Arena Igeg Report

8/15/2019 Arena Igeg Report

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Australian Renewable Energy Agency

NewActon Nishi

2 Phillip Law Street

Canberra ACT 2601

GPO Box 64

Canberra ACT 2601

Phone! "61 2 624 ###$ax "61 2 624 #0#

%&ail! arena'arena()o*(a+

Contact person ,or this report!

-a&ir .*/o*ic

Strate)ic nowle)e an Co&&+nication A3%NA

Content! A+stralian 3enewable %ner) A)enc

Coorination eitin) an inexin)! A+stralian 3enewable %ner) A)enc

-esi)n! Gira,,e 5C

Printin)! CanPrint Co&&+nications

7Printe p+blication8 ! 9#:;0;992


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ContentsContents

Ter&s o, 3e,erence

.nternational Geother&al %xpert Gro+p e&bers

Abbre*iations

Glossar*iii

e ,inin)s

1 .ntro+ction

1(1 Bac/)ro+n

1(2 Scope o, wor/

1( O*er*iew o, the report

2 Geother&al ener) in A+stralia

2(1 Geolo)ical context D A+straliaEs )eother&al reso+rces

2(2 Technolo) context D con+cti*e )eother&al reso+rces

2( istor o, the )eother&al sector in A+stralia

2(4 C+rrent stat+s o, the )eother&al sector in A+stralia

2(< -irect;+se opport+nities

A+stralian )eother&al ener) sector S=OT analsis

(1 The S=OT ,ra&ewor/

(2 S=OT o, the A+stralian )eother&al sector

Stren)ths

=ea/nesses

Opport+nities

Threats

4 .nternational Geother&al %ner) -e*elop&ent

4(1 Con*ecti*e )eother&al reso+rces

4(1(1 O*er*iew histor an c+rrent state

4(1(2 Global )eother&al reso+rces

4(1( Con+cti*e an con*ecti*e reso+rces

4(1(4 Geother&al in the >SA

4(1(< Geother&al in Ger&an

4(2 Con+cti*e )eother&al reso+rces

4(2(1 istor o, )eother&al well sti&+lation4(2(2 istor o, %GS ProFects D $enton ill an acti*it in %+rope an the >S

< A3%NAEs co&&ercialisation pathwa as applie to )eother&al ener)


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Operational ris/

So*erei)n ris/

.n*estor ris/,inancial ris/

Power &ar/ets ris/ an +ncertaint

3is/ an +ncertaint in ener) sste&s an in*est&ents

3esponse to ris/ an +ncertaint

3e+cin) ener) &ar/et ris/

P+blic s+pport an )o*ern&ent actions

6 A+stralian electricit &ar/et

6(1 %lectricit e&an

6(2 =holesale electricit prices

6( 3enewable %ner) Tar)et

6(4 Le*elise cost o, ener)

# The critical barriers an critical actions

#(1 $inin) it 7,low an heat8

#(2 $lowin) it 7enhancin)en)ineerin)8#( $inancin) it 7&iti)atin) ris/8

ar/et ,ail+re

%ner) proFects

3ates o, ret+rn

The A+stralian )eother&al &ar/etplace

: 3is/s costs an rewars o, A3%NA s+pport to )eother&al ener)

:(1 3is/s an costs

:(2 3ewars

9 Options ,or A3%NA Boar

9(1 3es+&e option

9(1(1 -escription

9(1(2 Actions anor strate)ies

9(1( .&plications ,or barriers

9(2 3econsier option

9(2(1 -escription

9(2(2 Actions anor strate)ies

9(2( .&plications ,or barriers

9( 3eboot option

9((1 -escription

9((2 Actions anor strate)ies

9(( .&plications ,or barriers

9(4 .nno*ation 3oa&ap

9(4(1 P+rpose

9(4(2 Ti&in)

9(4( Propose co&ponents

-ata collection

.nternational collaboration

Collaboration with the oil an )as sector

Annexes

Annex A Geother&al LCO%

Cost co&parisons

Cost &oellin)


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Co&parison with A%TA Costs

Sste& A*isor oel

%xploration costs

3eser*oir characteristics

$low rate

-rillin) costs

Ther&al raw own

Power plant

Operatin) an &aintenance costs

.nirect capital costs

$inancial

SA 3es+lts D 2020

Towars 200

S+&&ar

%xploration costs 7re+cin) the ris/8

Costs o, )eother&al ener) in A+stralia A(1 SA inp+ts technical an en)ineerin) D base cases

A(2 SA inp+ts D ,inancial

Annex B Sta/eholer en)a)e&ent

e the&es ,ro& sta/eholer s+b&issions

Annex C Brie,in) note! Co&&ercial 3eainess .nex

A3%NAEs Co&&ercial 3eainess .nex

Co&&ercial 3eainess .nex in practice

Co&&ercial 3eainess Le*el assess&ents ,or )eother&al ener)

A co&&ent on Technolo) 3eainess Le*els ,or A+stralian )eother&al reso+rcestechnolo)

Co&&ercial 3eainess .nex D Shallow -irect >se 7Tpe A8

Co&&ercial 3eainess Assess&ent D -eep Nat+ral 3eser*oirs 7Tpe B8

Co&&ercial 3eainess Assess&ent D %nhance Geother&al Sste&s 7Tpe C8

C(1 Co&&ercial 3eainess .nicator -escriptions

3e)+lator en*iron&ent

Sta/eholer acceptance

Technical per,or&ance

$inancial proposition D costs

$inancial proposition D re*en+e

.n+str s+ppl chain an s/ills

Pathwas to &ar/et

Co&pan &at+rit

C(2 Technolo) 3eainess Le*el -escriptions +se b A3%NA

3e,erences


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Terms of ReferenceThe Boar o, the A+stralian 3enewable %ner) A)enc 7A3%NA8 is see/in) a*ice on the barriers to an

opport+nities ,or the e*elop&ent an eplo&ent o, )eother&al ener) in A+stralia(

To this en A3%NA is establishin) an .nternational Geother&al %xpert Gro+p to assess A+straliaEs )eother&al

prospects an present its ,inin)s in the ,or& o, a written report an brie,in) to the A3%NA Boar an a report ,orp+blic isse&ination(

The assess&ent will co&prise the ,ollowin)!

1( -eter&ine whether o*er the perios to 2020 an 200 there are pla+sible co&&ercialisation pathwas ,or

either %GS or SA )eother&al ener) to eli*er cost co&petiti*e +tilit scale ener) to A+stralia witho+t lon);

ter& s+bsi an to escribe those pathwas(

2( Criticall e*al+ate!

( the per,or&ance o, A+straliaEs )eother&al ener) sector D how e,,ecti*el has it +se the pri*ate in*est&ent

an p+blic ,+nin) it has recei*e to ateH

4( opport+nities an threats to s+pport a S=OT analsis o, A+straliaEs )eother&al ener) sector incl+in) its siIe

str+ct+re )o*ernance s/ills capabilities 7technical an &ana)erial8 an ,inances(


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International Geothermal Expert Group MembersThe &e&bers o, the .nternational Geother&al %xpert Gro+p 7.G%G8 co&bine extensi*e experience in )eother&al

ener) rillin) technolo) an ener) econo&ics(

Chair

Quentin Grafton FASSA, Professor of Economics, Crawford School of Public Policy, ANU and former Executie!irector of the Australian "ureau of #esources and Ener$y Economics( e has p+blishe extensi*el in the areao, en*iron&ental an reso+rce econo&ics incl+in) in the worlEs leain) science an econo&ic Fo+rnals an is

the eitor or a+thor o, &ore than a oIen boo/s on reso+rces an econo&ics(

Members

#oland N% &orne, 'homas !aies "arrow Professor of Earth Sciences in the !e(artment of Ener$y #esourcesEn$ineerin$ at Stanford Uniersity) !irector of the Stanford Geothermal Pro$ram( 3olan is past Presient o, the.nternational Geother&al Association 72010 to 2018 an is reco)nise ,or his wor/ in well;test interpretation

pro+ction opti&isation an tracer analsis o, ,ract+re )eother&al reser*oirs(

"ill *iesay, !rillin$ Consultant, "lac+ ountain 'echnolo$y ( Bill was a pioneer o, the )eother&al in+str( ebro+)ht to the expert )ro+p the +ni@+e insi)hts an pro,o+n /nowle)e that he e*elope o*er thirt;,i*e earsE

experience in all aspects o, rillin) en)ineerin) ,or oil )as an )eother&al reso+rces( Bill passe awa on 4

arch 2014(

ichal oore, !istin$uished Fellow and Professor of Ener$y Economics, School of Public Policy, the Uniersity of Cal$ary ( ichal ,or&erl ser*e as Chie, %cono&ist at the >S National 3enewable %ner) Laborator an is a,or&er re)+lator in the ener) in+str in Cali,ornia(

Susan Petty, President and Chief 'echnolo$y -fficer, Alta#oc+ ( S+san has o*er 4 ears o, experience in the)eother&al in+str in electrical an irect;+se proFect econo&ics opti&isin) o, power plants to &eet reso+rce

conitions reser*oir e*al+ation reser*oir &oellin) well plant an well;,iel per,or&ance ata analsis well

testin) an test ata analsis(

Consultant

Cameron &uddlestone.&olmes, Geothermal Stream *eader at CS/#-( Ca&eron leas research at CS.3O thatinte)rates &+lti;isciplinar capabilities in )eoscience an reso+rce en)ineerin) an applies the& to e*elop the

technolo)ies

an /nowle)e neee to e&onstrate the technical *iabilit o, )eother&al ener) in A+stralia( Ca&eron pro*ie

pro,essional technical s+pport to the )ro+p(


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Abbreviations A%TA A+stralian %ner) Technolo) Assess&ent

A3%NA A+stralian 3enewable %ner) A)enc

A>ST%LA A+stralian Solar Ther&al %ner) Association

Bbls Barrels a &eas+re o, *ol+&e 71


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&2 s@+are &etres

& c+bic &etres

Pa e)apascal

T a)netotell+rics

= e)awatt

=e e)awatt electric

=h e)awatt;ho+r

=T e)awatt ther&al

NG-S National Geother&al -ata Sste& 7>SA8

P PetaFo+le

PT PetaFo+le ther&al

psi Po+ns per s@+are inch

PTC Pro+ction Tax Creit

3%-P 3enewable %ner) -e&onstration Pro)ra&3%T 3enewable %ner) Tar)et

SA Sste& A*isor oel

S=OT Stren)ths =ea/nesses Opport+nities an Threats analsis

T3L Technolo) 3eainess Le*el

T5- Total 5ertical -epth

T=h Terrawatt ho+rs

=P =ellhea Press+re

=;hrlb wattho+rs per po+n


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Glossary;- Seis&ic Geophsical &etho that allows ;i&ensional i&a)es o, the s+b;s+r,ace to be constr+cte b

