Hot Rocks Downunder - PIRSA - SA.Gov.au
Hot Rocks Downunder - PIRSA - SA.Gov.au
Hot Rocks Downunder - PIRSA - SA.Gov.au
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Stage 1:<br />
This design<br />
makes walking<br />
impossible<br />
<strong>Hot</strong> <strong>Rocks</strong> <strong>Downunder</strong> –<br />
Evolution of a New Energy Industry<br />
Visit: www.pir.sa.gov.<strong>au</strong>/geothermal/ageg<br />
Stage 2:<br />
Yeah, possible<br />
but impractical<br />
Stage 3:<br />
Told you this<br />
would work!<br />
Barry Goldstein 1 , Tony Hill 1 , Alexandra Long 1 , Mike Malavazos 1<br />
Dr Anthony Budd 2 and Dr Bridget Ayling 2<br />
1. South Australian <strong>Gov</strong>ernment (<strong>PIR<strong>SA</strong></strong>) & AGEG Secretariat<br />
2. Geoscience Australia (Federal <strong>Gov</strong>ernment)
• Magmatic geothermal has a<br />
restricted distribution<br />
• <strong>Hot</strong> <strong>Rocks</strong> are everywhere<br />
at depth<br />
• Oil wells now reach > 10km<br />
• Geothermal power plants<br />
have the highest Capacity<br />
Factor of all renewable<br />
sources (can exceed 90%)<br />
Installed Production Capacity<br />
Fuel capacity per Year Factor<br />
GWe TWh/yr (%)<br />
Hydro 778 2,837 42<br />
Biomass 40* 183 52*<br />
Wind 59 106 21<br />
Geothermal 8.9 57 73<br />
Solar 4 5 14<br />
Total 890 3,188 41**<br />
<br />
>40 GW Biomass in WEC ‘07 Survey<br />
Weighted average.<br />
Worldwide active volcanoes and tectonic plates, USGS, 1997 – see<br />
http://vulcan.wr.usgs.gov/Glossary/PlateTectonics/Maps/map_quakes_volcanoes_plates.html<br />
Geothermal Capacity<br />
in 2008 = 10.3 GW<br />
U<strong>SA</strong><br />
3040MW<br />
Mexico<br />
958 MW<br />
Guatemala<br />
48 MW<br />
Costa Rica<br />
163 MW<br />
El Salvador<br />
204 MW<br />
Iceland<br />
421 MW<br />
Portugal<br />
23 MW<br />
Nicaragua<br />
87 MW<br />
France<br />
16 MW<br />
Germany<br />
7 MW<br />
Italy<br />
791 MW<br />
Kenya<br />
162 MW<br />
Austria<br />
1 MW<br />
Ethiopia<br />
7 MW<br />
From: Bertani, 2009 (in press). The possible role and contribution of geothermal energy<br />
TOTAL INSTALLED CAPACITY IN 2007 = 9.7 GW<br />
to the mitigation of climate change. IPCC Scoping Meeting on Renewable Energy<br />
Sources, Proceedings, Jan 2008.<br />
Turkey<br />
84 MW<br />
Indonesia<br />
1058 MW<br />
Taiwan<br />
3 MW<br />
Australia<br />
0,2 MW<br />
China<br />
24 MW<br />
Thailand<br />
0,3 MW<br />
Russia<br />
110 MW<br />
Japan<br />
535 MW<br />
Philippines<br />
1980 MW<br />
Papua<br />
New Guinea<br />
6 MW<br />
New<br />
Zealand<br />
550 MW
HOT ROCKS - Do you believe?<br />
• On average, world-wide, rocks at<br />
5,500m are >180°C e.g. <strong>Hot</strong> <strong>Rocks</strong><br />
T°C @ 5 km<br />
• Existing technologies enable drilling &<br />
completions to >200°C in most of the<br />
world<br />
• Emissions cap and trading will add to<br />
the cost of emissive power generation<br />
and make low emission technologies<br />
attractive<br />
If so – imagine the vast opportunities to<br />
tap amagmatic HOT ROCKS as a<br />
secure source of 24/7 emissions-free<br />
electricity for centuries to come<br />
> 200°C<br />
125 – 200<br />
50 - 125 6 km<br />
5 km<br />
Current oil & gas well drilling records:<br />
• BP: 10,683m well depth in 1,786m water<br />
• Maersk Oil: 12,290m well length in Qatar
Why <strong>Hot</strong> <strong>Rocks</strong> in Australia?<br />
Temperature at 5 km, Somerville et al. (1994)<br />
>200°C @ < 3,500m in some locations in Australia<br />
Below Ground Factors<br />
• Extensive radiogenic basement at<br />
modest depths (heat source)<br />
• Australia converging with New Guinea –<br />
giving rise to horizontal compression<br />
and common naturally occurring<br />
horizontal fractures (reservoir)<br />
• Sedimentary cover (insulators) for hot<br />
sedimentary aquifer & hot rock EGS<br />
targets<br />
Above Ground Factors<br />
• Land access and title to resources<br />
• <strong>Gov</strong>ernment stimulus for low emissions<br />
and renewable energy R, D, D & D<br />
• Market recognition of comparative<br />
advantages – extensive, exploitable hot<br />
rocks<br />
• Political will to attain energy security &<br />
mitigate risks of climate change<br />
• Investors perceptions of risk: reward<br />
• Growth in energy demand
Evidence<br />
Thermally Anomalous Granites<br />
Courtesy of Richard Hillis –<br />
University of Adelaide<br />
‘Typical’ granite heat production: 2.65 μWm<br />
-3<br />
UK HHP (High Heat Production) Granites:<br />
• Cornubian granites: 3.7-5.3<br />
μWm<br />
-3<br />
• Grampians granites: 4.7-7.8<br />
7.8 μWm<br />
-3<br />
• Lake District granites: 3.5-4.9<br />
μWm<br />
-3<br />
Big Lake Suite<br />
(Australia -<br />
Cooper Basin)<br />
11 μWm -3 Box Bore Granite<br />
(Australia –<br />
Mt Painter Area)<br />
22 μWm -3 Yerila Granite<br />
(Australia –<br />
Mt Painter Area)<br />
62 μWm -3
Engineered Geothermal Systems - Plan View, Same Scale<br />
Australian<br />
Cooper Basin<br />
EGS > 4x’s than<br />
attained<br />
elsewhere<br />
Epicenters of stimulated fracture growth<br />
~ 1 km<br />
~ 1.2 km<br />
~ 1 km<br />
Rosemanowes<br />
Cornwall, UK<br />
1984-91<br />
~ 1.5 km<br />
~ 3 km<br />
Habanero 1, 2 & 3<br />
South Australia<br />
2005- ongoing<br />
Fenton Hill,<br />
Los Alamos<br />
U<strong>SA</strong> 1970-95<br />
500 metres<br />
EGS Trials (Displayed)<br />
• Fenton Hill, U<strong>SA</strong>: 70 –95<br />
• Fjalbacka, Sweden: 84 - 88<br />
• Rosemanowes, UK : 84 - 91<br />
• Hijiori, Japan: 85 - 00<br />
• Soultz, France: 87 – Current<br />
Soultz,<br />
France<br />
Since 1987<br />
Courtesy of<br />
Doone Wyborn – Geodynamics<br />
• Ogachi, Japan: 89 - 00<br />
• Habanero, Australia: Current<br />
• Bad Urach, Germany: Current<br />
• Basel, Switzerland: Abeyance<br />
• Land<strong>au</strong>, Germany: Current
<strong>Hot</strong> Rock Geothermal Energy Development Will Be<br />
A Partial Solution For Energy Security and Reducing Emissions<br />
Desire for<br />
Energy<br />
Security &<br />
Reduced<br />
Emissions<br />
+<br />
Vast natural<br />
endowment in<br />
high heat<br />
producing<br />
Continent-scale<br />
compressive<br />
tectonics good for<br />
efficiently<br />
Supportive<br />
government<br />
programs &<br />
investment /<br />
+ + engineering<br />
regulatory +<br />
crustal rocks<br />
geothermal systems<br />
frameworks<br />
Risk-wise<br />
investors<br />
and<br />
experienced<br />
explorers<br />
=<br />
Australian <strong>Hot</strong> Rock & <strong>Hot</strong> Sedimentary Aquifer Projects<br />
Expenditure<br />
Aus$ Million<br />
$1,600<br />
- US$ 1250 Mln<br />
$1,400<br />
$1,200<br />
- US$ 1000 Mln<br />
$1,000<br />
- US$ 750 Mln<br />
$800<br />
$600 - US$ 500 Mln<br />
$400<br />
- US$ 250 Mln<br />
$200<br />
$0<br />
Geothermal<br />
Leases & Applications<br />
450<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013<br />
Data to 1 Oct 2009<br />
Forecast<br />
400<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Drivers: Needs, Endowment, Frameworks & People<br />
• US$98 Mln in government grants through Sept 2009<br />
• 48 companies exploring for hot rocks and hot aquifers<br />
• 17 ASX-listed Geothermal Licences holders.<br />
• 386 licences covering.360,000 km 2 on a variety of plays<br />
• US$1,300 Mln 2002-13 for exploration (excl. deployment)<br />
• Australian Geothermal Energy Group – Sharing information<br />
• Australia Geothermal Energy Association – industry’s voice<br />
• Member - IEA Geothermal Implementing Agreement<br />
