MARKET REPORT ON THE GEOTHERMAL APPLICATIONS …

>

> MARKET REPORT ON THE

GEOTHERMAL APPLICATIONS

POTENTIAL IN THE FRENCH INDUSTRY

Direction Ile-de-France 205, avenue Georges Clemenceau 92024 NANTERRE Cedex Tél. 01 70 92 32 00 – Fax 01 70 92 32 07

ww.saunier-associes.com

September 2007

With the support of :

MARKET REPORT - FRANCE

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TABLE OF CONTENTS 1. DEFINITION, CONCEPT 3 1.1 Definition of the term ‘industry’ 3 1.2 Total energy consumption in France 3 1.3 Goal :to define the most interesting industrial targets 5 2.LEGAL AND TECHNICAL CONDITIONS FOR GEOTHERMAL APPLICATIONS 6 2.1 General conditions for geothermal applications 6 2.2 Exploitation of superficial aquifers 8 3. POTENTIAL IN FRANCE 11 3.1 Resources 11 3.2 Needs 14 4. SECTORS SELECTION 20 4.1 Best present examples 20 4.2 Methodology 20 4.3 Selection 22 5. CONCLUSIONS 23 6. REFERENCES 24


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1. DEFINITION, CONCEPT

1.1. DEFINITION OF THE TERM ‘INDUSTRY’ ACCORDING TO THE INTERNATIONAL STANDARD INDUSTRIAL

CLASSIFICATION

There are many ways to define the word industry. To work with the same definition, it has been accepted that each design and research office must use the standard classification developed by the United Nations which is called the International Standard Industrial Classification (ISIC) described here below:

A - Agriculture, forestry and fishing B - Mining and quarrying C - Manufacturing D - Electricity, gas, steam and air conditioning supply E - Water supply, sewerage, waste management and remediation activities F - Construction G - Wholesale and retail trade, repair of motor vehicles and motorcycles H - Transportation and storage I - Accommodation and Food service activities J - Information and communication K - Financial and insurance activities L - Real estate activities M - Professional, scientific and technical activities N - Administrative and support service activities O - Public administration and defence, compulsory social security P - Education Q - Human health and social work activities R - Arts, entertainment and recreation S - Other service activities T - Activities of households as employers, undifferentiated goods and services producing activities of

households for own use U - Activities of extraterritorial organizations and bodies


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It is said that the categories of ISIC at the most detailed level (classes) are determined in most countries according to the customary activities combination described in statistical units. There are correspondences between most of the national classifications and ISIC. ISIC has been widely use, both nationally and internationally, for data classification according to population, production, employment, gross domestic product economical activities.

ISIC is a basic tool for surveying the industry geothermal energy market applications. The results between the different countries can be usefully compared.

1.2. TOTAL ENERGY CONSUMPTION IN FRANCE The diagram below shows the repartition of the total energy consumption in France in 2005. 160 millions tons of oil equivalent (TOE) are necessary to satisfy the needs. One can notice that the industry represents 24 % of the energy needs (i.e. 39 millions TOE).

Energy consumption in 2005 (Million tons of oil equivalent)

Total: 160 M TOE

5 M TOE

3% 34 M TOE

21%

68 M TOE

43%

3 M TOE

2%

50 M TOE

31%

Iron and steel industry

Industry

Residential - Tertiary

Agriculture

Transportation

Source: French Ministry of Industry

Figure 1 – Energy consumption in France

French energy importations cost 41 billion euros per year. Oil purchase represents more than three-fourth of the total. France produces more electricity than it is consumed and exports a part of his production.

SSSource: French Ministry of Industry

Figure 2 – Importations

French Energy Importation in

2005 (billion euros)

Gas

8 Coal

1,5

Oil

31,5

Electricity

-3,5


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1.3. GOAL: TO DEFINE THE MOST INTERESTING INDUSTRIAL TARGETS 1.3.1 Market size France is the sixth industrial world power behind United States, Japan, Germany, China and the United Kingdom. Renewable energies represent only 3.7 % of the total energy consumption in 2005. It has to be mentioned that energy consumption from renewal applications is almost constant through the years (since 1973).

It is interesting to highlight the different needs which can be potentially covered by geothermal applications (Heat and Process on the following figure): it represents 50 % of the total consumption.

Source: SESSI Figure 2 – Industry Energy Consumption in 2004

Raw material is the part of combustibles which enters in the composition of the final product. Wood is not taken into account in theses statistics. 1.3.2 Are stakes high ?

