there’s no stopping geothermal energy: join the bandwagon with coproduction maria richards smu...

There’s no stopping Geothermal Energy:Join the bandwagon with Coproduction

Maria RichardsSMU Geothermal Laboratory CoordinatorDallas, Texasmrichard@smu.edu214-768-1975

Geothermal Map of North America,

2004

200°F

Based on oil and gas well bottom hole temperatures

Uncorrected temperatures

10,000 feet depth

1

2

1 - San Antonio2 - Austin

Uncorrected temperatures

200°F

300°F

12,000 feet depth

1 - San Antonio2 - Austin

1

2

Between 10,000 feet and 12,000 feet

> 18,000 wells in Gulf Coast

If just 10% convert to geothermal production, that is over 1800 MW of energy!

Why not go for 30% and make it >6000 MW?

1MW Geothermal = 30 MW Wind

If 1 well = 1 MW ………..

Geopressure Power Plant

• Pleasant Bayou, Brazoria, Texas 1989-1990

• 1 MW of electricity generated during DOE test of concept

Binary turbine using 165oF waterChena Hot Springs, Alaska

7 cents per kW/h - producing 225 kW/h

ORMAT Technologies, INCFall 2008

What else do you need?

Geopressure

Abandoned Wells

Public

Info

rmatio

n

Power Plant E

ng.

-Turbine

-Cooling Methods

Economics

Oil & G

as W

ells

Produci

ng Wat

er

Transmission Lines RECs/ Tax Credits

Gov/PrivateLeases

-Assess

Resources

Injection Wells

Legal Regulations

ITEMS TO CONSIDER FOR DEVELOPMENT

Oil and Gas are “racing” to Geothermal

Energy Dependence

National Security Economic Concerns

Climate Change

Health

PollutionLOCAL SUSTAINABLE GREEN

BASE LOAD ZERO-EMISSIONDEPENDABLE

Increases secondary recovery

Dissolved gas resources developed with geopressure projects

Existing infrastructure - roads, injection wells, transmission lines, etc.

Service industry & their knowledge base

Concern about carbon credits

November 3-4, 2009SMU Geothermal Laboratory Conference

Dallas, Texashttp://smu.edu/geothermal

Geothermal Incentives and Financing

Geothermal Electric Development

Texas H.B. 4433 Hydrocarbon Tax Exemption from Geothermal Wells (Effective September 1, 2009)

Natural Gas/ Crude Oil Production Tax - Exemption from Gas (7.5%) & Oil (4.6%) Severance Taxes- with Production of Geothermal Energy

Creates a tax exemption for any hydrocarbons incidentally produced in association with the production of geothermal energy.

Geothermal Incentives and Financing

Geothermal Heat Pumps

Texas LoanSTAR Revolving Loan Program 3% APR. Loans are repaid through energy cost savings. Projects must have an average payback of 10 years or less. Repayment of loan begins after construction is complete.

Targeted for public buildings, state agencies, school districts, higher education, local governments, and hospitals.

Maximum amount $5 million. Program Budget $98.6 million (revolving loan). Funding source: Petroleum Violation Escrow Funds

For information, guidelines, and application form:http://seco.cpa.state.tx.us/ls.htm

http://seco.cpa.state.tx.us/ls_guideline.htm

Geothermal Incentives and Financing

Geothermal Heat Pumps

U.S. HR 1424 Energy Improvement & Extension Act of '08

Home and Commercial building installation of new geothermal systems.

Homeowners - One time tax credit of 30% of the total investment for installation in 2009 or later years. For systems placed in service in 2008, the $2,000 limit still applies.

Commercial - Credit of 10% of the total investment (no maximum)Available through December 31, 2016.

IRS Form 5695 for the Residential Energy Efficient Property Credit to claim the tax credit for Energy Star geothermal heat pumps.  http://www.irs.gov/pub/irs-pdf/f5695.pdf Line 18 on the form is where you enter "Qualified geothermal heat pump property costs", & Line 19 you multiply costs by 30%.

Geothermal Incentives and Financing

Geothermal GrantsRenewable Partnership to Secure Energy for America (RPSEA.org)

Oil and Gas related research projects.

US Department of Energy - Grants.gov and Fedconnect.net

USDA - Rural Energy for America Program (REAP)Federal program to increase renewable useage in rural areas.

American Recovery and Reinvestment Act (ARRA) for TexasComptroller's office compiled information for potential funding opportunities.

Energy Efficiency and Conservation Block Grant (EECBG) Program

http://www.window.state.tx.us/recovery/apply/grants.php

Geothermal Incentives and Financing

Geothermal Incentives for all States

Database of State Incentives for Renewables and EfficiencyDSIRE is a source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. http://www.dsireusa.org/

Includes Utility Rebates for each company.

Other ideas?

http://www.seco.cpa.state.tx.us/publications/renewenergy/

Geothermal Energy Section

http://smu.edu/geothermal

Maria Richardsmrichard@smu.edu 214-768-1975