• Member - International Partnership for Geothermal Tech.<br />
• Geothermal Industry Development Framework l<strong>au</strong>nched<br />
• National 20% by 2020 renewable energy target<br />
• National emissions cap and trade scheme proposed
<strong>Hot</strong> Rock & <strong>Hot</strong> Sedimentary Aquifer Plays in South Australia (30 Sep 09)<br />
• Generalised play ingredients: Amagmatic<br />
conductive heat source, reservoir and<br />
insulating cover combine to provide adequate<br />
flow rates with sufficient heat energy to<br />
economically meet markets<br />
• South Australia attracted 97% of geothermal<br />
work program investment and 70% of all<br />
Geothermal Licences in Australia to YE 2008<br />
• 28 companies in the hunt for HR and H<strong>SA</strong><br />
plays in 273 licences covering >126,886 km 2<br />
Sedimentary cover<br />
(insulators) over<br />
basement<br />
South Australian<br />
Heat Flow Anomaly<br />
Geodynamics<br />
Petratherm <br />
Geothermal Resources<br />
Green Rock<br />
Torrens Energy<br />
Eden Energy/Terratherma<br />
Panax / Osiris Energy <br />
Pacific Hydro<br />
Teck Cominco<br />
Granite Power<br />
Gradient Energy (Planet Gas )<br />
AGL (w/Torrens Energy)<br />
TRUenergy (w/ Petratherm)<br />
Tata Power (w/ Geodynamics)<br />
ASX Listed International SX Listed<br />
Tri-Star Energy<br />
Clean Energy Australasia<br />
Origin Energy <br />
Callabonna<br />
Deep Energy<br />
Inferus (Southern Gold)<br />
A-B-L-R Joint Venture<br />
AAA Energy<br />
Earth Heat<br />
New World Energy<br />
Near Surface Geothermal<br />
Stuart Petroleum <br />
Beach Petroleum <br />
High Voltage Grid<br />
Potential mining developments may be<br />
new markets for geothermal
Geodynamics/Origin/Tata Power/Sentient-SunSuper (HR)<br />
‣ 2003-5: Proved flow of geothermal energy with Habanero 1 & 2<br />
‣ 2007-9: Habanero 1 - 3 closed loop flow, Jolokia 1 & Savina 1 drilled.<br />
‣ Next: Two more deep wells, 1 MW deployment. Decision to upscale 2010/11<br />
Petratherm/Beach Petroleum/TRUenergy (HR)<br />
‣ 2005-7: Drilled Yerila and Paralana, deepened Paralana & recorded MT + seismic<br />
‣ Next: Now drilling Paralana 2 to 4000m. Then Paralana 3<br />
Geothermal Resources (HR)<br />
2007-9: drilled 8 Frome area wells up to 1809m depth<br />
‣ Next: Drill deep wells in the Frome area<br />
Green Rock Energy (HR)<br />
‣ Drilled and Mini-Frac’d – Blanche 1 to 1935m<br />
‣ Next: Optimise plans for a deep well<br />
Torrens Energy/AGL (HR)<br />
‣ 2007-9: 20 wells north of Adelaide and Port Augusta.<br />
Parachilna holes to 1807m. Pt Augusta seismic survey<br />
‣ Next: Drill deep Parachilna wells & Pt Augusta expl. holes<br />
Inferus Resources (Southern Gold) (HR)<br />
2008: Measured temperatures to 1 Km<br />
‣ Next: Drill two deep wells in the Roxby project area<br />
Eden Energy (HR)<br />
‣ Drilled Chowilla 1 in Renmark region<br />
‣ Now assessing options<br />
Geothermal Drilling &<br />
Geophysical Surveys to YE 09<br />
1000 km<br />
Geothermal wells<br />
Geothermal Licences<br />
GEL Application Area<br />
Acreage Open for Bids<br />
Several others plan<br />
geothermal drilling<br />
in the term 2010-13<br />
HR =<br />
<strong>Hot</strong> Rock play<br />
H<strong>SA</strong> =<br />
<strong>Hot</strong> Sedimentary<br />
Aquifer Play<br />
Panax Geothermal (H<strong>SA</strong>)<br />
2006 – 3 wells to 500m depth and an MT survey in SE <strong>SA</strong><br />
‣ Next – Drill deep, 4000m well (Salamander 1) in 2009<br />
<strong>Hot</strong> Rock Ltd (H<strong>SA</strong>)<br />
‣ Target defined<br />
‣ Next: Drill 2 deep Koroit wells in 2010<br />
Greenearth Energy Ltd (H<strong>SA</strong>)<br />
‣ Target defined<br />
‣ Next –Drill 2 deep wells in Geelong area in 2010<br />
KUTh Energy Ltd (HR)<br />
‣ 36 shallow holes + MT + aeromag.<br />
‣ Next: Deep drilling in 2010
Path to Commercialising <strong>Hot</strong> <strong>Rocks</strong>: Expl. – Proof of Concept – Demo – Develop<br />
Min A$M Max A$M<br />
Pre-drill studies: 0.05 0.50+<br />
Shallow drilling: 0.20 3.00+ (multi-well)<br />
Deep Drilling: 6.00 15.00+<br />
Frac 1 st Well: 1.00 2.00+<br />
2 nd Deep Well: 6.00 15.00+<br />
Frac 2 nd Well : 1.00 2.00+<br />
Extended Flow Test: 1.00 2.00+<br />
AUD$15M+ AUD$40M+<br />
US$13M+ US$34M+<br />
<strong>SA</strong> PACE 1 Grants<br />
Rough costs through<br />
to proof-of-concept<br />
REDI 2 / GDP 3 Grants<br />
REDP 3 Grants<br />
Binary, Closed-Loop System<br />
After Geodynamics, ‘03<br />
REDP 3 Grants<br />
AGEG Technical Interest Groups (Uni’s, G’ment, Industry) = Team Australia for International Partnerships<br />
Research Grants to<br />
Address Sector’s<br />
Shared Uncertainties<br />
Pre-competitive Demonstration<br />
of <strong>Hot</strong> Rock Power Production<br />
from circa 40 MWe Electricity<br />
Generation Plant<br />
Aus$200 M+ per 40MWe<br />
Studies / Modelling<br />
A$50k - A$250k+<br />
Qld: Aus$15 Mln for U Qld<br />
WA: Aus$2.3 Mln for UWA<br />
<strong>SA</strong>: ~ Aus$0.3 Mln pa to<br />
support geothermal<br />
research. More to<br />
come<br />
Shallow Drilling<br />
to Optimise<br />
Deep Drilling<br />
AUS$100 - 300k+<br />
Per shallow well<br />
Deep Drilling<br />
to Prove<br />
<strong>Hot</strong> Rock<br />
Reservoirs Exist<br />
AUS$6 - $15+ M<br />
per deep well<br />
Fed. GDP: $50 Ml<br />
(US$35 M)<br />
Proof-of-Concept<br />
Flow Tests to Prove<br />
MWs of <strong>Hot</strong> Rock<br />
Power Production<br />
AUS$ Costs:<br />
$6-$15+ M / well x 2<br />
$1- $2+ M / frac x 2<br />
$1 - $2+ M flow test<br />
Aus$15 - Aus$40+ M<br />
Australian Fed. G’ment Underpinnings:<br />
- Onshore Energy Security Initiative<br />
- Geothermal Industry Development Framework<br />
- Roadmap for Geothermal Technologies<br />
- Research & Demo $ for CleanTech<br />
- Emissions reduction targets (Cap & Trade)<br />
- Renewable Energy Credits<br />
- Reform of regulated grid rules (sought)<br />
- Flow thru share scheme (sought)<br />
- National feed-in schemes (sought)<br />
- R&D $s to reduce critical impediments (sought)<br />
1. Plan to ACelerate Exploration 2. Renewable Energy Development Initiative 3 Renewable Energy Demo. Program (Aus$50Mln for deep drilling + Aus$435Mln for pre-competitive demo.)
Geothermal field-sizes appear to approximate a log normal distribution<br />
Goldstein, et al, 2009 - Analysis undertaken for IPCC Special Report<br />
on Renewable Energy. Published in the Proceedings of the Geothermal<br />
Resource Council Conference, October 2009
<strong>Hot</strong> Rock Materiality<br />
World land area (135,385,500 sq km) as ratio<br />
to U<strong>SA</strong> land area (9,629,091 sq km) = 14.1<br />
X<br />
Swanson's Mean (31,561 MWe)<br />
=<br />
Unrisked 443,750 MWe potential deployment<br />
of EGS-fueled electricity world-wide by 2050.<br />
Broad assumptions:<br />
• Ln distribution for usable EGS endowment<br />
• 10 MWe is a conservative P99 (certainty) for<br />
deployed EGS in the world by 2050<br />
• MIT (2006) 100,000 MWe from EGS in the U<strong>SA</strong><br />
for base-load markets is a conservative P10<br />
(certainty) for deployed EGS in the world by<br />
2050<br />
• 90% CF for base-load power from EGS<br />
• Average geology in the US are roughly as<br />
variable as average world land areas<br />
• Given sufficient investment, expected EGS by<br />
2050:<br />
‣ 45,000 MWe with 10% chance of success;<br />
‣ 90,000 MWe with 20% chance of success;<br />
‣ 130,000 MWe with a 30% chance of success<br />
Conclude: 90,000 to 130,000 MWe is a realistic<br />
expectation for deployment of EGS by 2050.
