GEOTHERMAL TODAY U.S. Department of Energy 2003 Geothermal Technologies Program Highlights Program Overview Meet Our New Director GeoPowering the West Direct Use Equals Smart Use Idaho’s Buried Treasure Enhanced Geothermal Systems Coating Technology Improves Performance Natural Heat Beneath Your Feet As charged by Secretary Abraham, the Offi ce of Energy Effi ciency and Renewable Energy provides national leadership to revolutionize energy effi ciency and renewable energy technologies, to leapfrog the status quo, and to pursue dramatic environmental benefi ts. The Geothermal Technologies Program, a critical part of our overall effort, is making great strides toward increasing the viability and deployment of geothermal heat and power. The peer reviewed, focused R&D and supporting outreach activities conducted by this program will enable broad expansion of the use of geothermal resources throughout the western United States. Through federal leadership and partnership with states, communities, industry, and universities, we will ensure that geothermal energy is established as an economically competitive contributor to the U.S. energy supply. Our program’s success will mean a stronger economy, a cleaner environment, and a more secure energy future for our nation. “Pursuing a prosperous future where energy is clean, abundant, reliable, and affordable....” David K. Garman Assistant Secretary Energy Effi ciency and Renewable Energy Cover image PIX05876 Warren Gretz, NREL About “Geothermal Today” he geothermal energy potential beneath growth is substantial. The international market Tour feet is vast. This tremendous resource for geothermal power development could amounts to 50,000 times the energy of all oil exceed $25 billion (total) for the next 10 to and gas resources in the world. And geothermal 15 years. At the present time, U.S. technology energy is clean; it represents a promising and industry stand at the forefront of this solution for the nation and the world as they international market. become ever more concerned about global warming, pollution, and rising fossil energy However, the cost of geothermal heat and prices. Furthermore, increased development of electricity remains higher than the least-cost geothermal energy gives people the potential conventional technologies and the near-term to gain better control of their own local energy market for geothermal energy is uncertain, resources and use a secure, safe, domestic presenting a major challenge for the U.S. source of energy. geothermal industry. Signifi cant work is still Today’s U.S. geothermal industry is a $1.5- needed to lower costs and create incentives billion-per-year enterprise involving over 2,000 to spur the market for geothermal heat and megawatts (MW) of electricity generation, power. The U.S. Department of Energy (DOE) nearly 650 MW of thermal energy in direct- Geothermal Technologies Program is committed use applications such as indoor heating, to supporting the geothermal industry with greenhouses, food drying, and aquaculture, research and development to reduce costs and over 3,700 MW of thermal energy from and help geothermal energy fulfi ll its potential. geothermal heat pumps. The potential for This issue covers highlights from 2002. Contents 2 Geothermal Technologies Program Overview 5 Meet Our New Program Director 6 GeoPowering the West 12 Direct Use Equals Smart Use 20 Idaho’s Buried Treasure 24 Enhanced Geothermal Systems 28 Energy Conversion R&D 32 Coating Technology Improves Performance 34 Natural Heat Beneath Your Feet 1 The Federal Geothermal Technologies Program — An Overview The National Context he United States needs clean and secure energy, Tmaybe now more than ever. Geothermal energy sources have shown an increasing ability to help meet our homeland energy needs, through proven and expanding technologies, and using domestic resources. Geothermal energy is homegrown — it reduces our need to import oil, reduces the trade defi cit, and adds jobs to the U.S. economy. The Bush Administration’s National Energy Policy (NEP) and its goals have become an important focus of the Federal Geothermal Technologies Program. The NEP report cites the critical shortage of new electricity generating capacity in the United States. With the integration of new, Federally supported technology at operating geothermal fi elds, an additional 100 to 300 megawatts (MW) of generating capacity can come online within two years. Geothermal resources are plentiful in most western states, and would go far in alleviating capacity shortfalls. The next generation of geothermal technology, enhanced geothermal systems (EGS), promises to at least double the amount of geothermal resources that can be developed for electricity production over the next 20 years. Strong support