(GP/GT) for Additional Water Supply in the Lower Rio Grande

ABSTRACT
This study concludes that direct use technologies, especially
desalinated water production, can contribute significantly to the value
added process and the overall economic viability in developing a
geopressured resource. Although agriculture and aquaculture applications
are marginal projects when they are the only use of a geopressured well,
the small margin of profitability can contribute to improving the overall
economics of the direct use development. The added complexity from a
technical and management aspect may add to the overall risk and
unpredictability of the project.
Six combinations of direct uses received economic evaluation that
resulted in 15% discounted payback periods ranging from 4 to over 10
years. These are listed in Table 4. Many other combinations are
possible depending on the resource and market variables. Selection of
appropriate technologies and sizes of applications will be established by
the developer that engages in geopressured resource utilization.
Currently, many areas of the country where geopressured resources are
located also have surplus electrical capacity and generation, thus power
utilities have been selling power for less than 2 cents per kWH, well
below a reasonable breakeven value for geopressured produced electricity.
However, when the energy demand of the integrated geopressured facility
is large enough to install power generation equipment, operating expenses
can be reduced by not paying the 10 to 12 cents per kWH utility rate.
The study includes an analysis of a geothermal turbine unit installed
with a desalination and an agriculture/aquaculture facility, taking
advantage of the cascading energy values. Results suggest that this
scenario becomes profitable only where the market price for electricity
exceeds five cents per kWH.
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