<strong>Hot</strong> Rock & <strong>Hot</strong> Sedimentary Aquifer Materiality<br />
U<strong>SA</strong><br />
MIT for the DoE<br />
Australia<br />
Geoscience Australia<br />
Australia<br />
Australia Geothermal<br />
Energy Association<br />
Australia<br />
Electricity Supply<br />
Assoc. of Australia<br />
280 Mln PJ if just 2% of stored heat<br />
from 3 to 10 km is usable (2,800 yrs<br />
of U<strong>SA</strong>’s power use in 2005).<br />
100,000 MWe hot rock power in U<strong>SA</strong><br />
by 2050<br />
380 Mln PJ if 2% of stored heat from<br />
150°C to 5 km is usable (52,000 yrs<br />
of Australia’s power use)<br />
Australian rocks are hot!<br />
Up to 2,200 MW of Australia’s baseload<br />
capacity by 2020<br />
6.8% (5,500 MW) of Australia's<br />
base-load by 2030<br />
Expect 90 to 130 GWe from EGS by 2050<br />
Geodynamics<br />
(GDY)<br />
Petratherm<br />
(PTR)<br />
Panax<br />
(PAX)<br />
270,000 PJ (defined) plus 100,000 PJ (inferred) to fuel > 10,000 MW of emissions-free power<br />
from <strong>Hot</strong> Fractured Rock in <strong>SA</strong> Cooper Basin licenses<br />
20 sq km x 1 km thick <strong>Hot</strong> Rock @ average 200°C in Paralana (Flinders Range) Heat Exchange<br />
Within Insulator Play will suffice to fuel 520 MW over 25 years<br />
2,674 km sq in the <strong>Hot</strong> Sedimentary Aquifer (H<strong>SA</strong>) play in the Otway Basin has potential to<br />
generate > 1,500 MWe.
<strong>Hot</strong> Rock & <strong>Hot</strong> Sedimentary Aquifer Materiality<br />
The <strong>Hot</strong> Rock industry needs long-life well tubulars<br />
(longevity 25 – 30 years). Expect 90 to 130 GWe from EGS by 2050<br />
5.5 GW by 2030 per E<strong>SA</strong>A<br />
(5500/50) x 4,500 to 5,000<br />
average depth x<br />
(9 to 15 wells) =<br />
4. 5 to 8.3 million metres pipe<br />
10 GW from Cooper per<br />
Geodynamics<br />
(10,000/50) x 4,500 to 5,000<br />
average depth x<br />
(9 to 15 wells) =<br />
8.1 to 15 million metres pipe
Aligned International Research Priorities for EGS<br />
• Share knowledge & drive complementary<br />
research<br />
• Standard geothermal resource & reserve<br />
definitions<br />
• Predictive production modelling<br />
• Predictive reservoir and stress field<br />
characterisation<br />
• Mitigate induced seismicity / other HAZOPS<br />
• Cooling condensers for hot, dry climates<br />
• Use of CO 2 as a working fluid for heat exchange<br />
• Improve power system efficiency<br />
• Education / training<br />
• Technologies & methods to minimise water use<br />
• Exploration technologies to predict heat flow and<br />
reservoirs ahead of the drill bit<br />
• Improved / revolutionary High-T hard<br />
rock drilling equipment<br />
• Improved High-T zonal isolation<br />
• Reliable High-T / High Rate pumps for<br />
modest hole diameter<br />
• Enable well longevity (20-30 year life<br />
for casing, cement, etc)<br />
• Optimum High-T fracture stimulation<br />
methods<br />
• High-T logging tools and sensors<br />
• High-T flow survey tools<br />
• High-T fluid flow tracers<br />
• Mitigation of formation damage, scale<br />
and corrosion<br />
High-T: high temperature & high pressure<br />
Also R&D priorities for petroleum industry
Australian Geothermal Energy Group Vision<br />
Geothermal resources to provide<br />
the lowest cost emissions-free<br />
renewable base load and direct<br />
use energy for centuries to come.<br />
• Currently 101 members and growing<br />
• Membership includes all companies with Australian<br />
geothermal licences, service companies, eleven<br />
Australian universities, and all key Federal, State<br />
and Northern territory government agencies with a<br />
role in upstream energy policy, geothermal licence<br />
regulation and geothermal investment attraction<br />
http://www.pir.sa.gov.<strong>au</strong>/geothermal/ageg
Australian Geothermal Energy Group (AGEG) Members<br />
http://www.pir.sa.gov.<strong>au</strong>/geothermal/ageg<br />
AGEG’S VISION: Geothermal resources to provide the lowest cost emissions- free,<br />
renewable base load and direct-use energy for centuries to come.<br />
11 Sept 09<br />
ASX-Listed (Code)<br />
Company Members<br />
1. AGEA (Industry Group)<br />
2. 3-D Geo<br />
3. A1 Thermal Systems<br />
4. AAA Energy<br />
5. ACILTasman<br />
6. Activated Logic<br />
7. AGL (AGL)<br />
8. Air International - Thermal Systems<br />
9. Balance Energy<br />
10. Beach Petroleum (BPT)<br />
11. BurnVoir Corporate Finance<br />
12. Callabonna Energy<br />
13. Clean Energy Australasia<br />
14. Deep Energy<br />
15. Earth Heat<br />
16. Earth Solar Power<br />
17. Earthinsite<br />
18. E-Connect<br />
19. Eden Energy (EDE) (Terratherma is a subsid.)<br />
20. Electranet<br />
21. Encom Technology<br />
22. Energycore<br />
23. Ergon Energy - owned by the Qld G’ment<br />
24. Ernst & Young<br />
25. Finlaysons<br />
26. FrogTech<br />
27. Geodynamics (GDY)<br />
28. Geogen<br />
29. Geopower<br />
30. Geothermal Advisory Pty Ltd<br />
31. Geothermal Resources (GHT)<br />
32. GHD<br />
33. Google (NASDAQ) -RE
AGEG organizational structure & linkages to national and international geothermal fora<br />
To be modified as the focus of AGEG Technical Interest Groups may change<br />
Australian Geothermal Energy Group (AGEG) Technical Interest Groups (TIGs)<br />
TIG Participants are people representing themselves or AGEG Member organisations or non-AGEG member organisations with aligned interests<br />
Communication, Consultation and<br />
Community Issues<br />
Land access<br />
Include seismic<br />
risk,<br />
sustainability,<br />
consultation<br />
Reserves &<br />
Resources<br />
AGEG-AGEA<br />
Reporting Code<br />
Committee<br />
Policy<br />
AGEA<br />
provides<br />
industry<br />
positions<br />
Outreach<br />
Includes<br />
conferences<br />
& webpostings<br />
Getting to Markets<br />
Includes economic<br />
models and cost<br />
benchmarks. AGEA<br />
provides positions on<br />
National Electricity<br />
Market<br />
AUSTRALIAN PARTNERSHIP FOR GEOTHERMAL TECHNOLOGIES (APGT)<br />
a Joint Venture of the<br />
Australian Geothermal Energy Group (AGEG - Industry, <strong>Gov</strong>ernment & Research Organisations)<br />
and the Australian Geothermal Energy Association (AGEA - the peak industry representative body)<br />
Power Plants Direct Use Information<br />
Drilling and Well<br />
& Data<br />
Construction<br />
Includes<br />
- CO 2 cycles<br />
- Efficiency<br />
- Condensers for<br />
hot, dry climates<br />
Foci include<br />
ground-source<br />
pumps, other<br />
heating, cooling<br />
& novel nonelectric<br />
uses<br />
- Databases<br />
- Standards<br />
- Accessibility<br />
- Lexicon<br />
- etc<br />
Reservoir<br />
development &<br />
engineering<br />
Foci include reservoir<br />
characterisation,<br />
reservoir modelling,<br />
geochemistry and<br />
reservoir stimulation<br />
Exploration &<br />
Well Log<br />
Technologies<br />
Foci include<br />
geophysical<br />
methods, pre-drill<br />
play prediction &<br />
high T logging<br />
Foci include temp.<br />
fracture sealing, zonal<br />
isolation, packers,<br />
pumps and excl well<br />
logs & stimulation<br />
Education<br />
Includes courses,<br />
lectures, content for<br />
curriculum, student<br />
work experience and<br />
international postgrad<br />
exchange<br />
TIG # 1 TIG # 2 TIG # 3 TIG # 4 TIG # 5 TIG # 6 TIG # 7 TIG # 8 TIG # 9 TIG # 10 TIG # 11 TIG # 12<br />
Technology and Methodology Research with:<br />
• Companies (Australian and International)<br />
• Australian Geothermal Energy Association<br />
• International Energy Agency Geothermal Implementing<br />
Agreement<br />
• International Partnership for Geothermal Technologies (IPGT)<br />
• International Geothermal Association; and<br />
• Geothermal research centres / key universities<br />
• Other National and International fora<br />
Linkages designed to foster the sharing of<br />
information – including but not limited to:<br />
Lower cost drilling<br />
Zonal isolation<br />
High temp. logging<br />
Seismic risk<br />
Pumps<br />
Temporary sealing<br />
Air cooling<br />
Education<br />
Novel geo-fluids and cycles<br />
Exploration technologies<br />
Stimulation methods<br />
Reservoir modelling / characterisation<br />
Reduce plant costs<br />
Rock – water interaction<br />
Reduce exploration costs<br />
Database and data access<br />
Direct use
Progress is Measurable<br />
Metrics December 2007 September 2009<br />
Geothermal Licences 232 in Australia (198,000 km 2 )<br />
Companies<br />
Geothermal Licence<br />
holders listed on ASX<br />
