Hot Rock Energy Projects - Australian Context - Geothermal Energy

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Oct 22, 2008 - Director - Petroleum & Geothermal, PIRSA. Chair – Australian Geothermal Energy Group. Visit: http://www.pir.sa.gov.au/geothermal. Wed, 22 ...
Hot Rock Energy Projects - Australian Context SPE/PS/CHOA 2008 International Thermal Operations & Heavy Oil Symposium Stage 1: This design makes walking impossible

Stage 2: Yeah, possible but impractical

Stage 3: Told you this would work!

Timing

Regulators

Capital

Property Title

Market share

Competition

Experts Most innovators regard the new streamlined process to pick land, get a licence, get activity approvals, contract for services and reap market share in a competitive setting as quite an improvement.

B. A. Goldstein1, A.J Hill1, M, Malavazos1, Wed, 22 October 2008 (10-10:30 AM) Barry A. Goldstein J. Coda1, A. R. Budd2 and F. Holgate2 Roundup Centre, Stampede Park Director - Petroleum & Geothermal, PIRSA 1. Primary Industries & Resources South Australia (PIRSA) and the Australian Geothermal Energy Group (AGEG) Chair – Australian Geothermal Energy Group 2. Geoscience Australia (GA) and the Australian Geothermal Energy Visit: www.pir.sa.gov.au/geothermal/ageg Visit: http://www.pir.sa.gov.au/geothermal Group (AGEG) Calgary, Alberta.

• Magmatic geothermal has a restricted distribution • Hot Rocks are everywhere at depth • Oil wells now reach > 10km • Geothermal power plants have the highest Capacity Factor of all renewable sources Fuel Hydro Biomass Wind Geothermal Solar Total ™

Worldwide active volcanoes and tectonic plates, USGS, 1997 – see http://vulcan.wr.usgs.gov/Glossary/PlateTectonics/Maps/map_quakes_volcanoes_plates.html

Geothermal Capacity in 2007 = 9.7 GW

Installed Production Capacity capacity per Year Factor GWe TWh/yr (%) 778 2,837 42 40* 183 52* 59 106 21 8.9 57 73 4 5 14 890 3,188 41**

>40 GW Biomass in WEC ‘07 Survey

™™ Weighted average.

From: L. Rybach, et al. The possible role and contribution of geothermal energy to the mitigation of climate change. IPCC Scoping Meeting on Renewable Energy Sources, Proceedings, Jan 2008.

HOT ROCKS - Do you believe:

T°C @ 5 km

• Existing technologies enable drilling & completions to >200°C in most of the world? • Emissions cap and trading will add to the cost of emissive power generation and make low emission technologies attractive? If so – imagine the vast opportunities to tap amagmatic HOT ROCKS as a secure source of 24/7 emissions-free electricity for centuries to come Current oil & gas well drilling records: • Chevron: 10,421m well depth 1067m water • Exxon: 11,680m well length in its Sakhalin project

> 200°C 125 – 200 50 - 125

6 km 5 km

CONCEPTS FOR HOT ROCK ENERGY ENHANCED GEOTHERMAL SYSTEMS Hot Rocks Enhanced with Hydraulic Fracture Stimulation

Closed-loop Binary Heat Exchange

For details, see: "The Future of Geothermal Energy – Impact of Enhanced Geothermal Systems (EGS) on the United States in the 21st Century," by an MIT-led interdisciplinary panel, released in January 2007. The report suggests that 100,000 MWe of power can be supplied by EGS within 50 years with a modest investment in R&D. Download (14.1MB PDF) from: http://geothermal.inel.gov/publications/future_of_geothermal_energy.pdf

Geothermal Power Expected to be Lowest Cost Get MIT Rpt (Tester, et al 2006) from htpp://geothermal.inel.gov

Forecast USA Electricity Supply from Hot Rock Engineered Geothermal Systems (EGS) Breakeven PricePrice US¢(¢/kWh) / kWh Break-even

12

Competitive after 100 MW in 7 years

10 8 6 4

Lowest price after 200 MW in 10 yrs

2 0 10

100

1,000

10,000

100,000

E G S C apacity Scenario (M W e )

