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Major recommendations: Because prototype commercialscale EGS will take a few years to develop and fieldtest, the time for action is now. Supporting the EGS program now will move us along the learning curve to a point where the design and engineering of wellconnected EGS reservoir systems is technically reliable and reproducible. 17 We believe that the benefittocost ratio is more than sufficient to warrant such a modest investment in EGS technology. By enabling 100 GWe of new baseload capacity, the payoff for EGS is large, especially in light of how much will have to be spent for deployment of conventional gas, nuclear, or coalfired systems to meet replacement of retiring plants and capacity increases, as there are no other options with sufficient scale on the horizon. The panel specifically recommends that: 1. There should be a federal commitment to supporting EGS resource characterization and assessment. An aggressive, sufficiently supported, multiyear national program with USGS and DOE and other agency participation is needed to further quantify and refine the EGS resource as extraction and conversion technologies improve. 2. Highgrade EGS resources should be developed first at targets of opportunity on the margins of existing hydrothermal systems and in areas with sufficient natural recharge, or in oil fields with hightemperature water and abundant data, followed by field efforts at sites with aboveaverage temperature gradients. Representative sites in highgrade areas, where field development and demonstration costs would be lower, should be selected initially to prove that EGS technology will work at a commercial scale. These nearterm targets of opportunity include EGS sites that are currently under consideration at Desert Peak (Nevada), and Coso and Clear Lake (both in California), as well as others that would demonstrate that reservoirstimulation methods can work in other geologic settings, such as the deep, hightemperature sedimentary basins in Louisiana, Texas, and Oklahoma. Such efforts would provide essential reservoir stimulation and operational information and would provide working “field laboratories” to train the next generation of scientists and engineers who will be needed to develop and deploy EGS on a national scale. 3. In the first 15 years of the program, a number of sites in different regions of the country should be under development. Demonstration of the repeatability and universality of EGS technologies in different geologic environments is needed to reduce risk and uncertainties, resulting in lower development costs. 4. Like all new energysupply technologies, for EGS to enter and compete in evolving U.S. electricity markets, positive policies at the state and federal levels will be required. These policies must be similar to those that oil and gas and other mineralextraction operations have received in the past – including provisions for accelerated permitting and licensing, loan guarantees, depletion allowances, intangible drilling writeoffs, and accelerated depreciations, as well as those policies associated with cleaner and renewable energies such as production tax credits, renewable credits and portfolio standards, etc. The success of this approach would parallel the development of the U.S. coalbed methane industry. 5. Given the significant leveraging of supporting research that will occur, we recommend that the United States actively participate in ongoing international field projects such as the EU project at Soultz, France, and the Cooper Basin project in Australia. 6. A commitment should be made to continue to update economic analyses as EGS technology improves with field testing, and EGS should be included in the National Energy Modeling System (NEMS) portfolio of evolving energy options. Chapter 1 Synopsis and Executive SummaryPDF Image | Synopsis and Executive Summary
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