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Current Costs of Geothermal Power Generation in New Zealand

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Current Costs of Geothermal Power Generation in New Zealand ( current-costs-geothermal-power-generation-new-zealand )

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Assessment of the Costs of Geothermal Power Generation in New Zealand 6.3 Steamfield Costs Steamfield development costs have been assessed using a bottom-up approach based on the following considerations: Steamfield piping This includes two phase piping, separators, steam and brine piping and reinjection pumps to take geothermal fluid from the production wells to the power plant, and dispose of waste fluids to reinjection wells. The numbers of wells required and mass flow rates are as detailed in Table 5-1 and Table 5-2 for each of the “high well flow” and “low well flow” development scenario. These dictate piping sizes. The required piping lengths have been obtained from the steamfield concept layout in Figure 5-1. Based on this information, a piping schedule has been drawn up and costed. Approximately 30% of the total piping cost is allocated to piping materials procurement in foreign currency and the balance of 70% is for pipeline erection allocated in NZD. Steamfield plant These items include line valves and instrumentation, and steam / water production separators and brine pumps for either 20 or 50 MW size depending on development options. Estimated foreign currency cost allocations for these are 100%, 50% and 80% respectively. Site Civil Works This requirement includes preparation of site roading, separator station foundations, well pads and multi well cellars. These costs are allocated 100% to local currency. Within the precision of this study, the steamfield development requirements are assumed to be the same for the single flash, hybrid steam + binary and the pure ORC options, as they involve the same piping layout and control systems and a single separation in each case. The double flash option is more complex, involving a greater cost due to the requirement for a second flash vessel / separator, more piping around the separator station, further instrumentation and additional civil works. Estimated steamfield development costs for the various options are given in Table 6.2. These capital costs are carried forward into Section 7 where they are used to build up a total capital cost for each of the 32 project development scenarios. The overall balance of New Zealand costs to overseas costs is estimated at about 80% for both the 20 and 50 MW plants. Sinclair Knight Merz SKM Cost of Geothermal Power Report (2007 Cost Basis)R1.doc PAGE 27

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