An article published in the Philippines yesterday, reports the determination of the Department of Energy in the country, for the Philippines to reclaim its top 2 ranking of geothermal power generation capacity in the world.

“Let’s go for it and regain our previous global standing as one of the top countries in geothermal development,” Energy Secretary Alfonso G. Cusi said to the Business Mirror in the Philippines.

Energy Secretary Cusi wants to push development of geothermal power projects as element to the country’s energy security and boosting the Renewable Energy Act of 2008.

As reported, he has directed his team to prepare a formal directive that would include initiatives and guidelines on the promotion of geothermal development, increase utilisation efforts as it is a domestic energy resource for the country.

“I would like to issue an order to really look deeply and comprehensively into how we can develop geothermal. I have been really thinking about it, assessing how we are addressing RE,” Cusi told the officials.

“This is the time to sit down and explore ways to support geothermal, because one installation will easily wipe out the 1,000 MW (megawatts) installation of solar. I am for RE that would help improve the energy security of the country,” Cusi said.

The National Geothermal Association of the Philippines (NGAP), for its part, said Cusi’s directive is “definitely a step in the right direction that will help our country become more energy independent.”

The group recently wrote Cusi to seek support in promoting and pursuing geothermal exploration and development in the country, which currently provides 11 percent of the Philippines’ power production.

Geothermal energy development has stalled in the country for way too long and that despite numerous geothermal energy sources. The lack of a guaranteed power purchase price under a feed-in-tariff is described as a big hurdle for private development, with the high risk and high up-front cost.

The sector through the NGAP has been asking for risk sharing between developers and the country’s Department of Energy, and the provision of financial support in the form of low interest rate loans or grants.

Source: Business Mirror

The state power utility of Mexico, Federal Electricity Commission (CFE) published an international tender to build, starting in 2021, the expansion of the Chignautla geothermal plant, Puebla, in the area bordering Perote, Veracruz . The project is part of the Expansion Plan 2019 of the initial Los Humeros geothermal plant that contemplates a total investment of USD 95.4 million.

The project was published almost at the same time that the cancellation of the contract with the Spanish company  Iberdrola in Tuxpan, Veracruz, for the construction of a Combined Cycle Power Plant (CCC), was announced, the project will continue but now in charge of CFE.

The new project published on the governmental platform of Proyectos México contemplates the construction of the second phase of the plant, which is located in the Los Humeros geothermal field  , in the municipality of Chignautla, which is the eastern region of the state of Puebla and the western Veracruz state, 32 kilometers northwest of the city of Perote.

The tender portal describes the project as the design, construction, equipment and installation of:

“A geothermal electric power plant with a guaranteed net capacity of 25 MW at summer design condition, considering geothermal condensation steam as a driving fluid, consisting of a geothermal condensation steam turbine, a system cooling through a wet type cooling tower, main and auxiliary transformers, and all necessary equipment including its transmission system.”

The plant will be located in Los Humeros geothermal field, in the eastern region of the state of Puebla and in the western of the state of Veracruz, 32 km northwest of the city of Perote, Veracruz.

The project details that it is a work with 100 percent private investment financing   through a three-year international public tender contract that includes the design, construction, equipment and installation, without specifying the estimated investment for the execution of the same.

The work identified as Los Humeros III Phase B Geothermal Power Plant details that in the Productive Infrastructure Investment Projects with Deferred Registration in Public Expenditure (PIDIREGAS), the developer finances the project during construction and at the end of the work, once the Project assets are able to operate, CFE pays deferred as established in the contract.

The call issued through the CFE’s Management of Tenders and Contracts for Financed Investment Projects indicates as relevant dates January 28, 2021 as the limit for the receipt of proposals, while on February 25 of the same year they will be given to know the results of the failure.

It should be noted that the Los Humeros III Geothermal Plant in Phase A has already been operating since November 2017. It had an investment of $ 47 million for its construction and has a total capacity for the generation of 94 megawatts, enough energy to power 60,000 homes with electricity.

Initially announced in 2011, the proposals now have been published on May 21, 2020 with a deadline for proposals of January 28, 2021 and a ruling on February 25, 2021.

Source: e-consulta, Poyectos México

In the context with the upcoming tender for geothermal parcels at Mt. Baker in the state of Washington in the U.S., Cyrq Energy and partner AltaRock Energy have announced plans to partner on refining geothermal drilling technology.

With the technology the companies hope to drill far deeper underground than currently possible, so Bloomberg Law in an article today.

Cyrq Energy wants to bid on the two leases of the BLM geothermal lease sale, the first leasing tender outside of the states of California and Nevada since 2016.

In a statement, Susan Petty, CTO for both Cyrq Energy and AltaRock Energy describes the targeted technology work as the geothermal “moonshot”.  Targeting deeper resources, it is aimed to tap extremely high temperatures of up to 662 F (350 degrees Celsius).  Based on the energy density in these high temperatures, geothermal could compete head on with fossil fuel-based power generation.

The areas of Mt. Baker and Mt. St. Helens are described as hot spots with high temperature geothermal resources.

With a focus on California and Nevada, the lease sale now in the State of Washington is an important step for geothermal development in the U.S., so Will Pettit, Executive Director of the U.S. Geothermal Resources Council.

The “moonshot” might though be a bit further down the road, Susan Petty still hopes that Cyrq Energy will be able to demonstrate geothermal power development success in Washington. Local utilities are though more carefully in their estimates, as geothermal faces low-cost natural gas and cheap renewable energy sources.

