IGA NEWS
Newsletter of the International Geothermal Association
Quarterly No. 108

IGA ACTIVITIES
Message from the Executive
Director & the President
Greetings to all members of the IGA and to those thatare reading this newsletter.
It is with great pleasure to address you in this new
edition of the IGA Newsletter. These have been eventful
weeks and months since our last newsletter.
In April of this year, our new Executive Director, Dr.
Marit Brommer joined the Secretariat’s team in
Bochum. She jumped right into the action with our 66th
Board of Directors meeting in Bochum in early May.
Traditionally a two-day affair, this time the meetings
were a bit different. Instead of the conventional format,
we organized a strategy meeting to discuss the strategic
framework for IGA, initiatives, must-win battles, andwhere we want to take the organization.
So prior to our one-day official board meeting, we hotly
debated and discussed the future of IGA for two days
with the help of some external consultants. The goal
was to explore how we can strengthen the role of ourmembers and the wider geothermal energy community
not only for our sector, but also in the wider context ofthe ongoing renewable energy and climate change
debate.
The meetings were intense and saw valuable andinformative discussions take place, all tailored toconclude on the vision and mission of the association,
as well as key strategic pillars for IGA for the next few
years. The overall work has just begun so we cannot
share with you just yet all that we are going to work on.
One crucial element of the discussions was the topic of
how we can improve the image of IGA and ourbranding. This was generally agreed to be a priority
item, and we are proud to announce that we have madesome significant steps to roll out a new logo and visual
identity for IGA in the coming weeks. While the logo is
only one element of our presence, the re-branding effort
will affect how we present IGA visually via our content.
So in the coming months, we will also see the re-launchof the IGA website with the goal of better presenting
IGA, its member associations, and other members, aswell as what geothermal energy has to offer in theoverall renewable energy context.
www.geothermal-energy.org

1

CONTENTS
IGA ACTIVITIES
Message from the ED and the President... 1
Meet Marit – An Interview… 2
66th BoD Meeting in Bochum, Germany… 3
Renewables 2017 Global Status Report by REN21… 4
Upcoming Events… 5

AFRICA
Kenya: More Capacity in Olkaria & Other News… 5
Rwanda: 4 Years of Geothermal Exploration… 7
Tanzania: Geothermal Strategy to Be Defined… 7
Zambia: Geothermal Feasibility Study… 8

AMERICAS
Bolivia: Approved Credit for Laguna Colorada… 8
Chile: Grant to Develop Geothermal Resources… 9
Guatemala: The Mita Geothermal Project… 9
Latin America: Geothermal EoI to the GDF… 10
Mexico: In Memoriam of Héctor Alonso-Espinosa… 10
Mexico: Exploration Permits & GEMex meeting… 11
Nicaragua: Geothermal Areas Ready for Drilling… 13
United States: Climate Policy & Large PPA… 13

ASIA / PACIFIC RIM
Indonesia: Movements in the Geothermal Sector… 16
Malaysia: Development of the First Power Plant… 18
Philippines: Improving Efficiency of Power Plants… 19

EUROPEGEOTHERMICA’s Call to Action… 19
DARLINGe Project in the Danube Region… 20
EGEC Asks for Regulatory Certainty in Europe… 21
Belgium: Insurance Scheme for Exploration… 22
Finland: Agreement for Geothermal Projects… 22
Germany: Drilling Developments in Munich Area… 22
Hungary: Agreement for Project Financing… 23
Iceland: New Projects and Agreement with Mexico… 24
The Netherlands: Geothermal Heating Project... 25
Spain: Two Direct-use Projects… 26
Switzerland: Energy Strategy and New Project…27
Turkey: Manufacture of Geothermal Turbines… 29
United Kingdom: Hot Dry Rock Project… 29

OCEANIANew Zealand: The Southern Alps and other News… 30

OTHER
Technology: Efficient Turbines, GRID… 31
Science, Climate Change, Finances, Debate… 33
July-September 2017

IGA News No. 108
IGA Vision: “Support a sustainable and prosperous

future by educating the World community in termsof the best practices and unbiased benefits ofdeveloping the utilization of Earth’s heat for both
direct use and electricity generation.”

