THE POTENTIAL OF GEOTHERMAL ENERGY
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THE POTENTIAL OF GEOTHERMAL ENERGY A ONCE AND FUTURE FOCUS OF THE BUREAU OF ECONOMIC GEOLOGY
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THE POTENTIAL OF GEOTHERMAL ENERGY. A ONCE AND FUTURE FOCUS OF THE BUREAU OF ECONOMIC GEOLOGY. THE POTENTIAL OF GEOTHERMAL ENERGY Summary. An underestimated and largely untapped resource Not Geographically limited, as hydrothermal sites are Less costly than solar or wind, in ¢ per KWhr - PowerPoint PPT Presentation
Transcript of THE POTENTIAL OF GEOTHERMAL ENERGY
THE POTENTIAL OF GEOTHERMAL ENERGY
A ONCE AND FUTURE FOCUS
OF
THE BUREAU OF ECONOMIC GEOLOGY
Bruce L. Cutright
THE POTENTIAL OF GEOTHERMAL ENERGYSummary
An underestimated and largely untapped resource
Not Geographically limited, as hydrothermal sites are
Less costly than solar or wind, in ¢ per KWhr
Largest return on investment of R&D Dollars
Renewable, small footprint, negligible emissions BEG’s skills in reservoir characterization, flow modeling and
carbon sequestration are directly applicable to geothermal energy assessment and development.
Bruce L. Cutright
THE POTENTIAL OF GEOTHERMAL ENERGY
• Bureau of Economic Geology lead earlier studies during the late 1970s, 1980s and up to 1992 investigating the Geothermal Energy potential of the Northern Gulf of Mexico
Bebout, Loucks, Gregory 1978
Bruce L. Cutright
THE POTENTIAL OF GEOTHERMAL ENERGY
What Changed from 1980 to Today?
Advances in Drilling Technology that made 8 to 10km holes possible (polycrystalline diamond compact bits, slimhole drilling)
Advances in controlled fracture development that made “Engineered Geothermal Systems” practical
Advances in Binary-Cycle Heat Exchange Systems that made 100o C heat sources and up economical.
Bruce L. Cutright
• Leveraging the Past to Define the FutureThe basics:
Geology
Stratigraphy
Structural geology; fractures, stress fields
Fluid flow
Heat flow
Reservoir Characterization
Yield, Thermal Characteristics, Future Predictions
Reservoir Management, Restoration and Maintenance
Economics.
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THE POTENTIAL OF GEOTHERMAL ENERGY
• Critical Re-assessment:
DOE - MIT (2006) Study Found:
THE EXTRACTABLE RESOURCE BASE IS ESTIMATED AT 2,000 TIMES THE ANNUAL PRIMARY ENERGY CONSUMPTION OF THE UNITED STATES IN 2005.
OVER HALF OF THIS ENERGY IS
IN GEOPRESSURED ZONES IN THE NORTHERN GULF OF MEXICO
Sediment Thickness Map of US
Bruce L. Cutright
THE POTENTIAL OF GEOTHERMAL ENERGY
Table 1.1 Estimated U. S. Geothermal Resource Base to 10km Depth by Category
(Modified from "The Future of Geothermal Energy, MIT 2006)
Category of Resource
Thermal Energy, in ExaJoules (1EJ = 1018 J)
Thermal Energy in Barrels of Oil Equivalent
Hydrothermal 2.40E+03 9.60E+03 4.13E+11 1.65E+12
Co-Produced Fluids 9.44E-02 4.51E-01 1.62E+07 7.76E+07
Geopressured Systems 7.10E+04 1.70E+05 1.22E+13 2.92E+13
US Primary Energy Consumption (2008)
94.14 1.81E+10
COMPARISON OF FOSSIL FUEL EXTRACTABLE RESERVES TO GEOTHERMAL GEOPRESSURED/CO-PRODUCED FLUIDS EQUIVALENT ENERGY RESERVES
Source Estimate of Extractable Reserves Reference
Canadian Tar Sands 300 BBLSOE Edwards, 1997
Orinoco Heavy Oils 267 BBLSOE Edwards, 1997
Green River Shales 139 BBLSOE Edwards, 1997
U. S. Proven Reserves of Crude Oil 21.3 BBLSOE EIA 2008
Geothermal GeopressuredGeothermal Resources 29,200 BBLSOE Blackwell, 2006
Bruce L. Cutright
THE POTENTIAL OF GEOTHERMAL ENERGY
Comparison of the costs per kilowatt hour to generate electricity from alternative/renewable sources versus hydrocarbon sources
Upper and Lower Cost Range of Energy for Alternative Energy Sources, Expressed in Cents per KWhr
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1975 1980 1985 1990 1995 2000 2005 2010
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Costs, in Cents per KWhr, for Power Generation from Hydrocarbon Sources
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Geothermal is cost competitive with oil and natural gas and is less expensive than solar and wind. Only coal, without carbon tax costs, is less expensive than geothermalData from NREL in constant 2005 dollars
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What Our Partners are doing
• Chevron is the largest producer of geothermal energy in the world, with operations in Indonesia and the Philippines.
