T H E G E O T H E R M A L N E W S P A P E R , T H AT B R I N G S Y O U C A R E F U L LY S E L E C T E D N E W S F R O M T H I N K G E O E N E R G Y. C O M
Edition 02/ 2018
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Sarulla geothermal plant, North Sumatra, Indonesia (source: Ormat)
Geothermal Development in Indonesia After years of delay in development, are things kicking off for real this time? Indonesia, ranked as the fourth most populous country in the world, is projected to be among the top five strongest economies, alongside China, the United States, India and Japan in 2050. The anticipated economic growth is the result of the rise of the middle-income population coupled with overall population growth and extensive increase in the workforce expected to occur in 2025 – 2035. This growth will lead to growing purchasing power and expected increase in quality of life. With that, electricity demand is expected to surge and is projected to triple between 2015 to 2030. To anticipate and accommodate for the economic growth and corresponding electricity demand, infrastructure development
Small-scale Geothermal Development, geothermal plant, Beppu, Japan (Photo: ElectraTherm)
is the key highlight of the national budget allocation. With diverse and abundant natural energy resources, Indonesia often faces the paradox of choice in maximizing the trade-offs in the energy supply. The fossil-fuel sector is more mature than the renewable energy sector, and this often leads to modifications and adjustments in policies and regulations to optimize and support the development within this sector. Increasing awareness and global pressure for a cleaner future pushes Indonesia to strive for sustainable growth and development of its renewable energy sector. The country has set itself the goal to achieve 23% of renewable energy use by 2025, and to reach 31% by 2050. But there are competing forces, with the upcoming presidential election in 2019. With a current emphasis on low electricity prices, renewable energy sector in Indonesia faces an uncertain immediate future. However, it is clear that Indonesia has to maximize its national energy potential, where particularly the geothermal sector should be well positioned. With approximately 40% of the world’s geothermal reserve estimated to be found in Indonesia, there is a development potential of up to 29GW in geothermal power generation capacity. So far only 5% of the reserve potential has been tapped, leaving a huge opportunity for the geothermal sector. Geothermal installed capacity is targeted for 7,200 MW by 2025, which translates to doubling the share of geothermal in Indonesia’s energy mix from 4.4% in 2016 to 8%.
IGC Turkey 2018 – Geothermal Conference, Turkey (Picture: JeotermalHaberler)
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Currently, state-owned companies dominate the development of geothermal energy. This is one of the biggest barriers of growth as it makes the entry for private players more difficult. State-owned entities, such as PT Pertamina Geothermal Energy, PT Geo Dipa Energi and the newly established PT PLN Geothermal (subsidiary of PT PLN*) are leading developers, while a large number of private sector players such as Star Energy, Supreme Energy, Medco and other international players are working on projects or have just entered the market. The smaller pool of private sector players represents today about 1,200 MW of installed capacity in comparison to roughly 700 MW installed capacity by the state-owned companies. Nonetheless, state-owned companies have constructed more power plants with smaller installed capacity than the private sector firms. Regardless of the approach of the different players, overall development of new projects will remain relatively volatile. While there continue to be a lot of barriers and challenges for geothermal development, the general perception of the market is positive and there is careful optimism. This is highlighted by an improved collaboration between ministries in Indonesia, both national and international Independent Power Producers (IPPs), as well as PT PLN to expedite project development. PT Sarana Multi Infrastruktur (PT SMI), established in 2009 to facilitate “infrastructure financing as well as preparing project and serving advisory for infrastructure projects in Indonesia” is to play a more important role on geothermal development in the coming years. It works with international donors, such as the World Bank to support development in Indonesia. Indonesia has attracted multimillion USD investments from large multinational development banks, such as the Asian Development Bank, World Bank and others. Supportive regulations and policies, and the awareness for the potential, coupled with the steady stream of investment are all the necessary pillars to reach the government’s goal of 7,200 MW installed geothermal power generation capacity in 2025. There are some uncertainties on the feasibility of this goal. Continued dialogue between all stakeholders, implementing successful projects and further research and development are required. Further geothermal growth though requires a stable policy framework and favorable pricing schemes, as well as support and more efficient and timely negotiations on PPA deals. *also referred to as PT PLN GG (Gas and Geothermal)
EGEC European Geothermal Market Report 2017 (Photo: Exergy)
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Indonesia Geothermal Market Report Alexander Richter, Editor - ThinkGeoEnergy Welcome to our second edition of our Think GEOENERGY Newspaper. Published first in the fall of 2017, the newspaper was well received by the audience of various conferences around the world. The newspaper shares highlights and content specifically created for this print publication by ThinkGeoEnergy. In this issue we feature Indonesia, the – hopefully – largest growth market for the global geothermal sector, provide an overview on the European geothermal development, share thoughts on marketing for geothermal energy, look at small-scale geothermal development among others.