&eas+rin) the re,lection o, seis&ic ener) 7wa*es o, elastic ener) tra*ellin) thro+)h roc/

co&parable to so+n wa*es in air8( The seis&ic ener) is create b a controlle seis&ic

ener) so+rce 7explosi*es or &echanical *ibrations8 an etecte b an arra or recei*ers(

Binar Ccle The ener) con*ersion sste& thro+)h which the hot )eother&al ,l+i trans,ers its heat to a

wor/in) ,l+i( The wor/in) ,l+i consists o, a low boilin) point ,l+i s+ch as a hrocarbon that

is +se within the power plant(

Brine Salt water( ost water ,o+n within the earth is salt(

Brine %,,ecti*eness A &eas+re o, the e,,icienc o, a )eother&al power plant e,ine as the net power pro+ce

b the power plant per +nit &ass o, )eother&al brine(

Capacit $actor The ratio o, a power plantEs act+al electrical )eneration to its &axi&+& possible )eneration

+s+all expresse as a percenta)e(

Casin) Pipe that is lowere into a well an ce&ente in place to &aintain the inte)rit o, the well(

CenoIoic The CenoIoic %ra co*ers the perio o, )eolo)ic ti&e ,ro& 6< &illion ears a)o to the present(

Con+cti*e

Geother&al Sste&

A )eother&al sste& where the &o*e&ent o, heat thro+)h the roc/ is o&inate b

con+cti*e processes( Con+ction is the &o*e&ent o, heat thro+)h a soli &aterial(

Con*ecti*e

Geother&al Sste&

A )eother&al sste& where the &o*e&ent o, heat thro+)h the roc/ is o&inate b

con*ecti*e processes( Con*ection is the &o*e&ent o, heat carrie b the &o*e&ent o, ,l+i(

-arc $low The process )o*ernin) the ,low o, ,l+i thro+)h a poro+s &ei+&

-eep Nat+ral

3eser*oir

A )eother&al reser*oir that has nat+rall hi)h per&eabilit that oes not re@+ire an si)ni,icant

le*el o, sti&+lation( This per&eabilit &a be within sei&entar laers or a@+i,ers or in

,ract+res(

-ia)enesis The processes that a,,ect sei&ent at or near the s+r,ace( These processes incl+e

co&paction where loose )rains o, sei&ents are s@+eeIe to)ether as the are b+rie ance&entation where )rains o, sei&ents are hel to)ether b the eposition o, seconar

&aterial(

-irect >se Geother&al Geother&al ener) +tilise in the ,or& o, heat witho+t bein) trans,or&e into another tpe o,

ener)( -irect +se applications incl+e space heatin) ,oo rin) an other in+strial

processes that +se heat(

-ispatchable -ispatchable power is a ,or& o, power s+ppl that is able to ,ollow loa(

-ownhole -enotes an e@+ip&ent &eas+re&ents or acti*ities that are +se or occ+r within a well(

%nhance%n)ineere

Geother&al Sste&

A )eother&al reser*oir that has been en)ineere to allow extraction o, heat ,ro& )eother&al

reso+rces with little per&eabilit thro+)h to enhance&ent o, )eother&al reso+rces that ha*e

&ar)inal per&eabilit(

$low 3ate The rate at which )eother&al ,l+i is pro+ce ,ro& a reser*oir thro+)h a well or a collection o,

wells(

$ract+re Tort+osit A &eas+re o, the )eo&etric co&plexit o, a ,ract+re( i)hl co&plex ,ract+re )eo&etries are

&ore li/el to ha*e hi)her resistance to ,low than less co&plex )eo&etries(

eat P+&p A e*ice that &o*es heat ener) to or ,ro& a heat sin/( A )eother&al heat p+&p +ses the

earth as the heat sin/ 7a bo that can store heat8(

ot -r 3oc/ A )eother&al ener) concept in which the reser*oir is con,ine an ,+ll en)ineere incl+in)

a K&an;&ae reser*oirE in roc/s that are essentiall i&per&eable an there,ore KrE(

ot Sei&entar

A@+i,er

A )eother&al reser*oir within hi)hl per&eable laers o, sei&entar roc/(

ra+lic $ract+rin) A techni@+e to enhance or create ,ract+re paths ,or ,l+i ,low within a roc/ &ass b openin)

existin) ,ract+res or the creation o, new ,ract+res b the application o, hi)h;press+re ,l+i on

the roc/(

rostatic Graient The chan)e in press+re per +nit epth insie the pore space o, the earth +e to )ra*it actin)


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on water within that pore space( $or ,reshwater at 20 JC an 100 /Pa this )raient is 9(#9

/Pa& ,or a brine with a co&position si&ilar to sea water this )raient is 10(4< /Pa&(

rostatic Press+re The press+re insie the pore space o, the earth +e to )ra*it actin) on water within that pore

space at a )i*en epth(

.nFection -eli*er o, ,l+i in to a reser*oir *ia a well(

Le*elise Cost o,

%ner)

The &ini&+& cost o, ener) at which a )enerator &+st sell the pro+ce electricit in orer to

achie*e its esire econo&ic ret+rn(

Litholo)ical Section The se@+ence o, roc/ tpes ,o+n in an abo*e a reso+rce(

Litholo) -escription o, the phsical characteristics o, a roc/ incl+in) colo+r text+re )rain siIe an

co&position(

Lo))in) The collection o, ata ,ro& a well +sin) )eophsical tools that are lowere into that well(

a)netotell+rics Geophsical &etho that allows i&a)es o, the s+b;s+r,ace to be constr+cte +sin)

&eas+re&ents o, *ariations o, electrical an &a)netic ,iels at the earthEs s+r,ace(

O*erpress+re Press+res in roc/ ,or&ations that are abnor&all hi)h exceein) the hrostatic press+re at a

)i*en epth(

Pac/ers A e*ice that can be place in a well an expane to seal o,, sections o, the well( Pac/ers

&a be re&o*able or per&anent(

Per&eabilit A &eas+re o, the abilit o, a roc/ to allow , l+i to ,low thro+)h it(

PetaFo+le The heat ener) content o, abo+t #000 tonnes o, blac/ coal or 29 &illion litres o, petrole+&(

Pleistocene The Pleistocene %poch co*ers the perio o, )eolo)ic ti&e ,ro& abo+t 2


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or te&perat+re cclin)(

Tensile $ail+re $ail+re ca+se b tension 7p+llin) apart or stretchin)8(

Ther&al Spallation The &etho o, rillin) that brea/s the roc/ thro+)h ther&al expansion ca+se b rapi

heatin)(

=ell .n+str ter& ,or holes rille into the earth ,or the p+rpose o, )atherin) ata or the inFection or

pro+ction o, ,l+is(


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Key finings1( A+stralia has a lar)e )eother&al potential with prospecti*e reso+rces that co+l be +se to )enerate irect heat

or electricit(

11( The A+stralian )eother&al sector incl+in) in research 7M2< &illion8 an pre;co&petiti*e spenin) 7M0 &illion8

attracte ,+nin) o, aro+n M900 &illion since the 1990s o, which abo+t 1: per cent was pro*ie b the p+blicsector(

12( %xploration e,,orts in the )eother&al sector pea/e in 2010 with 414 applications ,or exploration licences D an

:;,ol increase ,ro& onl ,i*e applications in 2002(

1( 3esearch e&plo&ent in the )eother&al sector pea/e in 2010 an incl+e at the ti&e the e@+i*alent o, ##

,+ll;ti&e sta,, an &ore than 40 post;)ra+ate st+ents(

14( .n 2014 the A+stralian )eother&al sector is ,acin) a ,+nin) crisis as &an pri*ate sector in*estors an partners

ha*e ecie to exit(

1tilit;scale power )eneration ,ro& )eother&al proFects is not cost co&petiti*e in 2014 an is not expecte to

be cost co&petiti*e in 2020( This is beca+se the le*elise cost o, ener) o, enhance )eother&al sste&s is

proFecte to ran)e ,ro& M1#0 to M00=h while the wholesale price o, electricit is expecte to be between

Mtilit;scale power )eneration ,ro& )eother&al proFects &a beco&e cost co&petiti*e with ,ossil ,+el

ispatchable power )eneration b 200 b+t onl with a hi)h carbon price an in a Kleast costE or &ost

,a*o+rable scenario ,or )eother&al ener)( >ner this least;cost scenario in 200 the le*elise cost o, ener)

,ro& enhance )eother&al sste&s &a not be cost co&petiti*e with the lowest cost ,or&s o, renewable

ener) 7s+ch as win8( Other ,actors s+ch as base;loa power characteristics &a increase cost

co&petiti*eness o, )eother&al relati*e to *ariable electricit )eneration so+rces(

22( The &ost prospecti*e &ar/ets ,or )eother&al ener) in A+stralia o+t to 200 are in re&ote locations that are o,,

the )ri an where there are co&&ercial;scale applications ,or either electricit or irect heat(

2( -irect heat +ses in the )as sector especiall in the processin) o, shale )as in locations where both )as an

pro*en )eother&al reso+rces are co;locate o,,er the &ost li/el cost;co&petiti*e co&&ercial;scale &ar/et ,or

)eother&al ener) in the next ecae(

24( Loo/in) ,orwar three options are pro*ie to the A3%NA Boar in ter&s o, how it &a wish to allocate an

prioritise its ,+nin) ,or )eother&al ener)!