190 in <strong>SA</strong> (110,000 km 2 )<br />
31 Australia-wide<br />
21 in South Australia<br />
9 Australia-wide<br />
6 with equity in <strong>SA</strong> Licences<br />
$ Invested Aus$209 million in Australia (YE 07)<br />
Forecast $ 2002-12<br />
Aus$207 million (99%) in <strong>SA</strong> (YE 07)<br />
Aus$811 million Australia-wide<br />
Aus$651 million in South Australia<br />
<strong>Gov</strong>ernment Grants Aus$48.2 million Australia-wide Note 1<br />
Aus$29.4 million i(61% n <strong>SA</strong><br />
Note 1 Qld’s $15 million grant for a<br />
geothermal research centre was part of<br />
the Australia-wide tally<br />
391 in Australia (362,000 km 2 )<br />
279 in South Australia (130,000 km 2 )<br />
48 Australia-wise<br />
28 in South Australia<br />
17 Australia-wide<br />
12 have equity in <strong>SA</strong> Projects<br />
Aus$325 million in Australia (YE 08)<br />
Aus$316 million (97%) in <strong>SA</strong> (YE 08)<br />
Aus$1,528 million Australia-wide<br />
Aus$883 million in South Australia<br />
Aus$114 million Australia-wide Note 2<br />
Aus$56.1 million in <strong>SA</strong> (73% of grants<br />
offered to 5 Aug 2009)<br />
Note 2 Aus$35 million of GDP yet to be<br />
awarded abd this tally excludes $435<br />
REDP open for all forms of renewables<br />
bar solar<br />
Download AGEG-AGEA Geothermal Reserve & Resource Code:<br />
www.pir.sa.gov.<strong>au</strong>/geothermal/ageg/geothermal_reporting_code<br />
69% ⇑<br />
47% ⇑<br />
55% ⇑<br />
33% ⇑<br />
89% ⇑<br />
100% ⇑<br />
55% ⇑<br />
53% ⇑<br />
88% ⇑<br />
36% ⇑<br />
136% ⇑<br />
91% ⇑
Progress is Measurable<br />
Metrics December 2007 August 2009<br />
Proof-of-Concept Projects None in Australia<br />
Geodynamics has proved EGS in the<br />
South Australian Cooper Basin in 2008<br />
(5 wells in 3 areas)<br />
Forecast Proof-of-Concept by<br />
2012<br />
Projects with Drilling<br />
=>3<br />
(shallow and deep)<br />
Forecast demo by 2012 At least 3 geologic<br />
settings<br />
Australian Geothermal Energy<br />
Group Members<br />
Petratherm drilling Paralana (South<br />
Australia) and Panax will use same rig to<br />
drill Salamander (South Australia) in 2009<br />
Could have proof at 3 locations in 2010<br />
5 (all in South Australia) 10 (8 in South Australia)<br />
55 (including 39<br />
companies<br />
Geothermal Research Centres 1 (U Queensland) 4<br />
Geodynamics, Petratherm & Greenearth<br />
have applied-for REDP grants to be<br />
determined in 2009<br />
100 (including 81 companies)<br />
AGEA evolved from AGEG TIG<br />
(U Queensland, U Adelaide, U Melbourne<br />
and U West Australia)<br />
Download AGEG-AGEA Geothermal Reserve & Resource Code:<br />
www.pir.sa.gov.<strong>au</strong>/geothermal/ageg/geothermal_reporting_code<br />
1 of 3 ⇑<br />
50% ⇑<br />
Grants<br />
appliedfor<br />
83% ⇑<br />
300% ⇑
Milestones Ahead on the Road to the Vision –<br />
Commercialised Geothermal Energy<br />
1. Several successful research (exploration) and proof-of-concept (heat<br />
energy is flowed) geothermal projects. At least 10 by 2012/13<br />
2. Several Geothermal power generation demonstration projects in<br />
distinctively different geologic settings. At least 3 by 2012/13<br />
3. Compelling success with geothermal power generation demonstration<br />
so the investment community is convinced geothermal energy is real.<br />
By 2012/13<br />
4. Safe, secure, reliable, competitively priced, renewable and emissionsfree<br />
base load power and direct use from geothermal energy for<br />
centuries to come. At least 7% of base-load demand from hot rock<br />
power by 2030. More than 10% by 2050. Direct use widely<br />
deployed
<strong>Hot</strong> <strong>Rocks</strong> <strong>Downunder</strong> –<br />
Evolution of a New Energy Industry<br />
GO TO<br />
AUSTRALIA<br />
EXPLORE<br />
BINGO<br />
SORTED<br />
Barry Goldstein 1 , Tony Hill 1 , Alexandra Long 1 , Mike Malavazos 1<br />
Dr Anthony Budd 2 and Dr Bridget Ayling 2<br />
1. South Australian <strong>Gov</strong>ernment (<strong>PIR<strong>SA</strong></strong>) & AGEG Secretariat<br />
2. Geoscience Australia (Federal <strong>Gov</strong>ernment)
Background Slides
In 2009 - AGEG:<br />
- join the IGA as Australia’s affiliate<br />
- align TIGs with the IPGT<br />
(already aligned with the GIA)<br />
2009 AGEG-AGEA Geothermal Energy Conference<br />
Brisbane, 10-13 November 2009<br />
www.impactenviro.com.<strong>au</strong>/<strong>au</strong>sgeothermal<br />
AGEG-AGEA Geothermal Reserve & Resource Code:<br />
www.pir.sa.gov.<strong>au</strong>/geothermal/ageg/geothermal_reporting_code<br />
Barry A. Goldstein<br />
Director - Petroleum & Geothermal, <strong>PIR<strong>SA</strong></strong><br />
Chair – Australian Geothermal Energy Group<br />
Visit: http://www.pir.sa.gov.<strong>au</strong>/geothermal<br />
For details of the AGEG Visit:<br />
www.pir.sa.gov.<strong>au</strong>/geothermal/ageg
State & Territories <strong>Gov</strong>ernment Stewardship (21 Sept 09)<br />
1000 km<br />
JURISDICTION RESPONSIBILITIES:<br />
Onshore: States & the Northern Territory<br />
Offshore: Federal legislation applies with mirror<br />
legislation for near-shore State/NT waters<br />
Relevant State Legislation<br />
South Australia<br />
Petroleum & Geothermal Act 2000<br />
Victoria<br />
Geothermal Energy Resources Act 2005<br />
Queensland<br />
Geothermal Exploration Act 2004<br />
New South Wales<br />
Mining Act, 1992<br />
Tasmania<br />
Mineral Resources Development Act, 1995<br />
Western Australia<br />
Petroleum & Geothermal Resources Act 1967<br />
Northern Territory<br />
Draft Geothermal Energy Act<br />
Expected to be legislated in 2009
<strong>Gov</strong>ernment Support for Australian Geothermal Projects<br />
Ratio Grant Date Recipient Project A$ Amount<br />
$:$ Fed. RECP 2000 Pacific Power/ANU Hunter Valley Geothermal $790,000<br />
$:$ Fed. REEF 2002 Geodynamics Habanero Project $1,800,000<br />
$:$ Fed. START 2002 Geodynamics Habanero Project $5,000,000<br />
$:$ Fed. GGAP Mar-05 Geodynamics Kalina Cycle (13 MW) from waste heat, WA $2,080,000<br />
$:$ PACE 2 Apr-05 Petratherm Paralana, <strong>SA</strong> $140,000<br />
$:$ PACE 2 Apr-05 Scopenergy Limestone Coast, <strong>SA</strong> $130,000<br />
$:$ PACE 2 Apr-05 Eden Energy Witchellina Project, <strong>SA</strong> $21,000<br />
100% of cost <strong>SA</strong> Grant Jun-05 U of Adelaide Induced seismicity, Cooper Basin $50,000<br />
$:$ Fed. REDI Dec-05 Geodynamics Cooper Basin, <strong>SA</strong> $5,000,000<br />
$:$ Fed. REDI Dec-05 Scopenergy Limestone Coast, <strong>SA</strong> $3,982,855<br />
100% of cost <strong>SA</strong> Grant Dec-05 Geodynamics Cost: benefit of EGS to reduce emissions $40,000<br />
$:$ <strong>SA</strong> PACE 3 Dec-05 Geothermal Resources Curnamona Project, <strong>SA</strong> $100,000<br />
$:$ <strong>SA</strong> PACE 3 Dec-05 Green Rock Olympic Dam Project, <strong>SA</strong> $68,000<br />
$:$ Fed. REDI Jul-06 Geothermal Resources Frome Geothermal Project $2,400,000<br />
$:$ Fed. REDI Dec-06 Proactive Energy Supercritical power cycles $1,224,250<br />
$:$ <strong>SA</strong> PACE 4 Dec-06 Torrens Energy Heatflow expl., Adelaide Geosyncline $100,000<br />
$:$ <strong>SA</strong> PACE 4 Dec-06 Eden Energy Renmark Project, <strong>SA</strong> $100,000<br />
$:$ <strong>SA</strong> PACE 4 Dec-06 Geodynamics High Temp. borehole imaging, Cooper Basin $100,000<br />
$:$ Fed. REDI Feb-07 Petratherm Ltd Paralana Project, <strong>SA</strong> $5,000,000<br />
$:$ <strong>SA</strong> Grant May-07 U of Adelaide Induced seismicity protocols – <strong>SA</strong> $50,000<br />
$:$ <strong>SA</strong> Grant Jun-07 U of Adelaide AGEG Research $250,000<br />
$:$ Fed. REDI Aug-07 Torrens Energy 3D modelling, hot rocks,, <strong>SA</strong> $3,000,000<br />
$:$ Qld Grant Oct-07 U of Queensland Qld Geothermal Research Centre $15,000,000<br />
$:$ Fed. REDI 2008 KUTh Tamar Conductivity Zone $1,800,000<br />
$:$ <strong>SA</strong> PACE Feb-08 Petratherm Shear wave splitting for <strong>Hot</strong> Rock exploration $100,000<br />
$:$ <strong>SA</strong> PACE Feb-08 Torrens Energy 2D seismic, Adelaide Plains $100,000<br />
$:$ WA Grant Mar-08 U of WA WA Geothermal Research Centre $2,300,000<br />
$:$ <strong>SA</strong> Grant Jun-08 U of Adelaide AGEG Research $250,000<br />
$:$ NSW Dec-08 Geodynamics Drilling in Hunter Valley $10,000,000<br />
100% of cost <strong>SA</strong> Grant 2Q-09 U of Adelaide Remote EGS Use to Produce Syn-fuel & $10,000<br />
$:$ Fed GDP Apr-09 Petratherm Ltd Fed Geothermal Drilling Fund - Paralana, <strong>SA</strong> $7,000,000<br />
$:$ Fed GDP Apr-09 PANAX Geothermal Fed Geothermal Drilling Fund - Penola, <strong>SA</strong> $7,000,000<br />