• US energy companies Unocal and Gulf Resources are willing to invest US$1.2 billion in geothermal and natural gas projects in the Philippines
Source: Chevron Geothermal
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What are our Industrial Partners Seeing?The Classical, but limited, hydrothermal/magmatic resource
• The world-leading geothermal energy company Reykjavik Energy (Orkuveita Reykjavikur) has established US$800 million in capital to invest in new geothermal projects
But these projects are hydrothermal sites that are limited in geographic extent.
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What Our Partners are doingBinary Cycle Rankine Engine
• Raser Technologies Hatch Geothermal Power Plant
• constructed in just six months• Modular power plant design.• Can produce power from
geothermal resources that were previously thought to be not hot enough for commercial power production.
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Five Year Stock Price TrendsORA = Ormat Technologies (geothermal)XOM = ExxonMobilCVX = ChevronBP = British Petroleum
What the Business is doing
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Why Geothermal?Why Now?
The Economics have changed geothermal is now cost-competitive with petroleum, and
lower cost than solar and wind.
The Resource Base has changed no longer only hydrothermal-magmatic but widely
distributed geothermal heat flow The extractable resource is 2000 times the annual demand
of the US.
The regulations have, or will change Favoring non-CO2 emitting energy sources
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Sponsored Research Opportunities
Geothermal Energy – Sponsored Opportunities
The American Recovery and Reinvestment Act: $350 million new investment in this technology.
• Geothermal Demonstration Projects = $140 Million• Enhanced Geothermal Systems Technology Research and
Development = $80 Million• Innovative Exploration Techniques = $100 Million. • National Geothermal Data System, Resource Assessment, and
Classification System = $30 Million Private funding opportunities for BEG, at this time, equal or
exceed the federal or state opportunities.
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The Bureau’s Immediate Opportunities$11.6 Million over 3 years
• Technology Interface System, $3.6 Million over 2 years
• Towards Field Testing of CO2 as Operating Fluid for EGS, $4.9 Million over 2 years
• Geothermal Energy from Coproduced Fluids, $452,791 for 1 yr. (potential for $MM over 5 years)
• Geothermal Energy From Geopressured Resources $361,191 for 1 yr. (potential for $MM over 5 yr)
• Geothermal Data Development, Collection and Maintenance, $2.28 Million over 3 years
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The Bureau’s Long Range Opportunities
• Everything we have learned about petroleum reservoir characterization, development and production is applicable to Geopressured / Geothermal Development
Streamline Modelingof Fluid Allocation Factors
3-D Geo-Model
Streamline Fluid Allocation Factors
Source: BEG and I-Reservoir, Inc.
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Where is the Cutting Edge?
Primary Focus is on Geopressured Zones having Thermal-Kinetic-Chemical Energy Content
Combining geothermal heat extraction using supercritical carbon dioxide Links geologic sequestration of CO2 with non-polluting,
renewable energy production Results in improvement of heat extraction efficiency by 40% to
180% (Pruess, K. 2006) Provides a methodology for coal fired power plants to recover
the energy penalty incurred in CO2 capture
Metal – Organic heat carriers (MOHC) offer
additional improvements in efficiency, at a cost.
Bruce L. Cutright
Flow tests at Cooper Basin EGS Site, Australia (Geodynamics, 2005)
Cooper Basin
Thank you
