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Chapter 1 Synopsis and Executive Summary 5. At this point, the main constraint is creating sufficient connectivity within the injection and production well system in the stimulated region of the EGS reservoir to allow for high perwell production rates without reducing reservoir life by rapid cooling. U.S. field demonstrations have been constrained by many external issues, which have limited further stimulation and development efforts and circulation testing times – and, as a result, risks and uncertainties have not been reduced to a point where private investments would completely support the commercial deployment of EGS in the United States. In Europe and Australia, where government policy creates a more favorable climate, the situation is different for EGS. There are now seven companies in Australia actively pursuing EGS projects and two commercial projects in Europe. 6. Research, Development, and Demonstration (RD&D) in certain critical areas could greatly enhance the overall competitiveness of geothermal in two ways. First, it would lead to generally lower development costs for all grade systems, which would increase the attractiveness of EGS projects for private investment. Second, it could substantially lower power plant, drilling, and stimulation costs, which increases accessibility to lowergrade EGS areas at depths of 6 km or more. In a manner similar to the technologies developed for oil and gas and mineral extraction, the investments made in research to develop extractive technology for EGS would follow a natural learning curve that lowers development costs and increases reserves along a continuum of geothermal resource grades. Examples of impacts that would result from researchdriven improvements are presented in three areas: • Drilling technology – both evolutionary improvements building on conventional approaches to drilling such as more robust drill bits, innovative casing methods, better cementing techniques for high temperatures, improved sensors, and electronics capable of operating at higher temperature in downhole tools; and revolutionary improvements utilizing new methods of rock penetration will lower production costs. These improvements will enable access to deeper, hotter regions in high grade formations or to economically acceptable temperatures in lowergrade formations. • Power conversion technology – improving heattransfer performance for lowertemperature fluids, and developing plant designs for higher resource temperatures to the supercritical water region would lead to an order of magnitude (or more) gain in both reservoir performance and heatto power conversion efficiency. • Reservoir technology – increasing production flow rates by targeting specific zones for stimulation and improving downhole lift systems for higher temperatures, and increasing swept areas and volumes to improve heatremoval efficiencies in fractured rock systems, will lead to immediate cost reductions by increasing output per well and extending reservoir lifetimes. For the longer term, using CO2 as a reservoir heattransfer fluid for EGS could lead to improved reservoir performance as a result of its low viscosity and high density at supercritical conditions. In addition, using CO2 in EGS may provide an alternative means to sequester large amounts of carbon in stable formations. 7. EGS systems are versatile, inherently modular, and scalable from 1 to 50 MWe for distributed applications to large “power parks,” which could provide thousands of MWe of baseload capacity. Of course, for most directheating and heat pump applications, effective use of shallow geothermal energy has been demonstrated at a scale of a few kilowattsthermal (kWt) for individual buildings or homes. For these applications, stimulating deeper reservoirs using EGS technology is not relevant. However, EGS also can be easily deployed in largerscale district heating and combined heat and power (cogeneration) applications to service both electric power and heating and cooling for buildings without a need for storage onsite. For other renewable options such as wind, hydropower, and solar PV, these applications are not possible. 15PDF Image | Synopsis and Executive Summary
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