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Business Development Leasing and development of geothermal projects have been occurring for the last 40+ years in the United States. Yet the business plan for developing low-temperature (< 300°F) geothermal projects in areas outside of the Western United States is still considered “risky” (Dunn, 2010). According to the Department of Energy, geothermal energy has one of the lowest levelized costs (cost of power production over the life of a power plant) of any form of power, renewable or nonrenewable! The biggest risk for geothermal project development is the upfront capital needed on the front-end. Potentially this can be as high as 95% of the capital budget (Dunn, 2010). In the last few years, there are now companies with a business plan to develop geothermal energy in relationship to oil and gas fields. Since there are many different scenarios for geothermal development, a series of questions were compiled to assist in new development, see Appendix D. Technology Changes and Impacts How much energy can be produced from one well? This is a common question. The simple answer is that it varies with temperature, fluid flow rates, and the type of technology used for the power plant. An initial set of calculations are shown in Appendix C for calculating the electrical production that will show how changing the different parameters (i.e., casing size, flow rates, thickness of lithology) impacts the electrical output. The improvement in binary geothermal technologies to use lower temperature geothermal wells has resulted in renewed emphasis on developing the Texas geothermal resource. A paradigm shift for the geothermal industry was started in 2006 when the lowest temperatures currently in production dropped to 165°F at Chena Hot Springs, Alaska. The Pratt & Whitney Power System PureCycle® changed the focus on geothermal resources from sites using approximately 300°F+ producing 1 - 10s of MW of electricity to low temperature (165 - 300°F) sites producing as few as 50 kW with new technologies. In October 2008, the ORMAT Technologies Company installed a binary plant at the Rocky Mountain Oilfield Testing Center (RMOTC) operating on a 195°F fluid from a series of oil striper wells in the Tea Pot Dome field, Wyoming. This was the first commercial application of coproduction. In recent years, new products have entered the electrical power market with designs starting as low as 180 to 200°F in Texas with a required delta T of approximately 100 to 120°F between the hot and cold fluid sources (Appendix D). 57PDF Image | Texas Geothermal Assessment for the I35 Corridor East
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