To be released in June 2018, this ThinkGeoEnergy report is to provide an extensive overview on the geothermal market and development in Indonesia In this first Geothermal Market Country Report, ThinkGeoEnergy focuses on Indonesia, the key growth market for the global geothermal energy industry. With the largest geothermal reserves in the world, the country represents tremendous business development opportunities. To be released in June 2018, the report will provide an overview on the geothermal market, including
In the center of the newspaper, you will find the latest ThinkGeoEnergy Global Geothermal Power Plant Map, showing the locations of all geothermal power plants around the world.
key market stakeholders and players, the legislative and policy framework, current status of development and an outlook. It will also provide detailed overview on companies, operating plants, as well as projects in development, planned projects and geothermal working areas.
years, a development of up to 2,300 MW of additional capacity is estimated until 2024. The report also highlights the dominant role of Japanese turbine suppliers in Indonesia, with more than a half of the installed capacity with turbines by Fuji Electric. The report also looks into the new exploration risk mitigation scheme by PT SMI and the World Bank. There is also an analysis and outlook on both public and private sector development, providing details on both Indonesian and international investment into the sector.
With the third unit of the 330 MW private development of the Sarulla project having started operation, Indonesia has now overtaken the Philippines in the ranking of the top geothermal countries in the world with an installed power generation capacity Details to be found on www.thinkgeoenergy.com/Indonesia of 1,919 MW. Looking at the coming
If you are interested in engaging with us on the next edition of the newspaper, please drop me an e-mail at alex@thinkgeoenergy.com
Geothermal Drilling What makes drilling for geothermal different from drilling for oil and gas? There is one company worldwide that has specialized in drilling for high-temperature geothermal projects, and this is Iceland Drilling Company (IDC). With its headquarter in Iceland, the company has drilled most if not all of the geothermal wells in the country. In 2001, the company started to work internationally, having now provided drilling services in various geothermal areas around the world. The company has drilled more than 180 geothermal wells over the past 10 years alone, in 12 countries in Central America, the Caribbean, Oceania, Southeast Asia and Europe. The company is proud to state its flexibility to enter green field remote areas. The decades of experience place the company among the most experienced in deep geothermal drilling in the world. So why focus on geothermal projects and how does this differ to drilling for oil & gas? We have served Iceland’s energy companies since 1945. With no oil and gas resources in the country, from the beginning we only drilled for geothermal gaining our extensive experience. The main differences between drilling a geothermal well and oil and gas well is of course the high temperature down hole. This requires specific tools
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and methods. We are constantly having the risk of a blow out and steam caps in the upper sections of wells, and then have to use water-based mud, or water in the production zone. Furthermore, there is the risk in having to drill blindly in fracturing zones, with circulation losses, leading to drilling with no returns. Sometimes aerated drilling is applied in this situation. In some cases, fractures may exist throughout the entire well bore and cause up to 100% loss. Other characters of geothermal deep drilling are often hard rock formations (volcanic hard rock from spud to total depth), large wellbore, and the importance of using mud coolers. Another crucial element the correct cement formula. Unlike oil and gas wells, casing in geothermal wells needs to be cemented across the entire length, otherwise there is Tyr drilling rig, Iceland (Photo: Iceland Drilling) the risk of casing failures. What are your next projects? The company is currently mobilizing two rigs to new drilling locations. One is now being shipped from Nicaragua, to operate in the Lake Assal region in Djibouti/ Africa. Another rig is on its way to New Zealand to arrive soon. A long trip which takes more than one month travelling the oceans. Other projects are currently in Iceland, and one expecting to start in the Caribbean soon.