$:$ <strong>SA</strong> Grant Apr-09 Geodynamics Transmission from Habanero to Innamincka (<strong>SA</strong> $630,000<br />
80% of $1m <strong>SA</strong> REF Jul-09 U of Adelaide <strong>SA</strong> Geothermal Research Centre $2,000,000<br />
$:$ Fed GDP In 3-4Q/09 TBD Fed Geothermal Drilling Fund $36,000,000<br />
Excludes $435million REDP<br />
Total Grants - All G'ments $113,616,105<br />
- Excluded from above is Aus$587 Mln to co-funded industry projects under the Federal REDP and CEP programs and Victoria’s ETIS program.<br />
- Pre-competitive commercial scale sustainable ocean, geothermal & biomass energy projects can compete on merit for REDP grants. Solar now has its own<br />
grants program.<br />
Current Federal Programs:<br />
• Renewable Energy Certificates (RECs) and a<br />
mandatory emissions cap and trade scheme under<br />
the Carbon Pollution Reduction Scheme (CPRS) will<br />
support the competitiveness of geothermal energy<br />
• Geothermal Drilling Program ($ 50Mln- GDP).<br />
G’ment $ per Industry $ to max $7mln for proof-ofconcept.<br />
Criteria: Deep wells to demo. flows at<br />
temperatures sufficient to generate power or support<br />
industrial processes. Petratherm & Panax 1 st<br />
recipients<br />
• Renewable Energy Demonstration Program<br />
(Aus$465 Mln - REDP). G’ment $ per $2 from<br />
industry. Pre-competitive, commercial scale<br />
renewable energy demo. projects compete on merit.<br />
GDY seeking $90miliion. PTR seeking $62.8<br />
million. Greenearth also lodged application.<br />
• The Clean Energy Program for Innovation Program<br />
($50 Mln - CEP) to speed / sustain growth in<br />
renewable energy and enabling technologies<br />
• Aus$58.9 Mln Onshore Energy Security Program<br />
(OESP) focused on geothermal, uranium/thorium<br />
and petroleum resources.<br />
Current State Programs:<br />
• <strong>SA</strong>’s Plan to ACcelerate Exploration (PACE)<br />
and tied-research grants. G’ment $ per Industry $.<br />
Compete on merit.<br />
• <strong>SA</strong> Regional Development Infrastructure Fund<br />
• <strong>SA</strong> Renewable Energy Fund (REF) $20 Mln. First<br />
grant is $1.6 Mln for Geothermal Research Centre at<br />
the U of Adelaide<br />
• Centres of Excellence (CoE) for Geothermal<br />
Research are funded in Qld ($15 Mln) , WA ($2.3<br />
Mln) and <strong>SA</strong> ($1.6 Mln).<br />
• Victoria’s Energy Technology Innovation Strategy<br />
(Aus$72 Mln - ETIS). Compete on merit in parallel to<br />
applications for Federal grants.<br />
• Victoria’s Direct Use Geothermal Support Pilot<br />
(GSP). Compete for 2 grants of Aus$$50,000 each.
Geothermal License Holder / Applicant Website Last Name First Name Email Mobile phone Desk top phone<br />
Eden Energy (EDE) www.edenenergy.com.<strong>au</strong> Solomon Greg gsolomon@edenenergy.com.<strong>au</strong>n 61 402 060 000 61 7 9282 5888<br />
Geodynamics (GDY) www.geodynamics.com.<strong>au</strong> Grove-White Gerry ggrovewhite@geodynamics.com.<strong>au</strong> 61 407 233 953 61 7 3721 7505<br />
Geothermal Resources (GTH) www.geothermal-resources.com.<strong>au</strong>/ Johnson Bob geo@havilah-resources.com.<strong>au</strong> 61 428 400 160 61 8 8338 9292<br />
Greenearth Energy (GER) www.greenearthenergy.com.<strong>au</strong> Annells Rob robannells@lakesoil.com.<strong>au</strong> 61 416 130 740 61 3 9629 1566<br />
Greenrock Energy (GRK) www.greenrock.com.<strong>au</strong> Larking Adrian alarking@greenrock.com.<strong>au</strong> 61 417 927 767 61 8 9482 0499<br />
<strong>Hot</strong> Rock Ltd (HRL) www.hotrockltd.com Elliott Mark admin@hotrockltd.com 61 409 998 840 61 7 3303 0653<br />
KUTh Energy (KEN) www.kuthenergy.com Wheller Graeme gwheller@kuthenergy.com 61 429 18 6 041 61 4 2918 6041<br />
Panax/Scopenergy (PAX) www.panaxgeothermal.com.<strong>au</strong> de Graaf Bertus bdegraaf@panaxgeothermal.com.<strong>au</strong> 61 7 3512 7000<br />
Petratherm (PTR) www.petratherm.com.<strong>au</strong> Kallis Terry tkallis@petratherm.com.<strong>au</strong> 61 419 810 153 61 8 8274 5000<br />
Torrens Energy (TEY) www.torrensenergy.com Canaris John john.canaris@torrensenergy.com 61 407 275 906 61 8 9321 4566<br />
AGL (AGL) www.agl.com.<strong>au</strong> Moraza Mike moraza@agl.com.<strong>au</strong> 61 402 060 500 61 2 9921 2429<br />
AWE Ltd (AWE) www.awexp.com.<strong>au</strong> Jeffery Gary gary.jeffery@awexplore.com 61 8 9480 1300<br />
Beach Petroleum (BPT) www.beachpetroleum.com.<strong>au</strong> Gibbins Neil Neil.Gibbins@beachpetroleum.com.<strong>au</strong> 61 8 8338 2833<br />
BHP Billiton Worsley Alumina Pty Ltd www.bhpbilliton.com/bb/ourBusinesses/aluminium/worsleyAlumina.jsp Pudney Ben ben.m.pudney@bhpbilliton.com 61 8 9734 8311<br />
Gradient Energy Subsid of Planet Gas<br />
(PGS)<br />
www.planetgas.com/download.php?id=404 Oussa Sharif info@planetgas.com 61 2 9300 3322<br />
Icon Energy (ICN) www.iconenergy.com James Ray rayjames@iconenergy.com 61 7 5562 0077<br />
Inferus Resources (Southern Gold Ltd,<br />
<strong>SA</strong>U)<br />
www.southerngold.com.<strong>au</strong>/project.php?id=39 Biggins Stephen SBiggins@southerngold.com.<strong>au</strong> 61 419 859 600 61 8 8132 0044<br />
Origin (ORI) www.originenergy.com.<strong>au</strong> Mackey Phillip phillip.mackey@originenergy.com.<strong>au</strong> 61 8 8217 5877<br />
Stuart Petroleum (STU) www.stuartpetroleum.com.<strong>au</strong> Guglielmo Tino stuart@stuartpetroleum.com.<strong>au</strong> 61 407 336 668 61 8 8410 0611<br />
Tata Power www.tata.com/ Prasad Menon shalinis@tpc.co.in 91 (22) 6665 8282<br />
Teck Cominco www.teckcominco.com Sandl Ian Ian.Sandl@teckcominco.com 61 408 801 910 61 8 9321 4936<br />
TruEnergy www.truenergy.com.<strong>au</strong>/ Edwards Ross ross.edwards@truenergy.com.<strong>au</strong> 61 3 8628 1000<br />
AAA Energy www.cgi.net.<strong>au</strong> Palermo John jpalermo@palermo.com.<strong>au</strong> 61 417 950 286 61 8 9242 1622<br />
Allender et al (A.B.L.R JV) Allender Jim jim.allender@gmail.com 61 438 891 069 61 8 8272 1171<br />
Austral Iron Pty Ltd Milton David davidmilton@asiairon.com<br />
BurnVoir Corporate Finance www.burnvoir.com.<strong>au</strong> Tsiblis Theo ttt@burnvoir.com.<strong>au</strong> 61 411 753 253 61 2 9220 0353<br />
Callabonna Energy www.callabonna.com.<strong>au</strong>/projects_CalEnergy.html Raetz Mike pgn@skilledgeoscience.com 61 2 9300 3366<br />
Clean Energy Australasia www.cleanenergy<strong>au</strong>s.com.<strong>au</strong> Reichman Joe joe.reichman@bigpond.com 61 427 809 970 61 7 3379 7540<br />
Deep Energy www.adavaleresources.com.<strong>au</strong> Risinger John JRisinger@adavaleresources.com.<strong>au</strong> 61 411 602 575 61 7 3239 9700<br />
Earth Heat Shaw Ray vanibe@bigpond.com 61 2 9969 3223<br />
Earth Solar Power Pty Ltd<br />
Bassingthwaig<br />
hte<br />
Howard howard.bass@earthsolarpower.com.<strong>au</strong> 61 423 450 324<br />
Geogen (Geogen Victoria Pty Ltd) www.geogen.com.<strong>au</strong> Kitch Bob bob.kitch@geogen.com.<strong>au</strong> 61 400 083 465<br />
Geopower www.mhml.com.<strong>au</strong> Rogers Frank farogers@macquariemining.com 61 3 6229 9955<br />
Granite Power www.granitepwr.com De Belle Stephen sdb@mantlemining.com 61 2 8252 6100<br />
Greenpower Energy Ltd http://www.greenpowerenergylimited.com.<strong>au</strong>/ Flavelle Alan southdown@bigpond.com 61 438 599 252<br />
Geothermal Power Ltd Archibald Jenny jenny.archibald@bigpond.com 61 8 9296 6869<br />
GRD Mines Development Pty Ltd O'Connor Adam adam@hemts.com.<strong>au</strong> 61 2 9967 4844<br />
<strong>Hot</strong> <strong>Rocks</strong> Tasmania www.allegiance-mining.com.<strong>au</strong> Newnham Lindsay lnewnham@vision.net.<strong>au</strong> 61 418 386 229 61 3 6394 3434<br />
Monaro www.monaromining.com Martin Gill acthitec@ozemail.com.<strong>au</strong> 61 2 6292 0989<br />
Near Surface Geothermal Energy Randall Colin colin@colinrandall.com.<strong>au</strong> 61 2 4925 2644 61 408 969 424<br />
Nejat Mackali Mackali Nejat nejat1@bigpond.com.<strong>au</strong> 61 3 5831 4858<br />
New World Energy Solutions www.newworldenergy.com.<strong>au</strong> Libby John john@newworldenergy.com.<strong>au</strong> 61 419 130 366 61 8 9477 3747<br />
Osiris Energy (merged with Panax<br />
Geothermal)<br />
www.osirisenergy.com.<strong>au</strong> Palmer Ron rpalmer@panaxgeothermal.com.<strong>au</strong> 61 413 579 099 61 7 3512 7000<br />
Pacific Hydro www.pacifichydro.com.<strong>au</strong> Teoh Terry tteoh@pacifichydro.com.<strong>au</strong> 61 3 9615 6410<br />