The fuel is free

Engineered Geothermal Systems Capacity (MWe) Price increases from 2,000 MW reflect move to deeper hot rocks

MIT (Tester, et al 2006): ¾ 100,000 MWe hot rock power in USA by 2050 ¾ Approx. 13.7 billion PJ resource to 10 km. ¾ 130,000 x annual USA primary energy use ¾ Cost competitive after 100 MWe (over 7 yrs) ¾ Lowest cost after 200 MWe (over 10 yrs)

Why Hot Rocks in Australia? Temperature at 5 km, Somerville et al. (1994)

Below Ground Factors • Extensive radiogenic basement at modest depths (heat source) • Australia converging with Indonesia on a plate scale – giving rise to horizontal compression and common naturally occurring horizontal fractures (reservoir) • Sedimentary cover (insulators) Above Ground Factors • Land access / title to resources • Government stimulus for low emission renewable energy RDD&D • Market recognition of comparative advantages – extensive, exploitable hot rocks • Political will to attain energy security & mitigate risks of climate change • Investors perceptions of risk: reward • Growth in energy demand

Courtesy of Richard Hillis – University of Adelaide

Evidence

Thermally Anomalous Granites ‘Typical’ granite heat production: 2.65 μWm-3 UK HHP (High Heat Production) Granites: • Cornubian granites: 3.7-5.3 μWm-3 • Grampians granites: 4.7-7.8 μWm-3 • Lake District granites: 3.5-4.9 μWm-3

Big Lake Suite (Australia Cooper Basin) 11 μWm-3

Box Bore Granite (Australia – Mt Painter Area) 22 μWm-3

Yerila Granite (Australia – Mt Painter Area) 62 μWm-3

Engineered Geothermal Systems - Plan View Same Scale Epicenters of stimulated fracture growth

Habanero 3

Australian EGS > 4x’s than attained elsewhere

~1

km

~ 2 1. km

~1 km

~1

.5 k

m

~3

km

Fenton Hill, Los Alamos USA 1970-95

Habanero 1, 2 & 3 South Australia 2005- ongoing

Extent of Engineered Hot Rocks Water is injected under pressure into naturally fractured rocks to increase the intensity and extent of fractures. The micro-shifting of rocks during that fracture stimulation process is located in the same way epicentres of blasting and earth tremors are determined

Rosemanowes Cornwall, UK 1984-91 Soultz, France Since 1987

500 metres

Courtesy of Doone Wyborn – Geodynamics

EGS Trials (Displayed) • Fenton Hill, USA: 70 –95 • Fjalbacka, Sweden: 84 - 88 • Rosemanowes, UK : 84 - 91 • Hijiori, Japan: 85 - 00 • Soultz, France: 87 – Current • Ogachi, Japan: 89 - 00 • Habanero, Australia: Current • Bad Urach, Germany: Current

Inventions are reinvented until ‘invented’ at the right time

• Basel, Switzerland: Abeyance • Landau, Germany: Current

Growth in Australian Hot Rock Projects (19 Oct 08) ƒ 40 companies hunting hot rocks ƒ 363 licences applied-for covering >265,500 km2 on a variety of plays. More to come

Growth in Australian Hot Rock Projects 1000

500

- Indicative $200+ Mln for ONE 40MWe Demo plant. 900

450

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Forecast

Visit: www.pir.sa.gov.au/geothermal/ageg

No. of GELs and GELAs

Expenditure AUD$million

- Upscaling + demo's excl'd from forecasts

ƒ 10 ASX Hot Rock companies. More coming ƒ Work programs (2002-13) worth >A$1,000 million and this excludes upscale/deployment ƒ Australian G’ments committed A$100+ million for research & demonstration since 2000 ƒ G’ment grants for seismic + drilling equate ~25% of costs to YE07 ƒ Federal Geothermal Industry Development Framework (GIDF) and CoAG Roadmap for Geothermal in 2008

Comparison – Forecast Cost (AUS$ / MWhr)

Government Stewardship (19 Oct

08)