Sigurdur Sigurdsson, CEO of Iceland Drilling Company
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The pursuit of small-scale Geothermal Competition or market extension for geothermal power development? Small 110 kW geothermal plant, Beppu/ Japan (Photo: ElectraTherma)
5 MW wellhead plant, Kenya (Photo: Green Energy Geothermal) With conventional geothermal development mostly representing largescale development, corresponding high up-front capital costs and long development lead times have proven to be challenging. At the same time additional opportunities in low-temperature regions utilizing binary geothermal solutions created new markets. These plants have traditionally been smaller in size with around 2-5 MW in generation capacity, often using only one or two wells. Key suppliers have been Ormat Technologies, Turboden and Exergy. There also have been efforts on wellhead power plants utilizing traditional flash-condensing plant technology, e.g. in Kenya. There smaller plants by Green Energy
Geothermal sized 5 to 6.4 MW have allowed the use of remote wells and faster development. These smaller plants actually help speed up development and often provide a better solution for investors. But beyond these efforts, new trends are emerging. Smaller technology suppliers have entered the market with even smaller binary solution plants, sized at around 100-150 kW. U.S.-based ElectraTherm has provided plants in Japan and Europe, while new market entry Climeon from Sweden has recently announced several projects in Europe and in North America. With their technology, these small units allow the utilization of low-temperature resources
down to around 80°C, and provide prac- business case on slim-hole drilling and tical off-grid solutions, if necessary. small wellhead plants, with pending announcements. These smaller-scale approaches While time will tell, how much impact also open other options. With lower these efforts on smaller-scale developresource intake requirements, these ment will have, one is certain – they plants are in a position to utilize slim expand the possibilities for geotherholes, which are more economical to mal development beyond traditional drill. In the last two years, several high-temperature regions, increasing papers have been published, suggestthe overall market and development ing an opportunity for geothermal options. How competitive they will be development with only slim-holes drilled. This could provide a completely to other renewable energy technologies is though another question, despite the new business case for smaller-scale context of baseload power provided by geothermal development. There are efforts by a group to build its complete geothermal energy.
Geothermal Heat Summit To open this year’s Praxisforum Geothermie.Bayern event in Munich/Germany Moving away from nuclear and fossil-fuel energy demands a stable and secure heat supply in the future. Due to high volatility wind and solar energy are not likely to supply urban districts independent from time and weather. For more than a decade the greater Munich area has been supplied with geothermal heat and present a long time of experience and technology know-how. From October 16 to 18, 2018 the 6th Praxisforum Geothermie.Bayern takes place in Munich/Germany, presented in the HBW convention center. The first day on October 16, 2018 is opened by the Geothermal Heat Summit that focuses the future of geothermal energy in Germany and throughout Europe within the following decade. The main congress day on October 17, 2018 embraces six
Forums that comprises all technological, economic and political aspects of geothermal energy supply, framed by subject-specific keynotes in the morning. Some Forums offer simultaneous English translation. A brief glance at the congress Forums reflect the significance the Praxisforum Geothermie. Bayern achieved for the European geothermal industry. Elements and topics of the event include exploration to the first well, the revisions to the Renewable Energy Act in Germany, a science forum on latest research and engineering aspects, current findings on Upper Jurassic deep groundwater reservoir in the Bavarian Molasse Basin, borehole and quality management, and a special forum on geothermal heat supply as a sustainable solution for the future.