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a( A #esume option that represents a contin+ation o, the existin) A3%NA pro)ra&s( .n the *iew o, the .G%Gthis approach has to ate not et p+t the )eother&al sector on a path to eli*erin) cost co&petiti*e +tilit

ener) )eneration(

2


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! I"TR#$%CTI#"

!&! 'ac(groun

.n con*enin) the .nternational Geother&al %xpert Gro+p 7.G%G8 the Boar o, the A+stralian 3enewable %ner)

A)enc 7A3%NA8 has so+)ht expert an inepenent a*ice in,or&e b sta/eholer inp+t on the barriers anopport+nities ,or the eplo&ent o, )eother&al ener) in A+stralia o+t to 2020 an 200 an whether there are

clear co&&ercialisation pathwas that o not in*ol*e lon);ter& s+bsiies( This report a+thore b the .G%G

etails the ,inin)s an the options ,or&all pro*ie b the .G%G to the A3%NA Boar( Base on the ,or&al

a*ice o, the .G%G pre*io+s cons+ltations with sta/eholers an past st+ies +nerta/en b the ,or&er

-epart&ent o, 3eso+rces %ner) an To+ris& 7the Geothermal /ndustry !eelo(ment Framewor+ an AustralianGeothermal /ndustry 'echnolo$y #oadma( release in 200:8 an the A+stralian Centre ,or 3enewable %ner)7 Australia0s $eothermal industry1 (athways for deelo(ment an AC#E Geothermal !irections release in 20118the A3%NA Boar will ecie on the appropriate le*el an tpe o, ,+t+re ,+nin) an s+pport ,or the A+stralian

)eother&al in+str(

To arri*e at its ,inal a*ice an options to the A3%NA Boar the .G%G has acti*el en)a)e an enco+ra)e

inp+ts ,ro& all sta/eholers in the A+stralian )eother&al in+str( This incl+e two sets o, sta/eholer &eetin)s

with *isits to Brisbane Aelaie an Sne in October 201 an to Brisbane Aelaie an Canberra in $ebr+ar2014( .n the 201 &eetin)s all sta/eholers were pro*ie with the opport+nit to &eet with the .G%G on a one;

on;one basis an were also )i*en the opport+nit to pro*ie a ,or&al s+b&ission to the .G%G to in,or& its

eliberations( .n $ebr+ar 2014 the .G%G in*ite sta/eholers to co&&ent on a presentation o, initial ,inin)s

partic+larl in ter&s o, the stren)ths wea/nesses opport+nities an threats 7S=OT8 ,acin) the )eother&al sector

an its technolo)ical an co&&ercial reainess le*els( Sta/eholers were once a)ain in*ite to pro*ie written

s+b&issions to .G%G( -etails o, the sta/eholer en)a)e&ent process who &et with the .G%G an the

s+b&issions pro*ie to the .G%G are s+&&arise in Annex B o, this report(

!&) *cope of wor(

The scope o, wor/ +nerta/en b the .G%G co&plies with the Ter&s o, 3e,erence that were pro*ie to it b the

A3%NA Boar( The .G%G was as/e to eter&ine an escribe where rele*ant whether there are pla+sibleco&&ercialisation pathwas o+t to 2020 an 200 witho+t lon);ter& s+bsi ,or the A+stralian )eother&al sector

to eli*er cost;co&petiti*e an +tilit;scale ener)( .n ,or&in) its eter&ination the .G%G was as/e to!

1( Criticall e*al+ate the per,or&ance o, the )eother&al sector in ter&s o, how e,,ecti*el it ha +se pri*ate an

p+blic ,+nin) to ate an to pro*ie a S=OT analsis o, the sector(

2#( .enti, the &ain barriers ,acin) )eother&al pilot an e&onstration proFects 7technical phsical econo&ic

instit+tional an polic8 the &ain barriers to co&&ercialisation in the )eother&al sector an /e )aps in ata

in,or&ation an /nowle)e(

!&+ #verview of the report

This &ain report an two s+pple&entar reports 7Geothermal Ener$y in Australia Australian Electricity ar+et Analysis #e(ort to 2323 and 2343 8 represent the co&plete e*ience a*ice an options that the .G%G haspro*ie to the A3%NA Boar( The &ain report consists o, nine chapters that co&bine with the s+pple&entar

&aterial an reports respon to the ter&s o, re,erence o, the st+(

Chapter 2 pro*ies an o*er*iew or s+&&ar o, the A+stralian )eother&al sector an represents the .G%GEs

assess&ent o, the in,or&ation containe in a report prepare b CS.3O on the re@+est o, the .G%G( The

s+pple&entar report Geothermal Ener$y in Australia has been release si&+ltaneo+sl with the .G%GEs &ainreport( .ncl+e in Chapter 2 is an analsis o, irect;heat +ses o, )eother&al ener) which is rawn ,ro& a report

prepare ,or A3%NA b %*ans an Pec/ entitle Com(etitie #ole of Geothermal Ener$y near &ydrocarbon Fields(

Chapter is a S=OT analsis o, the c+rrent state o, the A+stralian )eother&al sector( An earlier *ersion o, the

S=OT was presente to an isc+sse with sta/eholers in $ebr+ar 2014(

Chapter 4 pro*ies an o*er*iew o, international )eother&al acti*ities an places the A+stralian )eother&al sector

into the context o, )lobal e*elop&ents(

Chapter < applies an assess&ent o, co&&ercial reainess le*els o, the s+b;co&ponents o, the A+stralian

)eother&al sector to escribe what e*elop&ents wo+l ,irst be necessar ,or the sector to beco&e co&&erciall

*iable witho+t lon);ter& s+bsiies( The chapter also pro*ies a )+ie to the ris/s an +ncertaint ,acin) the

sector( $+rther etails on the co&&ercial reainess le*els ,or the sector are pro*ie in Annex C(


16/123

Chapter 6 presents the .G%GEs assess&ent o, the in,or&ation presente in a report e*elope b CS.3O entitle

Australian Electricity ar+et Analysis #e(ort to 2323 and 2343 on the re@+est o, the .G%G( The chapter escribesthe rele*ant ,eat+res o, the A+stralian ener) sector an snthesises the &ost recent proFections o, the le*elise

cost o, ener) 7LCO%8 o, /e renewable an ,ossil ,+el electricit )eneration so+rces( The ,inin)s an proFections

in this chapter pro*ie a +se,+l co&parison to the le*elise cost o, ener) )eneration ,or )eother&al power

calc+late b the .G%G ,or 2020 an 200(

Chapter # s+&&arises the critical barriers ,or the sector in ,inin) con+cti*e )eother&al reso+rces ,lowin) an

realisin) the reso+rces thro+)h reser*oir enhance&ent an ,inancin) these e*elop&ents(

Chapter : pro*ies the .G%G perspecti*e on the costs ris/s an rewars ,acin) the )eother&al sector in ter&s o,

both irect;heat +se an electricit )eneration( The ris/rewar proFections to 2020 an 200 were e*elope in

cons+ltation with CS.3O base on A+stralian ata on rillin) an well costs +sin) the Sste& A*isor oel

7SA8 so,tware e*elope b the >nite States National 3enewable %ner) Laborator 7N3%L8( All ass+&ptions

an para&eters +se b the .G%G in its calc+lations as well as the &etho o, calc+lation are etaile in Annex A

o, the report(

Chapter 9 concl+es with a s+&&ar o, *iews an a presentation o, three options 73es+&e 3econsier an

3eboot8 pro*ie b the .G%G to the A3%NA Boar base on the s+b&issions ,ro& sta/eholers an its own

analses an F+)e&ents(


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) GE#T,ERMA- E"ERG. I"A%*TRA-IAThis chapter presents the .G%GEs response to ite& 27a8 o, the Ter&s o, 3e,erence pro*ie b the A3%NA Boar(

.t raws on the in,or&ation containe in a report prepare b CS.3O other re,erence so+rces an sta/eholer

inp+ts(

On the re@+est o, the .G%G CS.3O was co&&issione to prepare an in;epth report on )eother&al ener) in

A+stralia( The report a+thore b -r Ca&eron +lestone;ol&es an entitle Geothermal Ener$y in Australia is a s+pple&entar oc+&ent that acco&panies the &ain report o, the .G%G(

)&! Geological context / Australia0s geothermal resources

Geother&al ener) is si&pl the +tilisable heat ,ro& the earth( Bene,icial +se o, this heat is achie*e b brin)in)

the heat to the s+r,ace in a ,l+i 7stea& or water8( This ,l+i &a occ+r nat+rall in the s+b;s+r,ace reser*oir or it

&a ha*e to be intro+ce into the sste& *ia inFection ,ro& the s+r,ace( .n )eneral te&perat+res increase with

epth in al&ost all )eolo)ical settin)s( Th+s at s+,,icient epth there is potential ,or )eother&al ener) +se inal&ost an accessible terrestrial location( To be co&&erciall *iable howe*er the cost o, extractin) an +sin)

)eother&al ener) &+st be less than the price that ener) recei*es(

The /e technical co&ponents o, )eother&al sste&s that eter&ine the costs o, e*elop&ent are the s+b;

s+r,ace te&perat+res an ,low rates o, water stea& or other *ectors that trans,er the +ner)ro+n ener) to the

s+r,ace( A pre,erre )eother&al ener) reso+rce has a esirable co&bination o, ,low rates an te&perat+re an

these are eter&ine b the )eolo)ical settin) o, the reso+rce( ost )lobal )eother&al reso+rces c+rrentl

exploite ,or power )eneration are con*ecti*e hrother&al sste&s 7where the heat is carrie +pwars b ,l+is8

that are ,o+n in )eolo)ical settin)s that are in re)ions o, acti*e tectonics an *olcanis& alon) plate bo+naries(

These Kcon*entionalE sste&s ha*e hi)h te&perat+res at shallow epths 7000 &8 +e to hi)h heat ,lows

ca+se b hot ,l+is &o*in) +pwars thro+)h roc/s with hi)h nat+ral per&eabilit(

Globall there is )rowin) acti*it in e*elopin) )eother&al reso+rces o+tsie o, )eolo)icall acti*e locations

where accessible ener) is pro*ie b con+cti*e heat ,low( Con+cti*e heat ,low occ+rs when heat &o*es b+twitho+t the &o*e&ent o, the &aterial or ,l+is within that &aterial( These reso+rces ten to ha*e lower ther&al

)raients than con*entional con*ection o&inate reso+rces an re@+ire eeper rillin) to reach s+,,icientl hi)h

te&perat+res(

The A+stralian continent lies entirel within the .no;A+stralian tectonic plate( As a res+lt o, its tectonic settin) it

oes not ha*e the con*ecti*e heat ,low re)i&es that tpi, the &aForit o, )eother&al pro*inces )loball( .nstea

A+straliaEs )eother&al reso+rce is characterise b con+cti*e processes(

Geother&al reso+rce tpes in A+stralia can be cate)orise into three cate)ories!

