15 MW Geothermal Energy Plant

Stephen Mc Loughlin

Stephen Devlin

Paul O Reilly

Mark Flanagan

Project IntroductionAsked by interested investors to look into viability of

investment in renewables - Particulary Geothermal.Market gap for mid sized geothermal solution.Fluctuation of fossil energy prices have made for a

volatile market – Goethermal is a safe alternative. Geothermal generation offers a dependable and

constant source of revenue – costs are virtually unaffected by prevailing fuel prices.

Many geothermal plants have been in operation for years around the globe – Proven Reliability.

Presentation Brief

All aspects of planning and development of a geothermal plant in Ireland.

Planning Permission and Regulation.Budget and Risk.Timeline and project plan. Suitable locations and technical aspects.

A Natural form of EnergyHeat Generated from decay of mineralsWorldwide use – Iceland geezers, thermal baths, New

Zealand ect….30 Degree temp rise for each KM drilled – IrelandConsidered to be sustainable – Takes little heat from

overallNot dependant on other energy sourcesLow emissions and visual impact

Choosing A Suitable LocationHigh Temperature GradientPossibly at a natural fault line (Fracture)Near Transmission or a large IndustryNear Supply of Water for CoolingGood Surrounding InfrastructureReasonably priced Land – Private Local Community impacts and planning

Temperature Gradient & Fault Lines

Transmission & Available Land and Water

Infrastructure

Planning and Regulation Five areas are of key importance relating to

planning and regulation for this type of project.Pre Planning negotiationsEnvironmental impact statementPlanning submissions Planning appeals Public consultations and awareness

Pre Planning negotiationsLocal authority consulted from outsetImportant first step prior to detailed planConsulted in all aspects of projectInformed of benefits to local community – job

creation, clean energy ect…Building relationships are key to this projects

success

Environmental Impact Statement

An EIS is a tool for decision makingLists the pros and cons of any environmentally

related project aswell as suggesting alternativesEPA annex 1 development ensures that EIS is

mandatoryForms part of the basis of planningEnvironmental consultants are tasked with EIS

Planning submissionsNotice placed in local and national papersApplication lodged with local council within 2

weeks2-5 weeks required by council to assess

development and allow for objectionFurther 4 weeks required to allow appeals to be

made to Bord PleanalaIf no objections within this timeframe final

permission is granted

Public awareness / consultation

Transparent and open approach towards the community

Public meetings to hear local views and address concerns

Website and phone information serviceSponsorship of local evens Avoid poor communication as seen in Corrib

pipeline project.

Technical aspects of projectKinegad location shows a 90 degree gradient –

perfect for binary cycle plant.Expected thermal efficiency of 10 – 13%System is “closed loop” No emissions to

atmosphereTakes nothing but heat – water goes back downExpected to generate at 20kV – 15 MW output.Plant is high availability, little downtime once

operational – ideal base load generator.

Project plan & Timeline

Project plan & Timeline

Budget & FinanceFigures not correct, this is just basic idea for the slide• Research , geophysical surveys and test drilling – 4 Million• Planning and consultations – 2 million • Cost of Transmission Line – 4Million.• Cost of plant build – 20 Million• Assumed Online Availability Factor = 95%• Operation and Maintenance Costs for Plant and Field in cents/kWh = 1c• Production prices of about 5-7 cent per KWh once running• Electricity Sales Price in cents/kWh = 12 cents• Money made from Electricity Sales Price in cents/kWh = 5 cents• Average Cost of Production Well = 10 million• Average Cost of Injection Well = 10 million• Total Capital Costs of the Geothermal Power Project per kW = 100M• Total Capital Costs of the Geothermal Power Project per kW – 3000Euro• Payback Period = 20 years 30 – 40 according to GT energy

Budget & Finance

Risk – Barriers High initial capital costs. Planning, permit and legislation – any changes hold up project. Pre build risks – survey errors and research oversight. Geographical risk–Tremors, land subsidence, temperature decline Environmental risk – fines and penalties. Failure of Equipment or injection/production Wells Cost over runs over the life of the project. Very little information of deep geology in Ireland Lack of supporting funding schemes Inappropriate regulatory framework

Risk Mitigation Government cost sharing and grant schemes. Large database of research and operation projects. Be informed of up to date technical information and associated risk. Tax incentives. Funding From Sustainable Energy Authority (SEAI) Renewable Energy Feed-In Tariff (REFIT) Having a Power Purchase Agreement in place - help to raise financial

support Risk insurance schemes – state sponsored like in Germany – never

claimed Guaranteed loan structure.

Communication

Environmental impactGeo generation is far cleaner then thermal plants such

as coal, oil ect….No negative effect on climate changePlants of this type are low profile – surrounding area not

badly affected.The right balance must be struck regarding heat

extractionGeothermal water can be toxic – must not be releasedSteam is only byproduct – large plumes can be seen

from this type of plant

Benefits of Geothermal Energy

Not dependant on climate – Available 24/7 Secure, Reliable and Unlimited Energy Supply Decreases dependency on fossil fuels Price of energy will not change Low Emissions and minimum Visual impact No Air or Water Pollution Only small amount of land required Running costs are very low Helps government to achieve energy and emissions targets