If successful in the auction, Cyrq Energy aims to start exploration and hopes to then strike a power purchase agreement with a local utility soon.

An environmental assessment was completed in 2015 by BLM and the U.S. Forest Service, after plans on a possible auction were announced in 2014 , we reported.

Source: Bloomberg Law

Energy Market Regulatory Board (EMRA) Press Center shares the regulation created for the use of hybrid technology in power plants in its announcement under the title of “New era in the energy sector”.

With the regulation, renewable energy facilities to be built in the areas where the power plants are located will increase the new investment and employment opportunities. Companies producing electricity from other sources will also be able to establish their own solar power plants within the same power plant area. Thus, solar panels are expected to become widespread and domestic panel production will increase.

Especially in geothermal energy-based power plants established in agricultural regions, biomass-based auxiliary resource units can be established in order to eliminate such wastes and increase electricity production by using agricultural residues and wastes in the region. In addition, it will be possible to use renewable energy sources such as solar or biomass together in power plant sites based on conventional energy sources such as coal and natural gas.

Within the framework of the new methodology, power plant fields will be determined according to the energy source and technology type, and the expropriation of more areas than the investor’s needs will be prevented. Areas that remain idle – hundreds of acres – will become part of electricity generation.

With the arrangement, power plant fields to be added to associate and production licenses will be evaluated separately from wind, solar, hydroelectric, thermal, biomass, geothermal and nuclear energy sources.

The size of the land of the facility to be established will vary depending on the type of source and technology. EMRA will ensure that the investor’s field is tailored to the methodology, after his review according to the criteria he has determined. Thus, the expropriation of more than the investor’s needs and the acquisition of ownership or use right through purchase or lease will be prevented. In addition, conflicts arising in terms of agricultural areas will be eliminated.

EMRA will establish a control mechanism in determining power plant sites with this regulation. In this way, it will be prevented that the investors bear the excess cost in the fields determined according to the need.

EMRA Chairman Mustafa Y?lmaz, who evaluated the subject, noted that the regulation is of great importance in terms of bringing inactive areas to the economy. Yilmaz; Emphasizing that the new facilities to be established will also bring new job and employment opportunities: “With this regulation, we are opening the way for our country to benefit more from renewable energy sources. We accelerate the investment environment with the possibility of additional investment in existing facilities. We believe that more investments and employment will come from investors. ”

Source: our Turkish sister publication JeotermalHaberler

As reported this morning from Manila in the Philippines, American investment firm KKR through its subsidiary Valorous Asia Holdings has acquired a 11.9% equity stake in First Gen Corp., the mother company of geothermal firm Energy Development Corp. (EDC) in the Philippines. The price is said to be P9.6 billion or USD 192.2 million, putting the evaluation of First Gen at around USD 1.62 billion.

“We are thrilled to make this infrastructure investment in the Philippines in First Gen. We have long viewed First Gen as an exceptional business with a high-caliber leadership team, and we have great respect for the Lopez family for building this strong, well-established company,” said David Luboff, partner and head of Asia Pacific infrastructure at KKR.

“This is an exciting and further milestone for KKR’s Asia Pacific infrastructure business, and we are pleased to have this opportunity to be an investor in First Gen able to positively engage with the company’s management team and the Lopez family as helpful in the future,” said Luboff.

First Gen is one of the Philippines’ largest independent power producers and is a subsidiary of First Philippine Holdings Corp. controlled by the Lopez family. The company primarily generates power through renewable energy and indigenous fuel sources such as natural gas, geothermal energy from steam, hydro-electric, wind and solar power. One if not the largest geothermal operator in the world, Energy Development Corp. is a subsidiary of First Gen.

Source: Manila Standard

Pivot2020 is a week-long virtual event of ten moderated roundtables, featuring thought leaders and change makers who are building the future of geothermal energy. Panelists include leaders from the oil and gas industry, geothermal industry, academia, governments, national labs, and start-up companies.

Pivot2020 is being hosted by the Geothermal Entrepreneurship Organization (GEO) at the University of Texas at Austin, and the International Geothermal Association (IGA), along with industry and organizational partners and friends. Special thanks to Pivot2020’s marketing partners, including the Geothermal Resources Council, ThinkGeoEnergy, and the Members in Transition collaboration between the Society of Petroleum Engineers, the American Association of Petroleum Geologists, and the Rocky Mountain Association of Geologists.

PIVOT 2020 – from Hydrocarbons to Heat online event July 13-17, 2020 promises to be an exciting and new event bringing together oil & gas and geothermal players from around the world for panel discussions targeted to open your mind.

Panels and speakers have been announced for the following panels:

• Monday July 13, 2020 – Building a geothermal strategy: perspectives from the oil patch & Geothermal anywhere: EGS, DeepEGS, Supercritical and beyond
• Tuesday, July 14, 2020 – Funding your geothermal venture, Geothermal Anywhere: Closed loop systems
• Wednesday, July 15, 2020 – Geothermal project development: considerations from the trenches, The future of Drilling: non-conventional concepts
• Thursday, July 16, 2020 – Drilling the wells of the future: advanced tools, techniques & methodologies, Geothermal Prospecting: Thermal & hydrothermal exploration
• Friday, July 17, 2020 – The Green Drilling Pivot: career crossovers and opportunities, Our Geothermal future: leveraging the subsurface to solve energy

I could now name a few individuals of the different panels, but the line-up is so great that it would do injustice to anyone not mentioned. So have a look at the complete program and don’t forget to register.

ThinkGeoEnergy is proud to support the event and I will myself join the panel on the geothermal future on Friday, July 17, 2020.

