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fraction from the high-temperature power plants is used for hot water production for district heating in co-generation plants. Thus, the energy efficiency is improved considerably.
The low-temperature (<150˚C) fields are used mainly to supply hot water for district heating. The current utilisation of geothermal energy for heating and other direct uses is considered to be only a small fraction of what this resource can provide.
Geothermal utilisation at Reykjanes peninsula
The Reykjanes peninsula in the southwest of Iceland is an active volcanic area. After nearly 800 years of inactivity, a relatively small eruption was ongoing in Fagradalsfjall volcano at Reykjanes for a few months in 2021. Geothermal research has been ongoing in the area for decades with important contributions from ÍSOR and its predecessors in the form of geothermal exploration, drilling consultancy, well logging and testing, as well as resource assessment.
Geothermal utilisation at Reykjanes on a large scale started by building a co-generation power plant at Svartsengi in 1976. The plant is located 50 km from Reykjavík and serves approximately 30 000 people with district heating. Due to the high salinity of the water (two-thirds that of sea water), it cannot be used directly for district heating as is commonly done in Iceland. Therefore, several heat exchangers are used to transfer the heat from the 240˚C brine to freshwater, which is distributed to the users at approximately 80˚C. The capacity of the plant for district heating is 190 MW
Figure 5. The total direct use of geothermal energy in 2020 is estimated to have been 9737 GWhth (35 052 TJ).
Figure 6. The low-temperature (<150˚C) fields are used mainly to supply hot water for district heating. th and for electricity 76.4 MWe . The energy company HS Orka also has another 100 MWe geothermal plant at Reykjanes that was commissioned in 2006 for electricity generation only. Expansion of that plant by 30 MWe is ongoing by adding a low-pressure turbine for better utilisation of the resource without extracting more fluid from the geothermal reservoir.
A Resource Park has been built near HS Orka’s geothermal power plants at Reykjanes, based on the idea of maximum utilisation of the resource and minimum environmental impact of the activities. The Resource Park consists of spin-offs of different types where the Blue Lagoon, one of the most popular tourist attractions in Iceland, utilises effluent brine from Svartsengi power plant. Among other activities within the Resource Park are a fish farm and a fish drying factory utilising effluent heat from Reykjanes power plant, a methanol factory utilising both electricity and CO2 emission from Svartsengi power plant, and a company producing growth factors for medical research and skin care products by genetic engineering processes.
The role of the government
It has been the policy of the government of Iceland to increase the utilisation of renewable energy resources even further for power generation, direct uses, and the transport sector. A broad consensus on conservation of valuable natural areas has been influenced by increased environmental awareness. Thus, there has been opposition against hydropower and some geothermal projects. However, a recent public opinion poll shows that the most preferred type of power plant is geothermal power plants. The ownership of energy resources in Iceland is based on the ownership of land. However, exploration and utilisation are subject to licensing.
A master plan assessing the economic feasibility and the environmental impact of selected power development projects was adopted by the Icelandic Parliament approximately 25 years ago. It is a tool to reconcile the often-competing interests of nature conservation and energy utilisation on a national scale and at the earliest planning stages. The master plan is currently in its fourth phase, which is due to be completed soon.
Direct involvement of the government in energy research has gradually decreased over the years. While the government still encourages and supports exploration for geothermal and
other energy resources, the power companies, which are mostly in public ownership, have taken the lead in exploration and development of energy projects.
In general, Iceland’s geothermal utilisation story is a successful one. Over a few decades Iceland has become largely independent in regards to primary energy use, utilising local energy sources. This has limited the need for importing hydrocarbons in such a way that now Iceland is only using hydrocarbons within the fishery fleet and transport sector. In the attempt to meet the international climate goals, Iceland is now focusing on eliminating the use of hydrocarbons within the fishery sector and transport sector by researching and testing other potential energy use, such as electric and hydrogen vehicles.
The government of Iceland has set the goal of carbon-neutral Iceland no later than 2040 and, within the same timeframe, a zero fossil fuel economy. Also, an action was put in place for making the ministry offices a model for climate change and thus influencing institutions, companies, and the general public. All state institutions, municipalities, and state-owned companies must now set climate policies and targets for reducing GHG emissions.
A long-term energy policy for Iceland to the year 2050 has been established. It represents a clear vision of a sustainable energy future where security of energy supply is fundamental. It states that energy transition, where fossil fuels are replaced by renewable energy sources, is necessary to combat the climate crisis.