JURISDICTION RESPONSIBILITIES: Onshore: States & the Northern Territory Offshore: Federal legislation applies with mirror legislation for near-shore State/NT waters. To 3 Oct 2008: South Australia: • 268 Geothermal Expl. Licences (GELs) applied-for • 96% of national geothermal investment to YE 2007 • A$718 million in work program efforts 2002-13 • Larger GELs & lower fees in amended Act in ‘08 Victoria: • 12 Geothermal Expl. Permits (GEPs) • Bids on 19 GEPs closed. Bids now under assessment Queensland: • 27 GEPs applied-for. One granted in Gladstone region. • Grant of balance after land assess processes concluded New South Wales: • 15 Expl. Licences (ELs) for geothermal applied-for Tasmania: • 6 Special Exploration Licence (SEL) granted

1000 km

Geothermal well Geothermal Expl. Licence (GELs)

Western Australia: • Bids received on 38 of 495 GEPs (320 sq km each) in 2008. To 3 Oct 08, 35 GEPs assessed to have conforming bids • 81 areas offered for work program bids by 12 Feb 09. Each GEP covers ~ 6,400 sq km (G08-1 to 81 cover 518,000 sq km)

GEL Application Planned Acreage Release for Bids

Northern Territory: • Legislation expected in 2008/9. GEL bidding to follow.

Geodynamics/Origin/Tata Power/Sentient-SunPower ¾2003-5: Proved flow of geothermal energy with Habanero 1 & 2 ¾2007-8: Habanero 1 - 3 closed loop flow tests, Jolokia 1 drilled. ¾Next: 1 MW demo, Savina 1 and HOTROCK50 project

Geothermal Drilling to 19 Oct 08 Several others plan geothermal drilling in the term 2009-13.

Petratherm/Beach Petroleum/TRUenergy ¾2005-7: Drilled Yerila and Paralana, deepened Paralana & recorded MT + seismic ¾Next: Petratherm JV to drill deep Paralana well starting in 2Q/09

Green Rock Energy ¾Drilled and Mini-Frac’d – Blanche 1 to 1935m ¾Next: Optimise plans for a deep well.

Geothermal Resources ¾2007-8: drilled 6 Frome area wells up to 500m depth ¾Next: Locate a deeper test

Torrens Energy/AGL ¾2007-8: drilled 5 of 9 wells in Lake Torrens region ¾Next: Shallow drilling near Torrens Island

Inferus Resources (Southern Gold Ltd) ¾2008: Measured temperatures in minerals hole to 1 Km ¾ Next: Seismic and shallow drilling

Eden Energy ¾2007-8: Chowilla 1 in Renmark region ¾Next – Assessing options for a deeper test well

Panax ¾2006 – 3 wells to 500m depth & an MT survey in SE SA ¾ Bid for Osiris - and raising $20 million ¾Next – Drill a deep test well in 2009 Greenearth ¾ Gained thermal data from 4 gas wells drilled in ’07 ¾ Next – MT surveys to locate deep wells

KUTh Energy Ltd ¾ 31 shallow drillholes (~20x20 km grid) for heat flow measures ¾ Next: Holes to 1,500m, then deep drilling

Hot Rock Projects in South Australia – 19 Oct 08 • 27 companies in the hunt in 268 licences on variety of plays covering >127,000 km2 9 9 9 9 9 9 9 9 9 9 9 9 9

9 Tri-Star Energy 9 Clean Energy Australasia 9 Osiris Energy 9 Origin Energy ” 9 Callabonna 9 Deep Energy 9 Inferus (Southern Gold”) 9 A-B-L-R Joint Venture 9 AAA Energy 9 Earth Heat 9 New World Energy 9 Near Surface Geothermal 9 Stuart Petroleum ” 9 Beach Petroleum ” ” ASX Listed ”International SX Listed Geodynamics” Petratherm ” Geothermal Resources” Green Rock” Torrens Energy” Eden Energy/Terratherma” Panax” Pacific Hydro Teck Cominco” Granite Power Gradient Energy AGL ” TRUenergy ”