REGISTER HERE

From time to time we stumble across rather interesting technical solutions and companies that deserve some specific coverage. In this case, we were connected with Clinton Moss, President of Gunnar Energy Services to learn more about the company’s work on magnetic ranging. For those not familiar with the technology it is a drilling technique to purposely direct drilling efforts in specific directions, e.g. purposely intersecting two wells to create a closed-loop geothermal system. So this is some extremely exciting stuff to come to geothermal, where hitting targets, and precision accuracy such as connecting wells etc become so important.

So we glad to get the chance to connect with Clinton.

For those of us that may be unfamiliar, please introduce yourself and Gunnar Energy Services

I started in the industry in 2005 working on drill rigs as a Measurement While Drilling Field Engineer, and in particular, utilized Magnetic Ranging tools from the very beginning.  This ranged from Field Engineer, to Coordinator, Manager and finally Global Product line Champion for Magnetic Ranging services at Halliburton – Sperry Drilling. I briefly worked with Wild Well Control in Houston before starting my first business, Marksman Ranging Technologies. Marksman embarked on the rapid development of industry leading magnetic ranging technology, and subsequently commercialized and deployed these instruments at the wellsite within nine months of company inception. Marksman was acquired by Scientific Drilling International in 2015. As a part of that acquisition, the Marksman team continued as a wholly owned entity of SDI from 2015 to 2019. In 2019, I left Scientific Drilling International and started a new firm, Gunnar Energy Services. Gunnar is based in The Woodlands, Texas, with office and staff in the surrounding area.

Gunnar Energy Services is a firm dedicated to the development of technology and the provision of services in the complex completion, well intervention and well control segments of the energy sector. Gunnar is developing and deploying new technology to the field to address some of the industry’s most complex and challenging problems. Gunnar generally does not participate in large scale, factory drilling campaigns, but instead is laser focused on some of the energy industries most complex, unique and nuanced challenges. For example, Gunnar recently participated in the plug and abandonment of a well originally drilled in 1927, and partially abandoned in the 1950’s. Gunnar conceived of, develop, deployed and managed a new technology which allowed for the successful intersection and abandonment of that particular well in a timely and cost effective manner as compared to other commercially available solutions.

Would you walk us through the history of magnetic ranging and how the technology has evolved over time?

Magnetic ranging has been around for ~40 years or more in one form or another. The first magnetic ranging patents emerged in the late 1970’s and focused on determining a distance and direction from a drilled well to another nearby cased wellbore. This technique is often referred to as passive magnetic ranging. In the 80’s, active ranging was developed by Vector Magnetics. Vector Magnetics is considered the original inventors and suppliers of service of active magnetic ranging technology.

The technology was first developed to deal with taming oil well fires by way of “relief wells”. These techniques were later modified, or new related techniques developed, to allow for the precise placement of wellbores for oil and gas, construction, mining and geothermal applications.

What are a few of the common applications for ranging?

• If we want to purposely intersect two wells to create a closed loop geothermal system, magnetic ranging is deployed
• If we want to drill under a roadway and have a very precise exit point so that fiberoptic cables can be installed, we use magnetic ranging techniques
• If we want to purposely intersect a well so we can fill the old well with cement, thereby permanently abandoning the well, we use magnetic ranging
• If we want to drill wells so that potash (fertilizer) can be extracted by flooding the formation with fluid, thereby bringing the potash into liquid suspension, we deploy magnetic ranging

To further illustrate magnetic ranging applications and the complexity of these downhole conditions, I created an unscripted video series, entitled, “Pulling Back the Curtain” where myself and trusted industry colleagues walk through and explain complex well control, well intervention, and wellbore positioning challenges.  Here is an example of one video, titled “Intro to Well Intervention” and you can watch the others on YouTube and shared on LinkedIn.  We publish new videos weekly.

How do you see this technology making an impact in the Geothermal market and how will this differ from traditional O&G?

Magnetic ranging will make complex wellbore architecture possible in a geothermal application and has unlocked the full potential of deep and hot closed loop systems. It may well be the case that other complex completion geothermal drilling operations can be imagined, patented, and undertaken once magnetic ranging has been fully implemented as a tool in the geothermal drilling engineer’s toolbox. This is not unlike the oil and gas industry’s experience with magnetic ranging. Magnetic ranging made relief well drilling, steam assisted gravity drainage drilling and coal bed methane intersect drilling possible upon its introduction. Prior to the advent of magnetic ranging, these production or operational feats were not available to industry.

What new capabilities do you see this unlocking for Geothermal Operators and what risks will it present?

The precise placement of wellbores, whether it be to intersect and form a closed loop, or to precisely space multiple wellbores meant to access particular zone of the heat reservoir, will all be enabled by making magnetic ranging available in the geothermal drilling space.

The risks to these operations include the increase in engineering complexity as compared to a typical drilling operation (for example, drilling a deep vertical well). This risk can be well mitigated by seeding geothermal operations with O&G drilling engineers that are familiar and accustomed to designing and managing projects that routinely depend on magnetic ranging techniques.

With that said, the future of renewal energy must require a re-inventive mindset and consistently challenge the status quo.  To generate more investment appeal into the Geothermal sector, we must much explore new methods for achieving our ultimate objectives – it is not about the outcomes, it is about the process and decisions that must fundamentally shift.  What got us here won’t necessarily get us there.

—

We will check in with Clinton later this summer to dive further into some innovative magnetic ranging applications and concepts that should help advance the geothermal drilling industry and push the limits of development worldwide.

