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is in strong contrast to the Habanero stimulation only 10 km away. In addition there have been no events located with focal mechanisms indicating shallow dips. In contrast, the more than 40,000 events from the Habanero reservoir are all generated from shallowly dipping thrust fault mechanisms at lower pressures, and the pressure associated with stimulation bleeds back to the reservoir pressure within a few hours of turning off the pumps. The best interpretation of these results is that there were no optimally oriented shallowly dipping fractures below the liner shoe set at 4,325m that would take shear induced by fluid injection. This is despite image logs higher up in the well delineating a dominant family of fractures in such an optimal orientation for such shear. The Jolokia stimulation indicated that small fractures, optimally oriented for slip in the given stress field, could not be activated. The implication is that large pre-existing fractures with some capacity for fluid flow or pressure propagation need to be present to allow seismicity and create a reservoir. This is a major new finding not consistent with any of the stimulations that have gone on in any EGS projects previously. The volumes of rock in the Innamincka Granite in which reservoirs can be created by stimulation now need to be re-assessed. Up until the Jolokia stimulation it was assumed that near-optimally oriented fractures would be available for reservoir creation at most, if not all locations. A new exploration model is required where fractures like those at Habanero are specifically targeted. 23.3 Planned Activities for 2011 and Beyond Following the disappointing result at Jolokia, the focus of development is back to Habanero where fracture systems are much better known and relatively well understood. The potential resource at Habanero is still substantial and the new philosophy is to work outwards from there and learn about fracture systems with that development. The current program is to drill a new well Habanero 4 close to the location of Habanero 3 which has now been abandoned. A closed loop circulation and commissioning of the 1 MWe power station is planned based on the Habanero 4-Habanero 1 loop. Initially Habanero 4 will only be drilled to the current reservoir, but is expected to be drilled deeper at a later date in order to develop new reservoir(s) below. This will be followed by further wells to support the 25 MWe commercial demonstration plant for which Australian government funding of A$ 90 million is available. Habanero 4 is the first well to for which this funding is available. 23.4 Comments on the Geothermal Market Opportunities and Constraints 23.4.1 MarketingInitiativesandMarketStimulationIncentives The Federal Government‘s proposed carbon tax has assisted in raising the profile of geothermal in Australia. However public and institutional support for geothermal projects in Australia is currently not particularly healthy. The commencement of operation of the 1 MWe plant at Habanero after the completion of Habanero 4 could assist in this regard. 23.4.2 Development Cost Trends 2010 was a rather subdued year for the Australian geothermal industry. Other than the Jolokia 1 stimulation, there were no major operational advances in geothermal programs. The Paralana 2 EGS well drilled by Petratherm Ltd in 2009 is to be stimulated in the 2011 calendar year. Cost reduction, particularly drilling costs, still remains the focus so that EGS becomes competitive with fossil fuel electricity generation. 270PDF Image | Geothermal Research and Tech IEA
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