Geothermal Energy Annual Report 2004

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Geothermal Energy Annual Report 2004 ( geothermal-energy-annual-report-2004 )

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III. NATIONAL ACTIVITIES UNITED STATES heavy metals such as arsenic, boron, lead, mercury, and vanadium. For example, a 34- megawatt double-flash geothermal power plant tapping the high-temperature resource in the Imperial Valley could produce up to 50 tonnes of sludge every 24 hours. Valuable metals might be extracted from such sludge before its disposal, and this option has been explored at some Imperial Valley projects, but is not currently economically viable. Some hydrogen sulfide abatement systems produce elemental sulfur that is sold or hauled away by sulfur producers 17.6.3.6 Subsidence Subsidence has not been a major issue at existing U.S. geothermal energy facilities. Most geothermal sites in the United States are not in areas that are prone to or affected by local subsidence. Subsidence in the Imperial Valley of California is dealt with as a part of the annual laser-leveling of the irrigated agricultural areas in the valley. 17.6.3.7 Site Related Issues Many of the most promising geothermal resources are located in or near protected areas such as national parks, national monuments, and wilderness, recreation, and scenic areas. Although the average amount of surface area disturbed for the development of geothermal resources is slight in comparison with other forms of energy extraction, location in scenic areas and areas sacred to American Indians are sensitive issues. Noise is a siting issue. Noise from power generation equipment is routinely reduced by blanketing and insulating. Conflicts in multi-use areas with the sacred areas of Native Americans are also another area of concern. 17.6.3.8 Seismicity In the 50-square-mile Geysers region about 90 miles north of San Francisco, there were 3,000 micro earthquakes in 2002, making it one of the most seismically active regions in the United States. Seismic activity increased when the plants began operating, but the number of small earthquakes has increased further, since Calpine began injecting millions of liters of wastewater. The vast majority of the quakes are small, usually magnitude 0 to 2, which can barely be felt. There have been nine earthquakes greater than magnitude 4.0 in the area over the last two decades, the largest being a 4.6. The injections of operating fluid and wastewater at The Geysers are necessary to maintain the production of steam. Small quakes related to injection have been recorded at the Coso field near Little Lake on the eastern side of the Sierra Nevada, and at the south end of the Salton Sea in the Imperial Valley of California. Studies have been initiated to evaluate this phenomenon, but it is too early to say whether this will be a significant factor in future geothermal development 17.7 Economics 17.7.1 Trends in Geothermal Investment Because of the site-specific nature of geothermal resources, investment decisions are typically made on a project-by-project basis. The controlling factor is the projected economics of the project. The combination of a Production Tax Credit at the Federal level, if extended, and Renewable Portfolio Standards at the state level should be powerful incentives for the development of geothermal power by improving the economics and providing long- term market stability. Geothermal projects are capital-intensive in an area where investors prefer the lower capital costs and technical risks of natural gas power plants and coal-fired generation. Siting a geothermal facility is also expensive—requiring millions of dollars in up- front expenses for the plant and for permits and processes required for leasing, rights of way, etc. Geothermal developers have approached this most recently by developing previously IEA Geothermal R&T Annual Report 2004.doc 129

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