… or at least that is the plan this summer, just like every year.

With the summer in full swing everywhere, ThinkGeoEnergy will be taking the next 3 weeks off and you will not find any new news here on the site. We aim to be back with news reporting after July 19, 2020 with the next newsletter to then arrive back in your inboxes on July 28, 2020.

Traditionally it has been difficult to source news during the summer. With a completely off the rails news cycle, businesses going through all kinds of difficulties etc. things have not been easy. Like many others, I have also experienced some fatigue off online meetings, numerous webinars without the so crucial human interaction in person.

Now, I normally would write about the upcoming autumn (northern hemisphere), spring (southern hemisphere) and the conferences planned. But who knows if these events will be held or in what format. Nothing seems to be normal anymore. So we all will have to adapt.

For now, I wish you all a pleasant summer and make sure to drop us any news you would like to be covered by us. Will be though trying to use the time for some “geothermal” photos from Iceland, so check things out on our Instagram account.

Alexander Richter, Founder & Editor ThinkGeoEnergy

District heating utility Toplane Sarajevo in the capital city of Bosnia Herzegovina (BiH) in cooperation with the Environmental Protection Fund of FBiH has announced work on research of thermal waters in the area of Ilidza for the needs of district heating

On July 3, 2020, Toplane Sarajevo signed an Agreement with the Environmental Protection Fund of the Federation of BiH on the allocation of funds within the “Project of hydrogeological research of thermal waters in the area of Ilidza for district heating Toplana Sarajevo”, with the ultimate goal of using renewable energy sources district heating Toplana Sarajevo.

Funds in the amount of 35 thousand KM (around EUR 180,000) that will be allocated to heating plants include the preparation of project documentation.

If the hydrogeological tests through the first phase of this project show their justification in terms of finding geothermal water of satisfactory temperature, drilling of a geothermal well will continue, to which the heating plants will have a concession and use geothermal water in the district heating system.

With the implementation of this project, it is planned to heat the Ilidza settlements that cover the boiler rooms of Mala Aleja, Mlada Bosna and Tomo Meza.

The realization of this project introduces a completely new way of heating that excludes the use of natural gas and other alternative energy sources in the process of heat production, which has an invaluable positive impact on the contribution to air quality.

Source: Toplane Sarajevo

In a press communique the geothermal project by the local utility of city of Geneva (SIG), Switzerland announces that the Swiss Federal Office of Energy (SFOE) is providing SIG with a prospecting contribution of CHF 27.5 million (USD 28.3m/ EUR 25.3m) for its exploratory geothermal program. This grant establishes the method of exploring and learning the GEothermie 2020 program, renamed GEothermies (see box). In this context, the exploratory drilling of Lully, which benefits from this subsidy, delivers its first results.

The GEothermies program, piloted by the State of Geneva and implemented by SIG, aims to map the basement of the Geneva basin in order to determine the sites most favourable to the exploitation of geothermal energy, a source of clean, renewable and local energy, and to set up a framework favourable to its development. This program is made up of several modules, including seismic data acquisition campaigns as well as medium depth exploratory drilling which benefit from the subsidies granted.

“The GEothermies program lays the foundations for sustainable and controlled development of geothermal energy in Geneva,” said Antonio Hodgers, State Councilor in charge of the territorial department. “Geothermal energy is a key element in the energy transition. By 2050, geothermal energy could cover 30% of the canton’s heat needs while respecting the environment.”

The Federal Office of Energy awards a grant of CHF 27.5 million for the exploration module of the GEothermies program.

“This OFEN grant is a recognition of the method chosen by the State of Geneva and SIG, a method which consists in knowing the subsoil well before embarking on mining. We want to respect the environment to provide Genevans with this source of renewable energy, available under our feet 24 hours a day,”explains Mr. Christian Brunier, Managing Director of SIG.

Encouraging results for Lully drilling

Part of the subsidy is allocated to the Lully exploratory drilling, located in the town of Bernex. After 8 months of work, this borehole went down to a depth of 1,456 meters, one of the deepest ever dug in Geneva.

Water rises naturally to the surface and its temperature rises to 53 degrees [Celsius] at the bottom of the well. The pressure is high (10 bars), which is very encouraging compared to the presence of water in this sector, however the flows seem limited. Additional tests will be carried out on the Lully borehole in order to know in detail the composition of the subsoil and to assess whether this site can be exploited for geothermal energy.

The objective of this exploratory drilling has been achieved, since it has made it possible to better understand the Geneva subsoil in this specific region by providing essential new geological information which makes it possible to specify the geothermal potential.

The drilling also yielded some geological surprises, such as a great thickness of sand in the form of sandstone, coming from an ancient desert which existed 50 million years ago where Geneva is today!

Lully’s results confirm that water is circulating under our feet but that we must continue the campaigns to acquire seismic data in order to be able to locate the boreholes with more precision, where the flows are high. The Lully drilling, like the previous one in Satigny, is rich in experience and contributes to the skills development of local players. Thus, in the long term, geothermal energy will heat greenhouses, companies or municipalities.

GEothermies: a sustainable and controlled development program

Initiated in 2014, the GEothermies program, plans to carry out 4 exploratory drilling of medium depth in 4 different geological contexts to have a good representativeness of the Geneva subsoil. Two holes have already been drilled in Satigny and Lully. It is estimated that the basement is saturated with water under pressure, but that this water is distributed in a heterogeneous manner. The purpose of these operations is to identify the most favorable geological contexts for the exploitation of geothermal energy.

Geothermal energy will in the future significantly reduce CO2 emissions, thereby reducing dependence on fossil fuels replaced by clean, local energy.

