If you can't read please download the document
Upload
buikiet
View
225
Download
5
Embed Size (px)
Citation preview
Slide 1
EUROGIA 2020 & RHC-Platform Joint Event, Paris, 16 September 2013
Presenter: Michael Mugerwa, Technip Claremont, California
Low Temperature Geothermal Resource Exploitation in USA
Key Messages - Geothermal
Global Collaboration Technology and Geothermal Expertise Feasibility Studies Resource Viability, Project Viability, Technology Selection; Economic Analysis Low temperature, high volume geofluid opportunities in Western USA Technologies Flash Steam, Binary, Advanced Cycles (Kalina; Kalex) Front End Engineering Design (FEED); Capital Cost Estimates Technip Capabilities, Financial Strength to offer EPC wrap Local USA; New Zealand; Indonesia; France; Germany; Chile (GTN LA)
2
Technip Global Energy Company Recognized leader in the execution of EPC energy projects
A leading global provider of engineering, technologies and project management services, on land and at sea, serving the energy industry for 50 years
Multi-local: 38,000 team members in 48 countries
Industrial assets on all continents, a fleet of 32 vessels (with 4 under construction)
Three business segments: Subsea, Offshore & Onshore; One Technip
2012 revenue: 8.2 billion
3
Mannvit
Iceland's Premier Consulting & Engineering Service Provider
Geothermal Consulting Engineers since 1960s
Experienced in all Stages of Geothermal Development
Well Positioned to Advise on Resource Risks
Technip
Project Execution Excellence
Highly Experienced EPC Contractor
Global Procurement Network
Construction Management Solutions
Financial Strength
Undertakes Execution Risk
4
Mannvit and Technip Collaboration Since 2009, the collaboration offers geothermal project developers and financers with a single point source of responsibility for geothermal development services
Geothermal Project Timeline
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year
Exploration Phase
Pre-Feasibility
Feasibility
Detailed Design &
Construction
Operation & Maintenance
Data collection &
Analysis
Geological survey
Geochemistry
Geophysical surveys
Temperature gradient
drilling
GIS
Exploration
Data collection & Analysis
Focused exploration
Drilling of slim wells
Drilling of deep
exploration wells
Resource evaluation
Simple modelling
Pre-feasibility
Drilling of the first
successful full-sized
production well
Confirmation wells
Resource testing
Resource power
potential assessment
Preliminary plant design
Feasibility
Drilling and testing of
remaining wells
Final plant design
Plant construction
Design & Construction
Monitoring system
Resource management
Detailed modelling
Plant maintenance
Drilling of make up wells
Operation & Maint.
Project start up
Legal work
Concession
Permitting
Typical 50 MW power project 5 Development Phases
The time needed to complete each phase is dependent on the geothermal resource and project related factors and thus varies between projects
Project Examples Mannvit
Hellisheidi
Geothermal Power Plant in Iceland
Size 300 MWe, 400 MWt
Project Cost 1.000 m
Year 2002 -
Role Lead design
Nesjavellir
Geothermal Power Plant in Iceland
Size 120 MWe, 300 MWt
Project Cost 600 m
Year 1986 - 2004
Role Lead design
Theistareykir
Geothermal survey and research
Size 150 MWe
Project Cost 190 m
Year 2007
Role Project supervision and
execution, model
installation
Focus Market United States 9 GW (conservative estimate) geothermal resource potential
3.4 GW of online capacity (2013)
o 81% in CA; 15% in NV; 4% in HI, UT, OR, ID, AK, WY
o 47% dry steam; 27% flash steam; 24% binary technology
~ 2.5 GW of confirmed projects in pipeline (2013)
o 125 confirmed projects (Geothermal Energy Association criteria)
o ~ 800 MW in Advanced Stages i.e. Permitting & Initial Dev. / Resource Prodn. & Power Plant Constr.)