Shallow !irect.use reso+rces tpicall in the


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)&+ ,istory of the geothermal sector in Australia

Be,ore the &i;1990s the li&ite )eother&al ener) acti*it in A+stralia was pri&aril ,oc+se on irect;+se

applications o, hot )ro+nwater( %arl co&&ercial )eother&al ener) sste&s accesse war& water ,ro&

sei&entar a@+i,ers pri&aril ,or irect +se applications( $or exa&ple in Portlan 5ictoria a istrict heatin)

sste& was +se to heat b+ilin) space an

the &+nicipal swi&&in) pool ,ro& 19: to 2004( A sste& also operate in Taral)on 5ictoria in the 19


19/123

The A+stralian )eother&al ener) research sector has )rown with the in+str an reache a pea/ o, acti*it

aro+n 20102011( .n A+)+st 2010 a )ro+p o, +ni*ersit CS.3O an Geoscience A+stralia researchers Foine

to)ether to ,or& the Geother&al 3esearch .nitiati*e 7G3.8 to ,oster collaboration on research an e*elop&ent ,or

the )eother&al ener) sector( .n 2011 the G3.Es ei)ht &e&ber instit+tions ha an e@+i*alent o, ## ,+ll ti&e sta,,

an &ore than 40 post;)ra+ate st+ents wor/in) on )eother&al ener)( Nearl all o, these researchers ha*e

trans,erre or aapte their /nowle)e )aine in other ,iels to the )eother&al sector(

As the )eother&al sector )rew thro+)h the 2000s the sector &at+re with all six states an the Northern Territor

enactin) le)islation to re)+late )eother&al ener) e*elop&ent the establish&ent o, an in+str association anthe release o, the A+stralian Geother&al 3eportin) Coe( There ha*e also been se*eral p+blicl ,+ne st+ies

con+cte ,or the A+stralian )o*ern&ent or one o, its a)encies to pro*ie a*ice an )+iance ,or the s+pport o,

)eother&al ener) in A+stralia(

Total expenit+res on )eother&al ener) e*elop&ents an research in A+stralia since the late 1990s a&o+nt to

approxi&atel M900 &illion 7in no&inal ollars8 or o*er M1 billion in 2014 ollars( State an ,eeral )o*ern&ent

,+nin) an )rants allocate to s+pport )eother&al in+str acti*it 7excl+in) research an e*elop&ent an

pre;co&petiti*e ata pro)ra&s8 was M1< &illion as at the en o, the 201 calenar ear( Approxi&atel M#6

&illion o, this total has been spent F+st o*er M100 &illion re&ains to be spent b recipients an the re&ainer

has been ret+rne to )o*ern&ents pri&aril beca+se proFect proponents ha*e been +nable to sec+re the

&atchin) ,+ns re@+ire as a )rant conition( .n aition to )rants M1 &illion in tax rebates ha*e been recei*e

b the sector( The total a&o+nt spent b in+str as at the en o, 201 is esti&ate to be approxi&atel M:2:

&illion( O*erall the )o*ern&ent contrib+tion has been aro+n 1 per cent o, the total expenit+re b the A+stralian )eother&al in+str(

$+nin) to the research sector is &ore i,,ic+lt to @+anti,( aFor )rants s+ch as ,or centres o, excellence in

)eother&al research total between M20 &illion to M2< &illion 7no&inal ollars8( The in;/in contrib+tions o, the

research sector are expecte to ha*e at least &atche this ,+nin) a&o+nt( .n aition ,+nin) ,or pre;

co&petiti*e ata pro)ra&s at Geoscience A+stralia an the state )eolo)ical s+r*es are esti&ate to ha*e cost

so&e M0 &illion(

)&1 Current status of the geothermal sector in Australia

The A+stralian )eother&al sector is c+rrentl stalle with *er little acti*it +nerwa( A /e reason ,or the c+rrent

lac/ o, acti*it is the i,,ic+lt in attractin) co&&ercial ,+nin) to procee with c+rrent an propose

e*elop&ents an also polic +ncertaint in relation to the renewable ener) sector(

)&2 $irect3use opportunities

A potential *al+e;a that &a &a/e )eother&al ener) econo&ic in A+stralia in a shorter ti&e ,ra&e than will

electric power )eneration is the irect +se o, the heat( The rapi +pta/e o, )eother&al ener) in Ger&an ,or

exa&ple is base not onl on power )eneration b+t also on irect +se o, the heat ,or resiential an &+nicipal

space heatin)(

-epths ,or irect;+se wells are tpicall shallower beca+se the te&perat+res neee are not as hi)h as those

neee ,or electricit )eneration( At these shallower epths it is easier to ,in or create hi)h per&eabilit

reser*oirs( A wie *ariet o, +ses *al+e;a to )eother&al reso+rces in the >S .celan Ger&an an other

co+ntries( .n A+stralia there are so&e speci,ic opport+nities ,or irect +se that wo+l be possible in areas where

there is )oo )eother&al potential( So&e o, these wo+l be o,,;)ri +ses while others wo+l nee to be nearpop+lation centres(

Geother&al heat is +se ,or a wie *ariet o, irect +ses incl+in) heatin) ,or )reenho+ses ho&es an in+strial

spaces coolin) +sin) absorption chillers ,oo rin) la+nerin) an in) an ,or i&pro*in) e,,icienc o,

acti*ate sl+)e sewa)e treat&ent plants( Geother&al hot water in the Perth Basin is also +se ,or heatin)

swi&&in) pools an pro*iin) space heatin)( So&e possible ,+t+re +ses incl+e hot water ,or enhance oil

reco*er ,ro& shales an esalination( So&e exa&ples o, +ses o, )eother&al hot water an stea& are!

4reheating water for thermal process power generation 5coal6 gas6 biomass7

%xa&ple! .n the S+san*ille Cali,ornia area a bio&ass b+rnin) plant +ses woo waste as the ,+el with preheate

water ,ro& a )eother&al reso+rce to )et better e,,icienc(

4reheate water from Concentrate *olar 4ower 5C*47

%xa&ple! %N%L at their Soa La/e Ne*aa plant +ses CSP to preheat water ,or their binar +nits to boost

e,,icienc an to o,,set lon);ter& te&perat+re ecline o, the reso+rce(


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Management of waste water from coal3fire generation

%xa&ple! the possible +se o, waste water ,ro& coal ,ire power stations within an %GS as the circ+latin) ,l+i( The

heate water co+l be +se in the boiler to i&pro*e e,,icienc an re+ce the a&o+nt o, coal cons+&e per =h(

,eap leach with hot water

%xa&ple! 3elie, Canon ine in Ne*aa +ses )eother&al water to accelerate heap leachin) o, )ol ,ro&

cr+she ore(

8oo rying

%xa&ple! BraEs ot Sprin) Onion -ehration Plant D onion ehration at a Ne*aa )eother&al area in*ol*es

the +se o, a contin+o+s operation belt con*eor +sin) ,airl low;te&perat+re hot air ,ro& 40 to 10 an $rance(

Co&&on irect;+se applications are istrict an space heatin) bathin) an the heatin) o, )reenho+ses( .n so&e

re)ions )eother&al heat is +se ,or snow &eltin) a@+ac+lt+re,ish ,ar&in) or in+strial applications( $or

exa&ple in the Larerello )eother&al ,iel in .tal waste heat ,ro& the San artino power plant is +se as acheap an eco,rienl process heat in a nearb air ,or cheese pro+ction( ot )eother&al water is also +se to

assist in oil reco*er( .n A+stralia irect +se proFects ,ro& )eother&al ener) incl+e ,ish ,ar&s )eother&al spas

hot baths an swi&&in) pools(

At a lar)e;scale co&&ercial le*el there is no irect +se proFect c+rrentl operational in A+stralia altho+)h there

are &an possible applications in ener) intensi*e sectors s+ch as &inin) an reso+rce processin)( One o, the

&ost prospecti*e irect;heat applications is in the oil an )as sector where an ienti,ie )eother&al reso+rce is

co;locate with processin) an reco*er ,acilities( .n partic+lar nat+ral )as re@+ires processin) to re&o*e

i&p+rities when it is extracte an prior to transportation thro+)h )as pipelines( This )enerates a parasitic loa o,

abo+t : per cent an this is c+rrentl s+pplie b b+rnin) the )as itsel,( .&p+rities s+ch as carbon ioxie re+ce

well pro+cti*it an also pose ,inancial ris/ ,or ,ir&s concerne abo+t chan)es to i&posts base on carbon

e&issions( 3e&o*al o, carbon ioxie re@+ires ener) an its reinFection bac/ into wells can also enhance

hrocarbon reco*er( A3%NA co&&issione %*ans an Pec/ to in*esti)ate the &ar/et ,or lar)e;scale co&&ercial +se o, irect heat

,ro& )eother&al ener) in the Cooper Basin an this st+ ,or&s part o, the e*ience base ,or .G%GEs wor/( The

Cooper Basin site was chosen beca+se it has the &ost e*elope %GS proFect in A+stralia an it is in close

proxi&it to a )as processin) ,acilit( The .G%G consiere that cost;co&petiti*e )eother&al ener) ,or irect

heat p+rposes co+l beco&e co&&erciall *iable be,ore 200( The cost co&peti*eness o, )eother&al ener) ,or

)as processin) is hi)hl epenent on! 718 the price ,or )as recei*e b pro+cers an 728 the cost o, pro+cin)

the )as( Geother&al ener) beco&es &ore cost co&petiti*e the hi)her is the )as price an the )reater is the cost

o, pro+cin) the )as( This is beca+se hi)her )as prices enco+ra)e )reater )as pro+ction an th+s aitional

processin) while hi)her costs o, )as pro+ction &a/e it &ore attracti*e to switch to )eother&al ener) ,ro& )as

as a ,+el so+rce ,or )as processin)(

Base on cost esti&ates an para&eters accepte b the .G%G an e*elope b %*ans an Pec/ there are

se*eral possible scenarios whereb irect;heat +ses o, )eother&al ener) in the Cooper Basin beco&e costco&petiti*e( These ,inin)s are s+&&arise in $i)+re 2(1 where )as prices )as costs an )eother&al costs are

liste in ter&s o, ollars per )i)aFo+le 7G8( The relati*e )as costs 7in li)ht brown8 )as prices 7in ar/ brown8 an

)eother&al costs 7in oran)e8 can be co&pare o*er three perios! 2014 2020 an 200( The &oellin) shows

that hi)h;,low 7an lower cost8 )eother&al ener) is potentiall cost co&petiti*e with +ncon*entional )as

pro+ction costs in 2020(


21/123

8igure )&!9 Comparison of geothermal heat prouction cost with gas prouction price an gas sellingprice

The expectation is that wholesale )as prices will rise as li@+e,ie nat+ral )as 7LNG8 exports base on coal;sea&

)as in +eenslan beco&e operational in 20141sin) the ,low rates obtaine at .nna&inc/a b