Towards plural geothermal energy for the canton

The knowledge acquired since the launch of the exploratory program in 2014 confirms the potential of geothermal energy in Geneva. The data collected thus made it possible to discover the great geological diversity of the Geneva basin and the significant energy potential of its underground water tables. During the exploratory stages, the perimeter of the program naturally evolved towards the exploitation of groundwater of all depths in order to meet the different needs of the entire territory and the cantonal objectives of energy transition. Today, the potential of geothermal energy as a major agent of the energy transition is established. In this context, the GEothermie2020 program continues to evolve and pursues its ambitions under a new GEothermies signature.

The GEothermies program is currently preparing the exploitation of this energy through a whole range of geothermal solutions: from shallow to medium depth and in the long term, from great depth. Whether it is heating a district, cooling a building or storing energy, the program supports the development of projects to ensure efficient and sustainable use of this local natural resource. Shallow geothermal energy is already the subject of concrete projects that are developing in Geneva (example: the establishment of a district heating network in the Concorde sector in Vernier or the development of groundwater geothermal energy in Versoix ).

To prepare for exploitation and ensure the sustainable implementation of geothermal energy, the State of Geneva continues to rely on SIG, its industrial arm and key partner.

Source: SIG

The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE), admitted that it continues to work to keep geothermal projects running and is striving to no longer revoke geothermal working area licenses.

ESDM Ministry’s Geothermal Director Ida Nurhayatin Finahari said in 2019 the Ministry of Energy and Mineral Resources ended the geothermal permit for three geothermal working areas (WKP) namely Tampomas WKP, Guci WKP and Cisolok Cisukarame WKP.

“With regard to the three WKPs, the termination is due to the expiration of the implementation period of the concession,” Ida explained.

She explained, his party was trying so that this year there would be no revocation of WKP permits given the relatively large investment and high development risk.

On the other hand, the Ministry of Energy and Mineral Resources is currently preparing a geothermal exploration program by the government for the 2020-2024 period which includes exploration drilling.

Ida ensured that the program is now beginning preparations for its activities, preparation of governance, outreach and coordination with stakeholders and preparation of environmental documents.

According to Ida, his party also continues to focus on overseeing geothermal projects this year. Entering the new normal phase, he ensured that the project would continue to be optimized.

“The geothermal project is still ongoing and it is expected that the target to increase the installed capacity of 140 MW in 2020 is still possible to be achieved from the fields of Rantau Dedap, Sorik Marapi and Sokoria,” explained Ida.

She revealed, the work of geothermal projects is certain to continue to follow the existing health protocols although it is inevitable that an adjustment needs to be made because of the mobility of personnel and equipment.

Source: Kontan

In a release, Canadian closed-loop geothermal power generation technologies company Eavor Technologies Inc. (“Eavor”), announces having appointed Michael Liebreich to chair a new Advisory Board as it moves forward with its first commercial projects.

Founded in Alberta, Canada in late 2017, Eavor has developed a proprietary, closed-loop approach to geothermal heat and power. Unlike Enhanced Geothermal Systems (ESG), it involves no fracking, no GHG emissions, no earthquake risk, no water use, no produced brine or solids, and no aquifer contamination. Eavor systems are flexible and dispatchable, they can operate as standalone, supplement a grid, or be hybridized with wind and solar.

Michael Liebreich will assume the role of Chair of a new Advisory Board which will help guide the commercialization of Eavor’s technology. Michael is Chairman and CEO of Liebreich Associates, Founder and Senior Contributor to Bloomberg New Energy Finance. He is an experienced angel investor and a member of numerous industry advisory bodies. He is an acknowledged thought leader in clean energy and transportation, climate finance and sustainable development.

“We have known Michael for some time and have always viewed him as one of the most insightful commentators on the energy transition”, stated John Redfern, President & CEO of Eavor. “Now, as we prepare to scale up and become a major contributor to that transition, we are pleased to have Michael with us on this crucial journey. Michael’s advice will be of great benefit as we navigate this complex and rapidly evolving market.”

“I have watched over the years as geothermal energy has struggled to break out of its role as a niche energy source and been eclipsed by the rapid growth of wind and solar power. I have followed Eavor closely for a few years as it has broken down successive technical barriers; I believe its closed-loop approach could be a game-changer in the geothermal sector and within the broader clean energy transition”, stated Michael Liebreich. “We may have, in Eavor, a clean power and heat technology that can work almost anywhere in the world, scale to very large projects, benefit from strong learning curves, and be dispatchable. That is a very exciting prospect.”

Source: Company release via Globe Newswire

In a news piece earlier this week, global metals and mining corporation Rio Tinto announced that it will close the Tiwai Point aluminium smelter on the South Island of New Zealand.

In the announcement it said it would start planning for the eventual closure of New Zealand Aluminium Smelters (NZAS) following a strategic review which “showed the business is no longer viable given high energy costs and a challenging outlook for the aluminium industry”.

This is a big blow to our friends in New Zealand and does not sound too well for Iceland, which also finds itself in heavy negotiations with smelter operations with the company.

In a statement, Mike Fuge, CEO of New Zealand-based utility and large geothermal operator Contact Energy (‘Contact’) said Rio Tinto’s intention to effectively close New Zealand’s Aluminium Smelter (‘NZAS’) by giving 14 months’ notice on their electricity contract with Meridian Energy was ‘very disappointing’.