Red <strong>Hot</strong> <strong>Rocks</strong> Shirley John jjshirley@bigpond.com 61 3 9822 4998 61 412 600 515<br />
www.sv.sustainability.vic.gov.<strong>au</strong>/ftp/renewable_energy/resf/presentations/Phil_Gallow<br />
Syncline Energy<br />
ay.pdf<br />
Galloway Phillip 61 413 640 120<br />
Terra Estus Resources Pty Ltd Fischer Wolfgang wolfgang@petroventures.com.<strong>au</strong> 61 2 9247 9888<br />
Thermal Resources Pty Ltd Spry Trent spryt@rpsgroup.com.<strong>au</strong> 61 408 934 600<br />
Tri-Star Energy www.tri-starpetroleum.com.<strong>au</strong> Suchocki Victor brisbane@tri-starpetroleum.com 61 7 3236 9800<br />
Waterflea Pty Ltd 61 2 4925 2644<br />
ASX Listed Geothermal<br />
ASX Listed Diversified<br />
Listed on other Exchange<br />
Privately Held<br />
Key Contacts for<br />
Australian<br />
Geothermal<br />
Licence Holders &<br />
JV Participants
Climate Change Excites Geothermal Exploration (US$)<br />
CO2 Emissions (kgCO2/MWh)<br />
1400<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
Efficiency<br />
Frontier<br />
(current)<br />
Electricity Supply Industry Planning Council<br />
2008 http://www.esipc.sa.gov.<strong>au</strong><br />
EGS at A$45 per MWh<br />
post-deployment of 200<br />
MW over 10 years per<br />
MIT, 2006<br />
Efficiency<br />
Frontier<br />
(with cost<br />
of carbon)<br />
EGS Cost Curve $45 to $100<br />
Eligible for Renewable Energy Credits<br />
Range US$35 - US$50 per MWh<br />
Sub-critical Black Coal (600 MW (CF 90%))<br />
Sub-critical Black Coal + CCS (400 MW (CF 90%))<br />
Super-critical Black Coal (550 MW (CF 90%))<br />
Super-critical Black Coal + CCS (550 MW (CF 90%))<br />
UltraSuper-critical Black Coal (550 MW (CF 90%))<br />
UltraSuper-critical Black Coal + CCS (380 MW (CF 90%))<br />
Sub-critical Brown Coal (750 MW (CF 90%))<br />
Sub-critical Brown Coal + CCS (50 MW (CF 90%))<br />
Super-critical Brown Coal (230 MW (CF 90%))<br />
Super-critical Brown Coal + CCS (600 MW (CF 90%))<br />
Combined Cycle Gas Turbine (600 MW (CF 80%))<br />
Combined Cycle Gas Turbine_CCS (600 MW (CF 80%))<br />
Integrated Gasification Combined Cycle (600 MW (CF 90%))<br />
Integrated Gasification Combined Cycle_CCS (600 MW (CF 90%))<br />
Nuclear (600 MW (CF 90%))<br />
Wind (600 MW (CF 37%))<br />
Geothermal (50 MW (CF 85%))<br />
CCS = Carbon Capture & Storage<br />
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300<br />
Levelised Long-Run Generation Cost (US$/MWh at 0.7US$ per Aus$)<br />
The Australian <strong>Gov</strong>ernment’s renewable energy target corresponds to 20%<br />
(60,000 GWh pa) power consumption from renewable sources by 2020
Backup Slide: Environmental Research - Running Ahead of the Bulldozers<br />
Hunt & Morelli, 2006 Induced Seismicity at Innamincka Geothermal Site<br />
Using the attenuation<br />
formula from Toro<br />
(1997), the<br />
acceleration (0.041g)<br />
at the epicentre of<br />
the largest induced<br />
event is below the<br />
design standard for<br />
peak ground<br />
accelerations.<br />
Download from www.pir.sa.gov.<strong>au</strong>/geothermal/ageg/current_research<br />
20<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
-10<br />
Habanero 1<br />
-15<br />
-20<br />
-2 0 - 1 5 -10 -5 0 5 10 15 20<br />
20 km<br />
Map of basement in the Cooper Basin petroleum showing well locations<br />
Attenuation radius from the Habanero 1 wellsite
AGEG Technical Interest Group Outputs –<br />
Managing Potential Risks of Induced Seismicity<br />
Protocol Recommendations – Optimum Data Requirements<br />
(from AGEG TIG #1 – Land Access Research by Morelli & Malavazos, 2008)<br />
• High-quality record of seismicity waveforms, M & location<br />
• Regolith information, particularly thickness & shear velocity to 30<br />
metres (V s<br />
30<br />
)<br />
• Reservoir data:<br />
– Orientation & magnitude of stress field<br />
– Location & extent of existing f<strong>au</strong>lts & fractures<br />
– Rock properties (mechanical, thermal & chemical)<br />
– Hydrologic features<br />
• Characterise environment, infrastructure & population for<br />
vulnerability & loss modelling<br />
Recommendations are consistent with the IEA’s protocols for managing seismic risk from fluid injection into EGS
AGEG Technical Interest Group Outputs –<br />
Managing Potential Risks of Induced Seismicity<br />
Protocol Recommendations<br />
(from AGEG TIG #1 – Land Access Research by Morelli & Malavazos, 2008)<br />
• Apply national / international standards for<br />
risk management<br />
• To assess the potential consequence of<br />
induced seismicity – quantitative seismic risk<br />
management is a required for sites selected<br />
for hydr<strong>au</strong>lic stimulation or large scale<br />
injection.<br />
• Proponent must demonstrate adequate<br />
assessment of site – specific induced<br />
seismicity risk management before hydr<strong>au</strong>lic<br />
stimulation or large scale injection.<br />
• Stakeholder engagement to start as soon as<br />
is practical.<br />
• Sustain an evergreen watching brief so new<br />
information is assessed / considered for<br />
induced seismicity risk management.<br />
• If required, <strong>au</strong>gment the existing seismic<br />
monitoring network to detect / gather seismic<br />
events less than M = 3. Maintain the network<br />
for the life of the project.<br />
• As practical, deploy at least one deep<br />
seismic monitoring station (below regolith if<br />
possible) prior to hydr<strong>au</strong>lic stimulation or<br />
large scale injection.<br />
• Deploy downhole & near surface monitoring<br />
stations to determine attenuation & regolith<br />
amplification.<br />
Recommendations are consistent with the IEA’s protocols for managing seismic risk from fluid injection into EGS
Oil & Gas Methods for the<br />
Assessment Risk & Uncertainty of <strong>Hot</strong> Rock Plays<br />
Generalisations:<br />
• If 3 geologic factors are at least adequate – a hot rock play is prospective.<br />
‣ Source of heat Ex. Radiogenic, high heat-flow granites;<br />
‣ Insulating strata to provide thermal traps;<br />
‣ <strong>Hot</strong> Rock reservoirs Ex. Permeable fabrics within insulating and heat source rocks that are susceptible to<br />
fracture stimulation.<br />
• The serial product of key geologic factor adequacy is the chance for geologic success (Rose ’92).<br />
Where P = the probability of a geologic factor being at least adequate (for a viable hot rock resource<br />
to exist)<br />
• The chance for a geothermal well to flow hot fluids at an<br />
initial rate (litres per second at o Celsius) is at least<br />
Insulating<br />
adequate to underpin break-even outcomes - is<br />
strata<br />
proposed as a 4 th key factor to define practical<br />
prospectivity. This <strong>Hot</strong> Rock heat flow rate factor (P heat<br />
Source<br />
<strong>Hot</strong> Rock<br />
flow rate ) integrates physical & economic criteria. This is<br />
of<br />
reservoir<br />
analogous to best practice pre-drill estimates of minimum<br />
Heat<br />
economic petroleum pool-size.<br />
Access to this figure was kindly provided by Jeff Tester – MIT<br />
Chance for a <strong>Hot</strong> Rock Prospect Adequacy = P heat source<br />
x P heat trap<br />
x P heat reservoir<br />
x P heat flow rate
Backup Slide: O&G Methods to Assess Risk & Uncertainty of <strong>Hot</strong> Rock Plays<br />
Example Calculation<br />
Very certain granites at > 210 o C below insulating strata in stress field known to be<br />
conducive to naturally occurring horizontal fractures:<br />
P heat source = 90% P heat source x P heat trap x P heat reservoir x P heat flow rate<br />
P heat trap = 90% = 90% x 90% x 50% x 50%<br />
P heat reservoir<br />
= 50% = 20.25% estimated chance of economic success<br />
P heat flow rate = 50%<br />
The estimated chance for a geothermal well to flow hot fluids at an initial rate (defined as<br />
litres per second at an initial o Celsius) deemed at least adequate (prospective) to underpin<br />
break-even outcomes is proposed as the key additional ingredient to define practical<br />
prospectivity.<br />
This <strong>Hot</strong> Rock heat flow rate factor (P heat flow rate)<br />
integrates physical and economic criteria<br />
and is analogous to global best practice for pre-drill estimates of ‘expected’ (risked)<br />
petroleum targets – which entail estimates of minimum economic pool-size (Pmeps) for<br />
local conditions<br />
This enables risk-ranking of plays, expected value estimates, value of<br />
information estimates and a portfolio approach to managing risk and<br />
uncertainty, analogous to best practice in the petroleum E&P business.
