IEAImplementing Agreement

on

Geothermal Energy

Mid-Term Review

59th REWP Meeting, Paris, France ~ 17 March 2011

Mike Mongillo and Chris Bromley

Geothermal Resources

Convective Systems/Hydrothermal

ContinentalSubmarine

Super-critical

Conductive SystemsHot Rock, Magma

Shallow

Deep AquiferHydrostatic

Geo-pressured

Power Generation Direct Use

(Aquaculture)

Prototype EGS Power Direct Use (CHP)

Power Generation Direct Use (District

Heating)

Wairakei, NZSoultz, France

Unterhaching, Germany

Current State of Technology

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� Installed capacity: 10.7 GWe baseload

� Growth: 2000-2005: 2.9%/yr; 2005-2010: 4.7%/yr

� Generation: 24 countries

� 67.2 TWh/yr (0.3% global generation)

� 6 countries: 10-27% of national generation

� Average capacity factor: 71%; new: > 90%

� 6.3 GWh/MWe

� Installed capacity: 50.6 GWth (GHPs ~ 35.3 GWth, 70%)

� Growth: 2000-2005: 16.3%/yr; 2005-2010: 16.1%/yr

� Direct Use: ~10%; GHP: ~20%

� Energy utilization: 78 countries

� 121.7 TWh (0.44 EJ/yr)

� Average capacity factor: 27.5%

Geothermal Electricity Generation

Geothermal Direct Utilization

Back pressure: 145 MWe

Binary: 1,178 MWe

Single flash: 4,421 MWe

Double flash: 2,092 MWe

Dry steam: 2,878 MWe

Space heating of buildings: 63%

Bathing and balneology: 25%

Horticulture: 5%

Industrial process heat: 3%

Aquaculture: 3%

Snow melting: 1%

Current Commercial Projects

Nga Awa Purua (Rotokawa II), NZ; 140 MWe, 1,100 GWh/yr; largest single shaft geothermal turbine in the world; commissioned early 2010

Rotokawa, New Zealand

Chena Hot Springs, Alaska, USA

UTC binary system, 400 kWe, uses 73 °C water, lowest temperature geothermal power generation; heat sink ~ 4 °C

Rocky Mountain Oilfield Testing Center, Wyoming, USA; 250 kWe ORMAT ORC binary generator, uses hot water co-produced with oil/gas; first of its type; on-site fuel-free power

RMOTC, Wyoming, USA

Landau,, Germany

Partial EGS (injection), CHP:ORC 3 MWe binary plant, district heat to ~ 1,000 homes

Current Commercial Projects

Hotel Dolder, Zurich, Switzerland. Renovations, including geothermal heat pump installation.

The Pearl, domed restaurant on top of stored geothermal hot water tanks for district heating in Reykjavik

A 15 MWe ORMAT binary plant uses “waste” 130 °C separated hot water discharged from the Wairakei flash plant

Hotel Dolder, Zürich, Switzerland

Wairakei Binary Plant, New Zealand

The Pearl, Reykjavik, Iceland

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Gas baseload Coal LigniteWind Geothermal HydroGas peaker Diesel peaker Co-generation

Future Costs of Geothermal Energy

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1997 2000 2002 2003 2004 2006 2008 2009

US$

(200

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Flash plants

Binary plants

Cumulative MW Geothermal is economically competitive at current whole sale electricity cost ~

NZ$ 80/MWh (~ US$60/MWhr)

New Zealand- Long-Run Marginal Cost for New Plants

NZ

$/M

Wh

Costs of Flash and Binary Plants

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Capacity Factor

Geothermal (condensing-flash), US$ 1800Geothermal (condensing-flash), US$ 2700Geothermal (condensing-flash), US$ 3600Geothermal (binary cycle), US$ 2100Geothermal (binary cycle), US$ 3650Geothermal (binary cycle), US$ 5200

Global average in 2008

Current LCOE for geothermal power generation as a function of capacity factor and investment cost (discount rate at 7%, mid-value of the O&M cost range, and mid-value of the lifetime range).

Levelized Cost of Geothermal Energy

IEA-GIA ~ 3 rd Term (2007-2013) Mid-term Report

Mission and VisionVision

For the Geothermal Implementing Agreementto become a multinational forum with sufficient governmental and industrial strength to positively influence the design of

Participants’ RD&D plans, to optimize Participants’ r eturns on RD&D investment by coordinating joint projects and sharing information, and to effectively support and complement IEA’s efforts to promote geothermal as a clean, economic, renewable

energy resource which will contribute significantly to global energy needs and security, and at the same time protect the environment.