Sedimentary cover (insulators) over basement

South Australian Heat Flow Anomaly

• > A$718 million in work programs (excludes demo & up-scaling for deployment • Generalised play ingredients: Amagmatic conductive heat source, geothermal reservoir and insulating cover – combining to enable economic flow rates of sufficient heat energy to meet markets

High Voltage Grid

Potential mining developments may be new markets for geothermal

Oil & Gas Methods for the Assessment Risk & Uncertainty of Hot Rock Plays Generalisations: • If 3 geologic factors are at least adequate – a hot rock play is prospective. ¾

Source of heat Ex. Radiogenic, high heat-flow granites;

¾

Insulating strata to provide thermal traps;

¾

Hot Rock reservoirs Ex. Permeable fabrics within insulating and heat source rocks that are susceptible to fracture stimulation.

• The serial product of key geologic factor adequacy is the chance for geologic success (Rose ’92). Where P = the probability of a geologic factor being at least adequate (for a viable hot rock resource to exist) • The chance for a geothermal well to flow hot fluids at an initial rate (litres per second at oCelsius) is at least adequate to underpin break-even outcomes - is proposed as a 4th key factor to define practical prospectivity. This Hot Rock heat flow rate factor (Pheat flow rate) integrates physical & economic criteria. This is analogous to best practice pre-drill estimates of minimum economic petroleum pool-size.

Insulating strata

Hot Rock reservoir

Source of Heat Access to this figure was kindly provided by Jeff Tester – MIT

Chance for a Hot Rock Prospect Adequacy = P heat source x P heat trap x P heat reservoir x P heat flow rate

Path to Commercialisation: Exploration – Proof of Concept – Demo – Develop Min A$M Max A$M Pre-drill studies: 0.05 0.50+ Shallow drilling: 0.20 3.00+ (multi-well) Deep Drilling: 6.00 15.00+ 1.00 2.00+ Frac 1st Well: nd 6.00 15.00+ 2 Deep Well: 1.00 2.00+ Frac 2nd Well : 2.00+ Extended Flow Test: 1.00 AUD$15M+ AUD$37M+ US$14M+ US$35M+

Drilling costs rising – driven by high oil price, high demand for steel products

Rough costs through to proof-of-concept

REF3 Grants REDI 2/ REF3 Grants

Binary, Closed-Loop System After Geodynamics, ‘03

REDI 2/ REF3 Grants PACE1 Grants Research Grants to Address Sector’s Shared Uncertainties Pre-competitive Demonstration of Hot Rock Power Production from circa 40 MWe Electricity Generation Plant A$200 M+ per 40MWe

Studies / Modelling A$50k - A$250k+

1.

Shallow Drilling to Optimise Deep Drilling

SA: A$390k grants for Geothermal research.

AUD$100 - 300k+ Per shallow well

Expect others to follow

SA: A$759k PACE grants

Proof-of-Concept Flow Tests to Prove MWs of Hot Rock Power Production

Deep Drilling to Prove Hot Rock Reservoirs Exist

- Onshore Energy Security Initiative - Geothermal Industry Development Framework - Roadmap for Geothermal Technologies

AUD$ Costs: $6-$10+ M / well x 1 $1- $2+ M / frac x 2 $1 - $2+ M flow test A$8 - $14+ M

AUD$6 - $15+ M per deep well Fed. Grants incl REDI: A$30.3 million

PACE: SA’s Plan to ACelerate Exploration 2. REDI: Renewable Energy Development Initiative

Australian Fed. G’ment Underpinnings:

3

Renewable Energy Fund

- R & Demo $ for low emissions technologies - Emissions reduction targets & ETS (by 2011) - Renewable Energy Credits - Reform of regulated grid rules (sought) - Flow thru share scheme (sought) - National feed-in schemes (sought)

Australian Geothermal Energy Group (AGEG) Members http://www.pir.sa.gov.au/geothermal/ageg

ASX-Listed (Code)

AGEG’S VISION: Geothermal resources to provide the lowest cost emissionsfree renewable base load and direct-use energy for centuries to come. Company Members 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29.