BACK-UP Slides: Oil & Gas Methods to Assess Risk & Uncertainty of <strong>Hot</strong> Rock Plays<br />
Expected Value Estimate for a <strong>Hot</strong> Rock Test Well (An Example)<br />
Four outcomes are possible from the drilling and flow testing of a <strong>Hot</strong> Rock target.<br />
• Geologic success (rock properties are at least adequate to justify flow tests)<br />
• Geologic failure (rock properties are insufficient to justify flow tests)<br />
• Technical success (flow tests undertaken but outcome is not competitive in foreseeable markets)<br />
• Economic success (flow tests demonstrate a resource is at least 50% certain to be competitive in foreseeable markets)<br />
Example calculations for the chance for these four outcomes follows:<br />
• the chance for geologic success in a hot rock play (Pg)<br />
= (P heat source x P heat trap x P heat reservoir)<br />
= 90% x 90% x 50%<br />
= 40.5%<br />
• the chance of geologic inadequacy is the complement of Pg<br />
= 100% - Pg<br />
= 100% - 40.5%<br />
= 59.5%<br />
• the chance of a technical success (i.e. a geologic success with inadequate flow rate)<br />
= (1- P heat flow rate) x Pg<br />
= (100% – 50%) x 40.5%<br />
= 20.25%<br />
• the chance for an economic success (i.e. the probability of economic success Ps)<br />
= (P heat source x P heat trap x P heat reservoir x P heat flow rate)<br />
= = 90% x 90% x 50% x 50%)<br />
= 20.25% = Ps<br />
NPV = Net Present Value<br />
Decision-tree for a hypothetical <strong>Hot</strong> Rock target<br />
Economic Adequacy = 20.25%<br />
Say NPV of mean success case is<br />
$50 million for a single play trend.<br />
The NPV for the success case for<br />
the entire play trend is $500 million<br />
Geologic adequacy but<br />
< economic flow rate = 20.25%<br />
Say cost of unsuccessful fracture<br />
stimulation is $2 million.<br />
Geologic Inadequacy = 59.5%.<br />
Say cost of failure is $10 million<br />
Chance of economic failure = 20.25% + 59.5% = 79.75%<br />
Sum of probabilities = 100%<br />
The chance for economic success (Ps) for this <strong>Hot</strong> Rock Play<br />
= (Ps x NPV of <strong>Hot</strong> Rock Play) –<br />
((1- Ps) x full-cycle NPV to prove post-frac flow > economic threshold rate)<br />
= {20.25% x $50,000,000} - {$12,000,000 79.75%)<br />
= $560,000 Expected Net Present Value<br />
This is
How Much Is Enough Research & Demonstration? An example<br />
Assume 3 distinct <strong>Hot</strong> Rock play-trends to explore with geologic factor adequacies as follow.<br />
Portfolio: Play A Play B Play C<br />
Factors<br />
Chance of<br />
Adequacy<br />
Chance of<br />
Inadequacy<br />
Chance of<br />
Adequacy<br />
Chance of<br />
Inadequacy<br />
Chance of<br />
Adequacy<br />
Chance of<br />
Inadequacy<br />
P heat source 90% 10% 90% 10% 50% 50%<br />
P heat trap 90% 10% 90% 10% 90% 25%<br />
P heat reservoir 50% 50% 75% 25% 50% 50%<br />
P heat flow rate 50% 50% 25% 75% 25% 75%<br />
Play A Play B Play C<br />
P geologic success (P g) = (90% x 90% x 50%) = 40.50% = (90% x 90% x 75%) = 60.75% = (50% x 90% x 50%) = 22.50%<br />
P geologic failure (1-P g) = (1 - 40.50%)= 59.50% = (1 - 60.75%) = 39.25% = (1 - 22.50%) = 77.50%<br />
P technical success = 40.50% x (1 - 50%) = 20.25% = 60.75% x (1 – 25%) = 45.56% = 22.50% x (1 – 25%) = 16.88%<br />
P technical failure = (1- 20.25%) = 79.75% = (1- 45.56%) = 54.44% = (1- 16..88%) = 84.22%<br />
P economic success (P s ) = (40.50% x 50%) = 20.25% = (60.75% x 25%) = 15.19% = (22.50% x 25%) = 5.63%<br />
P economic failure (P f ) = (1 – 20.25%) = 79.75% = (1 – 15.19%) = 84.81% = (1 – 5.63%) = 94.38%<br />
Estimates of the chance that testing all 3 play trends will result in the discovery of at least one:<br />
Technically adequate <strong>Hot</strong> Rock play: 1 – {P geologic inadequacy for A<br />
x P geologic inadequacy for B<br />
x P geologic inadequacy for C<br />
}<br />
Economically attractive <strong>Hot</strong> Rock play: 100% – (79.75% x 84.81% x 94.38) = 36%<br />
Funding exploration through demonstration of an independent fourth <strong>Hot</strong> Rock play would inevitably<br />
increase the chance of demonstrating at least one economically attractive resource
Australian Geothermal Energy Association<br />
The national industry association for the Australian Geothermal Energy Industry<br />
AGEA’s Vision. Geothermal energy providing the lowest cost emissions-free renewable base load energy to<br />
Australian homes and businesses for centuries to come.<br />
AGEA’s Mission. foster and accelerate the development and commercialisation of Australia's geothermal energy<br />
resources by:<br />
• Clearly and accurately articulating the advantages of geothermal energy and the progress of the industry;<br />
• Cooperating across the industry to develop, collect, improve and disseminate information about geothermal energy; and<br />
• Developing good and constructive relationships with government, the investment community and the broader Australian<br />
community.<br />
AGEA’s Work. Increasingly provide both:<br />
• a low cost, emissions free, baseload, reliable and secure supply of energy into the national market over the next<br />
decade; and<br />
• a reliable, low cost source of heat to drive energy efficiency and industrial applications.<br />
AGEA works with all Australian <strong>Gov</strong>ernments, the academic community, relevant scientific organisations and the<br />
media to promote information about the progress of the industry and its capabilities.<br />
AGEA seeks to assist government develop prudent policy mechanisms that enable all forms of emissions free<br />
energy to increasingly penetrate the national energy market in line with climate change and energy security policy<br />
goals that are in the national interest.<br />
AGEA's membership comprises the major geothermal energy project developers, direct heat equipment suppliers<br />
and service providers to the industry.<br />
Visit: http://www.agea.org.<strong>au</strong>/
Geothermal Industry Development Framework: The Australian Federal<br />
<strong>Gov</strong>ernment’s Geothermal Industry Development Framework (GIDF) and Technology Roadmap:<br />
• Starts with the premise, “Geothermal energy has the potential to provide baseload electricity to Australian<br />
homes and industry, without producing emissions of greenhouse gases; and.<br />
• Aims to support the growth of Australia's geothermal industry through strategies agreed by stakeholders from<br />
government, industry and the research community.<br />
An exposure draft was developed with advice from a Project Reference Group including AGEA and AGEG<br />
representatives. The draft Framework incorporates recommendations to accelerate the commercialisation of<br />
geothermal energy in Australia.<br />
The ten key objectives of the exposure draft GIDF are summarised below:<br />
1. Increase investment in the geothermal industry<br />
2. Acquire and manage data specifically for the geothermal industry<br />
3. Develop and enhance robust networks for the geothermal industry<br />
4. Develop international linkages and partnerships for the geothermal industry<br />
5. Foster R&D to support the Australian geothermal industry<br />
6. Foster human capital development to enable fast development of the geothermal industry.<br />
7. Communicate to satisfy community stakeholders, investors and energy market participants that geothermal<br />
energy is a safe, clean, cost competitive and reliable option in Australia's energy mix, with the potential to<br />
provide a significant share of Australia's generation needs.<br />
8. Foster understanding of considerations that contribute government policy development to so<br />
industry/stakeholders can effectively put its views to government for consideration<br />
9. Establish and implement best practice legislation and regulation relevant to geothermal energy across all<br />
jurisdictions.<br />
10.Implement the GIDF recommendations<br />
The final form of the GIDF was l<strong>au</strong>nched 1 December 2009.<br />
To see the GIDF – visit: Geothermal Industry Development Framework
Geothermal Drilling Program: The Australian Federal <strong>Gov</strong>ernment’s $50 million<br />
Geothermal Drilling Program (GDP) supports “proof-of-concept” drilling projects for the geothermal<br />
industry. The GDP aims to:<br />
• accelerate the development of the geothermal industry;<br />
• encourage growth and successful innovation by Australian geothermal companies by<br />
increasing the numbers and variety of proofs of concept;<br />
