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Overview of Geothermal EnergyDevelopmentDOE Office of Indian EnergyWebcast: Overview ofGeothermal EnergyDevelopmentTuesday, January 10, 2012Kermit WitherbeeGeothermal Geologist/Analyst

PRESENTATION OUTLINEGeothermal Geology and ResourcesEnvironmental ImpactsGeothermal Technology – Energy ConversionGeothermal Leasing and Development2

GEOTHERMAL GEOLOGYANDRESOURCES3

4Geology – Plate Tectonics

Plate Tectonic Processes Schematic Cross-Section“Magmatic” SystemsCascade Range“Extensional” Systems– “Rifting”Basin and RangeRio Grand RiftImperial ValleyEast Africa Rift Valley

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7Geothermal Resources(USGS Fact Sheet 2008-3062)StateSystemsIdentifiedMean (MWe)UndiscoveredMean ew MexicoOregonTotal

Geothermal Systems and Public Lands

ENVIRONMENTAL IMPACTS9

10Foot Print and Water ConsumptionLand Use by Energy TechnologyCoalWater Use by Energy TechnologyCoal900Geothermal495Combined cycle47250Natural GasWind3601400NuclearSolarConcentration2600Solar PV430002000Acres/GWh40006000620Geoth-Flash reinj5Geoth-Binary00200 400 600 800Gallons/MWh

Power Plant Comparison - Air EmissionsGeothermal Energy Association11

12Selected Renewable EnergyTechnologiesCapacity FactorsInvestment CostBiomass85Geothermal95Hy dro-Small Scale52Ocean-Wave15Solar -Conc23Solar-PV27Wind-On Shore34Wind-Off Shore43020 40 60 80 100% AvailabilityBiomass Combu Biomass- Geoth-BinaryGeoth-Dual FlashHydro -Small Solar-ConcSolar ParabolicSolar-PVWind 9002,000 1,000/MW4,0006,000

GEOTHERMAL TECHNOLOGY – ENERGYCONVERSION13

World’s 1st Geothermal Power PlantThen: 1904The engine used at Larderello in the firstexperiment in generating electric energyfrom geothermal steam, along with itsinventor, Prince Piero Ginori Conti.And Today:473 MWe

Geothermal Environments Hydrothermal Systems– High Temperature ( 150 C, 302 F) Liquid- and Vapor -Dominated– Moderate Temperature ( 90 to 150 C, 194 F to 302 F) Liquid-Dominated– Low Temperature ( 90 C, 194 F) Liquid-Dominated Hot Dry Rock– Enhanced (Engineered) Geothermal System Cogeneration– Oil and Gas– Geopressure

16Dry Steam Power Plant ( 455o F)Steam is produced directly from thegeothermal reservoir to run the turbines thatpower the generator, and no separation isnecessary because wells only producesteam.GeneratorAir andWater VaporSteamAirThe Geysers Geothermal AreaWorld’s largest dry-steam geothermal field, 22power plants, total capacity of 750 MWeWell Depth: 650-3350 M (2130 – 8200 Ft)Temperature: 240 o- 250o C ( 460 -480 o F)AirWaterProductionWellSteamGeothermal ZoneInjectionWellG A0 2 -5 0 6 8 3 -2 3

17Flash Power Plant (300 F- 700 F)Geothermally heated water under pressure isseparated in a surface vessel (called a steamseparator) into steam and hot water. The steamis delivered to the turbine, and the turbinepowers a generator. The liquid is injected backinto the reservoir. A dual flash cycle separatesthe steam at two different pressures andproduces 20-30% more power than a singleflash cycle at the same fluid flow.GeneratorAir andWater VaporSteamAirWaterBlundell Power Plant Flash plant with binary bottomcycling unitWell Depth: 260 – 2230 M (850 – 7300Ft)Temperature: : 138 o- 267o C (280-512o F)AirWaste BrineProductionWellGeothermal ZoneDirectHeatUsesInjectionWellG A0 2 -5 0 6 8 3 -2 2

