IGA NEWSI GA New s No. 74

1New slet t er of t he I nt ernat ional Geot herm al Association
Quart erly No. 74

IGA ACTIVITIESContents

Message from the President

IGA ACTIVITIES- Message from the President-IGA News refreshed design

Ladsi Rybach, President
Dear IGA member
This is the fifth message from your President.
IGA activities within the framework of the World
Bank/GeoFund program are moving ahead. The Mineral
Extraction task is finished and the Road Mapping Workshop
was convened successfully by Prof. Leif Bjelm and Dr.
Gordon Bloomquist in Moscow on 22nd September. The
Geothermal Workshop 2008, planned for 15-18 December,has been postponed to be held in Instanbul, 16-19
February 2009
The GRC 2008 Conference and Expo (5-8 October,
Reno/NV, USA) was a success. Although relatively few
papers and posters were presented, the impact of the
Exposition was impressive: the many interested visitorsand more than 100 exhibitors reflected the increasing
momentum of geothermal development in the US, also
trig gered by the renewed funding activities of US
Department of Energy (DOE). At the Opening Session,
I had the pleasure of receiving the GRC Henry J. Ramey
Reservoir Engineering Award; in the recipient’s speech,
I acknowledged the renewal of GRC’s affiliation agreementwith IGA. The IGA Special Committee for co-organizing
WGC2010 also met in Reno on 5th October.
The International Conference and Exhibition
RENEWABLE ENERGY 2008 (RE2008, Busan, S.Korea,
13-17 October) hosted many paper/poster presenters andexhibitors and was held in the excellent convention facility
BEXCO. Among the numerous sessions on hydropower,

Picture from the BoD meeting in Entebbe

October - December 2008

1
3

EUROPE- Germany / The Herrenknecht Vertical Terra
Invader 350- Italy/ Update on the Italian Geothermal
Union/ Italian Geothermal Manifesto

7
7

AMERICAS- USA/ Current US Geothermal Power
Production and Development

103ASIA/PACIFIC RIM- Indonesia / Government Effort and Indonesia
Geothermal Production Capacity 10- Philippines / Philippine Congress approves
Renewable Energy Bill
12
OCEANIA- Australia / The inaugural Australian
Geothermal Energy Conference 13
UPCOMING EVENTS
Geothermal meetings2
solar, wind, biomass, ocean energy, hydrogen and fuel cells
there were five geothermal sessions, with presentations by
Korean and international experts. As a side event theDistinguished Lecture Course on Geothermal Development and Utilization took place on 10th October, attended
by local and foreign participants (lecturers: John Lund andLadsi Rybach). Dr. Yoonho Song (KIGAM, Daejeon)earned great recognition for organizing both geothermal
events in a most efficient and successful way.
In my function as IGA President I am frequently
invited to present keynote lectures. Besides having
delivered an invited paper at RE2008 on 11 October, I gave
another at the 10th Anniversar y Conference of the
Geothermal Association of Ireland in Kilkenny on 5
November. A further one will be presented at the opening

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I GA New s No. 74

2of Geothermiekongress 2008 in Karlsruhe, Germany, on
12th November. This congress covers a lot of ground,including 10 thematic Workshops (among them the IGAWorld Bank GeoFund Workshop on Geological Risk
Insurance), one economic and 16 technical sessions withposter presentations. The conference and its accompanying
exposition GeoEnergia 2008 impressively reflect theongoing large-scale geothermal development in Germany.
The IGA Board of Directors held its 46th BoD
meeting in Entebbe, Uganda, on 23rd November, withmeetings of the IGA Committees being held on thepreceding day. The meetings were followed by the Second
African Rift Geothermal Conference (ARGeoC2), which
took place at the Imperial Resort Beach Hotel in Entebbefrom 24-25 November, followed by exciting field trips togeothermal-volcanic fields at Queen Elizabeth National
Park and Rwenzori Mountains on 26-28 November. The
IGA 2008 Annual General Meeting was also held in
Entebbe on 24th November. Reports on these meetings
will appear in the next issue of IGA News.
The high-level UNFCCC (United Nations Framework
Convention on Climate Change) “Poznan Climate Change
Conference COP14” took place in Poznan, Poland from 112 December. Among the numerous side events there wasone on “Financing the Renewable Energy Transition” with
BoD member Dr. Beata Kepinska representing IGA.
Another United Nations-related meeting, organized by
ICS-UNIDO, was the Workshop on “Geothermal Energy:
Resources and Technology for a Sustainable Development”,
held in Trieste, Italy from 10-12 December. Several IGA
members were invited as speakers. In view of thegeothermal contribution to the new IPCC Report a joint
IEA Geother mal Implementing Agreement / IGA
Workshop “Geothermal Energy - Its Global Development
Potential & Contribution to the Mitigation of Climate
Change” is planned to take place in Madrid, Spain on 5-6
May 2009. The 47th IGA BoD will also take place in
Madrid (7-8 May)
Finally some further news: a new FORSEO (forseo
GmbH - Facilitating Sustainable Energy Finance, Freiburg
i.Br., Germany) publication “The Investor’s Guide to
Geothermal Energy” has just appeared. This very timely
book - endorsed by IGA - serves as a practical reference
tool for the financial community, for industry and forstakeholders, and can be ordered through www.forseo.eu.