AGEA (Industry Lobby Group) AAA Energy ACILTasman AGL (AGL) Balance Energy Beach Petroleum BurnVoir Corporate Finance Callabonna Energy Clean Energy Australasia Deep Energy Earth Heat Earthinsite E-Connect Eden Energy (EDE) (Terratherma is a subsid.) Electranet Encom Technology Energycore Ergon Energy - owned by the Qld G’ment FrogTech Geodynamics (GDY) Geogen Geopower GHD Google (NASDAQ) - RE 10,000 MW of emissions-free power from licences in the SA Cooper Basin;

PTR:

20 sq km x 1 km thick @ average 200°C in Paralana (Flinders Range) area would suffice to fuel 520 MW over 25 years;

PAX:

2,674 km sq in the Otway Basin has potential to generate > 1,500 MWe.

10 MW 1%

Estimates of Hot Rock Materiality The Hot Rock industry needs long-life well tubulars (longevity 25 – 30 years). Estimates of the potential market for such premium pipe in just Australia are as follow: •



Geodynamics forecast 50 MWe from 9 wells (5 producers and 4 injectors) drilled from a single pad with 8 of the wells deviated so bottom hole locations at 4km are spread 1 km apart will suffice to generate 50MW for decades Given the lateral trajectory of 8 wells, the average measured depths of wells to 4+ km will be 4,500 to 5,000 metres per well



The Electricity Supply Association of Australia forecast 6.8% of Australia power consumption by from hot rocks by2030 (~ 5,500MW in 2030)



Geodynamics estimate just the Cooper Basin in Australia has the potential to fuel 10,000 MW

Lognormal Probability

What if: • Hot Rock Power is Ln, • P99 ~ 10 MW • P50 ~ 10,000 MW?

10,000,000 MW

1,000,000 MW

100,000 MW

10,000 MW

1,000 MW

100 MW

99%

95% 90%

50%

10% 5%

10 MW 1%

5.5 GW by 2030 per ESAA (5500/50) x 4,500 to 5,000 average depth x (9 to 15 wells) = 4.455million to 8.25million metres pipe 10 GW from Cooper per Geodynamics (10,000/50) x 4,500 to 5,000 average depth x (9 to 15 wells) = 8.1 million to 15 million metres pipe

Milestones Ahead on the Road to the Vision – Commercialised Geothermal Energy 1. Several successful research (exploration) and proof-of-concept (heat energy is flowed) geothermal projects. At least 10 by 2012 2. Several Geothermal power generation demonstration projects in distinctively different geologic settings. At least 3 by 2012 3. Compelling success with geothermal power generation demonstration so the investment community is convinced geothermal energy is real. By 2012 4. Safe, secure, reliable, competitively priced, renewable and emissionsfree base load power and direct use from geothermal energy for centuries to come. At least 7% of base-load demand from hot rock power by 2030. More than 10% by 2050. Direct use widely deployed

Hot Rock Energy Projects - Australian Context SPE/PS/CHOA 2008 International Thermal Operations & Heavy Oil Symposium

The AGEG will join the IGA in 2008 GO Australia TO Go to

SOUTH AUSTRALIA EXPLORE 8

BINGO

SORTED

B. A. Goldstein1, A.J Hill1, M, Malavazos1, J. Coda1, A. R. Budd2 and F. Holgate2 1. Primary Industries & Resources South Australia (PIRSA) and the Australian Geothermal Energy Group (AGEG)

Barry A. Goldstein

2. Geoscience Australia (GA) and the Australian Geothermal Energy Group (AGEG)

Visit: www.pir.sa.gov.au/geothermal/ageg Director - Petroleum & Geothermal, PIRSA

– Australian Reserve Geothermal & Energy Group Code: Download AGEG-AGEAChair Geothermal Resource http://www.pir.sa.gov.au/geothermal/ageg/Code for Reporting Geothermal Resources and Reserves Visit: http://www.pir.sa.gov.au/geothermal

Back-up Slides

US $ Cost to Avoid Venting CO2 and Equivalents` CO2 capture (incl. separation) • Current: US$50/Tonne or more • Target: US$20/Tonne or less