Another important discussion point was how IGA canplay a stronger role in the representation of geothermalenergy towards the outside world, towards internationalorganizations, governments, banks and other crucial
stakeholders that we need to reach to enable growth in
our industry.
We are planning an outreach campaign to our members
over the coming months to engage further on how we
can work together to strengthen our efforts and support
each other in our common mission to attain more
visibility and support for geothermal development, bothfor electricity generation and the direct use of heat.
Funding of the planned strategic action items will
require a lot of work and time, as well as funding. So
there also several initiatives that look into how we can
improve the funding position of IGA to help achieve
our goals but also provide a concrete value propositionof our activities for our members.
IGA Mission: “We provide our members with agateway and connection to the Global Geothermal
Community and a strong united voice in the
renewable energy sphere.”
We are looking very much forward to some exciting
months ahead that will see changes to how we present
ourselves, but also on how we represent geothermalenergy in the public sphere, and as a professional
internationalorganization.
Pleasedon’thesitate to contact
us if you shouldhave any commentsor questions.
Dr. Marit
Brommer,
Executive
Director, IGA –marit.brommer@hs-bochum.deAlexander
Richter,President, IGA – iga@thinkgeoenergy.com

Meet Marit – An Interview
Marit Bromme accepted the position of Executive
Director of the International Geothermal Association in
April 2017. She is based in Bochum, Germany, and a
www.geothermal-energy.org

2
geologist with adecade of experiencein the oil and gas
industry. She isoriginally from theNetherlands,
married, and withtwo children. She
speaksfour
languages and is very
fond of her family,
winter sports, playing
the piano and goingfor an evening run.
Marit, involved inseveral Women in
Energy networks, iskeen to share her experiences and lessons learned with
the industry and she welcomes the opportunity to open
dialogues on achieving gender parity throughout all
ranks. Here is what we asked her.
What did you want to be when you grew up?
My earliest dreams, as far as I can remember, centeredon becoming a pilot. In my teenage years I started
taking flying lessons and later went on to paragliding.
Being airborne and observing our planet from above
was absolutely amazing. I tried a few times to get into
the formal pilot schools for airline carriers but had no
success. After I finished high school, I followed myother two passions, traveling and skiing, and had theopportunity for a few years to stall decisions on what I
wanted to do now that I was actually grown up. And
then I discovered geology! Instead of observing ourplanet from above, it was actually also really fun to lookat rocks close by, to appreciate the origin of mountains,
volcanoes, the shapes of the world’s coastlines and how
it all fits together. I was hooked and wanted to becomea geologist!
So what happened then?
I studied Earth Sciences in Amsterdam at the Free
University, did a PhD in Reservoir Geology at Delft
University of Technology, became a consultant in the
UK (Royal Haskoning) and then joined the oil and gas
industry in operations (Total) and R&D (Shell). My
geological career has given me the opportunity to workand live in different parts of the world. Projects I
worked on range from coastal zone management to wellsite geology on offshore rigs. My last role at Shell
concentrated on deploying new technology andimplementing new ways of working in geoscience.
What motivates you?
I love getting things done, and that can be anythingfrom painting my house to moving difficult projects tothe next stages. In addition, I am really motivated by
July-September 2017

IGA News No. 108
passionate people who love what they do and are proudof what they achieve with others. Last but not least, myfamily and friends motivate me to value the really
important matters of life.
What do you consider your greatest achievement?
I consider my greatest achievement the fact that I wasable to let go of my dreams of becoming a pilot andreplaced them with a fantastic passion for geology.
What is so great about geothermal?
Well first of all it has geo in its name so it has to begreat, right! Second, what really inspires me aboutgeothermal energy is its purity. Yes we do need certain
techniques and methods to extract heat from thesubsurface; however, the essence of geothermal energy
is very pure. I do think we should brand geothermalenergy more cleverly than many resources, and allow
them to become more visible in the renewable energy
scene. At this stage we, unfortunately, are not a very
well known player. We have a saying in Dutch thattranslates roughly to ‘unknown is unloved.’ Since wehave moved into a digital era in which it is of the utmost
importance to collect ‘likes’, we have to raise our profileand start our own collection.
What do you believe has been the key to yoursuccess?
The ability to understand what matters to you. Life
throws many challenges at you, and sometimes theycome all at once. Staying close to who you are, yourvalues and your principles, and making decisions basedon what matters to you most, is absolutely my key tosuccess.
You come from the oil and gas industry, and are
now active in geothermal. Both are male-3
dominated industries. What are your experiencesbuilding your career in a male-dominated industry?
Diversity matters, inclusion matters more. This has
always been my motto, and it is as true now as it was 20
years ago when I started studying geology. Everyorganization that shows unequal gender representation
throughout the ranks has a cultural problem.
Unconscious biases and stereotyping are the two top
reasons for inequality. There are numerous leadershipprograms to empower women, introduce ‘the rules of
the game’, make them aware on the importance of
exposure and visibility, but if the corporate culture isbased on masculine values, the ‘female talent pipeline’
will remain leaky as women will leave and findopportunities elsewhere. So for me it is clear thatorganizations need to adapt their corporate culture anddemand inclusive behavior throughout all ranks.
Any words of advice for young professionals, maleand female, entering the Industry now?
I would say to the young professionals to explore yourideas on what matters to you most, be clear about yourvision and ambitions, engage the people around you andinvolve them in your journey. Ask for a mentor, in – oroutside your organization, expose yourself, and never
ever forget to enjoy the ride.
How can you be reached?
Connect with me online via LinkedIn. Check out the
IGA website (www.geothermal-energy.org), become amember of the IGA LinkedIN and Facebook group,
follow us on Twitter #igabochum and send me an email(marit.brommer@hs-bochum.de). I look forward tohearing from you!