Mission To promote sustainableuse of geothermal energy worldwide by improving existing and

developing new technologies to render exploitable the vast and widespread global geothermal resources, by facilitating the transfer of know-how, by providing high

quality information and by widely communicating geothermal’s strategic, economic and environmental benefits, and thereby contribute to the mitigation of climate change

3rd Term (2007-2013) Strategic PlanObjectives

1) To actively promote effective cooperationon geothermal RD&D through collaborative work programmes, workshops and seminars

2) To collect, improve/develop and disseminate geothermal energyRD&D policy information for IEA Member and non-Member countries

3) To identify geothermal energy RD&D issuesand opportunities and improve conventional and develop new geothermal energy technologies and methods to deal with them

4) To increase membershipin the GIA5) To encourage collaboration with other international organizations

and appropriate implementing agreements6) To broaden and increase the disseminationof information on

geothermal energy and the GIA’s activities and outputs to decision makers, financiers, researchers and the general public

GIA Membership

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

19971998199920002001200220032004200520062007200820092010

Number of Members

Current MembershipCountries (13)

Australia, France, Germany, Iceland, Italy, Japan, Mexico, New Zealand, Norway, Republic of Korea,

Spain, Switzerland, USA; EC

Sponsors (Industry and Organizations) (5)CanGEA (Canada), Geodynamics Ltd. (Australia),

Geothermal Group APPA (Spain), Green Rock Energy Ltd. (Australia), Ormat Technologies Inc. (USA)

Potential MembersIndonesia, the Philippines, China, Russia, India, Poland, Hungary, Slovakia,

GIA Work Programme

Annex I: Environmental Impacts of Geothermal Energy Development� Operation: 1997-present (3 extensions); OA: New Zealand

Annex III : Enhanced Geothermal Systems (EGS)� Operation: 1997-present (3 extensions); OA: Geodynamics, Australia

Annex VII : Advanced Geothermal Drilling & Logging Technologies� Operation: 2001-present (2 extensions); OA: USA

Annex VIII : Direct Use of Geothermal Energy� Operation: 2003-present (1 extension); OA: Iceland

Annex X: Data for Geothermal Applications (new)� Operation: 2009-present; OA: Germany

Annex XI: Induced Seismicity (new)� Operation: 2010-present; OA: USA

Completed Annexes: Annex II Shallow Geothermal Resources (2000)Annex IV: Deep Geothermal Resources (2006)

Achievements 2007-2010

Significant Information Dissemination� Comprehensive public website: www.iea-gia.org� Extensive annual reports� Participation at major international renewable energy

and geothermal conferences (Posters, Paper Presentations & Documents)

� Non-geothermal: RE2008 (Busan, Korea)� WGC2010 (Bali, Indonesia)� GRC (2008, 2009, 2010); Stanford Geothermal

Reservoir Workshop (2007, 2008, 2009, 2010)� NZGW (2007, 2008, 2009, 2010)� EuropeanGeothermal Congress (2007)

� GIA participants LAs, CAs and CLA to IPCC Special Report on Renewable Energy (2011)

Achievements 2007-2010� Joint IEA-GIA~IGA International Workshop on

Geothermal Potential, Madrid, Spain, May 2009 � Geothermics Special Issue on Sustainable Geothermal

Utilization (December 2010)� Geothermal Sustainability Workshop, Taupo, New

Zealand (November 2008)� > 40 international participants� 20 presentations available on GIA website

� Revised efforts in EGS and induced seismicity� Continuing to build database on geothermal well drilling

cost/performance and well cost calculator� Handbook of Best Practices for Geothermal Drilling� Database on global geothermal resource character� Developing method to make direct use data available on

Internet using Google Earth� Recognized international importance of induced

seismicity and initiated new Annex XI� Need to make geothermal utilization data/information

more widely and quickly available and initiated new Annex X.

HT Downhole Seismic Tool (Sandia Labs)

Participation with IEA 2007-2010

� Contributions to IEA OPEN Bulletin (2008, 2010)

� Development of IEA Geothermal Energy Essentials� Participation at IEA Networks of Expertise in Energy

Technology (NEET) Workshops� 2007: Beijing, China� 2008: Moscow, Russia

� Contributions to IEA Reports (2007-2010)� IEA Energy Technologies at Cutting Edge (2007)� IEA Energy Technology Perspectives (2008)� IEA Renewable Energies in Cities (2009)

� Energy Technology Initiatives (2010)

Self Review of IEA-GIA Objectives

1) To actively promote effective cooperation on geothermal RD&D through collaborative work programmes, workshops and seminars

2) To collect, improve/develop and disseminate geothermal energy RD&D policy information for IEA Member and non-Member countries

3) To identify geothermal energy RD&D issues and opportunities and improve conventional and develop new geothermal energy technologies and methods to deal with them

4) To increase membership in the GIA

5) To encourage collaboration with other international organizations and appropriate implementing agreements

6) To broaden and increase the dissemination of information on geothermal energy and the GIA’s activities and outputs to decision makers, financiers, researchers and the general public

Issues Facing IEA-GIA

1. Formation of other international geothermal organizations (IPGT, GEISER, etc.) with slightly different focus, but overlapping in some areas

Participation in these and working to remove duplication2. Maintaining influence/relevance in the international geothermal scene when Members’ work

activities are set by their own organizationsBetter influence Member organization priorities

3. Limited funding of GIA and Annex participantsGIA Common Fund carries-over ~US$ 200 K/yrCreated proposal funding scheme to initiate and assist completion of projects

4. Limited/restricted time for most participants due to voluntary membership maintaining participation and getting timely contributions can be difficult.

Look for incentives5. Marketing geothermal globallynot currently undertaken by GIA nor (to our knowledge) by the IEA-

RETD IA participation in RETD? IEA assistance with marketing/outreach?

Thank You for Your Attention

IEA-GIA Executive CommitteeChair

Chris Bromley; GNS Science, New Zealand

Vice-Chair

Barry Goldstein, PIRSA, Australia

Vice-Chair

Jonas Ketilsson, Orkustofnun, Iceland

Secretary

Mike Mongillo, GNS Science, New Zealand