Australian Renewable Energy Credits ~US$45/tonne CO2 avoided

CCS ~ 250 km from Combustion Future Forecast Cost: US$ 0.025 per kg CO2

CO2 storage (incl. < 250km transport) • Current: $10/Tonne approx • Target $5/Tonne or less

Emissions from 600MW Super Critical Black Coal Plant (90% CF)

Levelised Cost

Vent 870 kg CO2 per MWh

US$32 / MWhr

Total CCS Cost: • Current: $65/Tonne approx • Target: $25/Tonne or less

CCS 640 & vent 230 kg CO2 per MWh

US$48 /MWhr (49% incr)

If having to pay to attain zero venting

US$54 /MWhr (67% incr)

Image and CCS cost estimates are courtesy of Professor John G. Kaldi, Chief Scientist, CO2CRC, Chair of Geosequestration, Australian School of Petroleum, University of Adelaide

Climate Change Excites Geothermal Exploration (A$) 1600

For more details - see: Electricity Supply Industry Planning Council 2007 Annual Planning Report http://www.esipc.sa.gov.au 1400

Existing Sub Critical Brown Coal

CO2 Emissions (kgCO2/MWh)

1200

CCS: Carbon capture & sequestration

Existing Sub Critical Black Coal

1000

Ultra Critical Black Coal 800

Eligible for renewable energy credits (up to ~A$65/tonne CO2 avoided

Efficiency Frontier

600

Combined Cycle Gas 400

Brown Coal Integrated Dry Gasification Combined Cycle with CCS Enhanced Geothermal Systems at US$45/MWh (at $0.88 US/A$) after deployment of 200 MW over 10 years per Tester, et al (MIT 2006)

200

Super Critical Black Coal with CCS

Nuclear

Combined Cycle Gas Turbine with CCS Australian Hot Rocks (ESIPC estimate for 7.5 to 250

0 $0

$20

$40

$60 Wind

$80

$100

$120

$140

Generation Cost (A$/MWh)

• •

Australian Government’s Renewable Energy Target: 45,000 GWh by 2020 A Target of 20% Power Consumption from Renewables by 2020 is ~ 60,000 GWh pa

Key Contacts for Company’s with Equity in Australian Geothermal Projects ASX Listed Geothermal Eden Energy (EDE) Geodynamics (GDY) Geothermal Resources (GTH) Greenearth Energy (GER) Greenrock Energy (GRK) Hot Rock Ltd (HRL) KUTh Energy (KEN) Panax Geothermal (PAX) Petratherm (PTR) Torrens Energy (TEY) Origin (ORI) AGL (AGL) Stuart Petroleum (STU) Icon Energy (ICN) Beach Petroleum (BPT) Inferus Resources (Southern Gold = SAU) Teck Cominco (TCK) TruEnergy (China Power & Light, HK) AAA Energy BurnVoir Corporate Finance Callabonna Energy Clean Energy Australasia Deep Energy Earth Heat Geogen Geopower Gradient Energy Granite Power Hot Rocks Tasmania Monaro Near Surface Geothermal Energy New World Energy Solutions Osiris Energy Pacific Hydro Red Hot Rocks Syncline Energy Tri-Star Energy

ASX Listed Diversified

Company Website www.edenenergy.com.au www.geodynamics.com.au www.geothermal-resources.com.au www.greenearthenergy.com.au www.greenrock.com.au www.hotrockltd.com www.kuthenergy.com www.panaxgeothermal.com.au www.petratherm.com.au www.torrensenergy.com www.originenergy.com.au www.agl.com.au www.stuartpetroleum.com.au www.iconenergy.com/home.html www.beachpetroleum.com.au/ www:southerngold.com.au www.teckcominco.com/ http://www.truenergy.com.au/ www.cgi.net.au www.burnvoir.com.au www.planetgas.com www.cleanenergyaus.com.au www.adavaleresources.com.au www.geogen.com.au www.mhml.com.au www.globalorediscovery.com www.granitepwr.com www.allegiance-mining.com.au http://www.monaromining.com www.newworldenergy.com.au www.osirisenergy.com.au www.pacifichydro.com.au

www.tri-starpetroleum.com.au

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First Greg Gerry Bob Rob Adrian Mark Graeme Bertus Terry Chris Phillip Paul Tino Ray Nelson Stephen Ian Ross John Theo Peter Joe John Ray Bob Frank Stephen Stephen Lindsay Gill Colin John Ron Terry John Phillip Victor