Geona&ics o, 40 /)s )eother&al ener) beco&es cost co&petiti*e with shale )as that costs M6;M#G toextract an which is in the c+rrent cost ran)e ,or shale )as pro+ction( =hile cost co&peti*eness re@+ires

)eother&al ener) to be less than the cost o, +ncon*entional )as pro+ction it oes not )+arantee that )as +se

,or parasitic p+rposes is act+all replace b )eother&al ener)( .n part this is beca+se the owners o, the )as

processin) ,acilities also nee to be con*ince that )eother&al ener) is a reliable ener) so+rce be,ore the are

prepare to retool plants ,or )eother&al ener) or to si)n lon);ter& contracts(

.n s+&&ar at least in the Cooper Basin where there are )as ,iels that incl+e )as processin) ,acilities an both

con*entional an +ncon*entional )as reso+rces alon)sie ienti,ie )eother&al ener) there is a reasonable

possibilit o, cost;co&petiti*e )eother&al ener) s+ppl ,or irect;heat p+rposes( Critical to whether )eother&al

ener) so+rces in the Cooper Basin will be cost co&petiti*e is! 718 the abilit to increase the ,low rate o,

)eother&al ener) ,ro& its c+rrent le*el o, 40 /)s to at least :0 /)s or a rate that has been achie*e in

enhance )eother&al sste&s o*erseas 728 )as prices ex oo&ba o, at least M6 to M#G an 78 Shale )as

e*elops as an i&portant so+rce o, )as s+ppl( All o, these ,actors &a ali)n between 2020 an 200( Beon theCooper Basin other irect +ses are possible especiall o,, the )ri where ener) costs can be se*eral &+ltiples o,

what cons+&ers &a pa within the National %lectricit ar/et( S+ch e*elop&ents howe*er are +nli/el witho+t

i&pro*e&ents in ter&s o, how to locate s+itable )eother&al reso+rces witho+t rillin) an was to increase ,low

rates in enhance )eother&al sste&s(


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+ A%*TRA-IA" GE#T,ERMA-E"ERG. *ECT#R *:#T

A"A-.*I*+&! The *:#T framewor(

A Stren)ths =ea/nesses Opport+nities an Threats 7S=OT8 ,ra&ewor/ is a *al+able plannin) an e*al+ati*e

tool( A S=OT is not intene to be an exha+sti*e state&ent o, all positi*es an ne)ati*es b+t rather to ill+strate

existin) capacities an ,+t+re possibilities( A S=OT analsis is partic+larl bene,icial when a technolo) is not et

e*elope a proFect is +ner consieration or when a sector is ,acin) a lar)e e)ree o, +ncertaint abo+t its

,+t+re( This is beca+se it allows ,or an e*al+ation o, choices that &a not otherwise be consiere(

The ,o+r;i&ensional or @+aratic str+ct+re creates a sste&atic portraal o, stren)ths wea/nesses

opport+nities an threats ,or initiati*es s+ch as proFects processes policies or stanars( The )eneral

characteristics o, each cate)or are ill+strate below!*trengths

internal an external co&parati*e a*anta)e

co&petiti*e cost characteristics

personnel or operatin) s/ills

:ea(nesses

process or pro+ct neein) i&pro*e&ent

iss+es to be a*oie

operatin) cohesion

#pportunities

&ar/et niches a*ailable

e&er)in) trens

collaboration

Threats

obstacles h+rles or barriers

&ore e,,icient or e,,ecti*e co&petitors

@+alit stanars chan)in) speci,ications

chan)in) technolo) earl obsolescence

a*ailable an ae@+ate ,inance

+&) *:#T of the Australian geothermal sector

.n the case o, the A+stralian )eother&al sector the .G%G has cate)orise the S=OT in ter&s o, the iss+es that

the p+blic polic;&a/ers e*elopers an ,inanciers &+st con,ront(

The S=OT analsis as constr+cte o,,ers a sste&atic o*er*iew o, the role an potential o, the )eother&al

in+str( .t oes not o,,er sol+tions to polic @+estions nor is it a s+bstit+te ,or e,,ecti*e plannin) an polic

processes( .n s+& this S=OT analsis represents the learnin) an research +nerpinnin) this report(

The )eother&al ener) &ar/et is +ni@+e in its carbon ne+tral renewable characteristics( owe*er it is still bo+nb an interepenent trian)le o, polic technolo) an econo&ic exchan)e( The S=OT ienti,ies the &aFor

iss+es an establishes lin/s between the&( Th+s it can assist in ass+rin) that interrelationships an ,orces are

acco+nte ,or b+t it oes not replace the necessar *al+e F+)&ents that are the basis o, social or econo&ic

polic(

The /e iss+es co*ere in the ,ra&ewor/ are colo+r;coe accorin) to ,o+r the&es!

1( Polic social an co&&+nit iss+es Fobs an e&plo&ent

2:( ar/ets ,inance an electric sste& operation

29( Technolo) an en)ineerin)

0( %n*iron&ental iss+es an externalities(


23/123


24/123

4ositive Attributes "egative Attributes

ur e*cenarios

1( Technical brea/thro+)hs re+ce the costs o,

the ener) pro+ce ,ro& )eother&al proFects

an lower the ris/s in their e*elop&ent

1( >ncertain &ar/et conitions 7national

ener) polic8


25/123

is proFecte to be wea/(

An in+str especiall one in its earl sta)es o, e*elop&ent an technolo)ical i&pro*e&ents ,aces threats to

s+ccess,+l operation in the &ar/etplace( Geother&al ener) relies on eep rillin) an sti&+lation techni@+es that

are alle)e to initiate &icroseis&ic e*ents an pose ris/s to a@+i,er water @+alit( .nae@+ate exploration an

reso+rce characteriIation can res+lt in hi)h ,ail+re rates ,or rillin) an +nrewarin) options ,or in*estors( =hile

not +ni@+e in ter&s o, re)+lator o*ersi)ht o, ener) sste&s these iss+es represent serio+s threats to

wiesprea eplo&ent o, )eother&al technolo)ies( >lti&atel the &ost serio+s threats arise ,ro& its +nteste or

not;,+ll;&at+re technolo)ies with attenant hi)h capital costs an perception o, ris/ in ,inancial &ar/ets( To theextent that )eother&al ener) ,ails to attract in*est&ent an e*elop&ent interest the sector will lan)+ish an not

be able to eli*er cost;e,,ecti*e eplo&ent o, technolo)(


26/123

1 I"TER"ATI#"A-GE#T,ERMA- E"ERG.

$E=E-#4ME"TThis chapter escribes the international settin) in which A+straliaEs )eother&al ener) sector operates(

.nternational e*elop&ents pro*ie a *al+able context ,or the barriers ,acin) the A+stralian )eother&al sector an

in,or& the possible options that the A3%NA Boar &a wish to consier in ter&s o, s+pport ,or the sector( The

chapter explains the technical an sector i,,erences in )eother&al ener) between A+stralia an o*erseas an

re*iews the policies an pro)ra&s to s+pport the )eother&al sector in other co+ntries(

1&! Convective geothermal resources

1&!&! #verview6 history an current state

%lectricit was ,irst )enerate +sin) )eother&al stea& in .tal in 1904 an co&&ercial )eother&al power)eneration has been +se in .tal since the 1940s( >tilit;scale power )eneration ,ro& )eother&al ener)

expane to New Qealan an the >SA in the earl 1960s an has since )rown to incl+e #0 co+ntries an

re)ions with )eother&al electrical pro+ction either in operation or +ner constr+ction 7ate/ G%A 2018(

There has been a stea expansion o, )eother&al )eneration capacit worlwie since the 19#0s with a total

increase o, installe )lobal capacit between 200< an 2010 o, 1#:2 =e 7,ro& :9 to 10#1< =e8 7Bertani

20108( $i)+re 4(1 ,ro& Bertani 720108 shows the increase in installe capacit an pro+ce electricit ,ro& 19


27/123

8igure 1&)9 :orl geothermal electricity6 installe capacity 5M:76 !>?@/);!+6 from Mate(6 GEA 5);!+7

2000

4000

6000

8000

10000

12000

14000

1978 1981 1984 1990 1996 2002 2008 20141987 1993 1999 2005 2011 2017

$lal Installed Capacity Pr&ected Capacity * Plants +nder Cnstr!cti

11765

13402

C+rrentl there are so&e 12000 = o, aitional capacit o, )eother&al power in the earl sta)es o,

e*elop&ent or +ner constr+ction in #0 co+ntries( O, this so&e 1#41 = o, )eother&al power was +ner

constr+ction as o, 201( .n total there are 6#4 )eother&al power proFects worlwie that are c+rrentl +ner

consieration 7ate/ G%A 2018(

$i)+res 4(1 an 4(2 show that the expansion o, )eother&al ener) e*elop&ent has shown at least two i,,erent

phases( >ntil the late 19#0s e*elop&ents were tpicall s&all an ,ew in n+&ber( $ollowin) that K)estationE

perio worlwie e*elop&ent expane &ore or less linearl in a Kstea )rowthE perio( $i)+re 4(2 shows onl

the latter perio( Altho+)h both $i)+res 4(1 an 4(2 show the worlwie total e*elop&ents at a national le*el

ha*e o,ten shown a si&ilar pro)ression ,ro& K)estation to &at+ritE(

Table 4(1 s+&&arises the &echanis&s e&ploe to s+pport )eother&al ener) in ei)ht co+ntries( .t is notable

that both Ger&an an the >SA ha*e +se a s+ite o, co&ple&entar &eas+res to pro&ote the sectorEse*elop&ent(

Table 1&!9 International support mechanisms for geothermal energy evelopment

8ee inTariffs

Ris(insurance

-owinterestloans-oanguarantees

4rouctiontax creits

$irectgrants

Manatorytargets

RenewableEnergyCertificates

$rance

Ger&an

Great Britain

.tal apan

orea

SwitIerlan

>SA

1&!&) Global geothermal resources

L+n an Bertani 720108 ha*e s+&&arise the )lobal reso+rces o, electrical an irect;+se )eother&al ener) as

reporte to the =orl Geother&al Con)ress 2010( Table 4(2 shows the capacit an also +se o, both electricit

an irect +se in 2010(

Table 4(2 ill+strates the +al nat+re o, )eother&al ener) +tilisation( =orlwie there is s+bstantial irect +se o,