CO2 emissions recorded in 1990 have to be divided by 4 by 2050 (according to the July, 13th 2005 law). Energy consumption has to be reduced by 2% by 2015 and by 2,5% from 2015 to 2030. In the same time, production of renewable energy has to represent at least 10 % of the total needs.

Moreover, it has to be mentioned that some French industries (like cement, lime, paper and steel industries) have restricted CO2 emission rights. A limit has been drawn and notified in a national plan (called Plan National d’Affectation des Quotas). A coefficient has been calculated to modify the limit according to the scenario of growth for the selected sector.

Consequently, French industries have to implement new solutions to reduce their CO2 emission and to reduce their fossil energy consumption.

Different uses of Industry Energy Consumption

(in kilo TOE)

1 435

8%

8 056

42%

1 033

6%

7 814

42%

284

2% Heat

Process

Production of electricity

Raw materials

Other uses


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2. LEGAL AND TECHNICAL CONDITIONS FOR GEOTHERMAL APPLICATIONS

2.1. GENERAL CONDITIONS FOR GEOTHERMAL APPLICATIONS

Information on legal, financial and environmental conditions for a geothermal application in France have been collected and are described in this section. 2.1.1 Legal conditions 2.1.1.1 Code Minier (“Mining rules”) There is a compulsory procedure described in the Code Minier (“Mining rules”), as soon as a drilling job is involved. For a well depth down to 100 m, a simple declaration to the authorities is enough. Above 100 m, an authorization is required. This procedure includes a public inquiry. When an authorization is given, a licence of exploitation is simultaneously delivered. 2.1.1.2 Protection of drinking water Drilling works may not be permitted in some areas where drinking water is extracted from the underground. The DDASS (« Direction Départementale des Affaires Sanitaires et Sociales » in French) is responsible for this type of authorization.

Figure 3 – Display of a drilling device

2.1.2 Technical conditions 2.1.2.1 The french geological institute called BRGM (Bureau de Recherches Géologiques et Minières) BRGM is a public administration department whose aim is to deliver experience in the geologic field. Numerous information regarding the French geology, the water, geothermal and oil resources can be obtained from this office. Most of the data is available on the Internet through dedicated websites. Consequently capacity of the soil to transmit heat for any French location can be founded.


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2.1.2.2 Other administration offices The piezometric level of ground water or the chemical composition can be obtained from other administration offices like the Region water agencies (called Agences de l’eau). 2.1.3 Warranties 2.1.3.1 The AQUAPAC warranty In order to help the geothermal development, a warranty has been created: the subscriber got reimbursed if the ground water flow is or becomes lower than expected. 2.1.3.2 The 10-year warranty The 10-year warranty has been created to protect any project against the risk concerning the wells. In accordance with the Civil Code, drilling companies are responsible for 10 years for their wells. 2.1.4 Financial assistance Government or regions may contribute to the financing of the geothermal project. It depends on the region where the project is going to be settled up. In some regions financial incentives can reach up to 70% of the total cost of the installation. Two administrations can deliver financial supports: the first is called ADEME (The National Energy Efficiency Agency supervised by the French Ministry of Industry and Research) and the second one is the Regional Council.


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2.2. EXPLOITATION OF SUPERFICIAL AQUIFERS 2.2.1 Legal and technical conditions 2.2.1.1 The Water Law The use of water is strongly controlled by the water law (called Loi sur l’eau in French). Before settling a geothermal plant, an authorization or a declaration is needed, according to the impact of the project. In addition, each geothermal application has to follow the local rules regarding the use of underground water. These rules are grouped in a document called Schéma Directeur d’Aménagement et de Gestion des Eaux (SDAGE). 2.2.1.2 Geothermal doublet It is generally mandatory to reinject the geothermal water in the same aquifer in order to maintain the hydraulic charge. The technique of production / re-injection using two dedicated wells is called geothermal doublet.

A cold area, located at the bottom of the re-injection well, is created during the exploitation. This area grows progressively and may reach the production well.

Thus, the distance between the re-injection and the production wells has to be computed and the wells have to be positioned in such a way that the production temperature will be acceptable during all the installation life time.

The water is pumped from the production well at an average temperature of 12°C. The re-injected water temperature is generally around 7°C. An intermediate heat exchanger is positioned between the heat pump and the geothermal water in order to avoid any groundwater contamination risks.