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USA DoE Focus is EGS While Supporting Hydrothermal

Next steps minimise gaps & impediments

Reports are available at http://www1.eere.energy.gov/geothermal/egs_technology.html

USA DoE Focus is EGS Component Technologies R&D: Up to US$19.1 M DoE grants + US$11.2 M public-private funding over 4 years (Total: US$30.3 M) •

Baker-Hughes: Up to US$3.14m to develop an ultrasonic borehole televiewer that can operate at a temperature of 300˚C and at a depth of 10,000 meters. The proposed tool will provide a means to detect fractures in the subsurface and is critical for the commercialization of EGS



Colorado School of Mines, Boise State University, Flint LLC, Mt. Princeton Geothermal LLC: Up to US$0.87M to conduct a geophysical characterization of a geothermal system taking advantage of the latest developments in Self Potential Method and Seismic Interferometry









Composite Technology with Wood Group ESP and New England Wire Technology: Up to US$0.99M to develop and demonstrate Electric Submersible Pump motor coil designs that utilize proprietary inorganic insulation materials. These materials can be applied to motor coil winding conductors using conventional motor fabrication processes and provide superior electrical performance at elevated temperatures Foulger Consulting and U.S. Geological Survey, Geosystem with WesternGeco, US Navy, Magma Energy US Corporation, and DOE's Lawrence Berkeley National Laboratory: Up to US$0.56M to develop high-resolution micro-earthquake tools and methods suited to monitoring EGS-induced geothermal microearthquakes. The ultimate goal is to develop an industrial tool to obtain detailed seismic structure of geothermal areas without the need for major active-source seismic surveys GE Global Research with Auburn University and GE Energy: Up to US$1.6M to develop a platform of electronics technologies that can operate at 300 °C and 10 km depth enabling the measurement of temperature, flow, pressure and seismicity in an EGS reservoir Hattenburg, Dilley, and Linnell, LLC with University of Utah/Energy and Geoscience Institute: Up to US$0.31M to identify open fracture systems by their Fluid Inclusion Stratigraphy chemical signature; differences based on the mineral assemblages and geology of the system; and chemical precursors in the wall rock above open, large fractures



Hi-Q Geophysical Inc., Ormat Technologies, Inc. and Stephen Muir with DOE's Lawrence Berkeley National Laboratory: Up to US$0.82M to develop surface and borehole seismic methodologies using both compression and shear waves for characterizing fractures in EGS. Both VSP and surface multicomponent acquisition geometries will be evaluated



Massachusetts Institute of Technology, Chevron and DOE's Los Alamos National Laboratory: Up to US$0.51M to combine detailed high-resolution analysis of microseismicity accompanying the stimulation of an EGS reservoir with a state-of-the-art geomechanical model of the reservoir to investigate the relationship between the seismicity and flow characteristics







Massachusetts Institute of Technology, New England Research with ENEL North America: Up to US$1.02M to combine the use of geophysical methods for reservoir and fracture characterization with a rock physics model calibrated via advanced laboratory measurements made on reservoir rocks under in situ conditions of temperature (up to 300˚C) and pressure Perma Works and Frequency Management International, ElectroChemical Systems Inc, Draka Cableteq, Pacific Process Systems Inc, Tiger Wireline Inc, Viking Engineering, Kuster Company, Electronic Workmanship Standards Inc, Eclipse NanoMed, Honeywell SSEC: Up to US$2.2M to commercialize the Sandia/DOE HT SOI chipset by addressing the most troubling issues found when designing for long-term exposure to the geothermal well environments such as inter-metallic growth, printed circuit board delamination, ceramic capacitors shorting, and the lack of a safe HT battery Schlumberger: Up to US$1.25M to extend the internal operating range of Electrically Submersible Pump to 338°C for application in both geothermal and the increasingly hotter Steam Assisted Gravity Drainage wells and to develop a heat transfer model that will adequately predict the ESP's internal operating