Various Field Trips on the last day, October 18, 2018, lead to geothermal heating and power plants located in the greater Munich area and the Molasse Basin. Come and join the most important geothermal congress
in southern Germany - from practice for practice. Online-Registration under www.praxisforum-geothermie.bayern.
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Geothermal power plant of Turboden in Germany (Photo: Turboden)
European Geothermal Market continues steady Growth, but needs more recognition EGEC Geothermal Market Report 2017 Every year, the EGEC Geothermal Market Report analyses market trends and developments of the geothermal sector in Europe. The new edition of the report, coming out in May 2018, confirms the trend towards a steady growth as observed in recent years, but also notes the need for greater recognition to enable the full deployment of geothermal energy in Europe. Installed geothermal electricity capacity in Europe amounts to 2.8 GWe (of which 1 GWe in the European Union), producing over 15 TWh per year. In Europe, there exist 117 plants, 16 of which being inaugurated in 2017 with an average capacity of 22MWe. The new additions are quite significant, with 330 MWe of new geothermal electricity capacity coming online, mainly in Turkey. The Turkish market continues to be the most dynamic for power production, but it is worth noticing that in 2017 the first Hungarian geothermal power plant came online. Around 30 projects are under construction in Turkey, France, Hungary, Germany, the UK, Iceland, Croatia and Belgium, while other 276 projects are under investigation. The use of geothermal for heating is also increasing, supported by the construction of new district heating networks and the retrofitting of old ones, thanks to local and national planning that identifies geothermal heat as a cost-efficient solution to meet heating needs. In 2017, 9 new plants were inaugurated, adding over 75 MWth in France, the Netherlands
and Italy. Geothermal district heating accounts for over 4.9 GWth of capacity in Europe (1.7 GWth in the European Union), with 294 plants currently in operation. The number of new plants coming online each year is on an upward trend, with an average annual growth rate of 10% over the past years. The development of geothermal as a solution for heating and cooling is notably dynamic in Germany, where 35 projects are planned or in developments, but many smaller or new markets are also increasingly investing in geothermal energy, such as the Netherlands, Poland, and the UK. Looking at individual geothermal heating systems, the shallow geothermal market remains the largest segment of the sector in terms of number of installations, installed capacity and energy produced. Individual geothermal heating systems, or geothermal heat pumps, represent over 20 GWth of heating capacity in Europe, with nearly two million installed units. In Europe, annual sales average around 100,000 units. The key markets remain Germany, Sweden, Switzerland and France. Emerging markets that are fast developing, are Poland, Lithuania, and the UK. Since its first edition in December 2011, the EGEC Geothermal Market Report has come to be seen as the authoritative overview of the entire geothermal sector in Europe. The report is compiled each year using data from various statistical analyses, local experts, utilities, energy agencies,
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and national associations. It includes details of all major projects in operation, under development, and under investigation, as well as an analysis of market development, the regulatory and public policy environment, financial tools and incentives, market forecast, and key players. Every edition also offers an in-depth review of different geothermal technologies: the focus of the 2017 edition will be the latest development in the market of exploration technologies.
Pico Alto Geothermal Power Plant, Azores Islands (Photo: Exergy)
The EGEC Geothermal Market Report 2017 will be released in May 2018. The Key Findings of the report are made publicly available, while the full report, complete with supporting data and tables, is only available to EGEC members. For more information, visit www.egec.org
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Knowledge dissemination in the fight against climate change
Skyline of Beijing, China (Photo : hiddenninjaskills, CC BY 2.0)
Icelandic know-how on geothermal energy utilisation Humanity faces various challenges in the fight against climate change. One of the biggest is that the nations of the world have to switch over to a renewable energy source. In Iceland, geothermal power, hydroelectric power and wind power have been successfully harnessed so that 99,99% of the electricity is produced from sustainable sources and over 90% of homes are heated using geothermal energy. Thus, when Icelanders utilise electricity, heat their homes or require hot water for various basic daily activities, they know that the energy was produced by green methods. The inhabitants of most other countries of the world are not as fortunate. Icelanders can truly contribute to the fight against climate change by sharing their expert knowledge and broad experience in the use of renewable
energy sources with countries that still use gas, coal and oil for heating and electricity generation. Verkís is proud to be an active participant in this venture. Since 2000, Verkís has provided expert advice on utilization of geothermal power in China. Much has been accomplished since as best illustrated by the achievement of the projects developed by the Sinopec Green Energy Geothermal Development Co., Ltd. (SGE). Verkís has been part of the technical advisor team that supported Arctic Green Energy Corporation with the first project in the Xianyang City of Shaanxi Province. Now 400,000 homes are heated by geothermal energy, or 40 million square meters that previously utilized a non-renewable energy source thanks to the projects undertaken by Sinopec Green Energy. As a result,
carbon emissions were reduced by 6 million tonnes. The goal is to heat 120 million square meters with geothermal energy by 2020.
