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Geothermal Exploration Best Practices: a Guide to Resource Data Collection, Analysis, and Presentation for Geothermal Projects

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Geothermal Exploration Best Practices: a Guide to Resource Data Collection, Analysis, and Presentation for Geothermal Projects GEOTHERMAL EXPLORATION BEST PRACTICES: A GUIDE TO RESOURCE DATA COLLECTION, ANALYSIS, AND PRESENTATION FOR GEOTHERMAL PROJECTS DISCLAIMER The conclusions and judgments contained in this report should not be attributed to, and do not necessarily represent the views of, IGA Service GmbH, GeothermEx Inc., Harvey Consultants Ltd, IFC, GNS Science, GZB, Munich Re, the International Geothermal Association, GNS Science, the Turkish Geothermal Association, Hot Dry Rock Ltd, Harbourdom GmbH, the Global Environment Facility, Geowatt AG, National Institute of Advanced Industrial Science and Technology of Japan, or any of their Boards of Directors, Executive Directors, shareholders, affiliates, or the countries they represent. These organizations do not guarantee the accuracy of the data in this publication and accept no responsibility for any consequences of their use. This report does not claim to serve as an exhaustive presentation of the issues it discusses and should not be used as a basis for making commercial decisions. Please approach independent legal counsel for expert advice on all legal issues. The material in this work is protected by copyright. Copying and/or transmitting portions or all of this work may be a violation of applicable law. IGA Service GmbH encourages dissemination of this publication and hereby grants permission to the user of this work to copy portions of it for the user‘s personal, noncommercial use. Any other copying or use of this work requires the express written permission of IGA Service GmbH. Copyright © 2013 IGA Service GmbH c/o Bochum University of Applied Sciences (Hochschule Bochum) Lennershofstr. 140, D-44801 Bochum, Germany March 2013 SUPPORTED BY: ABOUT THE REPORT This report has been written by GeothermEx Inc., USA, and Dr. Colin Harvey of Harvey Consultants Ltd, of New Zealand. This Best Practice Guide for Geothermal Exploration was produced for IFC by GeothermEx, Inc. Ownership of the Guide has been transferred to IGA Service GmbH under the terms of a cooperation agreement. Additions and edits of the text were carried out by Dr. Colin Harvey of New Zealand. The principal reviewer was Dr. Graeme Beardsmore of Australia. The Guide was also reviewed by Tom Harding-Newman, Patrick Avato, and Alexios Pantelias of IFC; Magnus Gehringer of the World Bank; Matthias Tönnis and Stephan Jacob of Munich Re; Dr. Orhan Mertoglu and Nilgun Basarir of the Turkish Geothermal Association; Dr. Horst Rüter of Harbourdom GmbH; Dr. Ladislaus Rybach of GEOWATT AG; and Dr. Kasumi Yasukawa of the National Institute of Advanced Industrial Science and Technology, Japan. The work is funded by the Global Environment Facility (GEF). About IGA Service GmbH and the International Geothermal Association IGA Service GmbH was founded in 2009 in Germany and is owned by the International Geothermal Association (the ―IGA‖). The main objectives of IGA Service GmbH are the promotion and deployment of geothermal energy and its application through the support of the IGA and its statutory tasks. Activities include facilitating and promoting the development, research, and use of geothermal energy globally through the hosting of congresses, workshops and other events, publishing in print media and online, exchanging knowledge and best practices in research as well as consulting and compiling relevant reports. For more information, visit www.geothermal- energy.org. About IFC IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. For more information, visit www.ifc.org. About the Global Environment Facility The Global Environment Facility (GEF) was established in 1991 as the financial mechanism of the main multilateral environmental agreements. Currently, the GEF is the largest public funder worldwide of projects aiming to generate global environmental benefits, while supporting national sustainable development initiatives. For more information, visit www.gef.org. About GeothermEx, Inc. Founded in 1973, GeothermEx is a U.S. corporation that specializes exclusively in providing consulting services in the exploration, development, assessment, operation, and valuation of geothermal energy. GeothermEx has participated in geothermal projects in 56 countries, supporting the development of 7,000 MW of geothermal power and US$12 billion in project finance. GeothermEx was acquired by Schlumberger in 2010. For more information, visit www.geothermex.com. About Harvey Consultants Ltd The Principal of Harvey Consultants Ltd, Dr. Harvey, is a former manager of the geothermal division of GNS Science, a government owned CRI (Crown Research Institute). Dr. Harvey, a geochemist, has worked and managed geothermal projects in more than 20 countries over a 30 year period. About Munich Re Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability, and client proximity. The Munich Re Group operates in all lines of insurance, with around 47,000 employees throughout the world. Our business model is based on the combination of primary insurance and reinsurance under one roof. We take on risks worldwide of every type and complexity, and our experience, financial strength, efficiency, and first-class service make us the first choice for all matters relating to risk. Our client relationships are built on trust and cooperation. For more information, visit www.munichre.com. About GNS Science, New Zealand GNS Science is New Zealand‘s leading provider of Earth science research and consultancy services, and a world-leader in the understanding and sustainable development of the Earth's cauldron of energy for over 50 years. The 40 strong GNS Geothermal team is internationally recognized for innovative, robust geoscientific research, expertise, and consultancy advice. Specialists in geology, geophysics and geochemistry; GNS Science ensures that companies looking to increase their geothermal capacity have the sound knowledge to power their growth. GNS Science has provided expert assistance for successful geothermal projects in over 35 countries, including New Zealand, Japan, Philippines, Indonesia, Chile and other countries worldwide. For more information, visit www.gns.cri.nz. About GZB – The International Geothermal Centre of Bochum The GeothermalCenter (GZB) is a joined research establishment of science and economy with a close link to administration and politics. With its broad anchorage the GZB provides a competence and information center to the public in regard to all Queries concerning the utilization and extraction of geothermal energy. For more information, visit http://www.geothermie-zentrum.de/en.html. C o n t e n t s 1.0 PURPOSE AND STRUCTURE OF THE GUIDE ....................................................................................... 3 1.1 Geothermal Exploration Best Practices ........................................................................................... 3 1.2 Outline ............................................................................................................................................. 3 1.3 Exclusions ....................................................................................................................................... 4 1.4 Relevant Literature .......................................................................................................................... 4 2.0 THE PROCESS OF GEOTHERMAL DEVELOPMENT ............................................................................ 5 2.1 Introduction ..................................................................................................................................... 5 2.2 Phase 1 – Preliminary Survey ......................................................................................................... 6 2.3 Phase 2 – Exploration ..................................................................................................................... 8 2.3.1 Conceptual Modeling ........................................................................................................ 9 2.3.2 Numerical Modeling .......................................................................................................... 9 2.3.3 Non-Technical Data Compilation .....................................................................................10 2.3.4 Prefeasibility Study ..........................................................................................................10 2.4 Phase 3 – Test Drilling ...................................................................................................................10 2.5 Phase 4 – Project Review and Feasibility ......................................................................................11 2.6 Phase 5 – Field Development ........................................................................................................11 2.7 Phase 6 – Power Plant Construction..............................................................................................12 2.8 Phase 7 – Commissioning and Operation ......................................................................................12 3.0 GUIDELINES FOR PRESENTATION OF EXPLORATION DATA TO FUNDING ENTITIES ...................13 3.1 Introduction ....................................................................................................................................13
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