He said all commercial parties involved in dealing with NZAS, including Contact, had collectively delivered significant cost reductions for electricity. ‘We’ve all had a strong desire to help secure the financial sustainability of the unique low-carbon smelter at Tiwai, and retain the 1,000 high-paying jobs in Southland, plus the 1,600 contractor and supplier roles.

‘We’re very disappointed to have played our part in delivering these savings for one of the greenest smelters in the world and to have such limited engagement from Rio Tinto. We urge Rio Tinto to seriously consider the offer for improved electricity supply and encourage them to consider what is right for Southland, for New Zealand and for their own global environmental commitments.’

Mr Fuge said that with the disorderly exit of 13 per cent of national electricity demand looming, Contact would now accelerate mitigation options including the consideration of closure of the Taranaki Combined Cycle thermal power station at Stratford. Contact also expects Transpower to expedite the build-out of the transmission grid and in this regard welcomes the commitment to the lower South Island transmission upgrade.

He said that the smelter’s departure will have a significant impact on the Southland economy. ‘In addition, the decision will also result in an avoidable and significant increase in global emissions as production shifts away from NZAS to aluminium smelters powered by electricity generated solely from fossil fuels.’

Mr Fuge said customers should expect to see an increase in transmission costs as the proportion of transmission costs currently paid by NZAS will be spread across all customers. ‘The reality is that NZAS has subsidised transmission costs to consumers for years. Not only will those costs now fall to other customers, there will also be additional costs for the significant transmission investment from Transpower now needed to shift surplus energy from the lower South Island north to where it is needed. In the meantime, the surplus water currently being used to generate renewable energy in Southland will in large part end up flowing down the Clutha River.’

Contact’s ‘shovel-ready’ Tauhara geothermal power station remained New Zealand’s cheapest and most attractive option for new, renewable, baseload electricity generation, but Mr Fuge said the sensible option was to defer this investment. ‘Tauhara remains a fantastic project, however it is prudent to press pause for now. We need to factor in the impact of COVID-19 and the potential exit of NZAS and get a clearer picture of demand,’ he said.

Opportunities to decarbonise transport and accelerate the electrification of South Island industry away from a reliance on coal remained in focus. ‘One silver lining is that we expect today’s news to be a catalyst for users to accelerate their shift toward low-carbon electricity – however this transformation would be a slow burn and take much longer than 12 months.’

Mr Fuge said Contact would update the market on any implications of the NZAS exit on the company’s expected earnings and dividend. ‘We’re accelerating our mitigation plans to minimise the financial impact. Our portfolio of long-life renewable generation assets, flexible thermal assets and fuel contracts, and strong balance sheet provide confidence we are well placed even in a lower demand environment.’

Source: Contact Energy company release, Stuff.co.nz

The Indonesia International Geothermal Convention & Exhibition is the annual meeting point of the Indonesian and international geothermal community in Jakarta, Indonesia. Clearly this year things are not in favour for holding the event “in-person” in Jakarta in August of this year as planned.

The value of face-to-face interaction will never be ignored, but there are times when going virtual interaction is another value “necessity” as part of our event program. For the past seven years, Indonesian Geothermal Association (INAGA) has been proud and successfully to host the Indonesia International Geothermal Convention & Exhibition (IIGCE) in Jakarta Convention Center, Indonesia. This year will be different, the COVID-19 virus clearly prevented us to hold the event as usual, as there is no guarantee the safety and health of participants will be well managed. So we regretfully must take a difficult decision by postponing The 8th IIGCE 2020 until next year.

However, in order to still be able to support the renewable energy development particularly in the geothermal sector and also to update the latest technology and regulations in the geothermal sector, INAGA as the host of IIGCE is proudly present a virtual event that is called “Digital Indonesia International Geothermal Convention (DIIGC) 2020” which will be held 8 – 10 September 2020 using Zoom Application as the platform.

PannErgy secures long-term refinancing for bank loans PannErgy Plc. hereby informs capital market players that its member companies implementing the Györ and Miskolc Geothermal Projects — namely DD Energy Kft., Arrabona Koncessziós Kft., Miskolci Geotermia Zrt. and Kuala Kft. — as borrowers and providers of collateral have entered into a HUF 11 billion financing agreement with the banking consortium comprising UniCredit Bank Hungary Zrt. and CIB Bank Zrt. As part of the financing agreement, other member companies of the PannErgy Group were also involved in the transaction as providers of collateral.

As a result of the financing transaction, a loan portfolio of HUF 9.5 billion (EUR 28.7 million) in total of the PannErgy Group — maturing in the short and medium term and with a substantial balloon — has been refinanced with a 10-year long-term loan, thereby ensuring the Group’s predictable and economical financing in the long run. The remainder of financing can provide coverage for investment and project needs arising in the near future, while also representing a stable financial background in the new economic and operating environment that has come about as a result of the COVID-19 pandemic.

The refinancing was implemented from the FGS Go! (NHP Hajrá) scheme launched by the MNB at a value of HUF 8.25 billion (EUR 25m). The remaining HUF limit of 2.75 billion (EUR 8.3m) was denominated and drawn down in EUR. FGS loans have fixed interest for the entire loan term, while the remaining loan parts have variable interest. For the latter, the Company concludes interest rate swap transactions to hedge interest rate risk in the long run.

As a result of refinancing, the Group’s consolidated debt servicing obligation drops by approximately HUF 200 million (EUR 604,000) per year. The refinancing was realised this day with the disbursement of credit limits.

Source: Company release

The Geothermal Resources Council (GRC) invites you to present your latest technical work in geothermal research, exploration, policy, development and utilization at GRC’s 44th Annual Meeting & Expo.

