1Energy Efficiency & Renewable Energy eere.energy.govProgram Name or Ancillary Text eere.energy.gov
Glass Buttes, OR (DOE)
October 1, 2012Geothermal Technologies Program
GRC Presentation, Reno
GTP Investments at GRC ‘12 Total 32 Projects
DOE Geothermal Technologies Program has invested over $68M in research and development being presented by industry, national laboratories and academia.
2Energy Efficiency & Renewable Energy eere.energy.gov
Geothermal Program: Key Goals and ObjectivesCreating ImpactGeothermal Program: Key Goals and Objectives Creating Impact
Increased Focus
• Identify New Geothermal Opportunities • Lowered risk and cost • New prospecting workflow
• EGS R&D and Field Lab • New techniques and technologies • Pathway to EGS success
• Regulatory Roadmaps and Optimization • Multi‐stakeholder involvement • Competitive with other energy sources
• Project Synergies • Co‐Production and Distributed Power • Strategic Resources
3Energy Efficiency & Renewable Energy eere.energy.gov
Geothermal Potential by 2030Pathway to GrowthGeothermal Potential by 2030 Pathway to Growth
Inst
alle
d C
apac
ity (G
We)
35
30
25
Existing Capacity
EGS
Blind Hydrothermal
Coproduced
Discovery Phase (GEA)
Confirmation Phase (GEA) Power Plant Construction Phase (GEA)
Program Focus
20
15
10
In the 5
pipeline
0 2006 2009 2012 2015 2018 2021 2024 2027 2030
Year
4Energy Efficiency & Renewable Energy eere.energy.gov
5Energy Efficiency & Renewable Energy eere.energy.gov
Low Temp Co-Production Hydrothermal EGS
Near Term Intermediate Long Term
Leverages O&G investment Sector Growth Transformation
10's-100's MW scale, aggregate
to several GW potential
10's GW additional potential
10's - 100's GW potential, but
high risk
Growing Interest, New Potential
Sector
Majority of the Private Sector
Fewer Players
Geothermal Program BalanceTransition from Near to Long TermGeothermal Program Balance Transition from Near to Long Term
CurrentTimeline
Distributed EnergyStrategy
100's KW toScale several MW scale
Local or Rural,Constituency Direct Use
Program Budget History(ARRA not shown)Program Budget History (ARRA not shown)
Dolla
rs in
Millio
ns
80
70
60
50
40
30
20
10
0 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 Actual FY13
Approp. Approp. Approp. Approp. Approp. Request
$65.0
$43.3 $43.1 $38.0 $37.8
$19.3
$5.0
EGS Low Temp and CoproducedInnovative Exploration Technologies Ground Source Heat PumpsSystems Analysis
6Energy Efficiency & Renewable Energy eere.energy.gov
Growth
Technology Barriers Potential Solution Set Goal
7Energy Efficiency & Renewable Energy eere.energy.gov
Growth
Challenges to Hydrothermal ExpansionTechnology and Engineering NeedsChallenges to Hydrothermal Expansion Technology and Engineering Needs
Resource Characterization Non-unique signals, hidden resources, cost, downhole tools limited by temperature
Reservoir Access Comparative lack of high performance drilling tools for large diameter, high-temperature, rock drilling, cost
Energy Conversion Improve efficiencies for lower temperatures, operation & maintenance, cost
New occurrence models
Rotary steering
Remote sensing
Advanced working fluids
Horizontal wells
Technology Barriers Potential Solution Set Goal
High temperature tools
Advanced seismic
Inverse techniques
Coproduction
Hydrothermal
EGSSuccess
Technology Barriers Potential Solution Set Goal
8Energy Efficiency & Renewable Energy eere.energy.gov
EGS Success
Challenges to EGS DevelopmentTechnology and Engineering NeedsChallenges to EGS Development Technology and Engineering Needs
Reservoir Access New well geometries and concepts, optimized drilling
Reservoir Creation Characterize local stress, zonal isolation, novel fracturing methods, increase fractured volume per well
Productivity Increase flow rates without excessive pressure needs or flow localization
Sustainability Maintain productivity with minimal thermal drawdown and water losses
Hard/Hot-rock drilling, completion technologies
Rotary steering
Zonal Isolation
Smart tracers
High-T sensors
Stress-field diagnostics
Cross-well monitoring
Diverter and Zonal Isolation Technologies
Horizontal wells
Technology Barriers Potential Solution Set Goal
Market Barriers Potential Solution Set Goal
9Energy Efficiency & Renewable Energy eere.energy.gov
Key Market BarriersMany Elements Unique to GeothermalKey Market Barriers Many Elements Unique to Geothermal
Permitting challenges A non-competitive process can doom projects
Data Access Creates more prospects, lower risk and cost, more efficient geothermal research and resource development
Financing Relatively small size of the Industry + perceived risk = project financing challenges
Grid Integration Solutions to supply geothermal electricity to the grid
Regulatory road-mapping Initiative, Programmatic EIS
National Geothermal Data Repository
Modeling
Demonstrations
Market reports
Working groups
Market Barriers Potential Solution Set Goal
A Clearer Pathway for Geothermal
DevelopmentTechno-economic analysis
10Energy Efficiency & Renewable Energy eere.energy.gov
Subprograms support one another Crosscutting Research
Select Program Accomplishments2011-2012Select Program Accomplishments 2011-2012
EGS Demonstrations • Geysers project ‐ 5 MW • Additional potential at this site.