UPCOMING EVENTSIASPEI GENERAL ASSEMBLY 2009, Symposium
H1 “From Heat Flow to Geothermal Energy”, CapeTown, South Africa, 10-16 January 2009. Website:www.iaspei2009sa.com
CEP Clean Energy Power, Stuttgart, Germany, 29-31
January 2009. Website: www.cep-expo.de
34th Stanford Workshop on Geothermal Reservoir
Engineering, Stanford, CA, USA, 9-11 February 2009.
Website: http://pangea.stanford.edu/ERE/research/geoth/conference/workshop.html
Renewable Energy Technology Conference andExhibition, Las Vegas, Nevada, USA, 25-27 February
2009. Website: www.retech2009.com
Renewable Energy World Conference and Expo North
America, Las Vegas, Nevada, USA, 10-12 March 2009.
Website: www.power-green.com
30th EDC Annual Geothermal Conference, Makati
C i ty, Ph i l i p p i n e s, 1 1 -1 2 Ma rch 2 0 0 9 . C o n ta c t:
geothermalcon@energy.com.ph2009 SPE Western Regional Meeting, Geothermal
Resources Session, San Jose, California, USA, 24-26
March 2009. Website: www.spe.org/events/wrm/
index.html
Canadian Geothermal Energy Association Conference
and AGM, Vancouver, Canada, 16-17 April 2009.
Website: www.cangea.ca/events/
RENEXPO Central Europe, Budapest, Hungary, 1618 April 2009. Website: www.renexpo-budapest.com
International Symposium on Convective Heat andMass Transfer in Sustainable Energy, Yasmine
Hammamet, Tunisia, 26 April-01 May 2009. Website:www.ichmt.org/conv09
IEA Geothermal Implementing Agreement - IGA
Workshop “Geother mal Energ y - Its Global
Development Potential & Contribution to the
Mitigation of Climate Change, Madrid, Spain, 5-6
M ay 2 0 0 9 . C o n t a c t s: m o n g i l l o m @ r e a p. o r g. n z ,iga@samorka.is
World Geothermal Congress 2010, Bali, Indonesia, 2529 April 2010. Website: www.wgc2010.org

GEOTHERMICS
International Journal of Geothermal Research and its Applications

Published under the auspices of the International Geothermal Association
Content of the latest issues: http://www.elsevier.com/locate/geothermics
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I GA New s No. 74
IGA BoD member Dr. F.-D. Vuataz has created a newlook for IGA News that was unanimously welcomed by
the BoD and will be used for future IGA News. The IGA
website will also soon undergo some reshaping.
And, last but not least: our members should be awarethat the deadline for Abstract submissions to WGC2010
will be 31st January 2009; submission forms can already be
downloaded from www.wgc2010.org, along with theSecond Circular with all the information about thecongress, exhibition, field trips etc. Hopefully many of ourmembers will contribute to this key geothermal event inBali, Indonesia (mark your calendars: 25-30 April, 2010).
I look forward to continuing to work with you in our
joint effort to promote geothermal, and thank you all foryour support.
December 12, 2008

IGA News refreshed design
Eduardo Iglesias, IGA News Editor
At its 46th meeting (Entebbe, November 22, 2008) the
IGA Board of Directors approved the new design for
IGA News that we are presenting in this issue. The new
design was led by Francois-David Vuataz and discussed
among all Information Committee members. We hope you
will like its modern look, renewed colors and improved
readability. Let us know what you think.

EUROPE
Germany3drilling rig with a hook load of 350 tonnes, whichoutmatches both the conventional requirements of an
onshore drilling rig and the special requirements ofgeothermal energy projects. The current discussion on theprog ressing climate chang e and the necessity ofdeveloping renewable energy sources caused the Federal
Ministry for the Environment, Nature Conservation and
Nuclear Safety (BMU) to promote this project as part ofthe energy research program of the German Federal
Government.
The development of the TI-350 is based upon theexisting drilling technology of oil, gas and well construction
rigs and the experience and requirements gained in former
geothermal energy projects. Herrenknecht Vertical GmbHhas managed particular improvements in the further
development and advancement of deep drilling technology
in the areas of automation, energy saving, flexibility whensetting up the drilling site and energy supply to the rig,
reduction of sound emission and integration of all systems
into a rig. The following items are of particular relevancefor geothermal energy sites:

Drilling site
Geothermal energy must be generated in the vicinity of
consumers, i.e. it must be possible to operate the rig indensely built-up areas. The derrick of the TI-350 requires
only very little space with an area of 9 x 10 m. The partsof the rig can be allocated flexibly around the drilling
tower, so that the entire drilling rig only requires an area of
30 x 80 m; furthermore, the remaining space can be used
optimally. The size of the drilling site is large enough tocarry out the assembly and dismantling of the almost 52
meter-high TI-350, which weighs 370 tonnes.

The Herrenknecht Vertical Terra
Invader 350
Jürgen Binder and Martin Ruder, Chief
Executive Officers , Herrenknecht
Vertical GmbH,
Demanding and deep wells down to a depth of 2,500 to
5,000 meters are necessary to efficiently exploit geothermalenergy in Germany. So far, conventional drilling rigs fromthe oil and natural gas industry have been employed forthe exploration of these deep geothermal reservoirs.
These are, however, not sufficiently adapted to the special
requirements of deep drills for geothermal energy. Drilling
equipment with a hook load of between 250 and 450
tonnes is particularly suitable for the exploration of therelevant deep drilling areas. However, systems of this size
have hardly been available on the German and European
market so far. Motivated by the demand from the geothermalenergy industry, Herrenknecht Vertical GmbH, a subsidiaryof Herrenknecht AG, was established in the year 2005 andhas developed the Terra Invader 350, a semiautomatic

October - December 2008

Figure 1: The drilling site of the TI-350 only requires an area of 30
x 80 m.