Geothermal training programme
In the attempt to promote geothermal utilisation around the globe, Iceland has through its International Development Co-operation as well as through the GRÓ Geothermal Training Programme (under the auspices of UNESCO) been providing aid, especially to developing countries, in the form of direct funding of exploration projects, as well as teaching and training experts from those countries. The mission of GRÓ GTP is to give university graduates engaged in geothermal work intensive on-the-job training in their chosen fields of specialisation. The aim is to assist developing countries with significant geothermal potential in building up groups of specialists that cover most aspects of geothermal exploration and development. The government of Iceland funds the operations of the Programme through its official development co-operation.
Contributing to geothermal research
ÍSOR (Iceland GeoSurvey) has taken part in all geothermal research, exploration, and development in Iceland to date. Formally established in 2003 through the spin-off of the GeoSciences Division of the National Energy Authority of Iceland, the organisation and its team have decades of experience in supporting geothermal and hydropower development in Iceland and beyond.
During these years, ÍSOR built up a substantial inventory of machinery and logging tools for research and measurements. At the same time, the company worked extensively on supporting international geothermal development working
Figure 7. The government of Iceland has set the goal of carbon-neutral Iceland no later than 2040.
Figure 8. Through various programmes, Iceland has been promoting geothermal utilisation around the globe.
with governments, government agencies, developers, development banks, financial institutions, and partaking in numerous international research projects.
The organisation is finding ways to improve and augment geothermal resources, enhancing the environment and contributing to the debate on environmental issues. Also, following the UN Sustainable Development Goals, it is actively promoting geothermal development by increasing public and political awareness and training scientists throughout the world in geothermal science and development.
The phrase ‘think globally, act locally’ has never been more appropriate than during the times of climate awareness. To be able to reach the climate goals, energy production in Iceland must be increased by upwards of 100 MWe/y for the next 20 - 30 years. This would entail an effort to increase export as well as a full energy transition.
SOLAR
SOLAR GLOBAL NEWS
BNZ to build solar project in Portugal
BNZ has obtained authorisation in the North Region of Portugal to start the construction of a solar photovoltaic (PV) plant in the Ave intermunicipal community with an installed capacity of 49 MWp. BNZ expects the plant to be operational in 2023.
This will be BNZ’s first plant to be built in Portugal, a country in which it expects to install an approximate capacity in excess of 400 MWp by 2024. The aggregated fully permitted capacity of BNZ across all geographies stands at 147 MWp.
The electricity production of this project would be able to supply the annual electricity needs of approximately 14 000 people, the equivalent of one-third of Evora’s population. The clean energy produced at this plant will avoid 21 500 tpy of CO2 equivalent emissions, which is approximately 37 000 Lisbon to London roundtrip flights. In addition, BNZ estimates that it will create between 270 and 370 direct and indirect jobs by 2024.
The production of reliable and affordable PV solar energy located in Portugal will avoid the importation of fossil fuels such as natural gas from third countries. This will result in greater energy independence and security of supply, in addition to improving environmental sustainability. For example, the energy produced by this BNZ project will save the use of 14 million m3/y of natural gas that were to be consumed by combined cycle gas turbine (CCGT) plants to generate the same amount of energy.
INVL Renewable Energy Fund I to invest €120 million in solar plants
The INVL Renewable Energy Fund I, managed by INVL Asset Management, is beginning activities in Romania, and plans to invest approximately €120 million in the development of solar farms it has acquired.
Under agreements that have been signed, the fund has acquired two companies which are developing solar power plants with a capacity of 166 MW in Romania.
“We are growing and diversifying the geography of the portfolio. Romania is a very rapidly developing and promising EU market which is giving increasing attention to green projects. We see huge potential in this market for developing renewable energy projects, and we believe that these investments of ours will not only reduce pollution of the environment but will also allow us to earn an attractive return for investors,” said Liudas Liutkevicius, Managing Partner of the INVL Renewable Energy Fund I.
The solar energy projects in Romania that are being added to the fund’s portfolio already have approved grid connection conditions. The solar plants should become operational in 2024.
“We constantly monitor electricity markets in EU countries and evaluate varied investment opportunities. We have been watching the Romanian market since the fund’s inception, but only went into action after the state amended electricity legislation to allow the development of power generation facilities on the basis of power purchases agreements, or PPAs,” Liutkevicius notes.
KGAL gains approval for three solar PV projects in Italy
KGAL has received the green light for three large scale solar photovoltaic (PV) projects in Italy. The approved solar parks located in the Lazio region and in Sicily will have a total output of approximately 380 MWp. They will be successively connected to the grid from 1Q24. Together with other projects, KGAL is developing solar and wind parks with a total capacity of more than 1.2 GW in the highly attractive Italian market. Institutional investors of the funds KGAL ESPF 4 and KGAL ESPF 5, which is currently being marketed, will participate in these promising investments.