Exploration: • ~100+ MW of new hydrothermal capacity
• 17 wells drilled in four states.
Mineral Extraction: • Simbol Materials: Lithium extraction plant groundbreaking
expected 2013
Co‐Production: • Deploying binary systems in new operating O&G fields.
Desert Peak, NV
Potter Drilling
Binary Unit
Polycrystalline Diamond Compact Drill Bit
11Energy Efficiency & Renewable Energy eere.energy.gov
Select Program Accomplishments (ctd)2011-2012Select Program Accomplishments (ctd) 2011-2012
National Geothermal Data System (NGDS): • An interoperable network of data from across all 50 states • Fully operational by FY 2014
Regulatory Roadmap: • Documenting regulatory process for eight states at the federal, state,
and county level. • Optimize permitting time, benefit to all stakeholders • Improves project costs, lessens investor risk
Induced Seismicity Protocol • Updated Induced Seismicity Protocol • Best Practices Document underway
• National Academy of Sciences: The geothermal community is a model to other subsurface energy industries for induced seismicity monitoring and mitigation
12Energy Efficiency & Renewable Energy eere.energy.gov
New Resource OpportunitiesFacilitate Industry Growth 2012-2014New Resource Opportunities Facilitate Industry Growth 2012-2014
Dwindling number of identified new
prospects
USGS estimates 30 GW hydrothermal and
100+ GW EGS undiscovered
Aggressively confirm and establish new resource
opportunities
Accelerated development of
geothermal potential
Goal • Lower risk and lower costs for exploration through early play and prospect analysis
Barriers • Lack of comprehensive geothermal occurrence models • Lacking exploration data in key areas
Progress to date • NREL completing an exploration data gap analysis (October, 2012)
• Based on current and incoming data to the NGDS and outreach to industry
Next steps • Assess data gathering needs • Perform prospect analysis akin to O&G play fairway analysis • Communicate results
13Energy Efficiency & Renewable Energy eere.energy.gov
EGS Field LabCreating and Optimizing ReservoirsEGS Field Lab Creating and Optimizing Reservoirs
Targeting: • Horizontal geothermal wells • Multi‐stage stimulations • Long term Hi‐T/Hi‐P tool and technique
testing
• Highly controlled modern R&D and data collection
Ideal Characteristics: Technical • Well characterized: 1‐2 prior wells • Hi T, some fractures, moderate
permeability and porosity
• Not too deep
Logistics • Existing or nearby infrastructure/assets • Permitting pathway
• Minimal on‐site facilities – NOT a long‐term, permanent
facility
14Energy Efficiency & Renewable Energy eere.energy.gov
2012 GTP Peer ReviewMay 7-11, Denver 2012 GTP Peer Review May 7-11, Denver
• 154 projects …and a job well done!
• 59 reviewers – industry, academia, national lab,
government and int’l
• New industry chair
• $299.7M in DOE investment (includes ARRA)
• $486.1M in total combined investment
2012 PEER REVIEW
EXCELLENCE AWARD U.S. Department of EnergyGeothermal Technologies
Office [And the Winner Is…]
• Final report by end 2012
15Energy Efficiency & Renewable Energy eere.energy.gov
2012 GTP Peer Review May 7-11, Denver
2012 PEER REVIEW EXCELLENCE AWARD
U.S. Department of Energy
Geothermal Technologies Office
James Faulds, University of Nevada, Reno
"Characterizing Structural Controls of EGS
and Conventional Geothermal Reservoirs”
16Energy Efficiency & Renewable Energy eere.energy.gov