governments and plant operators. The services provided have been just as varied, spanning all stages of project development.
Verkís involvement in the development of geothermal district heating in China has involved the preparations of feasibility studies, conceptual design, project management and supervision. Verkís has also assisted in evaluating the Chinese market for district heating and provided recommendations for in house installations for heating and hot water consumption, as well as metering. These services have been provided in the capacity of technical advisor to owners and operators. On a global scale the company has assisted a variable client base in clean energy projects, ranging from financial institutions in their capacity as lenders, contractors, energy companies,
Amongst the Verkís expert staff are specialists trained in knowledge dissemination of green energy utilisation. Verkís experts hold training courses abroad for power companies and plant operators, in addition to teaching at the Geothermal Training Programme of the United Nations University. This post graduate training program aims at assisting developing countries in capacity building within the geothermal sector through technology and knowledge transfer and Verkís is proud to participate. It is Verkís’ sincere belief that increasing world-wide awareness regarding the potential of geothermal resources and spreading the knowhow, will benefit all.
Global Geo
Top 10 Geothermal Countries Installed Capacity (MW) - April 2018 - 14,225 MW total United States
3,591
Indonesia Philippines
1,919 1,868
Turkey
1,155
New Zealand
980
Mexico
951
Italy
944
Iceland
710
Kenya
676
Japan
542
Other
889 0
500
1 GW Country Club
1,000
1,500
2,000
2,500
TGE Research (2018), JESDER (2018), GEA (2016), IGA (2015)
3,000
3,500
eothermal Power Plant Map
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described the Fallon project as “meeting all FORGE selection criteria.” And highlighted it as “an excellent study area for the EGS with temperatures at about 400-500 degrees Fahrenheit (200 to 260°C) at depths to about 8,000 feet (2,440 meters). If successful, the area would be hosting an international research facility, providing a focal point of geothermal research, have businesses that will benefit from the research lab and provide educational and employment opportunities for local students. If successful, this will have a tremendous impact and attract further geothermal companies to settle in the city.
Reno, Nevada
Downtown street, Reno/ Nevada (Photo: Oean Yamaha, CC BY 2.0)
The secret capital of the U.S. geothermal energy industry Attending my first GRC Annual Meeting back in 2008, it was the first time I came to Reno in the state of Nevada. From the airport to the casino, never leaving it and back did not give me much of an impression beyond casino and – fair enough – the U.S. and international geothermal community in attendance. Only when I came back a year later and explored the mountains and scenery around, saw a geothermal power plant and learned about the geothermal players in the city we got a sense of the city as – what some hip online blogs call the “Biggest Little Secret”, that “has become cool under the radar”. While likely more related with the outdoors, dining & nightlife, arts and culture, there is an element to this as it relates to geothermal and the geothermal industry in the U.S. While California remains the U.S. state with the largest installed power generation capacity and Nevada roughly represents only about one third of that state, the number of plants and projects, as well as companies having established their home in Reno – make Reno to the secret capital of the U.S. geothermal industry.
