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

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FINDINGS AND CONCLUSIONS<br />

Apply<strong>in</strong>g geopressured-geo<strong>the</strong>rmal resources to direct use is feasible.<br />

Of <strong>the</strong> various applications that were considered, desal<strong>in</strong>ation and<br />

agriculture/aquaculture appear to have high potential <strong>for</strong> near-term<br />

economic utilization. The sale of methane gas conta<strong>in</strong>ed <strong>in</strong> <strong>the</strong><br />

geopressured fluid will probably be accomplished irrespective of <strong>the</strong><br />

applications selected to use <strong>the</strong> energy conta<strong>in</strong>ed <strong>in</strong> <strong>the</strong> geopressured<br />

fluid. <strong>Additional</strong>ly, commercialization would also <strong>in</strong>clude electric power<br />

generation, which was effectively proven at <strong>the</strong> DOE geopressure test<br />

facility at Pleasant Bayou, located about 50 mi south of Houston, TX.<br />

Evaluation of <strong>the</strong> various applications <strong>in</strong>dicates that multiple uses<br />

<strong>in</strong>corporated at a common location <strong>in</strong>creases <strong>the</strong> odds of profitability.<br />

For example, a complex served by a 20,000 barrels per day geopressured<br />

well that provides <strong>for</strong> <strong>the</strong> sale of <strong>the</strong> conta<strong>in</strong>ed methane gas, <strong>the</strong> sale of<br />

potable water produced by desal<strong>in</strong>ation, bottled water, and <strong>the</strong> br<strong>in</strong>es<br />

result<strong>in</strong>g from desal<strong>in</strong>ation will have a 15% discounted payback period of<br />

- 4.3 years (Figure 2). The addition of an agriculture/aquaculture<br />

complex produc<strong>in</strong>g roses and catfish that is made up of a 4 acre<br />

greenhouse structure, service build<strong>in</strong>g, three 20-ft diameter aquaculture<br />

tanks <strong>in</strong> an enclosure, and an 8 x 45 ft outdoor raceway would reduce <strong>the</strong><br />

payback period to -4 years (Figure 3). However, when electricity<br />

production is added to <strong>the</strong> gas/potable water/bottled water/br<strong>in</strong>e complex,<br />

<strong>the</strong> expected discounted payback period <strong>in</strong>creased to more than 10 years<br />

when <strong>the</strong> electricity is sold <strong>for</strong> 6 cents/kWh. If <strong>the</strong> complex is sell<strong>in</strong>g<br />

gas at market price, electricity at 6 cents/kWh, and <strong>in</strong>cludes an<br />

agriculture/aquaculture facility, <strong>the</strong> discounted payback is >10 years<br />

because of <strong>the</strong> high front end costs <strong>for</strong> <strong>the</strong> electric generation equipment<br />

and <strong>the</strong> relatively small return <strong>for</strong> <strong>the</strong> agriculture/aquaculture facility.<br />

Practically, <strong>the</strong> actual <strong>in</strong>stallation will be determ<strong>in</strong>ed by <strong>the</strong><br />

specific geopressured resource. Utility restrictions and f<strong>in</strong>ancial<br />

requirements have typically limited <strong>the</strong>se developments because of <strong>the</strong><br />

complexity of operation and management.<br />

7

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