)eother&al heat ,or istrict heatin) sche&es a)ric+lt+ral an in+strial applications balneolo) an spas an

to+ris&(


28/123

1&!&+ Conuctive an convective resources

Geother&al reso+rces can be i*ie into two cate)ories con+cti*e an con*ecti*e( Con*ecti*e reso+rces

incl+e hi)h;te&perat+re so+rces o, *olcanic ori)in with nat+rall ,lowin) )eolo)ical ,or&ations( %xa&ples incl+e

what &i)ht be calle con*entional e*elop&ents s+ch as =aira/ei in New Qealan or the *olcanicall heate

istrict heatin) sche&es in .celan an T+r/e( Con+cti*e reso+rces incl+e those in sei&entar ,or&ations

with lar)el con+cti*e te&perat+re )raients( %xa&ples wo+l incl+e the istrict heatin) sste&s in the Paris

Basin the enhance )eother&al sste&s 7%GS8 in So+ltI an in Ger&an an &ost o, the reso+rces in A+stralia(

1&!&1 Geothermal in the %*A

The >nite States is the worlEs lar)est pro+cer o, )eother&al electricit with an installe capacit o, 09 =

7in 20108( .t has also ae &ore electricit capacit since 2006 7


29/123

Table 1&19 Estimate %* average levelise costs 5);!!DM:hr7 for plants entering service in );!@6 from%*3EIA 5);!+7

4lant type Capacityfactor 5B7

-evelisecapital cost

8ixe #M =ariable #M5incluingfuel7

Transmissioninvestment

Total systemlevelise cost

-ispatchable technolo)ies

Con*entional coal :< 6


30/123

Table 1&29 $eep geothermal proFects in operation in Germany6 "ovember );!+6 from Gt=

4roFect name *tate Type M:th M:e Maxtemp5oC7

$epth 5m7 8low rate5-s7

.earcommissione

Arnsber) North 3hine;

=est,alen

Sin)le well 0(< 0


31/123

Table 1&9 $eep geothermal proFects uner construction in Germany6 "ovember );!+6 from Gt=

4roFect name *tate Type M:th M:e Maxtemp5oC7

$epth5m7

8lowrate5-s7

.earcommissione

Aachen S+per C North 3hine

=est,alen

Sin)le well 0(4< 0 :< 2


32/123


33/123

1&) Conuctive geothermal resources

.n a con*entional )eother&al reso+rce heat is carrie +pwar ,ro& epth alon) ,ract+res or other per&eable

con+its an then is containe in a per&eable reser*oir near the s+r,ace where it can be rille to pro+ce hot

water or stea& in econo&ic @+antities an then inFecte bac/ into the reser*oir to be reheate( The heat so+rce

can be *olcanic or it can be the eep heat o, the earth b+t the epth that nees to be rille to reach the reser*oir

an the ,act that the reso+rce is per&eable witho+t h+&an inter*ention &a/e the con*entional )eother&alreso+rce si&ilar to the con*entional oil an )as reso+rce( .n both cases a nat+ral sste& exists an can be rille

into witho+t the nee to alter or enhance the sste& ,or the exploitation o, the reso+rce to be econo&ic(

., con*entional )eother&al reso+rces are analo)o+s to con*entional oil an )as reso+rces then so are

+ncon*entional )eother&al reso+rces analo)o+s to +ncon*entional oil an )as reso+rces( The nat+ral sste& in

both cases re@+ires &oi,ication or enhance&ent to be econo&ic(

.n oil an )as e*elop&ent two &aFor &ethos ha*e been +se to i&pro*e the econo&ics o, extractin) the

hrocarbons D enhance reco*er operations an sti&+lation(

%nhance oil reco*er 7%O38 is tpicall +se to )et &ore oil ,ro& a reser*oir b ain) water or another ,l+i to

the reser*oir to both rechar)e the press+re an sweep the oil ,ro& the pore spaces(

Sti&+lation &ethos i&pro*e the per&eabilit o, the reser*oir both near the wellbore an o+t in the ,ar ,iel awa

,ro& the well thro+)h hra+lic ,ract+rin) explosi*e ,ract+rin) or che&ical treat&ent( .n +ncon*entional

)eother&al reser*oirs enhance reco*er operations are +nerta/en thro+)h inFection o, cool water an

sti&+lation to i&pro*e per&eabilit(

.&pro*e&ents in &+lti;Ione ,ract+rin) technolo) in +ncon*entional oil an )as co&bine with the abilit to

econo&icall rill horiIontal wells has allowe access to a &+ch lar)er *ol+&e o, hrocarbons locate in *er

ti)ht ,or&ation( The res+lt o, this technolo)ical brea/thro+)h is a co&plete t+rn;aro+n in )as an oil pro+ction

an reser*es &a/in) the >S a potential exporter o, both oil an )as( The sit+ation in *er low per&eabilit

)eother&al heat reser*oirs is si&ilar in that it is necessar to sti&+late lar)e roc/ *ol+&es to access the heat(

owe*er a series o, open proppant;,ille tensile ,ract+res as is tpical ,or oil an )as hra+lic ,ract+rin)

cannot access the reall lar)e roc/ *ol+&es neee ,or hi)h ,low rate )eother&al heat pro+ction( This is

beca+se the open ,ract+res create b tensile roc/ ,ail+re co+l lea to creation o, short circ+its an too rapi

coolin) o, pro+ce ,l+i(

=hile hra+lic ,ract+rin) has been +se to i&pro*e oil an )as pro+ction since the 19S -epart&ent o, %ner) Geother&al Technolo) Pro)ra& initiate research an

e*elop&ent 73-8 to aapt oil;,iel hra+lic ,ract+rin) &ethos to i&pro*e )eother&al wells in con*entional

,iels( The table below shows the proFects an their o+tco&es(


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Table 1&?9 Cost effectiveness of %* $epartment of Energy geothermal well stimulation experiments5Combs6 et al6 );;17

-ocation Raft River East Mesa =allesCalera

The Geysers 'eowave

Tpe o, sti&+lation ro,rac ro,rac ro,rac %xplosi*e Che&ical

=ell na&e 33GP;4 ;<


35/123

8enton ,ill 4roFect history

The >S proFect at $enton ill was the ,irst atte&pt to &a/e

a eep ,+ll;scale -3 reser*oir in the worl( The site on the e)e o, the 5alles Calera at the northern en o, the

3io Grane ri,t Ione in north central New exico was chosen ,or its heat an roc/ characteristics as well as its

proxi&it to the Los Ala&os National Laborator ,acilit where the proFect was concei*e( The p+rpose o, the

proFect was to e*elop &ethos to econo&icall extract ener) ,ro& -3 sste&s locate in crstalline )ranitic

&eta&orphic base&ent roc/ o, s+itable te&perat+res(

The 3- pro)ra& was ro+)hl i*ie into two &aFor phases( Phase . ealt with ,iel e*elop&ent an

associate research on a /& eep reser*oir with a te&perat+re o, abo+t 200 oC an starte in 19#4 an

co&plete in 19:0( Phase .. with a eeper 7< /&8 hotter 700 oC8 reser*oir ,ollowe in 19#9 with the rillin) o, %%;

2( .nitiall ,ract+rin) &ethos +se in the oil an )as in+str were +se to create open tensile ,ract+res in the

shallow sste&( This see&e to wor/ well ,or the Phase . wellbores( +ltiple sta)es were e*elope with pac/ers

in the open;hole section o, the inFector an *ertical ,ract+res establishe a connection with the pro+ction well that

ha alrea been rille(

$or the eeper hotter Phase .. reser*oir the stress state was not the sa&e at epth so ,ract+res i not )row

*erticall as the ha in the Phase . wells( .nstea ,ract+res )rew ownwar &ore than +pwar an at abo+t a

4


36/123

8igure 1&19 *cheule of ,$R an EG* proFects


37/123

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-essons learne at 8enton ,ill

Low per&eabilit crstalline roc/ can be sti&+late to create hra+licall con+cti*e ,ract+res(

Proppe tensile ,ract+res were not an option since all teste proppants issol*e with ti&e( .nstea hra+lic,ract+res ha to be /ept open with hi)h press+re an this res+lte in lar)e parasitic ener) re@+ire&ents(


38/123

Con*entional rillin) &ethos incl+in) irectional rillin) &ethos can be aapte ,or the harsh en*iron&entsenco+ntere in reachin) Iones o, roc/ ,ro& abo+t 200 to 00 C which are hot eno+)h to be s+itable ,orco&&ercial power pro+ction(

The Phase . reser*oir was too s&all( Lar)er *ol+&es were neee to achie*e a co&&ercial siIe(

The ther&al hra+lic per,or&ance o, the recirc+latin) Phase . sste& was s+ccess,+ll &oelle an inicateapproxi&atel 10000 &2 o, e,,ecti*e s+r,ace area when &atche to ,iel ata( This is too s&all b abo+t a,actor o, 100(

Techni@+es +sin) che&ical tracers acti*e an passi*e aco+stic e&issions &ethos an other )eophsical lo))in)techni@+es can be +se to &ap an e*al+ate the create ,ract+res

Connection between wells was a cr+cial step in e*elopin) the create reser*oir( Connection was easier toestablish b rillin) into the ,ract+re *ol+&e once it was sti&+late an &appe(

Rosemanowes 4roFect ,istory

As a res+lt o, experiences +rin) Phase . at $enton ill in 19## the Ca&borne School o, ines +nertoo/ an

experi&ental hot r roc/ proFect locate at 3ose&anowes +arr near Penrn in Cornwall > in the

Carn&enellis )ranite( The proFect was ,+ne b the > -epart&ent o, %ner) an b the Co&&ission o,

%+ropean Co&&+nities an was intene as a lar)e;scale roc/ &echanics experi&ent aressin) so&e o, the

iss+es s+rro+nin) the sti&+lation o, ae@+ate ,ract+re networ/s( Beca+se the te&perat+re was restricte

eliberatel to below 100WC to &ini&ise instr+&entation proble&s this proFect was ne*er intene to be a netpro+cer o, ener)( The site was chosen beca+se &ine wor/s in the area allowe roc/ characterisation to o*er

1000 & beca+se o, the clearl e,ine *ertical Fointin) e*ient in the expose )ranite an beca+se o, the heat

,low an hi)h te&perat+re )raients between 0 D 40WC/& in the area( The &ain tectonic re)i&e o, the area is

stri/e;slip(

Phase 1 o, the proFect starte in 19## with the rillin) o, a n+&ber o, 00 & test wells to test so&e possible