for this technology is consistent with the NEP’s recommendation to develop next-generation power technology. Finally, the NEP notes that renewable technologies such as geothermal can help industry achieve compliance with the Clean Air Act and other environmental regulations. In fact, this is especially true for geothermal, which uses emissions control technology that meets or exceeds the most stringent Federal and state regulatory standards. And with the use of fl uid-injection coupled with binary-cycle technology, some geothermal plants have virtually no emissions other than rejected heat. 2 The Federal Program The mission of the U.S. Department of Energy’s (DOE) Geothermal Technologies Program is to work with the U.S. geothermal industry to establish geothermal energy as an economically competitive PIX00001 Warren Gretz, NREL PIX00001 Warren contributor to U.S. energy supplies. Currently installed U.S. geothermal electricity capacity is over 2,000 megawatts (MW – 1 MW powers roughly 1,000 households). Non-electric uses total about 650 MW of thermal energy. The U.S. Geological Survey estimates that the potential of this clean energy amounts to 50,000 times the energy of all oil and gas resources in the world. Today’s 1.5-billion-dollar-per-year geothermal industry has great potential for growth. However, the cost of geothermal heat and electricity remains slightly higher than the least-cost conventional technologies. Signifi cant work is needed to lower costs and create market incentives for geothermal heat and power. The DOE Geothermal Technologies Program conducted more than 40 projects in fi scal year 2002. The goal of these projects is to improve technology (and thereby lower costs) for fi nding, characterizing, accessing, and producing geothermal resources, with strong involvement by industry partners. The three major research areas are: • Geoscience and Supporting Technologies • Exploration and Drilling • Energy Systems Research and Testing DOE-funded research and development (R&D) is carried out by national laboratories and universities. DOE provides overall program leadership and management, and a team of representatives from three of its national laboratories – Idaho National Engineering and Environmental Laboratory (INEEL), National Renewable Energy Laboratory (NREL), and Sandia National Laboratories (SNL) – implements technical activities. R&D emphasis is on challenges that pose higher risks than can be addressed solely by industry, and which have a higher potential return. The primary goal of the program is to reduce the levelized cost of geothermal electricity to 3 to 5 cents/ kilowatt-hour (kWh) from the current 5 to 8 cents/ kWh. The three primary research areas are described below. Geoscience and Supporting Technologies Geoscience and supporting technologies R&D focuses on core research in improved exploration methods (including seismic) and management of geothermal reservoirs. Cost-shared EGS projects develop injection and fracture-mapping technologies Electricity is vital to our nation’s economic health. Reliable, local resources can help. 3 to ensure the most effective use of the reservoirs. University research is expanding knowledge of heat fl ow, reservoir dynamics, fracture stresses, and active faulting areas. Recent accomplishments include: • Liquid- and vapor-phase tracers (trackable chemicals placed in the geothermal fl uid to show the path of the fl uid through the reservoir) and test interpretation methods. Test results were incorporated into resource management models PIX05933 Sandia National Laboratories to ensure a long, productive reservoir life. • Permeabilities and capillary pressures of fl uids in reservoirs were measured. Measurements of these fl ow properties allow more accurate modeling of geothermal reservoirs. • New models were developed that improve our understanding of igneous events in the evolution of geothermal systems, which leads to more productive exploration. Exploration and Drilling Research Exploration and drilling R&D is developing cost-cutting technologies for accessing geothermal resources. Well drilling and completion account for 30 to 50 percent of the capital cost of a geothermal power project, so reducing these costs is crucial if geothermal energy is to compete with conventional fuels. Performance of PDC drill bits, like this one developed at R&D includes lost circulation control, hard- Sandia National Laboratories, helps improve hard rock rock drill bits, high-temperature sampling and geothermal drilling. monitoring instrumentation, and wireless data telemetry. Cost-shared projects involve foam cements, percussive mud hammers, and downhole motor-stator development. A major effort is the Diagnostics While Drilling project, using high- speed data links to provide