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I GA New s No. 74

4has led to a decrease in emissions in the closer vicinity.
Energy is only provided if and when it is actually needed.
The major part of the energy - approximately 80% - isused to operate the mud pumps for the conveyance of the
cuttings. The pump pressure necessary for a given flowrate
depends on the inner diameter of the drill pipes. The larger
the diameter, the lower the pressure loss, and therefore theless energy needed. The TI-350 can also be operated withparticularly large drill pipe diameters up to 6 5/8" in orderto save energy and costs.

Costs

Figure 2: The automatic pipe handling system increases safety atwork and reduces the number of staff required.

Noise protection measures
In comparison to oil wells, geothermal energy drillings
must be carried out close to the consumers in order toguarantee the efficient use of the heat. Therefore, special
emphasis was placed on a comprehensive noise protection
concept when developing the TI-350. The integrated noise
protection system makes it possible to operate the drilling
rig even in the direct vicinity of commercial and residential
areas. The maximum permissible values for noise emission
are not only adhered to, but the emissions even lie below
these values. The noise protection measures include mud
pumps with enclosure, generators with optimized exhaust
noise suppression and exhaust routing, as well as hydrauliccylinder lifting equipment with pulsation damping. The
introduction of these measures has led to a decrease in thenoise pressure level at a distance of 150 meters from thedrilling site, making it not louder than a low volume TV orradio. Both the staff operating the drilling rig and theresidents in the closer vicinity benefit from the noise
protection measures.

Drilling costs are the major cost factor in the developmentof geothermal energy reservoirs; therefore, a decrease inthese costs is an important prerequisite and an essential
challenge to promote the successful implementation ofgeother mal energ y projects in Ger many. With thedevelopment of the TI-350, supported by its numerous
improvements and innovations, an enormous potential forsaving costs has been created. The complex drilling rig canbe operated by a team of only four members of staff. The
automatic pipe handling system, the maintenance-reduced
cylinder hoisting system and the hands-off technology of
the iron roughneck for make-up and break-out of the drill
pipes make sure that the operation runs smoothly, safely
and with few personnel. The drilling rig is designed in sucha way that the derrick can be relocated by up to ten meters
without having to move the entire rig. This means that no
costly and time-consuming assembly or dismantling work
is necessary. Further cost-saving opportunities areprovided by the proximity to the electricity and heatconsumers - an essential feature of successful and costefficient geothermal energy projects - and the fact that nocosts are necessary for comprehensive noise protection

Energy efficiency
A comprehensive energ y management concept was
implemented for the TI-350 to improve the overall energybalance in a geothermal energy project. The deep drilling
rig can be operated alternatively using electricity from thepublic grid or generators available on the market, which

October - December 2008

Figure 3: The first deep drilling rig of the TI-350 typew w w.geot herm al- energy.org

I GA New s No. 74

5measures. It is assumed that the overall savings potential,
compared with conventional systems, amounts to 15-20%.

Funding
The German Federal Government has set itself the target ofincreasing the percentage of geothermal energy in the overall
energy consumption of the Federal Republic of Germany
considerably in the next few years. In this respect, theoptimization, further development and testing of an adaptedand cost-efficient deep drilling technology, particularly forthe exploration of geothermal energy resources at depths
of 2,500 to 5,000 meters, will play a decisive role. Because of
the high demand, the geothermal energy market prompted
the realization of an innovative design concept for thistask as early as the year 2006. The project is in line withthe grant policy objectives of the Ger man Federal
Government concerning a cost-saving and environmentallyfriendly extension of renewable energies and climate
protection. Therefore, the development of the Terra
Invader 350 drilling rig was funded by the BMU to thetune of approximately 1.6 million euro (research project“Development of a new drilling rig technology for deep
geothermal energy”, promotional reference 0327549,
project start: 01.08.2005). The planned improvement of
the feed-in tariff for electricity generated by geothermalenergy systems after the Renewable Energy Sources Act(EEG) comes into force in 2009 may also promote theincreased exploitation of deep geothermal energy.

Practical experiences
The rig proved its efficiency at the Herrenknecht Vertical
GmbH plant site in Schwanau with a test borehole at a

depth of 600 m already at the beginning of October 2006.
The first TI-350 deep drilling rig is currently in operationas part of the common geothermal energy project of
Hekla Energy GmbH and Exorka International Ltd. in
Mauerstetten 90 km southwest of Munich.
In August 2008, the first well in Mauerstetten reacheda depth of 4,160 m.
Changes to the deep drilling rig have been made in
the course of the drilling activities in order to master thechallenges encountered, amongst others imposed by theUpper Freshwater Molasse sediments at the site. The
improvements include the refinement of the hydraulicsystem, software updates, a Herrenknecht internal repairof a contractor’s Top Drive as well as constructionalchanges, e.g. at the pulsation damping of the mud pumps.
Through these developments, the cooperation of all rig
components could be improved significantly. During
fishing works in Mauerstetten, the sensitive and accurate
hydraulic cylinder hoisting equipment proved to be very
advantageous.
A second drilling rig of the type TI-350 was delivered
to its customer, the Ger man Research Centre forGeosciences (GFZ) Potsdam, in May 2007. The researchdrilling rig named InnovaRig was optimized in particularwith a view to the requirements of scientific deep drilling
activities. It is operated with a Top Drive by Herrenknecht
Vertical which allows for wireline coring through the large
inner diameter (3 ½”) of the hollow shaft. In addition toscientific applications, the system is also made available forcommercial projects in industry to achieve a maximum
utilization capacity. The InnovaRig has been employed fora geothermal energy project in Dürrnhaar since November