o 71% in CA; 14% in NV; 26% in OR, ID, UT, NM
Majority are binary cycle projects (medium to low enthalpy resources)
o Typical project sizes: 10 - 50 MW
Project Drivers
o Renewable Portfolio Standards: CA 33% in 2021; NV 20% 2015; OR 25% 2025; UT 20% 2025 (voluntary)
o Utilities need baseload, dispatchable power. The current excess of intermittent solar and wind power impacts grid stability / quality
o US Treasury Incentives: Investment Tax Credit (thru 31/12/2013 for start of construction); Renewable Energy Production Incentive (2.1 US /kWh before 10/1/2016)
Challenges
o Short term oversupply of renewable power in biggest market, CA, is driving down renewable PPA prices to below $90/MWh. Demand for geothermal power expected to pick up again from early 2015.
o Weakening support policies Expiration of most attractive incentives
7
Current Technology Binary Cycles
8
Organic Rankine Cycle / Kalina Cycle Low & Medium Temperature Reservoirs
ENEL Stillwater, NV Hybrid Geothermal / Solar Power Plant
Source: Geothermal Resources Council
9
Kalex Geothermal Systems Technology
Global, exclusive license agreement Dr. Alexander Kalina
o 2nd generation Kalex Cycle technology under new patents
Maximized power production
o Current target temperature range: 90 150C
o Target capacity range: Up to 20 MWe Gross (multiple trains possible)
Improved efficiencies at competitive capital costs
o 20 50% higher than ORC Cycles, especially below 120C
o Reduced heat rejection needs => lower parasitic loads
Reduced number and depth of wells
o Minimized specific brine consumption
Robust operating performance
o Ammonia-water working fluid
o Ambient temperature changes => self adjusts to diurnal and seasonal temperature changes
o Brine temperature degradation => wide operating range
Superior Net Power Performance
10
Low Temperature Resource Exploitation Drilling Risk Mitigation
o 20 50% reduction in drilling equity requirements prior to financial close
o Reduces funding gap between initial seed capital and project financing
o Preserves more value for the developer by minimizing need for high cost capital drilling equity
o Fewer production wells increase investor IRRs
By reducing subsurface risk profile
Improving development timelines
Financing Risk Mitigation
o Raising project debt with increased lender confidence
Technip strong balance sheet
Technip performance guarantees and warranties
o Dynamic geothermal reservoir risk
Aggressive temperature declines over time can occur after Commercial Operation Date
Kalina technology mitigates risk with higher efficiencies over wider operating range than ORC
Translates into better project borrowing terms from lenders
Reduced Equity Needs / Bankable EPC Guarantees
11
Entiv Organic Energy, Oregon
Project Summary
o High volume, low temperature geofluids from low cost surficial wells up to 700 feet in depth
o 5+ MWe Lower Klamath Lake Project ,CA: Uniquely located within a National Wildlife Refuge (NWR) managed by US Fish & Wildlife Service. Project to supply water for migratory birds on the Pacific Flyaway
o 10 MWe Klamath Hills Project, OR. On private land 10 miles North of NWR
Status
o US DOE grant award
o Conceptual reservoir model
o Project cost estimating (AACE Class III) is complete
o Detailed value engineering effort is complete
o 10 MW Kalina Cycle license
o Negotiated PPA sale to California utility
o Permitting underway
12
Geothermal Energy Economics Costs
o Greenfield Flash Plant: $2,000/kWe $4,000/kWe (IEA, 2008)
o Binary $2,400/kWe $5,900/kWe (IEA, 2010)
Highest costs in Europe (a few MWe) in low/medium temp. resources
O&M costs (including make-up wells)
o $19/MWh $24 / MWh (IEA, 2011)
o As low as $10/MWh $14 /MWh in New Zealand
Production Costs / Capacity Factors
Financing
o Typical capital structure for geothermal project developers is 55% - 70% debt & 45% - 30% equity
o US debt lenders (typically charge interest rates from 6% to 8%) & require 25% of resource capacity proven
o Large utilities using balance sheet / cash flows have different equity / loan cost structures