18Binary Power Plant (250 F- 360 F)The geothermal water heats another liquid, such asisobutane, which boils at a lower temperature thanwater. The two liquids are kept completely separatethrough the use of a heat exchanger, which transfersthe heat energy from the geothermal water to theworking fluid. The secondary fluid expands intogaseous vapor. The force of the expanding vapor,like steam, turns the turbines that power thegenerators. All of the produced geothermal water isinjected back into the reservoir.GeneratorAir andWater VaporCondenserMammoth-Pacific Power Plants - Twohydrothermal binary power plants generate enoughpower for approximately 40 MWe.Iso-ButaneAirAirHeat ExchangerWaterWell depth: 150-750 M (490 – 2460 Ft)Temperature: 150 o- 175o C (300 -350 o F)WaterCoolBrinePumpProductionWellGeothermal ZoneInjectionWellG A0 2 -5 0 6 8 3 -2 4

19Low TemperatureChena Hot Springs Resort, Alaska: lowest temperature, 165o F, in the world forcommercial power production

20Oil and Gas Well Co-Production and GeopressureChena Power LLC: mobilegeothermal power plant, partlyfunded by DOE to showcaselow-temperature & coproducedresources.Rocky Mountain Oil Field Testing Centeroil and gas coproduction project withOrmat Technologies: 1st successfulgeneration of electricity from binarygeothermal technologies from anexisting oil field.

EngineeredGeothermal Systems(EGS)The Energy Under OurFeetEGS projects produce electricity usingheat extracted with engineered fluidflow paths in hot rocks. Thesepathways are developed by stimulatingthem with cold water injected into awell at high pressure (AltraRockEnergy)21

Current Development Projects22

Total Installed Capacity 2005 - 201023

24Geothermal Powder: Top Countries. InstalledCapacity 4,0002,000-Source: Íslandsbanki Published: 24. 2. 20111990199520002005200720102015

25State# Power PlantsAlaskaInstalledCapacity (MW)Generation(GWh) 1441.81,616New iforniaNevadaTOTALs* EIA, Energy StatisticsChena Hot Springs20 % of Big Island’sdemandOregon Institute ofTechnology –Klamath FallsCampus279DOE-Rocky Mtn OilTest Center15,192

Total Projects in Development Totals by State26

27Growth of Geothermal Projects and Prospects

28Geothermal Leasing and Development

29GeothermalPolicy Drivers, Incentives & ProgramsDOE Geothermal Technologies Program Instrumental in implementation of many of the incentives and subsidies that offset therisk and high upfront capital costProduction Tax Credit Eligible power plants placed in service by 12/31/2013Energy Policy Act of 2005 Geothermal Leasing (PGEIS, Lease Sales) Geothermal Revenue Sharing with Counties Section 1705 – loan guarantees in lieu of PTC ( 175.6M)American Recovery and Reinvestment Act (AARA) DOE Cost-Share Geothermal Investment (total 666.4 M)Renewable Energy Portfolio Standards

30Geothermal Development Process Lease acquisition– Leasing: 25 CFR 211 - LEASING OF TRIBAL LANDS FORMINERAL DEVELOPMENT– IMDA: 25 CFR 225 — OIL AND GAS, GEOTHERMAL, ANDSOLID MINERALS AGREEMENTS Exploration activities Drilling production & injection wells Utilization– Power plants– Direct use facilities Abandonment of wells & facilities Reclamation of surface

31Agency ResponsibilitiesBIABLMGeothermal Leasing(25 CFR 211 - LEASING OFTRIBAL LANDS FOR MINERALDEVELOPMENT)Advisory approvalResource evaluation, mineralsappraisalIndian Minerals DevelopmentAct(25 CFR 225 — OIL AND GAS,GEOTHERMAL, AND SOLIDMINERALS AGREEMENTS)Advisory, ApprovalResource evaluation, mineralsappraisalExploration OperationsGeophysical exploration,including TGWsGeothermal Drilling OperationsGeothermal drilling permitapprovalsUtilization of GeothermalResourcesPlant construction, transmissionGeothermal Resources UnitAgreementsApprovalAccounting and AuditingVerification of production* - Office of Natural Resources Revenue (formally MMS)ONRR*Auditing, collection of revenues,disbursement to tribe/allotmentowner

