sustainable development of a geothermal project · 2013. 11. 15. · sustainable development of a...

Sustainable development of a geothermal project

Fausto Batini

Magma Energy Italia

Pisa , October 10th, 2013

Topics • Introduction

• Sustainable geothermal development • Geothermal project development • Evaluation and ranking of green field projects. • Conclusions

P.R. Mensano P.R. Roccastrada

Magma Energy Italia A subsidiary of Alterra Power Corp.

Headquartered in Siena with Italian staff supported by Alterra Power Corp. international experts

Two exploration leases in Tuscany:

Mensano 215 km² Roccastrada 272 km²

Alterra Power Corporation

Total MW: 566

191 147 147

185 222

310

510 94

94 94 94

94

156

156

73 73 73

153

153

153

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014 2015 2016

Net

MW

GEOTHERMAL HYDRO WIND SOLAR

Environment sustainability :

No air emission

Low visual impact

Total reinjection of fluid into the geothermal reservoir

No groundwater interference

Resource sustainability:

Social responsibility:

Communication

Transparency

Consultation

Sustainable geothermal development

Zero emission geothermal system


Integrated use of geothermal resources

Greenhouses

District heating

SPA Thermal park

Electricity generation

Fish farming


Esploration

Drilling

Construction

Operations

Architecture

Earth Science

Engineering

Physics

Economic

science

Law

Chimistry

Science of Communication

Employment oppotunities


EXPLORATION WELL FIELD

DEVELOPMENT POWER BLOCK

ERECTION OPERATION

Environmental impact assessment, mitigation and monitoring

Geothermal Project development

5 - 7 years > 30 years

Geothermal project development

GREEN FIELD PROJECT WORK FLOW

Application of competitive proposal

4 years + 2 (ext.)

Exploration lease: Authorization process 90 (min.) or 150 or 270 days

Environmental Impact Valutation

APPLICATION - Work program

- Technical report - Environmental report

- Geothermal experience & skills - Maps

- Balance sheets To: Region, Energy dept.

ENVIRONMENTAL APPLICATION


- Geothermal experience & skills - Maps

To: Region, Environment dept. Cc: Municipalities – Provinces –

Authorities (archeological, landscapes, environmental)

Evaluation of application Comparison with

competitors, if any

Exploration lease

Execution of explorations Phase 2

: drilling & test

Execution of explorations Phase 1 : surface exploration -

assets excluded from the process of subjection

NO GO

30 years + 30 (renew.)

Exploitation lease

60 days

ENVIRONMENTAL APPLICATION


- Geothermal experience & skills

- Maps To: Region, Environment dept. Cc: Municipalities – Provinces –

Authorities (archeological, landscapes, environmental)

Environmental Impact Evalutation

90 (min.) or 150 or 270

days

Communication by the owner of the

exploration permit of discovery of

geothermal fluids to the competent

authority (Region)

Pubblication on the BURT, on the BUIG and on the

Authority web site

Submitting the application for exploitation lease to the competent authority

60 days

If the exploitation lease does not cover the entire area of the original research permit, other operators may request concession areas covering part or the entire surface remaining, after the expiry of the exploration lease

Application submitted in due time

If the documentation is not filed within the deadline, the concession may be required in COMPETITION

30 years + 30 (renw.)

Exploitation lease

Unique process with the approval of the work program, the geothermal project and the environmental impact assessment

90 (min.) or 150 or 270 days

Selection of the competent authority based on the following parameters: -Completeness and rationality -Modalities for carrying out work program -Guarantees

60 days

Exploitation lease: Authorization process

Gantt chart for 5 MW project


Green field project decision stree


Main criteria

• Geo-resource characteristics (Temperature, Reservoir depth,

potential,…)

• Power plant characteristics (technology, size MW, cooling water

availability,..)

• Market (energy price, competition, Incentives )

• Associated risks

• Natural hazards (seismic, hurricane, landslides, …)

• Value at Risk ($)

• Country (Political, Economic, Regulatory)

• Regulatory compliance

– Permitting processes

– electricity transmission lines (available capacity,..)

– exploitation rights (private owners, state,)

Evaluation and ranking of green field projects.

Input parameters

• Reservoir extension • Reservoir thickness

• Fluids temperature

• Rocks porosity (F)

Recovery Factor

Geothermal potential estimate

Thermal energy within a

specific volume

(single block)

Monte Carlo

Simulation

Volumetric Estimation

Input parameters

randomly sampled

between min – max “n” years project life 0 20 40 60 80 100 120 140 160 180 200

Potencia (MW)

0

0.1

0.2

0.3

0.4

Fre

cue

nci

a R

ela

tiva

MW


500

1000

1500

2000

2500

3000

3500

Reservoir performance evaluation

PProduction capacity estimate

10

00

20

00

30

00

Well logging and testing


Selection of the approriate technology

Dry steam

Binary cycle

plant

“zero

Emissions”

Flash

Two phases

fluid


Environmental compliance The main environmetal issues to be evaluated are :

air emissions noise pollution, water usage, land usage, waste disposal, subsidence, induced seismicity, impacts on wildlife and vegetation.


Policy related issues

Strategic plan for renewable energy development

Rules and procedures for permitting process approval

Economic incentives

– Domestic • Incentives (FIT, Tax Credits, etc.) • Renewable Portfolio Standard • Small Power Grid Solutions • Green Pricing programs

– International • Clean Development Mechanism • Carbon Financing Mechanisms • Global Environmental Fund


Economic evaluation M

illio

ns

Mill

ion

s

Equity



Risk analysis and decision making process


0

50

100

0 50 100

Consequence (%)

Pro

ba

bili

ty (

%)

Low permeability

High Gas Content

Volcanic hazard

Inadequate resource

Low Temperature

Seismic hazard

Cold w ater ingress

Rapid reinjection return

Self seiling

Scaling

Subsidence

Slope instability


Technical risk matrix

Risk matrix


25

Geothermal Project Development: Decision processes

Military and Police Authorities

Land Owners

Media (Local/Regional)

Industry Associations, Trade Unions

Environmental Associations

Schools

Ministry for Economic Development

Superintendence bodies of architectural heritage

13 Municipalities:

3 Provinces

Tuscany Region Universities

MAGMA ENERGY ITALIA

26

Stakeholders and Targets


0%

50%

100%

0% 50% 100%

AA

II

CC

DD

EE

FF

GG

HH

LL

RESOURCE PROBABILITY

VIA

BIL

ITY

P

RO

BA

BIL

ITY


Score matrix for the ranking of green field project portofolio

The sustainable development of a geothermal project requires: 1. to evaluate the performance of the project according to the

most suitable technology that maximize the environmental compliance and the economic attractiveness

2. to assess, mitigate and manage the risks associated to development and operation of the geothermal project

3. involve local stakeholders since the early stage of the project development in order to obtain the social acceptance

CONCLUSIONS

Thank You! Fausto Batini

[email protected]

VISIT GEOELEC.EU
mailto:[email protected]

sustainable development of a geothermal project · 2013. 11. 15. · sustainable development of a...

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