Joint GIA-IGA Workshop
Geothermal Energy - Its Global Development Potential
and Contribution to the Mitigation of Climate Change
The International Energy Agency Geothermal Implementing Agreement (IEA-GIA) and the IGA are holding a joint
2-day workshop in Madrid, Spain, on 5-6 May 2009, to discuss the global potential of geothermal energy and its
possible contribution to the mitigation of climate change. The results will contribute to the geothermal chapter of theIntergovernmental Panel on Climate Change (IPCC) Special Report on Renewable Energy and Climate Change to be
published in 2010.
Though still in the planning stages, the current draft Workshop discussion topics includes: Definitions of Geothermal
Potential; Geothermal Potential for Power Generation and for Direct Use; Challenges and Barriers to Attaining
Geothermal Potentials; and the Potential Contribution to Mitigation of Climate Change. The plan is to have a limited
number of experts from the GIA and IGA, and possibly other invited experts, make short presentations on these
topics based upon their current work and/or published (peer reviewed) papers, to be followed by in-depth discussions.
A “wrap-up session” will firm up conclusions, assign actions and set deadlines for completion of outputs, which are
expected to include: a formal “Madrid” statement on geothermal’s potential contribution to climate change and final
reviewed summary documents presenting the participants’ agreed conclusions.
For the IEA GIA: Mike Mongillo, Secretary. Contact: mongillom@reap.org.nz
For IGA: Ladislaus Rybach, President. Contact: rybach@geowatt.ch

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I GA New s No. 74

6Figure 4: Availability during the geothermal energy drilling at Dürrnhaar
2007. The first of two wells was successfully completedwith a final depth of 4,390 m in March 2008. The
subsequent transport of the measuring equipment setsthrough the borehole confirmed the immaculate conditionof this first drilling. The second well was drilled to a depthof 3,660 m in August 2008. The InnovaRig is scheduled towork for the GFZ in Hanover in the second half of 2008.
Furthermore, it is planned to use the InnovaRig as part of
the International Continental Scientific Drilling Program(ICDP) in the future.
Another drilling rig was delivered to HOCHTIEF
Construction AG in June 2008, which, as shareholder of
the Southern Ger man Geother mal Energ y ProjectOrg anization (SGG), will car r y out a project for
geothermal energy production in the Bavarian municipalityof Kirchstockach. With the help of the TI-350, it isplanned to carry out two wells down to a depth of 3,730
and 3,750 meters for the planned geothermal doublet.
Even the oil industry is impressed by the efficiency,
the technological innovations and the broad spectrum of
applications this drilling rig offers. Herrenknecht Vertical
GmbH recently received a further order for two Terra
Invader 350 drilling rigs. The customer is the Brazilian
company Petrobras, the third largest mineral oil company
in the world. The rig, which is adapted to the special
requirements in remote areas, is cur rently under
production and will be delivered on time.
Herrenknecht Vertical GmbH has been able to enter

October - December 2008

the geothermal energy market successfully with the Terra
Invader 350. In general, the drilling rig and its overall
concept as well as its functionality have been praised by
the users. The hydraulic cylinder hoisting system enjoyedspecial attention in this respect. It proved to be an
improvement especially for works involving jars, as it iswell suited for shock absorption and damping. Only a few
initial problems have so far arisen during the practicalimplementation, which is usual when introducing newtechnologies and commissioning new systems. Thesedifficulties can and will, however, be solved by means oftargeted improvements to the process technology. During
its first months in operation, the rig already spanned asteep learning curve: if one considers, for example, theavailability of the rig during its use in Dürrnhaar, it
becomes clear that its availability increased significantly in thecourse of the drilling work (image 4). The technologicalinnovations, such as the pipe handling system and the ironroughneck have demonstrated their value during operation.
Terra Invader 350 has clearly shown its numerous
advantages over conventional rigs already in its first
applications.

Summary
The Terra Invader 350 which has the ideal size and designconcept for implementation in geothermal energy projects
has to a large extent met the expectations placed on it; therig will be continuously optimized to remove the weakw w w.geot herm al- energy.org

I GA New s No. 74
points recognized during its use. The drilling has shown
new ways for the targeted development and improvementin the deep drilling technology for use in geothermalenergy projects. The manufacture of further TI-350 units
will help to overcome the shortage of appropriate drillingrigs on the German geothermal energy market.
The project which forms the basis of this report was
subsidized by funds of the German Federal Ministry for
the Environment, Nature Conservation and Nuclear
Safety under the promotional reference 0327549.

Italy
U P D AT E O N T H E I TA L I A N
GEOTHERMAL UNION (UGI)
G. Passaleva, UGI’s President

Background, Mission andMembership
UGI is an independent, non-political and non-profit
Association, which is open to Natural and Legal Persons
involved in non-conventional energy sources and wishing
to promote the development of all the applications of the
Earth’s heat. UGI was founded in February 2001 andregistered with the Milan Court.
UGI’s mission is to: i) collect information and publish
reports on the development of geothermal energy in Italy
and abroad; ii) disseminate knowledge about the natureand uses of geothermal energy, so as to raise publicawareness of the advantages of developing this indigenous
energ y source to the maximum possible extent; iii)
exchange information and data with Italian and foreign
Agencies, Companies, Societies, Industries, Professional
Associations, Organizations, and Institutions operating in
the geothermal sector; iv) establish contacts with National
and Regional Governments and with the European Union,
to provide information on the Italian geothermal potential
and to promote research on and development of the
Earth’s heat; v) cooperate with international Associations(IGA/International Geothermal Association, EREC/
European Renewable Energy Council, EGEC/European
Geothermal Energy Council and others), as well as withforeign National Associations sharing UGI’s goals.
Currently, UGI has about 120 members (Corporate
members account for 20%).
UGI’s Bodies (June 2008-May 2011)• B o ard o f Dire c to rs : G. Passaleva (Chairman), W. Grassi(Deputy Chairman), G. Buonasorte (Treasurer), B.
Della Vedova, T. Franci, A. Pizzonia, A. Rauch and B.
Toro (Members).
• Se c re tary : F. Angeli.
• UGI’s Honorary President: R. Cataldi.
• B o ard o f Au d ito rs : A. Sbrana (Chairman), C. Benincasi
and P. Chiellini (Members)