66th BoD Meeting in Bochum,
Germany
Katharina
Link,
GeoEnergie
SuisseThe 66th Meetingof the IGA Boardof
Directors(BoD) was held in
the International
Geothermal
Centre in Bochum(Germany) on 13th
May 2017—afteran IGA strategy
workshop.
IGA
president
Alexander Richterwww.geothermal-energy.org

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IGA News No. 108

4welcomed the IGA Board of Directors and called the66th Board Meeting to order at 9:00 am. The participants
introduced themselves, including the following Board
members: Abadi Poernomo, Albert Genter, Alexander
Richter, Andrea Blair, Andrew Sabin, Beata Kepinska,
Bjarni Bjarnason, Bruno Della Vedova, Colin Harvey,
Diego Morata, Gábor Szita, Horst Rüter, JaneBrotheridge, Juliet Newson, Kristín Vala Matthíasdóttir,
Ludvik S. Georgsson, Paul Brophy, Paul Moya, Peter
Meier, Rolf Bracke, Sadiq J. Zarrouk, Shigeto Yamada,
Surya Darma, Toshihiro Uchida, and Valentina Svalova.
Additional participants were Marit Brommer, Executive
Director, and Karolina Andersson, IGA Assistant.
The agenda included the following points: 1. Call toorder, 2. Approval of the Minutes of the IGA Board
Meetings Nos. 64 & 65, 3. Approval of the Agenda, 4.
Reports from the officers, 5. Reports from permanentcommittees and ad hoc committees, 6. Reports fromIGA Regional Branches, 7. Focused discussions on
subsequent topics: 7a. COP24 in Poland, 7b. Update on
WGC2020, MoU, preparations, timeline, 7c. Visual
identity and website – set and approve budget, 7d.
Strategy Meeting results and Next Steps, 7e. Resources
and Reserves Committee – set and approve budget, 7f.
Geothermal Sustainability Assessment Protocol - a new
approach proposed by an Icelandic initiative, 7g. IGA
Service Company, 8. Presentation/proposed date andplace for next BoD Meeting, 9. Adjournment.
The main aspects and agreements of the meeting follow.
- New strategy: The BoD discussed and approved the
new strategy and the resulting key initiatives.
- COP24: The BoD has expressed full support for
COP24 in Poland, which will take place in the lastquarter of 2018.
- Logo: The IGA logo will be redesigned to reflect the
new strategy and values.
- Geothermal Sustainability Assessment
Protocol (GSAP): The Board approved
taking the GSAP forward as a key IGA
initiative.

Director will provide the Supervisory Board a businessplan for the IGA SC.
The next BoD Meeting will take place in Santiago, Chile,
most likely at the end of November 2017. President
Alexander Richter thanked the BoD and closed the 66th
meeting at 6:00 pm.

Renewables 2017 Global
Status Report by REN21,
Launched on June 7
REN21, the Renewable Energy Policy Network for the
21st Century, is a global network composed of 16
international industry associations (the IGA amongthem), 12 international organizations, 15 NonGovernmental Organizations, 11 national governments,
six scientific and academic institutions and six members
at large. Since 2005, it has prepared and published eachyear the Global Status Report (GSR) for renewableenergy.
On June 7th, REN21 launched the 2017 edition of thisreport with the following main highlights:- Additions in installed renewable power capacity set
new records in 2016, with 161 gigawatts (GW) installed,increasing total global capacity by almost 9% over 2015,
to nearly 2017 GW. Solar PV accounted for around
47% of the capacity added, followed by wind power at
34% and hydropower at 15.5%.
- Renewables are becoming the least-cost option. Recent
deals in Denmark, Egypt, India, Mexico, Peru and theUnited Arab Emirates saw renewable electricity being
delivered at USD 0.05 per kilowatt-hour or less. This iswell below equivalent costs for fossil fuel and nuclear
generating capacity in each of these countries.