Figure 4 – Display of a geothermal doublet


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Figure 5 - Principle of a geothermal doublet

2.3. BOREHOLE HEAT EXCHANGERS

There are no additional legal conditions to the general ones previously described. Heat from the ground can be extracted from any point of the territory. In Paris for instance, the average temperature is about 12°C (285 K) at the surface of the soil. The geothermal gradient is defined by taking into account that each 100 meters, temperature increases by 3°C. There are different techniques to extract this energy from the ground, depending on the needs and on the type of soil. The simplest way consists in creating a horizontal exchanger at a shallow depth. This use is restricted to single houses. Another technique involves vertical heat exchangers. In this case, a double U-tube is commonly used. The four pipes of the U-tube are connected by pair at the base as illustrated.

Figure 6 – Borehole heat exchangers


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The most common materials are high and low density polyethylene (PEHD – PEBD). The nominal heat exchangers pipes diameter are 25, 32 and 40 mm, with a nominal operating pressure of 2.5 bars (12.5 bars at the bottom of a 100 m long U-tubes).

Figure 7 – Separated double U-tube

The minimum spacing between drilled holes must be at least of 10 meters and a minimum distance of a few metres must also be left to avoid any problems with the surrounding elements (trees, foundations…). In general, the generally admitted heat exchanger capacity is more or less 50 W per meter of well bore.


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3. POTENTIAL IN FRANCE / CLIMATIC REGIONS

3.1. RESOURCES (GEOLOGICAL AND HYDRO GEOLOGICAL CONDITIONS)

Significant groundwater resources are present on about two third of the French territory. One can distinguish different kinds of aquifers:

- alluvial aquifers - aquifers in sedimentary basins - aquifers in granitic area.

Source : BRGM

Figure 8 – Geological and hydrogeological conditions in France

The east and the central parts of France are covered with granitic rocks. Aquifers are located in fractured zones and are thus discontinuous. On the whole, these areas are not interesting for developing

Old solid masses: discontinuous aquifer

Recent chains: discontinuous aquifer

Shallow sedimentary basins: continuous aquifer Continuous and deep sedimentary basins Continuous reservoirs, proven or probable resources (temperature > 70°C)

Recent volcanic chains Geothermal sites on study Thermal source 25°C < T < 80 °C


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groundwater heat pumps. However, this type of hard rocks is particularly suitable for vertical ground heat exchangers (hard rocks are relatively easy and cheap to drill; moreover they have favourable thermal properties). There are two major sedimentary basins in France: the Parisian Basin (surrounding Paris) and the Aquitanian Basin (surrounding Bordeaux – South West of France). Both contain shallow aquifers (below 100 m), which are exploitable by heat pumps. In addition, deeper resources are present: In the Parisian Basin, two main “deep” aquifers are exploited:

- Dogger (aquifer depth: 1 800 m ; water temperature: 70°C ; typical flow rates: 300 m3/h) - Albien (aquifer depth: 900 m ; water temperature: 28°C ; typical flow rates: 150 m3/h) -

Figure 9 – Vertical view of the Parisian Basin

In several aquifers of the Aquitanian Basin, underground water can be found at temperatures higher than 40°C.

Figure 10 - Potential aquifers in the Aquitanian Basin

West East


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The Parisian and the Aquitanian basins host most of the present low enthalpy geothermal plants in France.

Figure 11 – Number of geothermal wells drilled or rehabilitated

Some other areas covering restricted surface, may also offer low enthalpy geothermal potential applications (Limagne, Languedoc-Roussillon). They are yet not exploited. Implantation of vertical ground heat exchanger may be costly in such sedimentary environment. Unconsolidated rocks are more difficult to drill and have poor thermal properties. Alluvial aquifers are found near the main rivers (Seine, Meuse, Moselle, Rhin, Loire, Allier, Saône and Rhône). Alsace’s plain (North East of France) is covered by a thick layer of alluviums which can provide water flow rates of 100m3/h or more. Hence water is accessible at shallow depths with favourable economic and technical conditions.

Parisian Basin Aquitanian Basin and

other basins


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3.2. NEEDS 3.2.1 Climatic conditions 3.2.1.1 The weather in France France is located in the middle of Europe. Several types of climate exist, due to the west oceanic influence and to the east continental influence (as seen by looking at the map below).

Figure 12 – Climatic conditions in France

Legend:

- Oceanic: mild and wet winters (10 °C on average). Summers are dryer and fresh (23 °C on average).

