Synopsis and Executive Summary

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Chapter 1 Synopsis and Executive Summary made America strong. Geothermal energy provides a robust, long­lasting option with attributes that would Approach: The composition of the panel was designed to provide in­depth expertise in specific technology areas relevant to EGS development, such as resource characterization and assessment, drilling, reservoir stimulation, and economic analysis. Recognizing the potential that some bias might emerge from a panel of knowledgeable experts who, to varying degrees, are advocates for geothermal energy, panel membership was expanded to include experts on energy technologies and economics, and environmental systems. The panel took a completely new look at the geothermal potential of the United States. This was partly in response to short­ and long­term needs for a reliable low­cost electric power and heat supply for the nation. Equally important was a need to review and evaluate international progress in the development of EGS and related extractive technologies that followed the very active period of U.S. fieldwork conducted by Los Alamos National Laboratory during the 1970s and 1980s at the Fenton Hill site in New Mexico. 1­3 complement other important contributions from clean coal, nuclear, solar, wind, hydropower, and biomass. Findings: Geothermal energy from EGS represents a large, indigenous resource that can provide base­load electric power and heat at a level that can have a major impact on the United States, while incurring minimal environmental impacts. With a reasonable investment in R&D, EGS could provide 100 GWe or more of cost­competitive generating capacity in the next 50 years. Further, EGS provides a secure source of power for the long term that would help protect America against economic instabilities resulting from fuel price fluctuations or supply disruptions. Most of the key technical requirements to make EGS work economically over a wide area of the country are in effect, with remaining goals easily within reach. This achievement could provide performance verification at a commercial scale within a 10­ to 15­year period nationwide. The assessment team was assembled in August 2005 and began work in September, following a series of discussions and workshops sponsored by the Department of Energy (DOE) to map out future pathways for developing EGS technology. The first phase of the assessment considered the geothermal resource in detail. Earlier projections from studies in 1975 and 1978 by the U.S. Geological Survey (USGS Circulars 726 and 790) were amplified by ongoing research and analysis being conducted by U.S. heat­flow researchers and analyzed by David Blackwell’s group at Southern Methodist University (SMU) and other researchers. In the second phase, EGS technology was evaluated in three distinct parts: drilling to gain access to the system, reservoir design and stimulation, and energy conversion and utilization. Previous and current field experiences in the United States, Europe, Japan, and Australia were thoroughly reviewed. Finally, the general economic picture and anticipated costs for EGS were analyzed in the context of projected demand for base­load electric power in the United States. In spite of its enormous potential, the geothermal option for the United States has been largely ignored. In the short term, R&D funding levels and government policies and incentives have not favored growth of U.S. geothermal capacity from conventional, high­grade hydrothermal resources. Because of limited R&D support of EGS in the United States, field testing and supporting applied geoscience and engineering research has been lacking for more than a decade. Because of this lack of support, EGS technology development and demonstration recently has advanced only outside the United States with accompanying limited technology transfer. This has led to the perception that

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