HNBui_Vietnam SPE_Geothermal Presentation_Feb-2013_Final.pdf

7/27/2019 HNBui_Vietnam SPE_Geothermal Presentation_Feb-2013_Final.pdf

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Vietnam SPE Meeting

February 27, 2013

Ho Chi Minh, Vietnam

1

Mak-Ban, Philippines Salak, Indonesia

Tiwi, Field, Phi l ippines

Mak-Ban Field, Phi l ippin es Salak Field, Indo nesia

Alternative Energy

Opportunity - Geothermal


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2

What is Geothermal Energy?

How Does Geothermal Energy Convert to Electricity?

Geothermal Power Industry Overview

Potential Geothermal Energy in Vietnam

Subsurface Comparison of Geothermal VS Oil/Gas

General Guidelines of Exploration, Appraisal and

Development / Produce Geothermal Energy

Benefits of Geothermal Energy

Environmental Considerations

Conclusion

Agenda


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What is Geothermal Energy?And Its Typical Characteristics

3

Typical Characteristics of ConventionalGeothermal Resources:

Heat source (shallow magma)

Heat carrier (water and steam)

Temperature (450650F)

High permeability (100-1000 mD)

Naturally fractured reservoirs

Porosity (up to 20%)

Several thousand feet thick

Benign fluid chemistry

Low scaling potential / Non-corrosive /Low non-

condensable gas content (705F)

High salinity brines (up to 30 wt-% solids)

High non-condensable gas content (up to 10 wt-%)

What is Geothermal Energy?

Natural heat of the earth

Found in volcanic regions

Requires good permeability, hightemperature and benign fluid

Valuable energy source with lowenvironmental impact


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What Elements Compose a Geothermal System?

4

HEAT SOURCEshallow levels

(


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5

Wells are drilled into the geothermal reservoir and the energy is

produced through the wells to the surface as a flow of high

temperature fluid (fluid may be brine, steam or a mixture of brine

and steam)

The surface facility equipment (pipelines, separators and scrubbers)

is used to separate and process the fluid into steam and brine and

the steam then flows to a turbine in the power plant, where the heat

energy is converted to electricity

The separated brine may also be used to produce additional

electricity by using a binary power plant to extract additional heat

All separated brine and power plant condensate are normally re-injected back into the geothermal system

How Is Geothermal Energy Converted toElectricity?


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Key Facilities in Geothermal Process Flow

Well

Turbine/Generator

Scrubber

Cooling Tower Transmission Line

PipelineSeparator

6


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Industry Overview

Worldwide Geothermal Power GenerationSource: Geothermal Energy Association International Market Update, 2010

Rank Country

InstalledCapacity

(Mwe) Rank Country

InstalledCapacity

(Mwe)

1 United States 3086 13 Russia 82

2 Philippines 1936 14 Turkey 82

3 Indonesia 1197 15 Papua New Guinea 564 Mexico 958 16 Guatemala 52

5 Italy 843 17 Portugal 29

6 New Zealand 628 18 China 24

7 Iceland 575 19 France 16

8 Japan 536 20 Ethiopia 7.39 El Salvador 204 21 Germany 6.6

10 Kenya 167 22 Austria 1.4

11 Costa Rica 166 23 Australia 1.1

12 Nicaragua 88 24 Thailand 0.3


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Total Worldwide Installed Capacity from 1950 to End

of 2010 and Short Term ForecastSource: World Geothermal Congress Update, 2010


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9

New Zealand

Philippines

Indonesia

Japan

USACalifornia, Oregon,

Nevada, Utah, Hawaii

Mexico

Chile

Argentina

El Salvador

Nicaragua

Costa Rica

Guatemala

EthiopiaKenya

Italy

Guadalope

Iceland

Azores

HawaiiThailand

Papua New Guinea

Russia

TurkeyIran

Australia

China

Tibet

Germany

France

Austria

Hottest Geothermal Regions (including Pacific Ring of Fire)

and Countries with Existing Geothermal Power Projects

Italy first country to use geothermal energy -

started in1904 at Larderello

1960s - Chevron began geothermal operations

by pioneering the development of The Geysers,

north of San Francisco, California

Countries turned to geothermal during 1973 oil

crisis

24 countries now use geothermal energy


10/27 2013 Chevron

ChevronThe Worlds Leading Geothermal Energy Company

Chevron has developed 26% of the worlds operating geothermal fields

10

0

200

400

600

800

1,000

1,200

1,400

ChevronPNOC-EDC CFE ENEL Calpine Terra-GenOrmatContactEnergy

CurrentlyOperableCapacity(MW)

Chevron Other Private Company Government

Current

Operation andParticipation*

902 MW (1273 MW) Developedby Chevron*

26%

Developed by Gov't

49%

Developed by Other Private Co.25%

2,656 MW

*Includes capacity of assets

developed by Chevron that havebeen sold.