32IMDA ProcessSource: California Geothermal Energy Collaborative, 2006California Tribal Workshop

Geothermal Permitting - ExplorationOverview of Exploration PermittingDefinition(43 CFR 3200.1)Any activity that: requires physical presence on the land may cause damage to those landExploration Permitting RequirementsAll Activities Evidence of Bond CoverageNotice of Intent (Form 3200-9Estimate of surface disturbanceMeasure to protect the environmentReclamation methodsOther information that may be requiredFor Temperature Gradient Well (TGW) 12 items required (43 CFR 2151.11c)Other than TWG accurate descriptionstarting and ending datesExploration ActivitiesExploration Includes: Construction of Roads & Trails Cross-Country Transit Geophysical Operations Gravity Magnetics Seismic exploration Geochemical Sampling Drilling Temperature Gradient Holes Drilling of Shot-holes Core-DrillingExploration does not include: Direct testing of geothermal resource Drilling of production or injectionwells33

34Exploration OperationsExploration Bonding Necessary prior to surface disturbance Amounts (minimum):– 5,000 single operation– 25,000 for all operations in a single state– 50,000 for all operations nationwide Released:– After request (not automatic)– All wells P&A’d– Surface reclaimed

Geothermal Permitting - Drilling Geothermal Drilling PermitThe Geothermal Drilling Permit describes theoperational aspects of well drilling, including: Description of equipment, materials & procedures Proposed depth Directional specifics, including plan & vertical section Casing & Cementing program Circulation media (drilling fluids) Log description Blow Out Prevention Equipment (BOP) Fresh Water Zones Anticipated Reservoir Temperature & Pressure Anticipated Temperature Gradient Survey Plat by Licensed Surveyor Procedures and durations of well testing Well stimulation –hydro-fracturingGeneral Rules Do not start work until approved Operator must notify local BLM prior toinitiating work File NOI on Sundry Notice If not previously submitted, includeall well completion data Address all 6 items required (43 CFR3263.11) BLM may grant oral approval - butoperator must submit required infowithin 48 hrs. Restore the surfaceBLM may require abandonment If well is no longer needed If well is not mechanically sound Any other information the BLM requires35

36GDPs – BondingDrilling Operations Bonding Necessary prior to surface disturbance– No Cash Bonds– Only LOC or Surety Amounts (minimums)– 10,000 for individual lease– 50,000 for statewide– 150,000 for nationwide Released:– After request (not automatic)– All wells P&A’d– Surface reclaimed

37GDPs – MiscellaneousMiscellaneous The drilling permit, drilling program and operations program can besubmitted together If Operations Plan submitted separately– Submit prior to drilling permit & program– Sundry notice for well pad construction Operations plan and drilling program can cover several wells, buteach drilling permit is well specific Subsequent changes to drilling plan via sundry notice– Oral approval option

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Well Testing39

40Exploration OperationsAbandonment When no longer necessaryWhen BLM requires itFile NOI on Sundry NoticeDo not start work until approvedReports Your lease, submit all data Unleased acreage or other parties lease, not required to submit unless forDiligent Exploration Expenditure (DEE) Signed NOC 30 days after operations conductedConfidential Information Held confidential per FOIA provisions (all Indian mineral data isconfidential) Details at 43 CFR Part 2

41GDPs – AbandonmentPlugging and Abandonment Do not start work until approved Operator must notify local BLM prior to initiating work File NOI on Sundry Notice– If not previously submitted, include all well completion data– Address all 6 items required (43 CFR 3263.11) BLM may grant oral approval But operator must submit required info within 48 hrs. Restore the surface BLM may require abandonment– No longer needed– Not mechanically sound

42GDPs – ReportsReports (43 CFR 3264) Newly completed wells Subsequent Workovers– Completion Report (Form 3260-4)– 30 days after completion– 4 specific data items––––Subsequent Report30 Days following activity5 specific data itemsBLM may waive this for routine operationsConfidential Information (43 CFR 3266) Held confidential per FOIA provisionsDetails at 43 CFR Part 2Items not held confidential:– Surface location– Surface elevation– Well status