The largest utility in the state, NV Energy – owned by Berkshire Hathaway Energy - buys power of 19 geothermal power plants in the state for its customers, and with their help already exceeds the set up renewable energy portfolio standard for 2020. Ormat Technologies, one of the largest geothermal companies of the world, has made Reno its home, having established its headquarter in the city. Other companies in the city include Geothermal Development Associates, a geothermal service and consultancy firm, and ElectraTherm, a supplier of small size ORC units. But there is more. The University of Nevada in Reno, is the home to the Great Basin Center for Geothermal Energy, established in 2000, that supports research into many aspects of geothermal exploration and development, as well as education. The Center also hosts the (U.S.) National Geothermal Academy. „Nevada is the second-most heavily geothermal installed state in the nation and has the greatest untapped geothermal potential of any state. Furthermore, we have development underway that will expand our geothermal generation portfolio nearly fivefold”, so U.S. Senator Dean Heller in remarks from late 2017. There is also the site that is in the running to host the Frontier Observatory for Research in Geothermal Energy or FORGE project by the U.S. Department of Energy’s Geothermal Technology Office. Located in Fallon, Nevada, the multi-stakeholder project includes Sandia National Laboratories as the project lead; Lawrence Berkeley National Laboratory; the U.S. Navy and the U.S. Navy Geothermal Program; the University of Nevada, Reno, the (National) Geothermal Academy and the Nevada Bureau of Mines and Geology; the U.S. Geological Survey, Menlo Park, the Nation‘s preeminent geoscience research organization; GeothermEx/Schlumberger; and Itasca Consulting Group, global consulting and software developer with expertise in geomechanics, fracture modeling and EGS simulations.
Steamboat geothermal plant by Ormat (Photo : Rjglewis, CC-BY-SA-3.0)
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There is also the little-known fact that the Peppermill Resort Spa Casino in Reno, that has hosted numerous geothermal events by the Geothermal Resources Council over the years, has been able to dramatically reduce the Resort’s carbon footprint utilizing geothermal energy. With its own geothermal well on site, the resort today – together with heat pumps - heats 100% of the Resort’s domestic water and mechanical heat throughout the 2.1 Million square feet foot facility, 24/7 with geothermal energy, effectively replacing natural gas boilers. This has helped the Peppermill reduce its dependency on fossil fuels and save the company millions of dollars in natural gas use. Back in 2009, it even – for a short period – produced electricity from its geothermal well using a small PureCycle ORC unit by Pratt & Whitney (now Mitsubishi Heavy Industries).
Drilling rig on FORGE site, Fallon/ Nevada (Photo : Dr. Bridget Ayling)
Despite economic challenges following the financial crisis, extensive efforts to attract large corporations to settle in the state have been fruitful. The most talked about surely is the new Tesla Gigafactory near Reno. It not only created large number of jobs, but also has an impact on the mining and electricity sector. With an increasing demand for battery technology in an electric car future, lithium is a valuable commodity and can be found on several geothermal locations in the state. But economic development also increases energy demand and with baseload capacity provided by geothermal, paired with still large untapped geothermal development potential, Nevada In a recent meeting in Nevada, Josh Nordquist, Ormat will continue being a magnet for the U.S. geothermal energy industry. Technology‘s manager for U.S. Resource Operations,
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Women in Geothermal Energy A film documentary A documentary film project called „Full Steam Ahead“ is currently traveling the world exploring why so few women enter the field of geothermal science, why the retention rate of women working in the field is low, and what can be done to level the playing field. The film being worked on right now looks at women within the geothermal industry in Iceland, Kenya, Ethiopia, Japan, Mexico, New Zealand and the USA, examining changes that have taken place within the industry in the past 50 years, both positive and negative. In its approach the film focuses on gender inequality within the geothermal workplace in countries where women’s social roles and state of gender equality for women in the workspace are very different. The film team are meeting and filming women of different generations, from
schoolgirls to women on drill rigs to geothermal pioneers now retired and looking back on their careers. The documentary is a collaboration between Bless Bless Productions, United Nations Univeristy (UNU)-Gender Equality Studies and Training Programme, and Women in Geothermal (WinG). Film Maker and one of the leads of the project Susan Muska explains that the driver for the project has been the point that while women have been using geothermal energy for laundry and cooking for centuries, they now can work as geothermal engineers designing direct-use projects, and as company leaders. Yet, only a tiny percentage of the geothermal workforce around the globe is actually represented by women. From Kenya’s Menengai crater to Hellisheidi, Iceland, to the steamy onsen culture in Japan, the film tracks at
Filming in classroom, Kenya (source: Susan Muska) examples on how gender equality can be promoted by both men and women, and shows how different companies and societies can strive for equality, be it through UNESCO’s Science Camp of Excellence for Girls in STEM, to flex time and space for women with young children in corporate industries. The project, so Susan Muska “… is aimed to increase awareness of bar-
riers and challenges to equality, and share stories that can help companies increase participation of women.” The film is planned for release at the time of the 2020 World Geothermal Congress in Iceland. The work on the film is funded through grants and corporate sponsorship. To support the documentary, connect with Susan Muska at blessbless@mac.com.