Schlumberger: Up to US$1.25M to develop a downhole monitoring system to be used in wells with bottom hole temperatures up to 300˚C for measuring parameters of an Electrically Submersible Pump (ESP) and well conditions (pressure and temperature) and develop a heat transfer model for the motor that will adequately predict ESP internal operating temperature fractures, as well as their potential to divert fluids from fracture pathways detrimental to long term sustainability (e.g. fast paths), will be assessed



Stanford University: Up to US$0.97M to develop wellbore tools including a downhole enthalpy meter and reservoir engineering approaches including nanotechnology, Resistivity Computer Tomography (RCT) method, and nonparametric regression for fracture characterization in both near well and interwell regions



Texas A&M University with AltaRock, DOE's Lawrence Berkeley National Laboratory and University of Mississippi: Up to US$0.82M to develop an improved seismicity-based reservoir characterization (SBRC) technology by combining rock mechanics, finite element modeling, geo-statistical concepts, and state-of-the-art stochastic inversion techniques to establish relationships between micro-seismicity, reservoir flow and geomechanical characteristics



Texas A&M University with AltaRock, DOE's Sandia National Laboratory and University of Mississippi: Up to US$0.69M to develop a 3-D numerical model for simulating tensile, shear, and out-of-plane propagation of multiple fractures and fracture clusters to accurately predict geothermal reservoir stimulation using the novel approach of Virtual Multi-dimensional Internal Bond (VMIB)



University of Utah: Up to US$1.09M to demonstrate absorbing tracers, measure near-well fracture surface area via tracer modeling, and develop a tool that measures fluid flow via tracers.



University of Utah: Up to US$0.98M to investigate the effect of proppants on fracture stability and their interactions with injected fluids at geothermal temperatures in environments that simulate stresses within the reservoir. The use of proppants to both maintain open

All US$ million (M) and all multi-year allocations are subject to annual appropriations

For details - visit http://www1.eere.energy.gov/geothermal/news_detail.html?news_id=12018

USA DoE Focus is EGS

System Demonstrations: Up to ~ US$24 M DoE Grants + US$23.7 M from Industry (only) over 4 years. (Total: US$47.7 M).

The success of these projects could result in over 400 MWe in new grid capacity within the next five years. • AltaRock Energy Inc. and Northern California Power Agency, University of Utah, Texas A&M University, Science Applications International Corporation, Temple University: Up to US$6.01M to use an innovative stimulation process to create an EGS reservoir that will drill below the permeable zone, stimulate in the contained zone with infrastructure in place, and increase power production • Geysers Power Co., LLC and DOE's Lawrence Berkeley National Laboratory: Up to US$5.70M to deepen wells into a high temperature zone and thermally stimulate with cold water to increase power production

• ORMAT Nevada, Inc. and GeothermEx, DOE's Lawrence Berkeley National Laboratory, University of Utah, Pinnacle Technologies, GeoMechanics International, University of Nevada - Reno, TerraTek/Schlumberger: Up to US$3.37M to stimulate multiple wells at Brady Field to access existing fracture system • University of Utah and U.S. Geothermal, MAPEX Petroleum Engineering Services, HiPoint Reservoir Imaging, Chevron: Up to US$8.93M to perform a monitored hydraulic stimulation of an existing injection well at Raft River (Selected for negotiation of award in FY09)

All US$ million (M) and all multi-year allocations are subject to annual appropriations

For details - visit http://www1.eere.energy.gov/geothermal/news_detail.html?news_id=12018

1000 km

Geothermal well

Heat Flow

250 km

Heat Flow 4 Heat Flow 1A,3A Mount Gambier

Exploration licence Exploration licence application Acreage offered for work program bids HOBART

Australian Geothermal Licences, 30 Oct 2008

KUTh’s shallow drill program Drilled Pre-collars To be drilled