U.S. Geothermal Power Production and Development Update 2009

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U.S. Geothermal Power Production and Development Update 2009 ( us-geothermal-power-production-and-development-update-2009 )

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5. Emerging Technologies As geothermal Technology progresses, resources that were once non-commercial are now being actively examined as feasible possibilities. The following are some of the more commonly discussed areas of future development. 5.1 Enhanced Geothermal Systems (EGS) ñ The term EGS commonly refers to any resource that requires artificial stimulation and includes resources that have to be fully engineered, or ones that produce hydrothermal fluid, but sub-commercially. In certain respects EGS is still a young and not fully proven technology. However, several EGS R&D and demonstration projects are underway in the United States. If EGS technology proves to be successful, it is expected to allow significantly increased extension and production from existing fields, as well as utilization of geothermal energy in previously implausible locations. Desert Peak, Nevada: The U.S. Department of Energy has invested more than $5 million in a project that is currently in development and is designed to be the first geothermal operation to commercially produce geothermal energy via EGS in the United States. Ormat Technologies Inc. and GeothermEx Inc. are among some of the other stakeholders in the project. It is estimated that the completion of the project could add approximately 5 MW to the Desert Peak geothermal power plant, showing the potential of Enhanced Geothermal System development. DOE has selected other EGS R&D and demonstration projects for federal funding. The agency hopes to have the technology ready for commercial production by 2015.8 Additional details on the DOEís Geothermal Technologies Program (GTP) and how it supports the geothermal industry are provided in section 6.1 (DOE Geothermal Technologies Program Funding and Projects) below. 5.2 Geothermal Hydrocarbon Co-production ñ Usable geothermal fluids are often found in oil and gas production fields as well as certain mining operations. The Southern Methodist University Geothermal Energy Program has estimated that geothermal hydrocarbon co- production (GHCP) operations in the Texas Gulf Plains has the capability of providing 1000 ñ 5000 MW of power.9 Currently there is no geothermal production in that region. The GEA has gathered information on five GHCP operations. Jay Oil Field (Florida): Chena Energy LLC and Quantum Resources Management LLC are partnering to co-produce geothermal energy with fossil fuels at the Jay Oilfield in Florida. The GHCP operation is planned to utilize 120,000 barrels of co-produced water with Pratt & Whitney Power Systems Pure Cycle Power System. The expected capacity of the project is 200 kW but has potential for 1 MW. If successful, a full project could follow at the Florida oilfield and provide about 5% of the fieldís total electrical demand. The demo project is expected to become operational in 2009.10 8 DOE, DOE Funds 21 Research, Development and Demonstration Projects for up to $78 Million to Promote Enhanced Geothermal Systems, (October 6, 2008), http://www.energy.gov/news/6624.htm 9 McKenna, et al, SMU, Oil and Gas Journal, (September 5, 2005). 10 Allan Jelacic, DOE, The Geothermal Technology Program: A Renaissance, (November 20, 2008) Page | 16

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