Visiting the Cerro Pabellon plant The adventure of visiting a plant in 4,500 meter elevation in one of the driest places on earth In November 2017, as part of an IGA Board Meeting we had the chance to visit the 48 MW geothermal power plant of Cerro Pabellon by Geotérmica del Norte (GDN), a joint venture by Italian Enel Green Power and Chilean National oil company ENAP. Situated in the Andes mountains at high elevation, it was a remarkable experience visiting the plant. Thanks go to Guido Cappetti, General Manager of GDN and Diego Morata of the Andean Geothermal Center of Excellence (CEGA) for making this visit possible. We have shared pictures of the visit at: www.flickr.com/thinkgeoenergy
ThinkGeoEnergy maintains a Spanish-language service at piensageotermia.com – to connect drop an email to Carlos Jorquera at cjorquera@thinkgeoenergy.com
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Reporting Geothermal Resources A global-applicable, harmonized standard under the UNFC framework A recently held workshop in Bandung, Indonesia kick started a joint effort by the International Renewable Energy Agency (IRENA), the International Geothermal Association (IGA), and the World Bank to apply UNFC geothermal resource classifications for the first time to whole countries.
Led by Professor Gioia Falcone, the UNFC Geothermal Working Group of the IGA Resources and Reserves Committee, chaired by Dr. Graeme Beardsmore, produced a set of specifications for classifying, comparing and reporting estimates of geothermal potential, resources and reserves.
Since it endorsement by the UN Economic Commission for Europe Committee on Sustainable Energy in 2016, the UNFC Geothermal Specifications have only been applied to single project case studies.
Piloting the initiative will involve authorities at national level in four countries with strong geothermal ambitions applying the UNFC to all geothermal projects in their countries. This will include developing a near holistic picture of geothermal potential including maps and tables in IRENA’s Global Atlas for Renewable Energy platform.
Having an international system and a standardized terminology for reporting geothermal resources is to help build trust and understanding of the geothermal industry with investors, regulators and the general public alike. The work to develop the UNFC geothermal specifications was carried out under UNECE’s Memorandum of Understanding with the International Geothermal Association (IGA).
“The UNFC system, when applied, is expected to foster an easier understanding of the geothermal resource base in most countries, and facilitate effective valuation of geothermal fields, and as a consequence, increase access to finance for investments in the sector,”
IGC Turkey 2018, Ankara (Photo: JeotermalHaberler)
Successful 3rd IGC Turkey Congress Report from the key annual geothermal congress for Turkey’s geothermal sector
UNFC Geothermal Specifications documents adds Abdulmalik Oricha Ali, IRENA’s coordinator for the project. “Geothermal deserves a global standard. The IGA is excited to collaborate with IRENA and the World Bank to leverage the important work done on the UNFC geothermal resources and reserves classifications and standardizations,” says Marit Brommer, Executive Director of the IGA. “Building strong partnerships at a multi-national level and jointly deploying industrystandards at national levels, will be crucial for the successful uptake of geothermal energy worldwide.”
