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 The Bright Future of Deep Geothermal Energy (also known as EGS)


Thursday, 29 March
The Bright Future of Deep Geothermal Energy (also known as EGS)

My posting two weeks ago was from Napa Valley attending the Hedberg Geothermal Research Conference organised by American Association of Petroleum Geologists(AAPG), Society of Exploration Geophysicists(SEG) and Society of Petroleum Engineers(SPE). Hedberg Conferences are organised by the AAPG. According to the AAPG web site, from time to time the AAPG Research Committee selects a topic for critical examination. They invite scientists from various disciplines (geology, geophysics, reservoir engineering, etc.) to discuss state-of-the-art concepts, methodologies, case histories, and future directions relating to this subject. The conferences are held in informal settings with a maximum of 80-100 attendees. This particular one fit that mold.

Overall, it was a good Conference and was worth the trip. My presentation was on how increased power plant productivity would help EGS commercial viability. This is summarised in the following two charts. For both of these charts, the y-axis is my estimate for the levelised busbar cost of electricity ($/MWh) and the x-axis is the geothermal fluid production flow rate. Three curves correspond to the three different well preparation costs, $10m/well, $15m/well and $30m/well.

Figure 1 - Levelised EGS Electricity Cost at Present Power Plant Productivity Figure 2 - Levelised EGS Electricity Cost at 50% Higher Present Power Plant Productivity

The chart on the left plots the costs at the typical present power plant productivity and the chart on the right plots the situation that would arise if the current QGECE project on supercritical turbines succeed. The goal of this project is to achieve a 50% increase in power plant productivity. Other parameters are listed in Table 1 below. The main lesson to draw from these charts is that a concerted effort is required to make EGS viable and advances are required on at least three fronts: drilling costs; production flow rate; and power plant productivity. The pleasing outcome of the Hedberg Geothermal Conference was that this was generally acknowledged by the participants. Joel Renner in his presentation expressed the DoE expectations that the following was required to make EGS commercially viable: (a) 20% reduction in driling costs; doubling the flow rate from 40 l/s to 80 l/s; and 20% increase in power plant productivity. Gary Isaaksen of Exon Mobil in his presentation listed the same three requirements as the preconditions which in his view needed to be satisfied before Exon Mobil would become interested in the technology.

Parameter Value for Chart 1 Value for Chart 2
Plant productivity in terms of the generator output shaft kwe per kg/s of brine flow (after accounting for the pump) 84 126
Life of plant, years 25 25
Parasitic losses (cooling circuit and reinjection), % of generator output 16% 16%
Capacity factor 90% 90%
Unit plant cost, $/kWe $3500 $3500
Number of wells 2 2
Discount rate (not meant to be realistic) 0% 0%

We in the QGECE have good reasons to believe that we could do much better than 20% increase in power plant productivity. In fact our supercritical turbine project is aiming to increase the binary plant productivity from a 250-oC resource by 50%. The following two charts compare the expected productivity of a supercritical CO2 cycle against a conventional steam Rankine cycle.

Figure 3. Binary power plant using supercritical CO2 cycle Figure 4. Binary power plant using steam Rankine cycle

We know other research teams are working towards the first two criteria stated by Joel Renner above, namely the drilling cost and the flow rate and they have good reasons to believe that they will succeed too. In other words, the next five years may be the period which will make it possible for the EGS to fulfill its potential promise of cheap virtually unlimited and energy without emissions nor significant environmental hazards.

 

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