1198

960

CalEnergyMightyRiver

*Chevron now only owns 40% of Philippine operations (Nov 12)


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Chevron Geothermal OperationsTotal Installed Capacity

11

AlbayLaguna &

Batangas

West Java

Supplies electricity to

millions of people in

Philippines and Indonesia


12/27 2013 Chevron

Top Ten Geothermal Fields in the World

12

Field Location Type Cap, MW

1. Geysers* USA Steam 945

2. Cerro Prieto Mexico Liquid 720

3. Tongonan Philippines Liquid 700

4. Larderello Italy Steam 5435. Mak-Ban* Phi l ipp ines Liquid 403

6. Salak* Indonesia Liquid 377

7. Salton Sea* USA Liquid 331

8. Coso USA Liquid 260

9. Darajat* Indonesia Steam 259

10. Tiwi * Phi l ipp ines Liquid 234

*Chevron or legacy company developedCurrent Operations

Operated by Phi l ippine Geothermal Production Com pany (PGPC), a previously wh ol ly own ed company and has become a

Chevro n affi l iate (40%) since Nov 2012


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Geothermal Contributes to World Energy Diversity

Geothermal energy is used to generate electricityin 24 countries, ~12,000MW & 60 million people.

~46 potential new countries have economicgeothermal energy developments

Five countries get more than 15% of theirelectricity from geothermal.

The 10,000,000MWh produced annually byChevron provides electricity for 7 million homes.

1 MWh consumes

7.9 MCF natural gas

390 kg coal

1.86 Barrels oil

Chevrons geothermal production increases the amount of other commodities available to

export at world market prices and reduces fuel imports:

79 BCF natural gas/yr: $510 MM @ $6.50/MCF

3.9 MM tonnes coal/yr: $310 MM @ $80/tonne

19 MM barrels oil/yr: $1.3 BN @ $70/BBL13

MakBan and Tiwi supplied

more than 40% of the

power in Luzon during the

early 1990s.


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14

Potential for Geothermal in Vietnam

http://thinkgeoenergy.co

m/archives/12152

Key regions for

potential geothermal

power generation are

in the North West,

North East, North and

South Central of

Vietnam

Geothermal power

generation has

potential up to 400 MW
http://thinkgeoenergy.com/archives/12152http://thinkgeoenergy.com/archives/12152http://thinkgeoenergy.com/archives/12152http://thinkgeoenergy.com/archives/12152


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~ 300 hot streams with temperatures ranging from 30 148 degrees C.

A 20 MW project is to start development in Quang NgaiProvince (http://thinkgeoenergy.com/archives/12152)

A 25 MW geothermal power plant is expected to bedeveloped in Quang Tri Province.http://cleantechnica.com/2012/09/25/1st-geothermal-

plant-in-vietnam-gets-approved/

Potential for Geothermal in Vietnam

The geothermal water exploitation boreholelocation in Quang Binh

The location of geothermal water and gasdischarge in the Breccisas zone in thestream line in Quang Binh
http://thinkgeoenergy.com/archives/12152http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://cleantechnica.com/2012/09/25/1st-geothermal-plant-in-vietnam-gets-approved/http://thinkgeoenergy.com/archives/12152http://thinkgeoenergy.com/archives/12152


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Subsurface Perspective

Comparison of Geothermal VS Oil & Gas

Similarities Produce fluids from subsurface reservoirs thru wells

Inject fluids into subsurface reservoirs

Surface piping and fluid handling facilities

Formation damage/scale

Reservoir Engineering Concepts/Management andProduction Optimization processes still applicable

Subsurface risks/uncertainties

Subsurface workflow/earth models & reservoirsimulations

Differences Extreme temperatures

Blind drilling

Specialized surveillance techniques

Geochemistry (water, gas, steam and etc)

Micro-seismic and micro-gravity data

Typical well has long production life span(renewable energy)

Resource characterization challenges

No seismic & limited open-hole data

Complex depositional environment

Reservoir producing mechanisms includeheat mining

Thermal recharge & thermal decline

Interaction with surrounding aquifers

Much higher POS in Exploration (Surface

Manifestations)16

Risk Factor Comparison


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General Guidelines of Exploration and Appraisal

Program

Surface thermal features

indicate chemistry and

reservoir temperature

Resistivity and gravity

surveys indicate depth,

thickness and area

Regional and local

geologic studies reveal

features that affect

permeability distribution

Exploration and appraisal

wells confirm resourcecharacteristics and size

Reservoir simulation is

used to evaluate

development alternatives

and assess uncertainties

Jakar t a

Medan

Sum

a t ra

Kal imantan Sulawesi

Ir ianJaya

0 600

km

VOLCANIC CENTER

NE

WG UINEATRENC

H

N.