- Oceanic range: oceanic climate subject to continental influences coming from East of Europe. - Continental: cold winters and hot summers (30°C can be reached during summer).

- Mediterranean: very hot summers (40°C can be reached during summer) and mild winters.

- Mountain: cool summers and cold winters


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A B C D E F G H I

From 0 to 200 m -2 °C -4 °C -5 °C -7 °C -8 °C -9 °C -10 °C -12 °C -15 °C





From 1001 to 1200 m -12 °C -9 °C -10 °C -14 °C -17 °C -19 °C -21 °C -24 °C

From 1201 to 1400 m -14 °C -10 °C -11 °C -15 °C -19 °C -21 °C -23 °C -25 °C

From 1401 to 1600 m -16 °C -12 °C -21 °C -23 °C -24 °C

From 1601 to 1800 m -18 °C -13 °C -23 °C -24 °C

From 1801 to 2000 m -20 °C -14 °C -25 °C -25 °C

From 2001 to 2200 m -15 °C -27 °C -29 °C

3.2.1.2 Outside standard temperature The outside standard temperature which is used to quantify the heating needs of a building. Depending on the area, the standard temperature can be evaluated by using the following table.

A B C D E F G H I

Source:Dwww.thermexcel.com

Figure 13 – Outside standard Temperature

3.2.2 Main industrial sectors The industrial sectors can be ranged either by the sales turnovers or manpower. With the first criteria, food industry is the main one, just before the motor car or electric and electronic industry. In term of manpower, food industry is the third biggest sector after the mechanics and the metal transformation ones.


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Some products are more energy consumers than some others. This is the case for the manufacturing of one of the cement elements (called clinker) which is produced by burning a mixture of about 80 % of limestone and 20 % of clay. The following diagram shows the repartition of energy consumption in France, between the different industrial sectors:

REPARTITION OF THE ENERGY CONSUMPTION

IN INDUSTRY IN 1999

Food and

agricultural

industries

13%

Iron and steel

industries

17%

Chemical

industries

23%Other industries

31%

Paper

industries

7%

Steel industries

5%

Cement and

lime industries

4%

Source: Ministry of Industry in 2003

Figure 14 – Industry consumption

Apart from electricity (which is mainly produced by nuclear plants) natural gas is the main French energy source for the industry.

Industry consumption by energy type in 1999

Coal

3%Oil

14%Renewable

energies

3%

Electricity

56%

Gas

24%

Source: Ministry of Industry in 2003

Figure 15 – Type of combustibles used for industry needs


3.2.3 Energy (heat, cool, process) consumption per industrial sector Here below are two diagrams giving by industrial sectors, the energy consumption for heating and for the processes. It has to be mentioned that only the consumption of fuel is taken into account. Fuel includes coal, lignite, coke, gas (natural or others), petroleum coke and other petroleum products like butane, heavy and domestic fuel.

Industry Energy Consumption for process (2004)

1 425

996 960 949

361 323 292 272 260 248 212 200130 113 107 102 101 59 57 32 19 17

0200400600800

1 0001 2001 4001 600

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Figure 16 – Industry energy consumption for process. Source: Ministry of Industry


Figure 17 – Industry energy consumption for heating. Source: Ministry of Industry

Industry Energy Consumption for heating in 2004 (for some

selected sectors)

220

145 143 136112 105 97

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3.2.4 Geographical repartition Industrial activities are mostly distributed on the east side of a line passing through Le Havre and Marseille (as shown on the map bellow). Industrial areas are logically located near populated areas, raw material sources and closed to transportation networks. The three main industrial regions are the surroundings of Paris, Lyon and Marseille.

Figure 18 – Localisation of the different industrial centres in France

Industrial agglomeration Advanced technology industry

Remote industrial areas

70 % of industrial employment Main industrial area Industrial axis in movement Old industrial region Extended industries in the countryside