The combination of strong solar radiation and above-average electricity prices make Italy an attractive market in Europe for solar PV projects. In addition, the Italian government has encouraged the expansion of renewable energy generation with the introduction of legislative initiatives in the past year. In doing so, the share of green energy within the total energy consumption is set to rise rapidly from 20% in 2020 to 30% in 2030. “The approval procedures have become much simpler and faster,” explains Michael Ebner, Managing Director of Sustainable Infrastructure at KGAL Investment Management.
WIND GLOBAL NEWS
Iberdrola has started the transfer of the first jackets for its offshore wind farm in Saint Brieuc, Brittany, France, from the Navantia Seanergies shipyard in Fene, A Coruña, Spain, where the Navantia-Windar consortium is building these structures to support the wind turbines.
These are the first four jackets of the total of 62 to be built at the wind farm, which will be the Iberdrola Group’s first major offshore wind energy site in France. The contract for the construction of the jackets was also the largest order to date for the Navantia and Windar partnership in offshore wind energy.
The foundations will be transported in a 122-m-long Van Oord barge. They will arrive at their destination in the port of Brest, France, covering the more than 1500 km that separate the port of Ferrol, Spain, from their location in the English Channel. The delivery of the first jackets demonstrates the successful completion of the contract signed two years ago, valued at €350 million. The order included the manufacture and assembly of the 62 structures at Navantia Windar’s facilities in Brest and Fene and the piles that anchor the wind turbines to the seabed at Windar’s facilities in Avilés, Spain.
This contract has strengthened a relationship of more than eight years between Iberdrola and Navantia-Windar, which totals contracts worth more than €1000 million, including the award to Windar of the transition pieces for the Baltic Eagle offshore wind farms in Germany and Vineyard Wind 1 in the US, as well as the orders already completed for Wikinger, in the Baltic Sea, and East Anglia One, in the UK.
Technip Energies and Equinor enter strategic collaboration to accelerate floating offshore wind
The strategic collaboration between Equinor as a floating offshore wind developer and Technip Energies as a complete offshore wind solutions provider was signed during the Seanergy conference in Normandy, France. The two companies aim to develop floating wind steel SEMI substructures that accelerate technology development for floating offshore wind, ensures cost reductions, and develops local value opportunities.
The collaboration builds on the companies’ joint ambition to drive industrialisation of floating offshore wind. By teaming up at the early design phase of a floating wind farm project, the two parties seek to unlock value from integration and maximum use of fabrication capacities.
Growth in renewables is needed to succeed with the energy transition. A large part of this growth will come from floating wind, as approximately 80% of the wind resources offshore are in deep waters that require a floating wind turbine solution. Even though costs have come down substantially, there is still a way to go for the floating technology to reach commerciality. From building the world’s first floating turbine, Hywind Demo, to the world’s first floating wind farm, Hywind Scotland, Equinor reduced the cost per MW by 70%. The strategic collaboration between Technip Energies and Equinor will contribute to industrialising floating offshore wind solutions.
Ørsted’s first Scottish wind project, Kennoxhead, located in South Lanarkshire, south-east of Glasgow, has generated first power. The onshore wind farm has a capacity of 62 MW and will generate clean electricity equivalent to powering over 38 000 Scottish homes.
The construction of Kennoxhead is divided into two phases, the first cluster of turbines counting 13 wind turbines with a total installed capacity of 62 MW. The second cluster will be adding up to 112 MW installed capacity, bringing the total capacity at the site to 174 MW.
At 174 MW combined, Kennoxhead is one of the most significant onshore wind farm projects in Scotland, making a valuable contribution to the Scottish government’s target of 50% of electricity to be generated from renewable sources by 2030 as part of the wider target of a decarbonisation of Scotland’s energy system by 2045.
Phase 1 of Kennoxhead is expected to reach commercial operation later in 2022.
TJ Hunter, Senior Director Ireland and UK Onshore at Ørsted, says: “It has taken a great effort to reach first power on Kennoxhead, and I’m proud of the team and our partners for passing this milestone. We are well on track to reach commercial operation later this summer, and we’re an important step closer to the finishing line of the project.”
BIOPOWER GLOBAL NEWS
WELTEC BIOPOWER commissions biogas plant in Japan
Abiogas plant of WELTEC BIOPOWER has gone live in Saitama Prefecture, 40 km north of Tokyo, Japan. The facility – which is equipped with a 450 kW cogeneration power plant – is the fourth project to be rolled out by the German manufacturer in Japan.
In terms of substrates, the operator makes use of organic leftovers from the vicinity. Since the raw material mix varies, WELTEC ensures a steady biogas output with its biological service. This service of the biogas specialist also comprises another plant of the same customer.
WELTEC BIOPOWER has set up a stainless-steel digester with a capacity of 2823 m3. Its dia. measures 25.34 m, and its height is 6.3 m. The upstream substrate storage tank, which is made of stainless steel, has a capacity of 336 m3, a dia. of 9.31 m, and a height of 5.03 m.