WES

SULA ITRENCH

ACTIVE TRENCH

TRENCH

SUNDA

Java

INDO- AUSTRALIAN PLATE

PACIFIC

PLATE

EURASIANPLATE

I nd

ia

nO

c

e

an

0 1 2 Km

NORTH

PROMINENTC RATERRIM

DRILLEDLOCATION

LINEAMENTS

HOTSPRING

K a w a h

Cipamatutan

K a w a h

Perbakti

Sarimaya

K a w a h Ratu

K a w a h

C i b e u re u m

EPOCH ABSOLUTE

AGE

AGEDISTRIBUTION

AWIBENGKOKRHYOLITE

ENDUTANDESITE

CIBODASANDESITE

KIARABERES

BASALTIC ANDESITE

GAGAK

BASALTIC ANDESITE

UPPER

PLEISTOCENE

FUMAROLE

PERBAKTIBASALTIC ANDESITE

SALAKVOLCANICS

CIBO DAS

ENDUT

PERBAKTI

G AG AK

KIARABERES

SAL AK


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18

steam

brine

Production wells Hot injection wells Cold injection wells

two-phase

Separator

Scrubber

Holding Pond

RockMuffler Ejector

Turbine

Generator

Condenser

POWER PLANT

brine

Binary PowerPlant

two-phase

CoolingTower

Development Plan/Production FacilitiesTypical Geothermal Power Production Schematic


19/27 2012 Chevron

Benefits of Using Geothermal Energy

Geothermal Energy provides clean and green Renewable energyBasically unlimited resource per natural heat within the earth

Reliable source of power can reduce the need for imported fuels for power generation

Geothermal Energy offers clear advantages for electricity generation

Less emissions than fossil fuel-fired plants (~5% of coal)

Closed-loop production system prevents discharge of chemical pollutants and waste

Land use is small compared to other fuels (~10% of solar)

Readily co-exists with natural habitat and agriculture

Reliable base load of renewable power

19

0 500 1000

Geo

Gas

Oil

Coal

0 2000 4000

Geo

Wind

Solar

Coal

CO2Emissions (kg/MWhr)Land Use (ha per 100 MW)


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DOC ID 20

Geothermal offers higher reliability and availability than

other alternatives

Plants are able to easily follow system load demands

Stable costs are less sensitive to fossil fuel price

changes

Capacity Factor (%)

Geothermal Energy provides diversitythat is important to utility planners


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DOC ID 21

Geothermal Projects are being Certified to SellCarbon Credits on the Open Market

Geothermal power projects have been able to takeadvantage of the Clean Development Mechanism (CDM)which is a compliance option provided by the KyotoProtocol due to their low emissions of greenhouse gases

Certified Emission Reductions (CERs) from CDM projectscan then be used by companies and countries to helpmeet their emissions targets

Projects must be additional i.e. not business as usual

The EU set up its own Emissions Trading Scheme (ETS),which has been very active in verifying and trading in

CERs from projects in developing countries


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DOC ID

Environmental Considerations

22

Geothermal fluid contains complex mix of components,some of which may be harmful to the environment

Proper treatment and disposal is required

Maintain a closed loop, with injection of separated

water and condensed steam

Treatment of gas prior to discharge, if necessary

Producing geothermal fluid may cause ground level

subsidence or changes to surface thermal features

Proper development and monitoring plans are required

Geotechnical evaluations prior to development

Geological and geophysical surveys during operations


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DOC ID 23

Conclusion

Geothermal is clean, renewable and reliable energy.

It offers clear advantages over other fuels for the generation of electricity

Mature technology for extracting energy and converting to electrical

power compared with other renewable technologies

Indigenous resource

Can substitute for imported fossil fuels or allow fossil fuels to be

exported (in Indonesia and Philippines)

Chevron is the worlds leading developer and pioneer of the countrys

geothermal sector. Its affirmed a long-term commitment to the host

country as a partner of choice to our stakeholders in geothermal

development (currently: Indonesia and Philippines).

However, geothermal energy must be carefully evaluated /developed in

safe manner to ensure minimum to none impact to the environmental.


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Back up slides

24

Mak-Ban, Philippines Salak, Indonesia

Tiwi, Field, Phi l ippines

Mak-Ban Field, Phi l ippin es Salak Field, Indo nesia

H A G h l R


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Surface geology and tectonic setting

Surface manifestations (if present) normally provide

the initial indication that a resource is present

Relative location of features (elevation)

Chemistry of discharge fluids - provides information onpossible resource type and temperature

Geophysical techniques used to determine if

anomalies are present that suggest the presence of a

geothermal resource Resistivity surveys (TDEM, MT, etc), gravity, magnetics,

etc

Drilling initial exploration wells

How Are Geothermal ResourcesLocated?


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How is Geothermal Resource Explored?

26

Geology Geochemistry Geophysics ExplorationDrilling


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Surface Manifestations of Geothermal Energy

Steaming ground Hot pool

Mud pool Bubbling pool

HNBui_Vietnam SPE_Geothermal Presentation_Feb-2013_Final.pdf

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