Source: Figure 12 of the 2017 GSR.

- Resources and Reserves Committee(R&R Committee): The Board
approved setting aside a budget for the
Resources and Reserves Committee towork on a World Bank proposal as aseed fund.
- IGA Service Company (IGA SC): The
supervisory board of the IGA SC willseek legal and tax advice regarding therelationshipbetweenthe
IGA(incorporated in New Zealand) and the
IGA SC (Limited Liability Company inGermany). The IGA Executive
www.geothermal-energy.org

July-September 2017

IGA News No. 108- The inherent need for ‘baseload’ is a myth. Integratinglarge shares of variable renewable generation can bedone without fossil fuel and nuclear ‘baseload’ with
sufficient flexibility in the power system – through gridinterconnections, sector coupling and enabling
technologies such as ICT, storage systems electricvehicles and heat pumps. In 2016, Denmark andGermany, for example, successfully managed peaks ofrenewable electricity of 140% and 86.3%, respectively.
- Global energy-related CO2 emissions from fossil fuels
and industry remained stable for a third year in a row
despite a 3% growth in the global economy and anincreased demand for energy. This can be attributed
primarily to the decline of coal, but also to the growth inrenewable energy capacity and to improvements inenergy efficiency.
- Innovations and breakthroughs in storage technology
increasingly will provide additional flexibility to thepower system. In 2016, about 0.8 GW of new advancedenergy storage capacity became operational, bringing theyear-end total to an estimated 6.4 GW.
- Markets for mini-grids and stand-alone systems are
evolving rapidly and Pay-As-You-Go (PAYG) businessmodels, supported by mobile technology, are exploding.
But the energy transition is not happening fast enoughto achieve the goals of the Paris Agreement:- Investments are down. Although global investment in
new renewable power and fuel capacity was roughly
double that in fossil fuels, investments in new renewableenergy installations were down 23% compared to 2015.
Investment continues to be heavily focused on wind andsolar PV, however all renewable energy technologies
need to be deployed in order to keep global warming
well below 2°C.
- Transport, heating and cooling sectors continue to lag
behind the power sector. The deployment of renewable
technologies in the heating and cooling sector remains achallenge in light of the unique and distributed nature ofthis market.
- Fossil fuel subsidies continue to impede progress.
Globally, subsidies for fossil fuels and nuclear power
continue to dramatically exceed those for renewable
technologies. By the end of 2016, more than 50
countries had committed to phasing out fossil fuelsubsidies and some reforms have occurred, but notenough. In 2014, the ratio of fossil fuel subsidies torenewable energy subsidies was 4:1. For every US$1
spent on renewables, governments spent US$4
perpetuating our dependence on fossil fuels.
Christine Lins, Executive Secretary of REN21, explains:“The world is in a race against time. The single mostimportant thing we could do to reduce CO2 emissions
quickly and cost effectively is to phase out coal andwww.geothermal-energy.org

5

UPCOMING EVENTS
5th Indonesia International Geothermal
Convention and Exhibition (IIGCE)
2-4 August 2017, Jakarta, Indonesia
Fiji Geothermal Conference
7-11 August 2017, Savusavu, Vanua Levu, Fiji
International Renewable Energy Conference
11-13 September 2017, Mexico City
German Geothermal Congress (DGK 2017)12-14 September 2017, Munich, Germany
41st GRC Annual Meeting & Expo
1-4 October 2017, Salt Lake City, Utah, U.S.
GEMex 2nd General Assembly
2-3 October 2017, Akureyri, Iceland
Curso sobre Energía Geotérmica en México
9-10 October 2017, Puebla, Mexico
New Zealand Geothermal Workshop
22-24 November 2017, Rotorua, New ZealandNote: Please check the IGA website for more
events.
speed up investments in energy efficiency andrenewables. President Trump’s withdrawal of the U.S.
from the Paris Agreement is unfortunate. But the
renewables train has already left the station and those
who ignore renewables central role in climate mitigation
risk being left behind.”
Source: REN21 Press release, www.ren21.net/gsr

AFRICA
Kenya: More Capacity in
Olkaria, the Barrier
Geothermal Complex, and theCentre of Excellence
Ground Breaking Ceremony and Commissioning of
75 MW – Late April Kenya’s President Uhuru Kenyatta
broke ground for the construction of the Olkaria V
power project that will have a capacity of 158 MW. At
the same time, the President commissioned 14 wellhead
units of 5 MW each, which will produce a total of ~75
MW of electricity. The ‘wellhead units’ allow a reduction
in time between the first drilling of a well and thegeneration of power—going from around five years toJuly-September 2017

IGA News No. 108

6

two years. This was praised by the President, whochallenged other Kenyan institutions to adopt theinnovative approach of KenGen to transform thecountry.

