on accountability by equipment custodian

Tried to get more users of our services in the countryBuy equipment as a business Increased utilization of equipment –More money

Kenya’s Experience

Overcoming Barriers:Overcoming Barriers:Environmental Issues Environmental Issues

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Environmental Issues I

Carry out Baseline Environmental conditions assessment at Stage I

-Determine the in-situ condition

-High-light and assess the sensitivity of the area to possible development

-Cost the possible environment impact and mitigation measures

-Determine the potential Social Economic Impacts of the project

-Gather data on the potential Volcano Seismic hazards of the area

-Use the data as a basis for a GO or NO GO decision making

Carry out a full EIA with disclosure at Stage II

-Use it as a basis for planning monitoring and management

-Requirement for licensing of the project

-Part of the feasibility study

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Environmental Issues II

Put in Place and Enforce Sound Field and Environmental Management Procedures-Community based Corporate Social Responsibility (CSR) program (1% of net Profit)

Water for grazing, health and school facilities, -Reservoir monitoring-Reservoir monitoring

Pressure and temperature Pressure and temperature Fluid chemistryFluid chemistryMass changes using gravimetryMass changes using gravimetryRe-use condensed steam for coolingRe-use condensed steam for cooling

-Re-injection.-Re-injection.Maintain reservoir pressure and fluid mass rechargeMaintain reservoir pressure and fluid mass rechargeAvoid contamination of ground water & SubsidenceAvoid contamination of ground water & Subsidence

-Rehabilitation of disturbed areas during construction-Rehabilitation of disturbed areas during constructionReturn the area close to its natural beautyReturn the area close to its natural beauty

-Ecological monitoring and friendly designs of all works.-Ecological monitoring and friendly designs of all works.

Kenya’s Experience

Overcoming Barriers:Overcoming Barriers:Commercial and Legislative Commercial and Legislative

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Local & Foreign

Sources of Financing

KENGEN or IPPs

Geothermal Development

Company

Geothermal Prospects

E A B C D

$Geothermal Resource

Assessment & Development

$ $ $ $

KPLC PRIVATE 1 PRIVATE 2

Power Purchase Agreement

Steam Supply Agreement

Development Strategy

GEOTHERMAL RESOURCE DEVELOPER

• Exploration Drilling• Appraisal Drilling• Production Drilling • Steam Gathering Facilities• Reservoir Management

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Conclusions

Geothermal Energy will play a leading role in provision of Africa’s energy needs and governments should provide; Adequate human capacity through focused specialized

training Carefully prioritized Equipment and other resources

required. Funds for initial high risk investment stages of geothermal

development There is need to pool together in order to optimize use of

resources and accelerate development of Geothermal Energy Incentives such as tax holidays and an enabling Legal

environment will go a long way in attracting and retaining private investors in the Geothermal power industry.

Encourage public-private partnership participation.

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THANK YOU