UGI invests in RNG project
UGI Energy Services LLC announced an agreement with MBL Bioenergy to fully fund the first set of renewable natural gas (RNG) projects currently under development in South Dakota, US.
In total, the project will represent over US$70 million of investment by MBL Bioenergy, of which 100% of the funds will be provided by UGIES. MBL Bioenergy is a joint venture partnership between UGIES, Sevana Bioenergy, and a subsidiary of California Bioenergy (CalBio) with the sole purpose of developing RNG projects in South Dakota.
The first set of projects, known as a cluster, will be built at three farms located north of Sioux Falls, South Dakota, and is expected to generate approximately 300 million ft3/y of RNG once completed in calendar year 2024. Dairy waste from the farms will be anaerobically digested and then piped to a central upgrading facility before it is delivered into the interstate natural gas system near Dell Rapids, South Dakota. UGIES, through its wholly-owned subsidiary, GHI Energy, will be the exclusive marketer for MBL Bioenergy.
“This project sets a new standard for UGI in terms of scope and size, and represents a huge milestone in UGI’s investments in, and expected earnings contribution from, RNG projects,” said Robert F. Beard, Executive Vice President – Natural Gas, Global Engineering, Construction & Procurement, UGI.
Worley awarded contract by Heartwell Renewables
Worley has been awarded a contract by Heartwell Renewables LLC, a joint venture between The Love’s Family of Companies and Cargill, for a greenfield renewable fuels plant in Hastings, Nebraska, US.
The new plant will produce an estimated 80 million gal. (approximately 303 million l) of renewable diesel/y from feedstocks such as vegetable oils and tallow. This renewable diesel has the potential to reduce at least 50% of greenhouse gas (GHG) emissions compared to traditional petroleum-based diesel. It can also be used as a drop-in fuel in diesel-powered vehicles without any engine modifications.
Under the contract, Worley will provide detailed and field engineering services. Worley’s services will be executed in Houston, Texas, US, with support from its Global Integrated Delivery (GID) team in India. The team will use a full suite of digital tools during project delivery.
“To help decarbonise road transportation, North America will be increasing its renewable diesel capacity significantly by 2025. We look forward to working with Heartwell on this important project that will contribute to the ambition of supplying more sustainable fuels to the market,” said Christy Tyer, Senior Vice President, Americans Central Operations at Worley.
THE RENEWABLES REWIND
> Rystad Energy: Egypt invests in green hydrogen economy > STRUCTeam and Ocean Energy develop wave technology > RWE’s largest battery storage project goes live in Ireland
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GEOTHERMAL
Geothermal GLOBAL NEWS
EXERGY and GDI partner for geothermal development in Japan
EXERGY International srl and Geothermal Development & Investment Inc. (GDI), subsidiary of GPSS Group, have signed a partnership agreement for the exclusive distribution of turnkey geothermal power plants in Japan using advanced, highly efficient Organic Rankine Cycle (ORC) technology. Thanks to this partnership, GDI and EXERGY will offer comprehensive solutions for the development and completion of ORC power plants, starting with the design and engineering of the system to the manufacturing, erection, start-up, and aftersales services, leveraging on both companies’ expertise and know-how in their fields.
The partnership between EXERGY and GDI will develop joint megawatt scale projects, and contribute to the growth of geothermal development in Japan, which has the world’s third-largest geothermal resource potential.
The strategic agreement is also an outset for the collaboration of GDI and EXERGY in other markets, such as South and Southeast Asia and Africa, as well as other applications of the ORC technology, such as waste heat recovery and other heat-related renewable energy applications.
Vallourec invests in GreenFire Energy
Vallourec has invested in GreenFire Energy Inc., an American start-up developing advanced geothermal systems. This transaction was carried out as part of a Series A funding alongside other major investors, Baker Hughes and Helmerich & Payne.
Vallourec and GreenFire Energy have been working together since 2019 on several successful closed-loop geothermal demonstrators in various fields. This investment will further strengthen the relationship between the two companies.
Vallourec THERMOCASE® Vacuum Insulated Tubing (VIT) is an enabler of closed-loop geothermal systems: these thermally insulated pipes allow the harvesting of underground heat and bring it to the surface (as hot water or steam) with minimal losses. Vallourec will be able to support GFE by designing and manufacturing bespoke solutions for their downhole heat exchanger.
Geothermal energy is expected to play a major role in the energy transition and the decarbonisation of economies, as it is the only renewable source that can always be ‘on’, providing low-carbon and versatile energy. While conventional systems rely on the exploitation of geothermal resources in very specific areas, advanced geothermal systems could unlock the possibility of producing energy virtually anywhere.
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