We encourage geothermal researchers and experts from the USA and around the world to submit their work for consideration to be presented at the GRC 2020 Annual Meeting & Expo.

• E-Posters should have a short abstract that must be copied into our submission system prior to the abstract deadline.
• E-Posters will need to follow GRC templates for a consistent professional look and will be reviewed prior to acceptance.

GRC is no longer accepting Paper submissions. GRC Reviewers will return comments by June 30. References to published literature must be fully cited at the end of the paper. Unreliable sources such as Wikipedia must never be cited. You will have until July 10 to submit your final paper.

All papers will be assigned an oral presentation slot at the convention.

E-Poster Format:

For initial submission, you must submit an abstract to be considered for participation. You must use the GRC E-Poster Template to format your poster and the file must be in PowerPoint format.

Submittal Instructions:

1. Download the License to Use and Reproduce form here. This must be signed by all authors and included with your paper and/or e-poster submission.
2. Create a login and profile on the CMT website (if you submitted a paper last year, please use the same login or click “Reset Password”). Once logged in, go to the “All Conferences” tab to select the 2020 GRC Annual Meeting & Expo from the conference list.
3. From the “My Conferences” tab, select the 2020 GRC Annual Meeting & Expo then click the “Create new submission” button.
4. Enter title, abstract, author names and emails, and select your topic.
5. Please make sure to click on the “Submit” Button to save and submit entry.
6. The next screen is titled “Edit Conflicts of Interest.” Use this screen to indicate whether you have any collaborators or colleagues who would have a conflict of interest if they are assigned to review your submission.
7. You should receive an email notification regarding your submissions. You will also see it on the CMT main author console page.
8. Download the E-Poster template. Upload the completed posted to the CMT submission website.

ACCESS GRC SUBMISSION SITE HERE

Questions:

Please direct all format and general submission questions to:

• Vicki Lindberg, Meeting Manager at vlindberg@geothermal.org or (703) 260-9992.

Please direct all content related questions to:

• Jericho Reyes, Technical Co-Chair at jericho.reyes@calpine.com
• Will Osborn, Technical Co-Chair at will.osborn@geothermalchemistry.com
• Trenton Cladouhos, Poster Chairman at trenton.cladouhos@cyrqenergy.com

For full information and details see link below.

Source: GRC

Reported earlier this week, Turkish Zorlu Energy is planning to spin off its renewable energy business with a focus on geothermal and list it on the stock market. Zorlu plans an initial public offer new company called Zorlu Renewable Energy or “Zorlu Yenilenebilir Enerji” in Turkish, so Zorlu Energy CEO Sinan AK.

Stating that renewable energy investments are the focus of the company’s future plans, Ak said, “We combine our hydroelectric, geothermal and wind investments under our Zorlu Natural, Zorlu Geothermal and Rotor companies as one company”.

Ak emphasized that they will revise the public offering of the company as the first half of 2021, and that the company division is expected to be completed at the end of the process, and they intend to take action with the balance sheets of September or the end of the year. Underlining that geothermal energy will be an important investment area that Zorlu Energy will especially focus on, Ak said that they will use the revenue from public offering to grow and reduce company debts.

Source: Our Turkish-language news service JeotermalHaberler

The objective of this project is a communication drill pipe system that supports directional drilling in high temperature geothermal wells by providing computational power at the drill head and linking it to a control base at the surface.

There is as much as 200,000 exojoules in untapped, carbon-free energy available from geothermal resources, which is 2,000 times the annual consumption of primary energy consumed in the U.S. [1] Accessing these geothermal resources requires drilling operations that must operate at temperatures up to 450 degrees C (840 degrees F).

To effectively develop these next-generation geothermal resources requires a directional drilling system capable of operating at 450?C, but most existing commercial directional drilling systems are limited to about 160 degrees C (320 degrees F).

There is therefore an urgent need for:

• High temperature electronics that will provide computational power all the way to the drill head at 450?C to continuously sense conditions and implement instructions, and
• A communication system that can bring environmental information (pressure, temperature, drilling direction etc.) from all points in the well to the surface and instructions from the surface to the drill head (drilling direction, speed, stop etc.)

Ozark Integrated Circuits Inc. (Ozark IC) is developing a family of high temperature “smart’ modules that can operate from 100 degrees C to 800 degrees C (200 degrees F to 1470 degrees F). These modules, capable of operating in these regimes with integrated processing in addition to sensing, are being developed for a variety of applications ranging from hypersonic and jet engines to space exploration (including the ~500 degrees C Venus surface) to geothermal exploration.

Working with partners, Cole Engineering Inc. (to develop the mechanical portion of the communication system) and AltaRock Energy Inc. (to provide specifications and testing of the final system), Ozark IC will develop in the next 2 years a prototype of the communication system for directional drilling in geothermal wells.

“This Phase II project is crucially important to us” said Dr. Matt Francis, Ozark IC’s Founder and President, “It enables us to enhance and expand our existing family of high-temperature platforms while targeting the highly important field of directional drilling for geothermal wells”.

Dr. Geoffrey Garrison, Vice-President, Research and Development for AltaRock Energy Inc. said, “Drilling can account for up to 50% of the development cost of a geothermal project. The development of directional drilling that will work in geothermal wells is a game-changer that will significantly reduce costs and development times for geothermal exploration and drilling. We are looking forward to working closely with Ozark IC and Cole Engineering on this new communications system and we are very pleased that DOE will fund this project”.

