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U.S. Department of Energy Sandia National Laboratories

Geothermal Resource Exploration and Definition. U.S. Department of Energy Sandia National Laboratories. GRED Program Geothermal Resource Exploration & Definition. Program Management Team Ray Fortuna, DOE/HQ Dan Sanchez, DOE/AL Jay Nathwani, DOE/GO Ed Hoover  Craig Tyner, SNL

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U.S. Department of Energy Sandia National Laboratories

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  1. Geothermal Resource Exploration and Definition U.S. Department of Energy Sandia National Laboratories

  2. GRED ProgramGeothermal Resource Exploration & Definition • Program Management Team • Ray Fortuna, DOE/HQ • Dan Sanchez, DOE/AL • Jay Nathwani, DOE/GO • Ed Hoover  Craig Tyner, SNL • Norm Warpinski, SNL • Allan Sattler, SNL • Funding $900,000 — FY00 $2,000,000 — FY01 $1,775,000 — FY02 $3,850,000 — FY03 ~$1,750,000 — FY04

  3. GRED ProgramGeothermal Resource Exploration & Definition • Goals and Objectives • Develop collaborative efforts to support the exploration for and definition of new geothermal resources • Mitigate The Initial Risk Of Confirming A Reservoir • Encourage Geographic Diversity • Effect an increase in the electrical power generated from geothermal energy • Increase Overall Generating Capacity (40,000 MWe) • Promote additional geothermal development to aid development of technology • Decrease the levelized cost of geothermal energy

  4. GRED ProgramGeothermal Resource Exploration & Definition • Program Approach • Original Geographic-Diversity Focus • GRED (2000) • New States, New Fields, Extensions • Now Closing Out • GRED II (2002) • New States, New Fields • Generally In Phase II Work • New Risk Focus • GRED III (2004) • New Solicitation • DOE Cooperative Agreements • Preferred Contractual Instrument • Flexibility

  5. GRED ProgramGeothermal Resource Exploration & Definition DOE/HQ DOE/AL Program Management & Contracting DOE/GO Program Management & Contracting Sandia Natl. Labs Technical Management & Support GRED I GRED II GRED III Individual Projects (Cooperative Agreements) FY00 FY01 FY02 FY03 FY04 FY04

  6. GRED ProgramGeothermal Resource Exploration & Definition • Scope of Work for Individual Projects • Phase I • Exploration Work To Site A Test Well • Geologic Studies, Geophysics, Geothermometry • Phase II • Slim-Hole Drilling • Logging, Core, Short Tests • Phase III • Well Testing & Reservoir Assessment

  7. GRED Science & Engineering Areas Geophysics Drilling Phase I : Exploration geophysics to determine optimum location for a test well Phase II : Drilling of a test well to access the reservoir and evaluate geologic features Fourmile Hill Temperature Logs (454° Max) Steamboat Hills Velocity Model Testing Assessment Phase III : Testing of the well for reservoir qualities, flow capacity & thermal characteristics Potential of the new resource to provide geothermal power Lightning Dock Temperature Contours Rye Patch Testing

  8. Phase Project Company 3 Rye Patch Presco Energy, LLC 3 Blue Mt. Noramex Corp. 3 Steamboat SB Geo, Inc. 3 Lightning Dock Lightning Dock Geothermal, Inc. 2 Cove Fort Utah Municipal Power Agency 1 Fourmile Hill Calpine Corp. 1 U-Boat Coso Operating Unit (Caithness) GRED I – Project Status Fourmile Hill – 49 MW Blue Mountain - ? Rye Patch – 12 MW U-boat Steamboat – 42 MW Cove Fort/Sulphurdale Lightning Dock - ?

  9. GRED II – Project Status Phase Project Company 3 Raft River, ID U.S. Geothermal, Inc. 2 Animas Valley, NM Americulture, Inc. 2 Truckhaven, CA Layman Energy Assoc. 2 Lake City, CA Lake City Geothermal, LLC. 2 Blue Mt, NV Noramex Corp. 1 San Francisco Mt., AZ Northern Ariz. Univ. ? Glass Mountain, CA Calpine Corp. ? Fly Ranch, NV Advanced Thermal Systems

  10. GRED III Program • New FOA • Release In Late March, 2004 (DOE/GO) • Initial Awards In Late FY04 • Risk-Based Approach • High Risk (Unpenetrated Thermal Anomaly) • 80% Maximum DOE Cost Share • Medium Risk (No Production In Anomaly) • 50% Maximum DOE Cost Share • Low Risk (In Vicinity Of Producing Reservoir) • Requires Advanced Technology • 20% Maximum DOE Cost Share • Premium On Advanced Technology • Additional Cost Share For Appropriate R&D Usage

  11. GRED ProgramGeothermal Resource Exploration & Definition • Conclusions • Successful GRED I Program Is Nearly Complete • 7 Projects Funded: Close-Out Stage In Most Projects • 4 Projects Should Progress Through Phase III • Significant Potential In These Sites • GRED II Ongoing • 8 Projects Funded • 4 Projects In Phase II; 1 Project In Phase III • New GRED III • Overall Program Is: • Successfully Encouraging New Exploration & Reservoir Confirmation • Contributing To Overall Geothermal Program Goals & Objectives • Connecting Projects With New Technology

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