October - December 2008

7
Recent, On-Going and Planned
Activities
Follow-up of the Centenary of the geothermal powerindustry - the program of celebrations concluded with asolemn ceremony held in Florence, in the prestigious
Salon of the Five Hundreds (Palazzo Vecchio) on 10
December 2005 (IGA News no. 64, pp. 8-12). Aware of
the need to undertake a special effort to promote
systematic use of the Earth’s heat for direct applications in
Italy, the previous UGI Board decided to conduct thisactivity under the general umbrella of a project called
Dissemination of Geothermal Energ y. The project
includes a number of initiatives, such as publication ofplainly-written technical booklets and posters, distributionof flyers and information material, preparation of a new
DVD on geothermal energy for teaching and illustration
purposes, promotion and co-organization of geothermal
meetings and workshops, participation in national andinternational events dealing with g eother mal andrenewable energy sources, meetings with political andinstitutional representatives involved in energy matters andpre pa ra ti on of the doc ume nt c a l l e d T he Ita l i a n
Geothermal Manifesto. This document describes the goals
proposed by UGI for the development of geothermalenergy in Italy by December 2020, as well as the measuresneeded to achieve them. Moreover, UGI issues a quarterly
bulletin (Notiziario UGI - UGI News).
Most of the above activities were carried out or
started in the past 2-3 years, except for the DVD, which
will be produced after gathering the required financial
resources. Other activities are being implemented and will
be continued in the next few years. In particular, theManifesto was issued in many thousands of copies andpublished on a number of technical and information
journals, as well as on UGI’s and other websites. It will be
widely disseminated for one more year at least. Its English
version is attached to the current issue of IGA News.
Finally, it is worth mentioning that, jointly with the
Department of Energetics of the University of Pisa, UGI
initiated a questionnaire-based investigation on awarenessof, and use of geothermal heat pumps in Italy as thestarting point for wider deployment of this technology.
To know more…
UGI/Italian Geothermal Union; c/o University of Pisa /Dept. of Energetics; 2, Via Diotisalvi; 56126 Pisa.
website: www.unionegeotermica.it.

T H E I TA L I A N G E O T H E R M A L
MANIFESTO
The position of UGI/Unione Geotermica Italiana (Italian
Geothermal Union), CNG/Consiglio Nazionale dei
Geologi (Italian National Council of Geologists) andATI/Associazione Ter motecnica Italiana (Italian
Thermotechnical Association) on the development of
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I GA New s No. 74

Geothermal Energy within the National
Energy Framework
In the past few years, energy has become a priority issue in
Italy, and its economic, environmental and supply security
implications have a strong impact on national growth.
In 2006, total gross energy consumption amounted toabout 200 million tonnes of oil equivalent (TOE). The
contribution of fossil fuels (especially oil and natural gas and,to a lesser extent, coal) was 87%, whereas the contributionsof imported electricity and of non-conventional andrenewable energy sources were 6 % and 7%, respectively.
Among non-conventional sources, geothermal energy
accounted for 0.6% of total gross energy consumption.
Over four-fifths of this figure consists of electricity
generation, whereas the remaining one fifth refers to theuse of natural heat for thermal balneology, space heating,agriculture and other direct applications.

The Italian Geothermal Potential
In spite of the above-said small contribution, the Italiangeothermal resources that can be harnessed down to costeffective depths are considerable: high-temperature
resources (> 150 °C) are concentrated in the TuscanyLatiumCampania pre-Apennine belt and on some volcanicislands of the Tyrrhenian Sea; conversely, medium- andlow-temperature resources (< 150 °C) can be found inlarge areas of the country.
Hence, given its geological conditions, Italy has anotable geothermal potential, which can be tapped much
more than has been done so far.

October - December 20088

High-temperature resources are suitable for bothelectricity generation and direct uses, while medium- andlow-temperature ones can be exploited mostly for heatapplications.

Development Projections and Targets
by 2020
Geothermal energy is one of Italy’s few primary energy
sources. These resources are always sustainable, often
renewable and everywhere environmentally benign.
Moreover, these resources have also become cost-effectiveat practically all levels of temperature.
As a result of the above and taking into account that afurther increase in the prices of conventional energy
sources is likely to occur in the next years, the following
targets may be set in Italy for the two forms of utilizationof geothermal resources:- e le c tric ity g e n e ratio n : in 2006, installed capacity
was 810.5 MWe and generation totaled 5.5 billion kWh(1.1 million TOE). By 2020, installed capacity may rise to1500 MWe, while generation may reach 10 billion kWh/year,
which corresponds to the electricity requirements of 9
million inhabitants. This figure represents twice thegeneration of 2006 and a saving of over 2 million TOE;
- d ire c t u s e s : in 2006, installed capacity was 650
MWt and its heat production enabled over 190,000 TOE
to be saved. By 2020, installed capacity (geothermal power
generation remaining at the same level as indicated above)
may reach 6000 MWt and its heat production may climb to
1,800,000 TOE, which corresponds to the heatingw w w.geot herm al- energy.org

I GA New s No. 74
requirements of 800,000 apartments. These values areroughly 10 times higher than those of 2006.
Therefore, development prospects for direct uses ofgeothermal energy in Italy are definitely wider than thosequoted above for electricity generation.
Overall electric and non-electric uses of geoheat may
thus pass from 1.3 million TOE in 2006 to nearly 4 million
TOE in 2020, i.e. to over 1.2% of the country’s total grossenergy consumption expected in 2020.
This contribution may appear to be negligible inpercentage terms; however, if it is referred to the cost of
the displaced fossil fuel, it is economically important. And
it is even more important considering that the projecteddevelopment of geothermal energy by 2020 will avoid 810 million tonnes/year of CO 2 emissions into theatmosphere.