Industrial centres


4. SECTORS SELECTION

4.1. BEST PRESENT EXAMPLES The nature of the existent resources guides France to privilege thermal uses of geothermal applications. Today almost 40 geothermal plants are in use (unique well, doublet or triplet). Most if these plants are located in the Parisian basin (surrounding Paris) and the Aquitanian basin. Almost half of these operations are district heating networks (covering each the needs of 4000 – 5000 equivalent housings). 29 plants are presently working in the Parisian Basin (average production level depth: 1800 m ; average water temperature: 70 °C). Geothermal applications are also developed in the fish farming field. For instance, one caviar farming installation is located in Mios-le-Teich (Aquatanian Basin) : - Vertical production level depth: 1 830 m - Water temperature: 74°C - Saving: 4 000 TOE/year Agriculture is also a field where geothermal applications are developed. Greenhouses are significant heat consumers. One typical example is the tropical plants production located in Lamazère (Aquatanian Basin) which is working since 1992. Plant specifications are: - Greenhouse size: 3.6 hectares - Vertical production level depth: 1 700 m - Water temperature: 57°C - Saving: 1 300 TOE/year Central heating of swimming pools and nautical centres are the other applications of geothermal resources in France. 4.2. METHODOLOGY 4.2.1 Matching of temperature levels The use of geothermal energy is restricted by the delivered heat temperature. The highest limit is at 70°C, because of the heat pump capacities and the groundwater temperature. That’s why the first criterion to be respected is the compatibility between the geothermal temperature and the needs. In any case, geothermal applications can be used as a pre-heating system. It has to be noted that heating needs can be covered everytime. Moreover, geothermal solutions can cover any cooling needs: there is no restriction on the temperature level.


Figure 19 – Temperature levels for several geothermal applications

10 °C 30 ° C 90 °C 150 °C

Heating with heat pump - Air-conditioning

Heating floors

Swimming pools - Leisure centres

Balneotheraphy - Hydrotherapy

Pre-heating (water-air)

Domestic hot water

Urban heating

Pisciculture - aquaculture

Mushroom bed

Heating of greenhouse by the ground

Heating of greenhouse by air

Pre-heating (water, air)

Agricultural profits-drying, seasoning, fish-drying

Potted food

Pre-heating (water, air)

Out-freezing installations

Washing of wool - dyeing

Industrial profits-drying

Production of electricity by binary fluid power stations

Refrigaration by absorption

Extraction of chemical products

Distillation of soft water

Metal recovery

Evaporation of condensed solutions

Paper pulp

Production of negative cold (system with ammonia absorption)

AGRIC

ULT

URE,

FOOD

INDUSTRY

Intermediate energy High energy

Production of electricity with

help of vacuum

HEALT

H,

CONSTRUCTIO

N,

LEISURE

Very low energy Low energy

Main uses of geothermal applications contingent on temperatures


4.2.2 Matching of geothermal resources and needs Once the temperature levels are compatibles, geothermal applications can be implemented if there is a good adequacy between the geothermal resource and the needs. On the whole, this matching is pretty good in France (Cf. paragraphs 3.1 and 3.2.4), especially around Paris and Lyon. 4.2.3 Market size The final criterion to build a hierarchy between the different industrial sectors is the size of the potential market (i.e. the energy consumption of the sector). 4.3. SELECTION Some sectors have been selected from the ISIC classification. They have been sorted out using the three criteria.

D- 35 Electricity, gas, steam and air conditioning supply A- 03 Fishing and aquaculture

C- 20 Manufacture of chemicals and chemical products C- 22 Manufacture of rubber and plastics products

C- 16 Manufacture of wood and manufacture of products of wood and cork, except C- 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations C- 15 Manufacture of leather and related products C- 13 Manufacture of textiles

C- 10 Manufacture of food products C- 11 Manufacture of beverages C- 12 Manufacture of tobacco products

G- Wholesale and retail trade H- 52 Warehousing and support activities for transportation I- 55 Accommodation


5. CONCLUSIONS

Energy consumption in France is significant. New technologies have to be implemented in order to reduce this consumption: energy prices and restrictions on CO2 motivate this evolution. The general context is favourable for the development of geothermal applications in the industry world. On the whole, there is a good adequacy between hydrogeological resources and the implantation of the main industrial areas. The legislation allows the development of geothermal system under certain conditions. A technical support is available (Institute of geology - BRGM). Geothermal applications can cover any needs of building heating or cooling needs. However, the main target would be the industrial processes. They represent the majority of the total energy consumption. For this type of application, temperature level is the key: depending on it, geothermal system can just provide pre-heating capabilities or cover the whole process. In addition to the already existing geothermal plants (district heating purposes, farming,…) some new fields like chemicals products or shopping complex (wholesale and retail trade) present a great potential for geothermal applications.


6. REFERENCES

- French ministry of industry: www.industrie.gouv.fr - French ministry of ecology: www.ecologie.gouv.fr - BRGM (geological institute): www.brgm.fr

Disclaimer : “ The sole responsibility for the content of this document lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein.”

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