GEOTHERMALENERGY DEVELOPMENTIN

PRESENTED BY JONATHAN BANKS, PH.D.

WITH SUPPORT FROM THE UNIVERSITY OF ALBERTA AND ALBERTA INNOVATES - ENERGY AND ENVIRONMENT SOLUTIONS

OVERVIEW

What is geothermal energy and how is it produced?

Stages of geothermal energy development

Geothermal resources in Alberta

Our Proposal

a Long-term outlook and development strategy

Discussion

AB Innovates / Geothermal Power - Presented by Jonathan Bank... Page 2 of 28 WHAT IS GEOTHERMAL ENERGY?

ItIlIpvrIIIII-. II)

1 (I LOl (ill 51l 0)

I II

II

3(1

Geothermal energy’ refers to the Earth’s internal heat content

• 99% of Earth is hotter than 1000 ° C 6))

° • Depth at centre is — 6700° C (surface of the Sun is 5000 C)

• Geothermal gradient is rate at which temperature increases with depth

• Average in Western 20 - 50° C per km

HOW IS GEOTHERMAL ENERGY PRODUCED?

• Hot water is pumped to the surface in one or more ‘production’ wells

• Thermal energy is extracted from the water and used directly as heat or converted to electricity

• Cold water is pumped back into the reservoir in an ‘injection’ well

• I production well may produce 20 - 100 MW of thermal energy

(2 — 10 MW of electricity)

AB Innovates / Geothermal Power - Presented by Jonathan Bank... Page 3 of 28 ALBERTA’S GEOTHERMAL REGIME AT THE PRECAMBRIAN SURFACE

-- 95°W at top of the P,eculIIb,Id,, ,dSUITIVIIL

PoIritiI githiiiri I t.ijoh J.lhurb

Decn.jii Crut ‘taIi Ijrtt

- 1At :IpsI C tt9l ill °lIprn - JiwxtVCSB Uupi Ci,,t,iu, Ordoiciiri Wicnitcq Fir ot.1n Cnmhin [t-int Sj-ijstcne Unt

ALBERTA’S GEOTHERMAL ELECTRICITY RESERVOIRS

Reservoir — Municipality Temp • Depth Lower Mannville Yellowhead 110-130°C <4000m Banff Formation Yellowhead 120-150°C <4500m - -.1 Wabamum Group Grande Prairie 100-120°C <3500m

Nisku Formation Yellowhead 110 - 130 °C <4000 m Leduc Formation tGrande Prairie 110-130°Ct <3750 Swan Hills! Slave Point Yellowhead 120-140C <500Gm

Granite Wash 120 - 140 °C <4500 m

Basal Sandstone Yellowhead 160 - 180 °C <5500 m

Basal Sandstone Clearwater (West) 110 - 130°C <4000 m

Basal Sandstone Clearwater (East) 110 - 120 C <4000 m

AB Innovates / Geothermal Power - Presented by Jonathan Bank... Page 4 of 28 ALBERTA’S GEOTHERMAL ELECTRICITY RESERVOIRS

Wabarnum Group Grande Prairie 100- 120 C <3500 m

Leduc Formation Grande Prairie 110 - 130 C <3750m

Granite Wash Grande Prairie 120 - 140 C <4500 m J. Basal Sandstone Clearwater (West) 110-130C <4000m Basal Sandstone Clearwater (East) 110-120C <400Gm

PROPOSED RESERVOIR MODELS

• A static geologic model, depicting the a real extent of the reservoir in the subsurface and the reservoir’s boundary conditions temperature, depth, thickness and stress regime.

• A volumetric assessment of the total thermal energy in (joules or megawatt hours) available in each reservoir.

• A Monte Carlo, or other probabilistic simulation, to predict the amount of power (in megawatts) that may be produced from the reservoir.

AB Innovates / Geothermal Power - Presented by Jonathan Bank... Page 5 of 28 VIABILITY MATRIX

Assesses non-geotechnical aspects of a projects viability

Completed for each of the three regions containing the reservoirs (Grande Prairie, , Clearwater County)

• Environmental Issues

• Finances

• Market Factors

• First Nation Involvement

• Infrastructure (electrical and non-electrical)

• Community Issues

ESTIMATED PROJECT COSTS

.IAIIk Expense aIaries & Benefits $80,000 Consulting Fees $15,000 E.Software $3,000 I Travel $10,000 Overhead (20%) $21,600 TOTAL $129,600

AB Innovates / Geothermal Power - Presented by Jonathan Bank... Page 6 of 28

AB Innovates / Geothermal Power - Presented by Jonathan Bank...

•IRAP-NRC •

The

Local

U Peace 2O 15 10 25 30

35

of ECONOMICS 0 5

10

Canadian

A

Municipalities

Energy Power ______

11

Management

Geothermal

OF

POTENTIAL 2 Capital

12 MW

Expense

Development and

($ DEMONSTRATION

millions) SUPPORT

13

Sustainable Corporation

14

Operations PLANT 15 $30/MWh Page 7 of 28 AB Innovates / Geothermal Power - Presented by Jonathan Bank... The 4.8 4.2 A At If nearly I 10% 30

trillion 100 With total

km least billion megajoules of C, x energy this 1,650 20 pore megajoules, energy

km current m3 fluid

available lOx x 0.1 years of can has km per pore a

be

THE THE from

heat this

reservoir available recovered, m3K the capacity

or water technology,

pore

BIGGER BIGGER ‘-278,000

with much it fluid of could 8% porosity in generate

this

in geothermal reservoir, gigawatt

contains

Alberta

PICTURE PICTURE

enough there if cooled power hours to

to may 50 run C

Hinton energy

is be

for at Page 8 of 28 THANK YOU FOR YOUR CONSIDERATION

DISCUSSION

AB Innovates / Geothermal Power - Presented by Jonathan Bank... Page 9 of 28