,ract+re initiation techni@+es( $or Phase 2A o, the proFect two wells were rille with a total *ertical epth 7T5-8 o,

aro+n 2000 & where the te&perat+re was aro+n :0WC( Both were e*iate in the sa&e plane to an an)le o, 0

e)rees ,ro& the *ertical in the lower sections an separate b 00 & *erticall( The wells were initiall

sti&+late +sin) explosi*e &ethos which i not pro+ce res+lts that were +se,+l ,or heat sweep( ra+lic

,ract+res pro+ce a sste& o, ,ract+res that were &appe with &icroseis&ic &onitorin)( As was the case at

$enton ill the stress re)i&e was not the sa&e at epth as in the shallow test wells( At 3ose&anowes ,ract+res

)rew *erticall ownwar rather than +pwar an the ,ract+res i not intersect the pro+ction well(

Phase 2B be)an in 19: an entaile the rillin) o, a thir well 31


39/123

The ,ract+res create b hra+lic sti&+lation which connect best across the reser*oir are not ,or&e thro+)htension as in the hra+lic ,ract+rin) +se in oil an )as wells b+t instea are create b shearin) on pre;existin) Foint sets(

Stress ,iels in crstalline roc/ are in*ariabl anisotropic so the nat+ral ,ract+res ,ail in shear lon) be,ore Fac/in)ta/es place( a*in) sheare the nat+ral ,ract+res then sel,;prop an sta open(

Too hi)h applie press+re can open tensile ,ract+res leain) to water loss anor short circ+its(

There are alwas criticall;oriente nat+ral ,ract+res so while it is eas to sti&+late with lower press+res it is also*er eas to appl too hi)h a press+re(

The ownwar )rowth at 3ose&anowes an that obser*e at $enton ill are the res+lt o, the co&bination o, insit+ stress an the te&perat+re an press+re on the roc/(

The preiction o, the irection o, ,ract+re )rowth is i,,ic+lt in the absence o, precise ata ,ro& ownhole( %*enwith near;well;bore ata ,ro& i&a)e lo)s the ,ract+res &a not )row exactl as preicte( As a res+lt it isbetter to create the reser*oir ,irst an then rill into it(

One wa to increase reser*oir per&eabilit is to choose areas where there are pre;existin) ,ract+res spaceclosel in the wellbore an that are oriente so that the will be li/el to ,ail in shear +rin) sti&+lation(

Near;well;bore per&eabilit re+ction ter&e Ks/in e,,ectE can increase press+re rop an ecrease ,low rates(Placin) proppants in this near;well;bore area in the inFector &a re@+ire hi)h press+res an ,low rates thatincrease the li/elihoo o, short circ+its(

Probabl the &ost i&portant sin)le lesson ,ro& this experi&ent is that hro;,ract+rin) an arti,icial ,ract+res areal&ost irrele*ant( The nat+ral ,ract+re sste& o&inates(

Nat+ral ,ract+res are per*asi*e in crstalline roc/s at all epths an all locations so ,ar in*esti)ate( %*en i, anarti,icial ,ract+re is )enerate eliberatel b hro,ract+rin) or D &ore o,ten D accientall while rillin) it willintersect the nat+ral sste& within &etres an ,ro& there on the beha*io+r is o&inate b the nat+ralsste&(

O*er sti&+latin) pre;existin) ,ract+res can res+lt in &ore irect connection ,ro& inFector to pro+cer than is esireso that cool ,l+i can Kshort;circ+itE thro+)h the reser*oir an cool pro+ction(

3esearch at 3ose&anowes an *ario+s other sites in the 19:0s 7Pine 3(( an Batchelor A(S( 19:48 con,ir&e

that the creation o, new hra+lic ,ract+res was not the o&inant process b+t that the shearin) o, nat+ral Foints

,a*o+rabl ali)ne with the principal stresses o, the local stress ,iel was a &ore i&portant &echanis& to

)enerate ,low( These Foints ,ail in shear beca+se the ,l+i inFection re+ces the nor&al stress across the& b+t atthe sa&e ti&e onl &ar)inall a,,ects the &a)nit+e o, the shear stress( The shearin) &echanis& allows ,rictional

slippa)e to occ+r be,ore Fac/in) an there,ore there will be a co&ponent o, shearin) ahea o, an KFac/eE Ione

7Baria 3( et al( 19:nite States an =est Ger&an +ner an i&ple&entation a)ree&ent o, the

.nternational %ner) A)enc 7.%A8 7Ten&a an .wa/iri in Baria et al 20028( On the basis o, this research N%-O

con+cte st+ies at iFiori to eter&ine i, the technolo) e*elope at $enton ill co+l be aapte to the

)eolo)ical conitions ,o+n in apan(

The iFiori site is locate in a&a)ata Pre,ect+re on the apanese islan o, onsh+( The proFect site was on theso+thern e)e o, iFiori calera a s&all calera on the sie o, the lar)e Pleistocene Gassan *olcano which last

er+pte approxi&atel 10000 ears a)o( The location was chosen to ta/e a*anta)e o, the *er hi)h te&perat+re

)raient in this area o, recent *olcanic acti*it( The area ha been extensi*el &appe an so&e te&perat+re

)raient rillin) ha been carrie o+t( Altho+)h the re)ional tectonics are co&pressional alon) the axis o, the

islan o, onsh+ the stress re)i&e near the e)e o, the calera is *er co&plex( aFor ,a+lts alon) with rin)

,ract+res associate with the calera collapse ca+se stress chan)es both horiIontall an *erticall an o*er

short istances(

The shallow reser*oir was ,irst rille in 19:9( One inFector D SG;2 an pro+cers D -3;1 -3;2 -3;

were rille between 19:9 an 1991( The epth o, all b+t -3;1 was X1:00 &( -3;1 was co&plete at a epth

o, 21


40/123

to -3; abo+t 10 & at 2200 &(

ra+lic ,ract+rin) experi&ents be)an in 19:: with water inFection into SG;2( A 0;a circ+lation test was

con+cte in 19:9 ,ollowin) sti&+lation which showe a )oo hra+lic connection between the inFector an the

two pro+cers b+t o*er #0 per cent o, the inFecte water was lost to the reser*oir( Ne*ertheless the test was

short an the reser*oir contin+e to )row +rin) the entire circ+lation perio s+))estin) that sti&+lation was still

occ+rrin)(

A,ter -3;1 was eepene to 220< & in 1991 the well was hra+licall ,ract+re to sti&+late the eep ,ract+res

in 1992( $ollowin) sti&+lation a 2


41/123

The ata s+))est that cool water short circ+ite possibl beca+se ,ract+re )rowth +rin) inFection testin)connecte the eep reser*oir with the shallow or beca+se the eep an shallow reser*oirs connecte thro+)hone o, the well bores penetratin) both Iones(

=ell spacin) nees to be as lar)e as possible while still &a/in) a connection(

The iFiori proFect shows the *al+e o, +nerstanin) not onl the stress ,iel b+t also the nat+ral ,ract+re sste&(

Both the $enton ill proFect an the iFiori proFect were on the e)es o, a *olcanic calera( =hile *er hi)h

te&perat+re )raients can pro*ie access to a lar)e reser*oir o, heat accesse with shallower wells an can

&a/e the proFect econo&ics better the )eolo) stress conitions an ,ract+re histor o, roc/s in s+ch areas can

be extre&el co&plex(

#gachi proFect history

The O)achi proFect is locate in A/ita Pre,ect+re near +ri/o&a National Par/ on onsh+ .slan apan( The ,irst

exploration wells were rille in the area between 19:2 an 19:4 on the e)e o, the A/ino&ia )eother&al area(

The heat so+rce is t a&ab+shi *olcano( The site was consiere as an %GS proFect beca+se while

te&perat+res were hi)h o*er 20JC at 1000 & the pro+cti*it o, the wells was low(

The OGC;1 well later +se as an inFection well was rille in 1990 to a epth o, X1000 & an a te&perat+re o,

20JC( Two ,ract+re sti&+lations were one in the 10 & o, open hole in the botto& o, the well b+t both appeare

to sti&+late the sa&e Ione( .n orer to create a secon sti&+late Ione a winow was &ille at a epth o, #10 &

an a secon ,ract+re ter&e the +pper reser*oir was create ,ro& approxi&atel #10D#19 &(

Pro+ction well OGC;2 was rille in 1992 to a epth o, 1100 & where a te&perat+re o, 240JC was reache( The

well was less than 100 & ,ro& OGC;1( A circ+lation test in 199 with inFection into OGC;1 an pro+ction ,ro&

OGC;2 showe onl per cent o, inFecte water was pro+ce( To i&pro*e the connection between the wells

OGC;2 was sti&+late in 1994( A ,i*e;&onth circ+lation test ,ollowin) this sti&+lation showe that onl 10 per cent

o, the inFecte water was pro+ce bac/( The pro+ction an inFection wells were a)ain sti&+late in 199


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in :00 & boreholes at Le aet in the assi, Central an to)ether with Ger&an be)an a es/top st+ in the

&i;19:0s o, the potential o, a site at So+ltI;so+s;$orYts in the >pper 3hine 5alle( As the latter is the site o, the

,or&er Pechelbron oil,iel the )eolo) was *er well characterise own to abo+t 1


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.n 200: a 1(< = e&onstration plant was constr+cte an teste at the So+ltI proFect( The plant ,low is

pro+ce ,ro& GP;2 an GP;4 an inFecte into GP;1 an GP;( -+rin) the &ore than 10 ears o, testin)

an the ,i*e ears o, plant operation there has been little to no te&perat+re rop in the pro+ction ,low( The

inFection is balance b the pro+ction(

-essons learne from the *oult 4roFect

The So+ltI proFect &ore than an other pre*io+s -3%GS proFect +se the lessons learne ,ro& the earlier

wor/ an has co&e the closest to create an econo&ic arti,iciall create reser*oir( The So+ltI proFecte&onstrate that lar)e ,ract+re *ol+&es can be create repeatel in roc/ that contains pre;existin) nat+ral

,ract+res that are rea to ,ail in shear(

Lar)e o*erpress+res are not neee to exten the reser*oir an ,airl hi)h pro+cti*it an inFecti*it can becreate(

Nat+ral ,ract+res an the nat+ral connecti*it o, these ,ract+res see& to o&inate the enhance reser*oir sste&(

Nat+ral ,ract+res can be sti&+late b+t there see&s little ata to s+pport the creation o, a totall arti,icial reser*oirwhen no nat+ral ,ract+res are present(

Sti&+latin) an entire wellbore section with so&e open ,ract+res will pre,erentiall sti&+late the hi)hest open,ract+re( +ch less bene,it will be seen in the s&aller ,ract+res(