9
Necessary Measures
In the country’s critical energy setting, achieving theabove targets requires political forces promptly to adopt
legislative instruments which foster a fast development of
all non-conventional energy sources, foremost among
them geo-heat. Indeed, this source is available throughout
the year and over wide areas and can be exploited withdecade-proven and environmentally friendly technologies.
In view of the above, the Governments of Italian
Regions should formulate specific energy plans and enact
legislation encouraging an accelerated development of all
possible applications of natural heat.
In such a national and regional framework, harnessing
medium- and low-temperature geothermal resources also
requires having recourse to experts in: exploration for andexploitation of natural hot fluids; survey of areas ofconcentrated energy consumption; engineering of thermal
installations and heat distribution grids; and environmental
protection.
Finally, the need arises for designing and implementing
a far-reaching national campaign to build public awarenessof the opportunities offered by geothermal energy for
mitigating greenhouse gas and harmful solid particulate
emissions, as well as for reducing the balance of-payments
deficit in the energy sector.

In brief

The Geysers geothermal field, California.

October - December 2008

UGI, CNG and ATI emphasize the strategic role thatutilization of natural heat can play in relieving the country’s
energy difficulties.
This Manifesto is intended for members of the ItalianParliament and Institutions involved in energy matters, sothat legislative instruments are adopted to incentivize an
immediate and massive development of all possible
applications of geothermal energy.
If the strategic role of geothermal energy is not readily
understood, then the country’s difficulties in the market ofenergy supplies may worsen and the achievement of the
Kyoto Protocol environmental targets may be jeopardized.
Many countries have a geothermal potential lower thanthe Italian one. Nonetheless, they have already grasped theopportunities offered by a sustained development of
natural heat to alleviate dependence on imported energy
sources and improve the environment. As a consequence,
their Governments have long adopted measures to further
an accelerated development of geothermal energy.
In view of the above, UGI, CNG and ATI are readyto provide national energy authorities with technicalsupport in preparing the “geothermal energy” section of adesirable new National Energy Plan. They are also readyto cooperate with Regions wishing to design operational
programs for developing natural heat in their territories.
A final point should be made with regard to the targetof an over 1.2% contribution of geothermal energy tototal national energy consumption by 2020.

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I GA New s No. 74
This is just the first step towards much more ambitious
targets to be pursued in the decades after 2020. Indeed,
the natural heat resources that could be tapped for direct
uses in Italy are at least 100 times higher than thoseneeded to attain the targets indicated above.
On the other hand, Italy is endowed with all thetechnical and scientific skills that are needed to make theseresources available to the benefit of its citizens.

AMERICAS
United States

Current US Geothermal Power
Production and Development
L u i s G u t i é r r e z N e g r í n , E d i t o r,
“Geotermia, Revista Mexicana deGeoenergía”
According to a document (Update on US Geothermal
Power Production and Development) recently released by
the Geothermal Energy Association (GEA), based in
Washington, DC, geothermal electric capacity in the US asof May 2007 was of 2851 MWe. This means the UScontinues to be the world leader in electric capacity ofgeothermal origin.
The main highlights of this document are as follows:- 87% of the total geothermal-electric installed capacity in
the US is in the geothermal fields of California, with 2492
MWe.
- The installed capacity in California is larger than that ofevery country in the world.
- Despite that capacity, the operating geothermal power
plants in California in 2005 totaled 2030.5 MWe. Thismeans there were 462 MWe in standby.
- Other geothermal-electric states are Nevada (297 MWe),
Hawaii (35 MWe), Utah (26 MWe), and Alaska (0.4 MWe).
- Total geothermal electric generation in the US was
16,010 GWh in 2005, which represented 0.37% of thenational electric consumption in that year.
- There are currently 12 geothermal-electric projects in
production drilling and under construction in five US
states with a total between 336 to 371 MWe. They are:Alaska (Chena Hot Springs: 0.6 MWe), California (Bottle
Rock: 17-55 MWe, Heber: 18 MWe), Idaho (Raft River: 13MWe), Nevada (Blue Mountain-Faulkner 1: 35 MWe,
Buffalo Valley: 24 MWe, Carson Lake: 24 MWe, Galena II:
10 MWe, Hot Sulphur Springs-Tuscarora: 48 MWe, Rye
Patch: 12 MWe, Salt Wells-Lee Allen: 120 MWe), Utah
(Roosevelt Hot Springs: 11 MWe).
The entire document can be reviewed in:
http://www.g eo-energ y.org/publications/repor ts/Geothermal_Update_August_7_2008_FINAL.pdf

