U.S. Geothermal Power Production and Development

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5. Emerging Technologies As geothermal technology progresses, resources that were once non-commercial are now being actively examined as feasible possibilities. The following are some of the more commonly discussed areas of future deve lop me nt. 5.1. Enhanced Geothermal Systems (EGS) – Often categorized under the antiquated term „Hot Dry Rock,‟ EGS is thought by several experts to refer to any resource that requires artificial stimulation. This includes resources that have to be fully engineered, or ones that produce hydrothermal fluid, but sub-commercially. Although EGS technology is still young and many aspects remain unproven, several projects are currently underway. If EGS technology proves commercially successful, it is expected to allow significantly increased extension of and production from existing fields, as well as utilization of geothermal energy in previously implausible locations. Desert Peak (Nevada): The U.S. Department of Energy has invested more than $5 million in another project that is underway to establish the first commercial project to apply an Enhanced Geothermal System in the United States. Ormat Technologies Inc. and GeothermEx Inc. are among some of the other stakeholders in the project. It is estimated that the completion of the project could add at least 5 MW to the Desert Peak Plant, showing the potential of Enhanced Geothermal System development. In October of 2008, the Department of Energy (DOE) chose 21 recipients under a Funding Opportunity Announcement for the research, development and demonstration of EGS. Subject to annual appropriations, DOE will provide up to $43.1 million over a four year period to the 21 awardees, 13 of which are first-time recipients. Also included in the list of awardees are various universities, which should help promote innovation. With cost-share by the recipients, the public-private investments will be up to $78 million. DOE also selected four new cooperative projects with the U.S. geothermal industry for EGS systems demonstrations, which it hopes will lead to technology readiness by 2015.10 Through the diversity of the projects selected, DOE hopes to not only increase the perception of EGS potential but to also reveal new site locations. For more information on the projects selected, please visit http://www.energy.gov/6624.htm. 5.2. Hydrocarbon/Geothermal Co-Production – Usable geothermal fluids are often found in oil and gas production fields and there is growing interest in producing electricity from these fluids. The Southern Methodist University Geothermal Energy Program has estimated that geothermal co-production has the capability of providing 1000-5000 MW to the seven states in the Texas Gulf Coast Plain alone.11 Note that there is currently no geothermal electricity production in any of those states. Jay Oil Field (Florida): A demonstration project at Jay Oil Field is projected to come online this year and will use thermal fluids commonly co-produced from oil and gas wells.12 The expected capacity of the project is 200 kW but has potential for 1 MW. If successful, a full project could follow at the Florida oil field and provide about 5 percent of the field‟s total electrical demand. Estimates show that there are thousands of megawatts of geothermal potential in oil fields. Rocky Mountain Oil Test Center (Wyoming): RMOTC is another co-production demonstration project near Casper, Wyoming. In August 2008, a 250 kW Ormat organic Rankine cycle (ORC) power unit was installed and a month later it began operating. As of January 2009, the unit had produced more than 485 MWhofpowerfrom2.6millionbarrelsofhotwater. Thedemonstrationprojectwilloperateuntil 10 DOE, DOE Funds 21 Research, Development and Demonstration Projects for up to $78 Million to Promote Enhanced Geothermal Systems, (October 6, 2008) http://www.energy.gov/6624.htm 11 McKenna et al, SMU, Oil and Gas Journal, (September 5, 2005). 12 Allan Jelacic, DOE, The Geothermal Technology Program: A Renaissance (November 20, 2008) 13

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