>se o, hi)h;ensit brine &a assist with s&aller ,ract+res(

=hile &icroseis&ic &onitorin) wor/s well o*erall to &ap ,ract+res the sector still oes not totall +nerstan therelationship between &appe aco+stic e&ission e*ents an ,l+i ,low(

There are se*eral &ethos ,or re+cin) near;wellbore press+re rop s+ch as aciisin) e&placin) proppants ansti&+latin) with ,ract+rin) ,l+is( $+rther testin) is neee to eter&ine which o, these is &ost bene,icial(

Aciisin) re+ce the inFection press+re ,or a )i*en ,low rate an the e,,ect see&s to be lastin)(

.nFection testin) shows a nearl linear correlation between wellhea press+re an inFection rate( This is tpical o,,low in poro+s &eia in )eneral s+))estin) that there was an o*erall ,ract+rin) pattern not separate iscrete,ract+res( This ,inin) s+))ests that per&eabilit is not epenent on press+re which ha pre*io+sl beens+specte(

=hile inFectin) at hi)h press+res can increase ,low rates +rin) operation o, the reser*oir it can also sti&+late,ract+re )rowth( Another alternati*e to hi)h;press+re inFection is p+&pin) the pro+ction well(

Lo))in) tools ha*e te&perat+re li&its an there is little incenti*e ,or oil an )as to brin) these li&its to *er hi)hte&perat+res(

The lar)er the inFecte *ol+&e witho+t press+re relie, thro+)h pro+ction the lar)er the potential ,or proble&aticin+ce seis&icit(

$eep ,eat Mining6 'asel6 *witerlan proFect history

The -eep eat inin) 7-8 proFects in SwitIerlan planne to )enerate power at sites in Basel an Gene*a( At

Basel a 2(# /& exploration well was ,irst rille an st+ie an then e@+ippe with seis&ic instr+&entation( The

Basel site was selecte to enable the e*elop&ent o, a co&bine heat an power proFect an beca+se the Cit o,

Basel was anxio+s to re+ce the epenence on non;renewable reso+rces ,or both power )eneration an heatin)

an coolin)( The location o, the proFect in an in+strial area was consiere to be s+,,icient to re+ce the i&pact

o, the constr+ction phase o, the proFect on the pop+lation( 5ario+s sites aro+n the cit were in*esti)ate ,or thepri&ar pro+ction an inFection wells b+t onl Basel was e*al+ate ,or the proFect location(

The Basel area is at the so+th;eastern en o, the >pper 3hine Graben an at the northern ,ront o, the +ra

o+ntains the o+ter&ost expression an o+n)est part o, the alpine ,ol belt 7arin) 20048( The )rabenEs

relate CenoIoic ri,t sste& is li&ite to the so+th b the ,ol;an;thr+st belt o, the +ra o+ntains 7e)hrao+i et

al( 20018( The local )eolo) consists o, ,ole an tab+lar +ra +nits as well as Tertiar sei&ents o*erlin)

own;roppe )ranitic roc/ 7astr+p et al( 20048( The 3hine 3i*er r+ns thro+)h the cit epositin) so,t

sei&ents which &a a&pli, seis&ic sha/in)( 7Giarini 20048

A &icroseis&ic &onitorin) arra was p+t into operation in $ebr+ar 2006 to both &ap ,ract+res an recor

seis&icit that &i)ht be an iss+e in the proFect area( The well Basel 1 was rille between a an October 2006

to a total epth o, < /& thro+)h 2(4 /& o, sei&entar roc/s an 2(6 /& o, )ranitic base&ent( A ,a+lt Ione was

enco+ntere +rin) the rillin) o, the )ranitic section as e*ience b cataclastic alteration( A,ter an extensi*e

lo))in) an testin) phase the )ranite in the open hole below 4629 & epth was hra+licall sti&+late toenhance the per&eabilit( The sti&+lation operation was planne to ta/e 21 as( owe*er hi)h rates o,

&icroseis&ic acti*it b+ilt +p +rin) the ,irst six as o, ,l+i inFection with e*ent &a)nit+es o, +p to L 2(6(

Conse@+entl inFection stoppe( The ecision ahere to a pre;e,ine seis&ic response proce+re appro*e b

the local a+thorities which speci,ie the &eas+res to be ta/en at increase le*els o, seis&ic acti*it( A,ter sh+ttin)


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in the well ,or abo+t ,i*e ho+rs a seis&ic e*ent o, L (4 occ+rre +rin) preparations ,or bleein) o,, the well to

hrostatic conitions( O*er the ,ollowin)


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Conclusions

One o, the &ost si)ni,icant o+tco&es o, the *ario+s international research proFects to ate has been the

realisation that shearin) on existin) Foints constit+tes the &ain &echanis& o, reser*oir )rowth( This has le to a

basic chan)e in the *ision o, an %GS reser*oir( .t has le to a epart+re ,ro& the con*entional oil;,iel reser*oir

e*elop&ent concepts an techni@+es towars a new technolo) relate to the +ni@+eness o, an Fointe roc/

&ass s+bFecte to a partic+lar anisotropic stress re)i&e(

All roc/s that ha*e been in*esti)ate so ,ar e*en those in continental shiel areas with *er low stresses on the&

ha*e so&e sort o, ,ract+res( .t is +nerstoo that these ,ract+res can be sti&+late an that these ,ract+res can

sta open +sin) p+&pin) press+res F+st o*er the critical press+re that will ca+se the& to ,ail in shear( =hat this

&eans ,or the e*elop&ent o, %GS as an ener) pro+cin) technolo) is that it is li/el that an %GS reser*oir can

be ,or&e anwhere at an epth that has s+,,icient te&perat+re ,or ener) con*ersion(

-espite the i&portant lessons learne ,ro& the *ario+s proFects in the worl &+ch still nees to be /nown an

ris/s re&ain ,or %GS( .n partic+lar the sector still ,aces the ris/s that ca+se proble&s own hole s+ch as

&appin) existin) &aFor ,a+lts an ,ract+res that &a act as ,low barriers or con+its or that can slip s+bstantial

istances an th+s res+lt in seis&icit o, concern to people( $+rther it is not possible to acc+ratel preict the

lon);ter& e,,ect o, inFectin) water not in e@+ilibri+& with the roc/ into the reser*oir o*er a lon) perio( $or

instance i, one per&eable ,ract+re in the sste& is e*elope it can res+lt in a short circ+it( ., this e*elops it is

not clear how to ,ix the short circ+it other than rillin) a sie trac/ into a new area o, roc/( .&portantl the

)eother&al sector will nee to be able to circ+late at the hi)h ,low rates necessar to be co&&erciall *iablewitho+t )rowin) the reser*oir an losin) ,l+i to the new ,ract+res or ca+sin) in+ce seis&icit(

None o, these ris/ an challen)es are ins+r&o+ntable( Past e*elop&ents show that the sector can! 718 rill the

wells 728 sti&+late the existin) ,ract+res 78 rill into the sti&+late ,ract+res an 748 &a/e a connection between

wells( $+rther it has been e&onstrate that ,l+i can both circ+late an be heate so as to )enerate electricit(

The &aFor brea/thro+)h that still re&ains el+si*e b+t was o*erco&e b the oil an )as in+str in 200 is to

create &+ltiple lar)e Iones o, sti&+late roc/ an to reliabl ens+re that the *ol+&e o, sti&+late roc/ is

interconnecte(


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2 ARE"A0*C#MMERCIA-I*ATI#" 4AT,:A.

A* A44-IE$ T# GE#T,ERMA-E"ERG.The .G%G has con+cte Co&&ercial 3eainess Assess&ents ,or three cate)ories o, )eother&al ener)

reso+rces( These assess&ents were base on earlier wor/ that A3%NA ha con+cte with the A+stralian

)eother&al ener) sector at a wor/shop in +ne 201( The three cate)ories o, reso+rces consiere are!

a( Shallow !irect Use! Tpicall in the


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8igure 2&!9 The relationship between the CRI an TR-

2&!&! Technology Reainess -evels for Australian geothermal resources

Be,ore isc+ssin) the C3. o, )eother&al reso+rces it is worth consierin) where on the T3L scale the technolo)

is re@+ire to exploit the *ario+s )eother&al reso+rces resies(

$or Shallow -irect;+se 7Tpe A8 reso+rces there are a n+&ber o, co&&ercial operations thro+)ho+t A+stralia

where the heat is +se ,or heatin) swi&&in) pools or spas( Accorin) to the T3L scale in Annex these sste&s

are at a T3L e@+al to or )reater than # as the are at or past the prototpin) sta)e o, their e*elop&ent( The

co&ponent technolo)ies ,or the e*elop&ent o, these reso+rces incl+in) rillin) p+&pin) s+r,ace en)ineerin)

wor/s an reso+rce ienti,ication are all &at+re( =hile o*erall the technolo) is relati*el &at+re there are so&e

new co&ponentss+bsste&s that &a be at a lower T3L s+ch as when the heat ,ro& shallow )eother&al

reso+rces is +se in no*el applications incl+in) ther&al e,,ect coolin) 7absorption an asorption chillers8

esalination *ia &+lti;e,,ect istillation or low enthalp power )eneration( .n these cases the ini*i+al

co&ponents are &at+re b+t ,ew exa&ples exist o, their +se as a sste&( Conse@+entl their T3L &a be best

escribe as T3L 4( $or co&parati*e p+rposes the Birs*ille Geother&al Power Station &a be best escribe

as at the +pper bo+nar ,or Tpe A reso+rces(

There are no exa&ples o, the exploitation o, -eep Nat+ral 3eser*oirs 7Tpe B8 in A+stralia( The co&ponent

technolo)ies are all pro*en ,or extractin) the reso+rce 7rillin) p+&pin)8 with a n+&ber o, exa&ples

internationall 7partic+larl in %+rope8( Si&ilarl the technolo)ies ,or +tilisin) the ther&al ener) ,ro& these

reso+rces is also &at+re in the case o, power stations an istrict heatin)( The international e*ience is that the

technolo) reainess ,or the +se o, these reso+rces ,or electricit )eneration an istrict heatin) is at T3L #( Toate the A+stralian experience with these reso+rces has been isappointin)( This poor per,or&ance is relate to

the @+alit o, the reso+rce in ter&s o, its abilit to pro+ce the re@+ire ,low rates( =hile the properties o, a

reser*oir are not a technolo) that can be e*elope the exploration &ethos an tools +se to locate a s+itable

reso+rce are part

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Arena Igeg Report