[1] J. W. Tester, B. J. Anderson, A. S. Batchelor, D. D. Blackwell, R. DiPippo, and E. M. Drake, The future of geothermal energy: Impact of enhanced geothermal systems (EGS) on the United States in the 21st century: Prepared by Massachusetts Institute of Technology under Idaho National Laboratory subcontract no. 63 00019 for the US Department of Energy. 2015.

Source: Company release

In a recently released report, the International Renewable Energy Agency (IRENA) shares an update on the Renewable Power Generation Costs in 2019.

Newly installed renewable power capacity increasingly costs less than the cheapest power generation options based on fossil fuels. The cost data presented in this comprehensive study from the International Renewable Energy Agency (IRENA) confirms how decisively the tables have turned.

More than half of the renewable capacity added in 2019 achieved lower electricity costs than new coal. New solar and wind projects are undercutting the cheapest of existing coal-fired plants, the report finds. Auction results show these favourable cost trends for renewables accelerating.

The report looks at onshore and offshore wind power, solar power PV and concentrating, hydropower, geothermal, and bioenergy.

The focus and key findings of the report mostly look at solar and wind power, but the geothermal chapter provides some rather insightful details.

While growth remains modest for geothermal, with 682 MW added in 2019 and a new record, so IRENA, the global weighted average levelized cost of electricity generation of projects commissioned in 2019 was USD 0.073/ kWh. With slower growth from 2010 to 2013, weighted-average costs were based only on a handful of projects. But with at least 440 MW added per year since 2014, trends to be reported have been more stable.

“Between 2014 and 2019, total installed costs increased from USD 3 570/kW to USD 3916/kW. In 2019, the total installed costs of the majority of newly commissioned plants spanned the range USD 2,000 to USD 5,000/kW.

In 2019, the global weighted-average capacity factor for newly commissioned plants was 79%.

For the years 2007-2021, the data from the IRENA Renewable Cost Database suggests that over the next couple of years, the global weighted-average LCOE could fall to just over USD 0.05/kWh in 2021. However, this will depend on whether projects meet their commissioning goals.”

Interesting is the data presented on installed costs by project for geothermal … trying to read out some trend here is tricky, but likely key take away might be that the different technologies of power generation from geothermal resources are more and more moving closer together cost wise … and that flash-type plants are still a key element. That might actually be a distorted view, as most of the development while on smaller scale per unit is actually happening on binary-cycle type plants.

An interesting element that is highlighted – while only individually are the capacity factors, or the percent of time plants are operating on a daily basis that ranges from solar PV at about 18%, onshore wind power at 35.6%, offshore wind at 43.5%, solar concentrated power at 45.2%, hydropower at 48.4%, bioenergy at 70%, geothermal represents 79.4% (which seems low as it ranges all around 82-89% in previous years).

Unfortunately the report does not provide for a graphical comparison of capacity factors, which would have been very useful. At the same point an analysis on the value of higher capacity factors in establishing prices for

The levelized cost of electricity generation also shows the interesting fact that values are more and more getting closer to the $0.05/ kWh and below $0.10/ kWh.

Source: IRENA (and download option for the report)

In a release shared yesterday, TKI New Gas in the Netherlands has shared an Invitation to project proposals (call for proposals) in the Geo Energy research area.

The Dutch government has the ambition to switch to an energy supply in which greenhouse gas emissions, in particular CO2 and CH4, are reduced to zero around 2050. The TKI New Gas, and in a broader sense the Top Sector Energy, wants to play a facilitating role. play to develop and accelerate the innovations required for this transition to a sustainable energy supply.

Because the subsurface plays an important role in this, for example in the areas of geothermal energy, underground energy storage and storage of CO2, the Geo-Energy program line focuses on innovations that focus specifically on the safe and sustainable use of the deep subsurface for energy production and energy storage. It does this by developing, testing, demonstrating and implementing knowledge and innovative techniques. Important conditions for this type of innovation are that they focus on the use of the subsurface with minimal impact on the environment and the living environment and maximum safety of operations. TKI Nieuw Gas therefore invites project proposals that specifically focus on the Geo Energy research area for the energy transition.

This call for project proposals focuses on the use of the deep subsurface for sustainable energy production (such as geothermal energy) and energy storage. For various applications, there are uncertainties with regard to costs and risks, and questions about the safety of production and storage play a major role. The important preconditions for these types of questions and the innovations proposed for this purpose through a project proposal are that they contribute to a reduction of costs, an increase in efficiency, a reduction of risks and an increase in transparency and safety for one or more sustainable applications in the subsurface. the energy transition. In terms of positioning in the innovation chain, this concerns TRL3 – TRL6. Although it is expected that underground activities up to a depth of 4 km will develop (further) first, the call has no restriction when it comes to a maximum depth that should focus on.

Some important information:

• The TKI New Gas makes a total of EUR 2.5 million in budget available
• Project proposals receive a maximum contribution of EUR 500,000
• Opening call: July 15, 2020
• Closing 1st round (Expression of Interest): October 6, 2020, 5 PM
• Opening 2nd round (Full project proposal): October 13, 2020, 5 PM
• Call closing: 24 November 2020, 5 p.m.
• The PPP supplement scheme applies
• An expert and independent expert committee assesses each submitted Expression of Interest (1st round) and all project proposals (2nd round). Their judgment is binding
• Project proposals are assessed on four criteria: Contribution to the objective, chance of success, degree of innovation, quality of the project

For all other information, we refer to this appendix.

An NL-language and EN-language form are available for submitting an Expression of Interest.

For questions you can send an email to office@tki-gas.nl.

Source: Topsector Energie