Geothermal Technologies Office Annual Report

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Enhanced Geothermal Systems (EGS) EGS Demonstrations Today DOE funds five active EGS demonstration projects and hundreds of lab-scale research efforts to develop technologies that address critical chal- lenges to EGS commercial- ization. Two of these demon- strations have achieved mile- stones that accelerate the adoption of EGS in near- field environments. An MIT study estimates that more than 100 GW of geothermal energy can be accessed through EGS in the United States alone. EGS encompasses a broad spectrum, starting with medium risk operations such as improv- ing existing wells and hydro- thermal reservoirs within operating fields. In these situations, EGS can be viewed as a reservoir management tool to insure against drilling unproductive or subcommercial wells. Green-field settings, on the other hand, represent a much higher technical and financial risk—one of the many reasons that GTO is developing the Frontier Observatory for Research in Geothermal Energy (FORGE) initiative. GTO funding enabled the nation’s first commercial-scale EGS to come online in April, connecting tomorrow’s technology to the U.S. electrical grid today and setting the stage for future growth of geothermal power. First-in-Nation Enhanced Geothermal System Project Powers the Grid AltaRock drilling at the Newberry Volcano EGS Demonstration: a 50/50 costshare with the GTO. Newberry Volcano The AltaRock EGS demonstration project at Newberry Volcano near Bend, Oregon—a $21.4 million GTO Recovery Act investment—is currently the only project in our EGS demonstration portfolio located in a green-field setting. In 2013, stimulation of well NWG 55-29, which began in October 2012, and subsequent data analysis, comprised the main thrusts of AltaRock’s efforts. Over the ensuing two months, water was pumped at varying flow rates and pressures to shear open existing fractures and increase permeability in the subsurface. New diverter technologies were employed to target multiple zones of rock, increasing the stimulated volume more efficiently and with less water. Current analysis of the microseismicity and temperature profiles support the conclusion that stimulation of NWG 55-29 created multiple fracture zones originating from the wellbore. After the stimulation was completed, AltaRock performed well logging and data analysis to provide additional insight into the results of the stimulation. This promising work at Newberry Volcano, slated to be complete by 2015, is critical for advancing the state of EGS green-field technologies and techniques, and the geothermal community eagerly awaits further progress in 2014. Bradys Field At the Bradys field site in Nevada, Ormat is working to improve the injectivity of well 15-12 to commercial levels, and to ensure a robust hydraulic connection with the rest of the producing field. A focused, downhole Environmental Assessment was completed by the Bureau of Land Management, with DOE as a cooperating agency, in January 2013, and a finding of no significant impact was made. The first phase of the multi-phase stimulation was completed in April 2013, followed by the large-volume stimulation phase in September 2013. The project team is currently completing analysis and modeling to determine the optimum conditions for the next phase of well stimulation. Should the project prove successful, it will encourage future utilization of EGS well stimulations to improve the flow characteristics of non- or sub-commercial wells to the levels of commercial production and injection wells. Raft River At the Raft River geothermal field in Idaho, the University of Utah is developing and demonstrating thermal and hydraulic stimulation techniques required to create and sustain EGS reservoirs. After the project passed through a go/no go decision point in early 2013, thermal stimulation operations (with fluids that were cooler than those found in the reservoir) kicked off in May and continued until September. The ultimate goal is to improve the overall performance and output of the field. During stimulation, a temperature profile of the entire vertical extent of the wellbore was monitored using a Distributed Temperature Sensor array designed by Lawrence Berkeley National Lab. This diagnostic tool enables valuable continuous monitoring of temperature evolution within the wellbore during fluid injection. Initial results are promising, and a large-volume stimulation is planned for spring 2014. Like the Bradys field demonstration, if successful, the Raft River project will encourage future utilization of EGS to improve the performance of unsuccessful or underperforming wells. The Raft River EGS Demonstration Project in Idaho is testing techniques to sustain EGS reservoirs. With support from EERE’s Geothermal Technologies Office, Ormat Technologies’ Desert Peak enhanced geothermal system (EGS) demonstration project, located in northern Nevada, has successfully used EGS technologies to increase the power output of a previously sub-commercial well, adding 1.7 megawatts of additional power to the operating field—a 38% increase. The result is the first EGS pilot project in America to generate commercial electricity. DOE provided $5.4 million in R&D investment, matched by $2.6 million in private sector funding. Notable lessons learned from Desert Peak include the impacts and appropriate timing of various stimulation methodologies, including chemical and low-flow, shear stimulation. In addition, the importance of real-time borehole microseismic monitoring at sub-zero magnitudes has been validated for tracking the evolution of stimulations. This success confirms that EGS can be effectively used as a “reservoir enhancement tool” in or near the margins of existing hydrothermal fields, allowing operators to increase the productivity of previously drilled wells that have encountered sub-commercial permeability. This is a departure from the historical view of EGS as a high-risk, long term and expensive technology, usually referred to as “hot dry rock” projects. Key operators are rapidly learning that EGS could be applied to thousands of underproductive hydrothermal wells presently located within operational geothermal fields, with the capacity to increase productivity at each stimulated well pair by approximately 2-5 MW. That impact, according to the National Renewable Energy Laboratory (NREL), adds up to 6-10 GWe in new resource potential beyond the current U.S. installed capacity of 3.4 GWe. Importantly, new analyses at NREL and within GTO indicate that by leveraging existing wells, plants and infrastructure, new infield development can add power at 2-5/kWh as the technology quickly evolves from this initial, higher-cost R&D phase. The Office continues to see the overall U.S. potential for EGS to be over 100 GWe. GEOThERmAl TEChNOlOGIES OffICE 10 11 2013 ANNuAl REpORT

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