World Bank’s Energy Sector Management Assistance Program, the project will begin by reviewing and classifying the identified geothermal projects and resource estimates of Flores — an Indonesian island with 14 different geothermal projects, representing significant geothermal development activity. It is the hope of all involved that this new country-level resource data-gathering and classification effort will help streamline geothermal investments and facilitate more projects around the world.
To be jointly implemented by IRENA and the IGA, with support from the
Held in Ankara/ Turkey earlier this year, the congress featured several workshops and topical forums on current issues faced by the geothermal sector in Turkey. More than 300 representatives of companies, developers, suppliers, investors, banks, municipalities, organizations and the government were in attendance. The congress targeted key challenges and opportunities for Turkey’s geothermal sector, technical solutions and engagement. In one of the most anticipated workshops of the congress, the World Bank provided details on its new Risk Sharing Mechanism to support investment
into geothermal development in Turkey. The congress has established itself as the annual meeting point of Turkey’s geothermal sector, its international partners and those interested in joining the further growth of Turkey’s geothermal sector. With a new government target of 4,000 MW installed geothermal power generation capacity by 2030, Turkey will remain one of the hottest markets for the global geothermal sector. IGC Turkey is an event held by Turkish geothermal news platform JeotermalHaberler, Enerchange and ThinkGeoEnergy. Join IGC Turkey 2019 to be held again in Izmir. Details to be found at www. igc-turkey.com
IGC Turkey 2018, Ankara (Photo: JeotermalHaberler)
ThinkGeoEnergy maintains a Turkish-language service at jeotermalhaberler.com – to connect drop an email to Eren Günüç at eren@jeotermalhaberler.com
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East African geothermal awakening Updates from geothermal development in Africa With Kenya leading the way for geothermal development in East Africa, there are though finally things moving elsewhere as well. Following years of negotiations, a PPA has been signed for the geothermal projects of Corbetti and Tulu Moya between the private developers, the Ethiopian government and Ethiopian Electric Power. But this is only the beginning, as there also have been announcements on tenders for drilling at Aluto-Langano and Tendaho. So, it looks now that things are kicking off. In addition, efforts continue to quantify the country’s geothermal potential and identify additional sites for future development. News from Djibouti are also positive, with drilling rigs now being on their way to their respective sites to two geothermal projects by the international drilling contractors. Furthermore, additional funding was secured for the geothermal development from Kuwait Fund.
Kenya continues its steady development. Kenya Electricity Generating Company (KenGen) continues on additional projects and at Olkaria, involving large-scale expansions and refurbishment efforts standing for the majority of all planned capacity additions in the coming years. With news on a possible investment into textile manufacturing facilities in Olkaria, efforts on the establishment of an industrial park close to the geothermal plants at Olkaria also seem to pay off. GDC has solved final obstacles on the construction of three geothermal power plants by private developers at Menengai, securing a lease, and independent steam output confirmation. So construction on these sites can commence this year. On its other projects at Baringo-Silali and Suswa, GDC continues its early-stage development efforts.
Private developers are continuing their development drive in Kenya. For the Olsuswa project, an MOU was signed with local communities on early exploration work. The Longonot geothermal project is planning a drilling start by mid-year 2018 and earlier this year, a Chinese developer secured a license at Magadi, Narok County.
Drilling rig at Menengai, Kenya (Photo: UNEP-ARGeo)
With the ongoing development activities, Kenya could about double its current installed capacity of 676 MW to more than 1,300 MW by 2021, if everything goes according to plan.
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Think GEOENERGY Newspaper – Edition 02/ 2018 - a publication by ThinkGeoEnergy.com Editor: Alexander Richter • Design: Linde Richter • Layout: Bratislav Dikic Contact: news@thinkgeoenergy.com • www.thinkgeoenergy.com Address: ThinkGeoEnergy ehf., Laugavegur 13, 101 Reykjavik, ICELAND.