October - December 200810

ASIA/PACIFIC RIM
Indonesia

Indonesian Government Effort
a nd Geo t her m a l Pr o d uc t io n
Capacity
Alimin Ginting, IGA Information
Committee
Indonesia, with an estimated capacity about 27,000 MWe,
has the world’s largest geothermal reserve, equal to 40 %of the world total. This reserve is distributed across 256
locations along Indonesia’s volcanic belt. However, as of
now only 4 % of its total reserve has been developed forelectricity production. The Indonesian Government has
made several efforts to enhance its geothermal utilization
by issuing some policies like Geothermal Law no 27/ 2003,
which gives authority to local government to tender ageothermal working area; Government Regulation no.
5/2006, in which the Government decided that 5% of
total national electricity used would come from geothermalenergy; Government Regulation no. 59/2007, whichcontains a mechanism for geothermal bidding; and Energy
and Mineral Resources Ministerial Decree no.14/2008,
setting guidelines for geothermal energy/electricity price.
The government also freed geothermal energy fromimport duty/import tax/value added tax through Finance
Ministry Decree no. 177/2007 and Finance Decree
178/2007.
Beside the above mentioned regulations, the Indonesian
Government followed its First 10,000 MWe Crash programby a Second 10,000 MW Crash Program of IndonesianElectricity, under which at least 30 % of the electricity is
expected to come from geothermal energy.
The first geothermal project began at Kamojang field
in 1978 with an initial capacity of 250 kWe but, after 30
years of geothermal development, Indonesia is only able
to produce 1,058 MW of its electricity from geothermalenergy.
Those 1,058 MWe are produced from various fields
and islands, such as Sibayak geothermal field (North
Sumatra island): 12 MWe production capacity; Salak (WestJava island) : 377 MWe production capacity; Wayang
Windu (West Java island) : 110 MWe production capacity;
Kamojang (West Java island) : 200 MWe production
capacity; Darajat (West Java island) : 259 MWe production
capacity; Dieng (Central Java island) : 60 MWe; andLahendong (North Sulawesi island) : 40 MWe production
capacity.
One new power plant is currently under constructionin Indonesia : Wayang Windu Unit 2 which is operated byStar Energy and expected to be operational in 2009 withan installed capacity of 110 MWe.

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October - December 200811w w w.geot herm al- energy.org

I GA New s No. 74
Three new area-tendering processes in West Javaisland have been completed recently. These are for
Tangkuban Parahu geothermal field (won by PT. Indonesia
Power) with reserves capacity of 100 MWe, Tampomas
geothermal field (won by PT. WIKA in cooperation with
PT. Jasa Sarana) with reserves capacity of 50 MWe, andCisolok - Sukarame geothermal field (won by PT Rekayasa
Industri in cooperation with PT. Jasa Sarana) with reserves
capacity of 45 MWe.
Two other areas are under tender in Indonesia now i.e.
Jailolo geothermal field with a capacity of 75 MWe,located in West Halmahera, and Sokoria geothermal fieldwith a reserve capacity of 30 MWe, located in East Nusa
Tenggara. Both of these areas are in the eastern islands ofIndonesia.
Beside those two areas, others administratively readyfor the tendering process in the near future are Telaga
Ngebel (with reserve capacity of 120 MWe) in east Java,
Gunung Ungaran (50 MWe) in Central Java, Jaboi (50MWe) in Sabang Island and Seulawah Agam geothermal
field (160 MWe) . Jaboi and Seulawah Agam are both
located in Aceh province, on the northern tip of Sumatra
Island.PT. Pertamina Geothermal Energ y, the state
enterprise company that owns existing contract areas or
joint operation contract/par tnerships with IPPs
(Independent Power Producers) also plan to develop,
among others, Ulubelu geothermal field (110 MWe),
Lumut Balai (110 MWe), Sarulla (330 MWe) - all locatedon Sumatra island - and Kota Mobagu (60 MWe) - locatedin Northern Sulawesi.
Indonesia, home of the World Geothermal Congress
2010, is willing to increase its geothermal capacity year by
year as much as possible.

Philippines

Philippine Congress approves
Renewable Energy Bill
Ed Sevilla and Ronnie Penarroyo.
National Geothermal Association of thePhilippines
Nearly twenty years after it was first filed, the Renewable
Energ y Bill (RE Bill) was finally approved by the
Bicameral Conference Committee in the Philippine
Congress on 07 October 2008 paving the way for a
speedier and more ag gressive development of thecountry’s renewable energy resources.
Sen. Edgardo J. Angara, one of the bill’s principal
authors in the Senate, said that its passage could not havecome at a more opportune time. “The future is in clean,renewable energy, which is predicted to be one of thebiggest industries in the next five years,” Angara said.
“The benefits of renewable-energy use are considerable. It
will foster sustainable growth, energy independence andOctober - December 2008

12
economic security for the country, and unite us with theglobal effort to stop climate change.”
The bill, which has been pending in its various forms
for nearly two decades, was in the end approved by thebicameral conference committee in which representativesof both chambers agreed to provide a generous packageof incentives for renewable energy players. The House ofRepresentatives approved the bill in June, while the Senate
passed its own version on third and final reading in late
September.
The bill provides fiscal and non-fiscal incentives forrenewable energy investors, with mechanisms to help
ensure a market for renewable energy, and aims to set up asystem that will allow consumers to choose green sourcesof energy.
Fiscal incentives provided for under the bill include aseven-year income tax holiday followed by a reduced 10%
corporate tax rate for new renewable energy investments;
duty-free importation of components, parts and materials;
tax credits on domestic capital equipment and services;and special realty tax rates on equipment and machinery.
The consolidated bill also provides for theestablishment of a Renewable Portfolio Standard (RPS)
system, which would require electricity suppliers to sourcea certain amount of their energy supply from renewable
resources. The RPS will also be complemented by a feedin tariff system to encourage the speedy entry of
renewable energy projects.
The most notable provision in the bill with respect togeothermal energy is the classification of geothermalenergy as a mineral resource, thus paving the way for theentry of foreign-owned corporations in the exploration,
development and utilization of geothermal resources.
The Philippine DOE’s medium-term Renewable
Energy Policy Framework aims to develop more than
4,000MWe of additional renewable energy capacity, some
1 , 2 0 0 M We o f w h i c h a r e p l a n n e d t o c o m e f r o mgeothermal. While renewable energy development has
been slow in the past years, the passage of the bill is
expected to attract more investors to the industry, and help
cement the plans of those investors who have been
waiting for the bill’s approval.
Catherine Maceda, Renewable Energy Coalition
spokesperson, also lauded the passage of the bill. “Thisbill has been the product of productive and constructive
engagement among our legislators, government agency
representatives, civil society organizations, and otherstakeholders that are working for a cleaner and moresustainable pursuit of development,” she said. “We’re now
looking forward to working with the stakeholders toensure the effective implementation of this measure.”
The measure is expected to be signed into law by
Philippine President Gloria Macapagal-Arroyo before theend of the year.