• accelerate the capacity to produce electricity from a variety of sources of geothermal heat<br />
energy;<br />
• increase investor or private sector confidence in the geothermal industry;<br />
• firmly establish Australia as the world leader in enhanced geothermal systems; and<br />
• generate national benefit for the Australian economy.<br />
The GDP provides $-for-$ matching grants up to $7 million for eligible, meritorious geothermal<br />
proof-of-concept deep drilling projects in Australia. Petratherm (Paralana, <strong>SA</strong>) and Panax (Penola,<br />
<strong>SA</strong>) were successful 1 st round applicants in April ‘09. GDP Round Two applications are due on 4 th<br />
Aug ’09. Costs of drilling, reservoir development and flow testing of proof-of-concept projects are in<br />
scope. Projects that co-ordinate/ maximise employment of drilling equipment are encouraged. A<br />
desired outcome of the GDP will be successful proof-of-concept projects spread across a diversity<br />
of geography, geology and technology, to demonstrate the robustness of deep geothermal<br />
resources and technologies in Australia.<br />
For details see:<br />
www.ret.gov.<strong>au</strong>/energy/Documents/GDP_R2_FactSheet.pdf<br />
NOTE: For one independent commentary on the Australian <strong>Gov</strong>ernment’s Geothermal Drilling Program and the<br />
AGEG-AGEA Geothermal Resource and Reserve Code – visit: www.aar.com.<strong>au</strong>/pubs/res/foressep08.htm
International Energy Agency (IEA) implementing agreement for a<br />
cooperative program of geothermal energy research and technology under<br />
the Geothermal Implementing Agreement (GIA):<br />
The IEA’s GIA provides a framework for wide-ranging international cooperation in geothermal R&D. Its<br />
activities presently cover four different research areas:<br />
• Environmental Impacts of Geothermal Development,<br />
• Enhanced Geothermal Systems,<br />
• Advanced Geothermal Drilling Technology and<br />
• Direct Use of Geothermal Energy.<br />
The mission for the IEA GIA through its current 5-year term (through 31 March 2012) is to promote the<br />
sustainable utilisation of geothermal energy throughout the world by:<br />
• improving existing technologies,<br />
• developing new technologies to render exploitable the vast and widespread global geothermal<br />
resources;<br />
• facilitating the transfer of know-how,<br />
• providing high quality information, and<br />
• widely communicating geothermal energy's strategic, economic and environmental benefits.<br />
As of December 2008, the GIA has:<br />
• 12 Country Members: Australia, France, Germany, Iceland, Italy, Japan, Mexico, New Zealand,<br />
Republic of Korea, Spain, Switzerland, the United States and the European Commission, and<br />
• 6 Sponsors: Canadian Geothermal Energy Association, Geodynamics Limited, Geothermal Group of<br />
Spanish Renewable Energy Association, Green Rock Energy Limited, ORMAT Technologies Inc. and<br />
ORME Jeotermal.<br />
For additional information – see http://www.iea-gia.org/
International Partnership for Geothermal Technology (IPGT):<br />
Australia, Iceland and the U.S. l<strong>au</strong>nched their International Partnership to Promote<br />
Advanced Geothermal Technologies in late August 2008, signalling the commitment of the<br />
three countries to aggressively foster and promote cutting edge geothermal technologies<br />
to promote energy security and address global climate change. Iceland, Australia and the<br />
U.S. bring high levels of expertise, leading the world in harnessing geothermal energy and<br />
producing electricity. This framework brings international collaboration on policy and the<br />
technical aspects of enhanced geothermal systems (EGS) such as deep drilling and<br />
geothermal energy conversion.<br />
This international collaborative will bind the U.S., Australia and Iceland to work together to<br />
accelerate the development of geothermal energy, bringing this clean, domestic and<br />
natural energy to the market in the near-term to confront the serious challenges of climate<br />
change and energy security.”<br />
Australia, the U<strong>SA</strong> and Iceland’s will work together to identify and encourage research,<br />
development and deployment projects critical to widespread deployment of EGS and deep<br />
drilling technologies, exchange best practices and support education and training<br />
programs.<br />
The IPGT will foster close working relationships among the international partners to<br />
support an accelerated evolution of geothermal technology through knowledge gained<br />
from projects in different countries and geologic settings.<br />
For additional information – see http://internationalgeothermal.org/
CONCEPTS FOR HOT ROCK ENERGY<br />
ENHANCED (ENGINEERED) GEOTHERMAL SYSTEMS<br />
<strong>Hot</strong> <strong>Rocks</strong> Enhanced with<br />
Hydr<strong>au</strong>lic Fracture Stimulation<br />
Closed-loop Binary Heat Exchange<br />
For details, see: "The Future of Geothermal Energy – Impact of Enhanced Geothermal Systems (EGS) on the United<br />
States in the 21st Century," by an MIT-led interdisciplinary panel, released in January 2007. The report suggests that<br />
100,000 MWe of power can be supplied by EGS within 50 years with a modest investment in R&D. Download (14.1MB PDF)<br />
from: http://geothermal.inel.gov/publications/future_of_geothermal_energy.pdf
Geothermal Power Expected to be Lowest Cost<br />
Get MIT Rpt (Tester, et al 2006) from<br />
htpp://geothermal.inel.gov<br />
Forecast U<strong>SA</strong> Electricity Supply from<br />
<strong>Hot</strong> Rock Engineered Geothermal Systems (EGS)<br />
The fuel is<br />
free<br />
Break-even Price (¢/kWh)<br />
Breakeven Price US¢ / kWh<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
Competitive after<br />
100 MW in 7 years<br />
Lowest price after<br />
200 MW in 10 yrs<br />
10 100 1,000 10,000 100,000<br />
EGS Capacity Scenario (MW e )<br />
Engineered Geothermal Systems Capacity (MWe)<br />
Price increases from 2,000 MW reflect move to deeper hot rocks<br />
MIT (Tester, et al 2006):<br />
‣ 100,000 MWe hot rock power in U<strong>SA</strong> by 2050<br />
‣ Approx. 13.7 billion PJ resource to 10 km.<br />
‣ 130,000 x annual U<strong>SA</strong> primary energy use<br />
‣ Cost competitive after 100 MWe (over 7 yrs)<br />
‣ Lowest cost after 200 MWe (over 10 yrs)
Geothermal Power Expected to be Lowest Cost – But Challenges Remain<br />
Estimated specific output & capital costs<br />
The fuel is<br />
free<br />
• MIT (2006) analysis cites 80<br />
kg/sec at 200°C from each<br />
production well as equivalent<br />
to a commercial flow rate.<br />
• Yet to demonstrate EGS rates<br />
of 80 kg/sec per well<br />
• Geodynamics’ Habanero 3<br />
flowed 210°C up to 40 kg/sec<br />
from 240°C+ fractured in 2008,<br />
and higher temperatures were<br />
indicated at equivalent depths<br />
in Jolokia 1 within 10 km of<br />
Habanero in the Cooper Basin<br />
• Simple Calculations<br />
120 kg/sec flow @ 200°C per well<br />
X 80 kW per kg/sec flow =<br />
9,600 kW per well<br />
5 producers for gross 48 mW<br />
Download PowerPoint including above MIT (2006) analysis from<br />
http://www.nrel.gov/analysis/seminar/docs/2007/ea_seminar_mar_1.ppt<br />
Download US DoE Analysis of Technology Challenges for EGS from:<br />
80 kg/sec flow @ 220°C per well<br />
X approx. 90 kW per kg/sec flow =<br />
approx. 7,200 kW / well<br />
7 producers for gross 50 mW
CO 2 capture (incl. separation)<br />
• Current: US$50/Tonne or more<br />
• Target: US$20/Tonne or less<br />
CO 2 storage (incl. < 250km transport)<br />
• Current: US$10/Tonne approx<br />
• Target US$5/Tonne or less<br />
Total CCS Cost:<br />
• Current: US$60/Tonne approx<br />
• Target: US$25/Tonne or less<br />
US $ Cost to Avoid Venting CO 2 and Equivalents`<br />
Australian Renewable Energy Credits ~US$45/tonne CO 2<br />
avoided<br />
CCS ~ 250 km from Combustion<br />
Future Forecast Cost: US$ 0.025 per kg CO2<br />
Emissions from 600MW Super<br />
Critical Black Coal Plant (90% CF)<br />
Vent 870 kg CO2 per MWh<br />
CCS 640 & vent 230 kg CO2 per MWh<br />
If having to pay to attain zero venting<br />
Levelised Cost<br />
US$32 / MWhr<br />
US$48 /MWhr<br />
(49% incr)<br />
US$54 /MWhr<br />
(67% incr)<br />
Image and CCS cost estimates are<br />
courtesy of<br />
Professor John G. Kaldi,<br />
Chief Scientist, CO2CRC,<br />
Chair of Geosequestration,<br />
Australian School of Petroleum,<br />
University of Adelaide