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I GA New s No. 74

OCEANIA
Australia

The inaugural Australian
Geothermal Energy Conference
Graeme Beardsmore, Hot Dry Rocks
PTY Ltd, Australia
The inaugural Australian Geothermal Energy Conference(AGEC) was held in Melbourne from 19th to 22nd of
August. The event was organised jointly by the Australian
Geother mal Energ y Association (AGEA) and theAustralian Geothermal Energy Group (AGEG) andendorsed by the Western Pacific Regional Branch of the
IGA.
Attendance figures topped 300 over the four-day
event, and drew participants from around the globe andacross a range of sectors. Sixty five presentations weredelivered from Wednesday to Friday during which the

October - December 200813
breadth and depth of the Australian geothermal sector
was showcased, along with keynote presentations frominternational guests Jeff Tester (USA), Roy Baria (UK),
Hiro Asanuma (Japan) and Subir Sanyal (USA).
The growing maturity and profile of the geothermal
sector in Australia was reflected in the strong attendance
numbers and the variety of backgrounds of registrants.
Only 40% of registrants were from companies directly
engaged in geothermal exploration and development. The
majority were drawn from universities, the finance sector,
the media, government and service companies. The
Energ y Ministers of the State of Victoria and theAustralian Government, as well as high-ranking federal
government officials, also addressed the conference. The
message from all was clear - geothermal energy is viewed as
an attractive technology to help Australia transition to a
low emissions energy profile.
Proceedings began on Tuesday 19th with a full-day
workshop on Geothermal Reservoir Management by CedricMalate of the Philippines National Oil Company, attended
by 42 people. The conference proper followed over thew w w.geot herm al- energy.org

I GA New s No. 74
next three days. A notable highlight of the proceedings
was the launch of the world’s first Code for Geothermal
Resources and Reserves Reporting (see IGA News 73). The
document is recognised by the IGA as a useful andappropriate way to standardise the reporting of geothermal
resources to investment markets. While observance of theCode is currently voluntary, all member companies of
AGEA have committed to comply with it, and theAustralian Securities Exchange (ASX) has encouraged thesector to work with it to include compliance within the
ASX listing rules. This would make it a legal requirement
for all listed geothermal companies within Australia tocomply with the Code.
Considering Australia has no ‘conventional’ geothermal
resources, the optimism and enthusiasm for developing
Engineered Geothermal Systems and deeply buried
sedimentary aquifer across the country is unique in theworld. An economic study of the Australian geothermal
sector, also released during the conference, predicts thatthe emerging Australian Geothermal Energy Industry canbe expected to provide at least 1,000 MW and potentially
up to 2,200 MW of base-load capacity by 2020 into the
National Electricity Market; the cost of generating electricity
from geothermal resources is expected to move rapidly
down the cost curve, commencing at around $120 /MWhat small scale (10 MW to 50 MW) and decreasing toaround $80/MWh at large scale (300 MW or greater) by
2020; that price is expected to be lowest cost of any formof renewable energy.
It is an exciting time to be in the geothermal sector inAustralia.

October - December 200814

IGA News
IGA News is published quarterly by the International
Geothermal Association. The function of IGA Newsis to disseminate timely information about geothermal
activities throughout the world. To this end, a group of
correspondents has agreed to supply news for eachissue. The core of this group consists of the IGA
Information Committee:
Benedict Steingrímsson, Iceland (Chairman)
Graeme Beardsmore, Australia
Werner Bussmann, Germany
John Garnish, United Kingdom
Alimin Ginting, Indonesia
Gestur Gíslason, Iceland
Luis Gutierrez-Negrin, Mexico
Roland Horne, USA
Paul Hirtz, USA
Eduardo Iglesias, Mexico
Beata Kepinska, Poland
Jim Lawless, New ZealandPeter Ledingham, UK
Zbigniew Malolepszy, Poland
Francisco E. Montalvo Lopez, El Salvador
Martin N. Mwangi, Kenya
Mahmut Parlaktuna, Turkey
Sylvia Ramos, Philippines
Colin Randall, Australia
Yoonho Song, South Korea
Joaquin Torres-Rodriguez, Mexico
Toshihiro Uchida, Japan
François-David Vuataz, Switzerland
Kasumi Yasukawa, JapanThe members of this group submit geothermal news
from their parts of the world, or relevant to their areasof specialization. If you have some news, a report, or
an article for IGA News, you can send it to any of theabove individuals, or directly to the IGA Secretariat,
whatever is most convenient. Please help us to become
essential reading for anyone seeking the latest
information on geothermal worldwide.
While the editorial team make every effort toensure accuracy, the opinions expressed in contributed
articles remain those of the authors and are notnecessarily those of the IGA.
Send IGA News contributions to:
IGA Secretariat, c/o Samorka
Sudurlandsbraut 48, 108 Reykjavík, Iceland
fax: +354-588-4431
e-mail: iga@samorka.is
This issue of IGA News was edited by Eduardo
Iglesias. John Garnish proofread the articles. Producedby Gestur Gíslason for the IGA Secretariat. Layout by
François Vuataz.

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I GA New s No. 74

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October - December 2008

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