Valley. This volcanic complex, forming a ridge 20 kmlong and 15 km wide, consists of four, distinct, shield
volcanoes: Kang’oleyang, Kakorinya, Likaiu East andLikaiu West.

“Innovation must be the new identity of Kenyan
institutions if we are going to see the transformation
Kenyans demand,” said the President. He said his
government has a clear vision to provide sufficient,cheap, green and reliable energy for Kenya. He also said
the expansion of geothermal power production willcontribute to Kenya’s prosperity. “In commissioning
these wells, and in breaking ground for the new project,
we take a mighty step on the road to prosperity for thisnation,” said the President.

Reconnaissance surveys by the British Geological
Survey (BGS) identified strong surface hydrothermal
manifestations. Further surface studies conducted in2011 revealed a high-temperature resource area covering
60 km2 with subsurface temperatures of around 280°C
and an estimated potential of 750 MW.

Energy Cabinet Secretary, Charles Keter; the Nakuru
Governor, Kinuthia Mbugua; and the Japanese
Ambassador to Kenya also spoke at the ceremony.
Source:https://www.capitalfm.co.ke/business/2017/04/uhuru-breaks-ground-158mw-olkaria-v-power-project/
The Barrier Volcanic Complex to Be Developed The Olsuswa geothermal project in Kenya is a private
geothermal development in the country. The developer,
Olsuswa Energy Limited, is a Kenyan-based company
focused on renewable energy projects across Africa. The
company has been granted a geothermal resource
license (No.1/2016) per the Geothermal Act (1982) for
the northernmost, known geothermal prospect Barrier
Volcanic Complex (BVC) in Turkana County, Kenya.

Olsuswa Energy and their consultants, Icelandic
GeoSurvey (ISOR), plan to develop this geothermal
field. The upcoming studies include geological,
geochemical, geophysical, structural analyses and micro
seismicity. A conceptual model will be made tocharacterize the geothermal resource at the BVC andlocate the sites for the first three exploration wells.
Olsuswa Energy Limited is prepared to implement thesubsequent drilling plans it has developed. These
include accessing additional financial support,
continuing community engagement, preparing a work
plan for exploratory drilling, further project
development activities and, finally, power plantcommissioning.
Source: http://www.thinkgeoenergy.com/privateolsuswa-geothermal-project-in-kenya-to-start-earlyexploration-work/
Regional Geothermal Hub to Be Set – The regional
office for Africa of UNEP (United National
Environmental Program) will set up an African regional
geothermal hub in Kenya as a center of excellence forthe rest of the world. The African Rift Geothermal
Development Facility (ARGDF) program manager,
Meseret Zemedkun, said in late May the African
Geothermal Centre of Excellence will be set up in
Nakuru County. “Kenya will be the main hub of theAfrican region in terms of capacity building for
geothermal technology. Kenya will share their ‘bestpractices’ with the rest of the world,” she said.
The Africa Geothermal Centre of Excellence is
expected to build the capacity of young African
geothermal scientists, engineers, drillers, technicians andfinanciers to ensure secured and sustainable geothermal
development in Africa. In 2016, African countries
agreed to set up the center to be hosted by theGovernment of Kenya. A Steering Committee wasformed to be chaired by the African Union Commission
to lead and oversee the establishment of the hub.

The BVC prospect covers an area of 136 square km andis one of the geothermal prospects inside the Kenyan
Rift Valley. It is located south of Lake Turkana, theworld’s largest desert lake, popularly known as the Jade
Sea. The BVC separates Lake Turkana from the Suguta
www.geothermal-energy.org

The financial support for the geothermal center will
come in part from the Government of Iceland. In lateMay, a Partnership Agreement was officially signed by
Erik Solheim, Head of the UN Environment, and Maria
Erla Marlesdóttir, Director General for International
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IGA News No. 108
Development Cooperation, Ministry of Foreign Affairs
in Iceland. The agreement provides financial support up
to US$1 million from Iceland and represents thecontinuation of a long-term partnership to support
sustainable geothermal development in Africa. Thisfinancial support will also go toward completion of
already initiated surface exploration studies in the
project’s member countries. The cooperation is cofunded by the Nordic Development Fund.

7
Negative results would be a second shock that may evenlead the country to decide to drop similar research.
The Kalisimbi Geothermal project expected to generate
50MW of geothermal was deemed unsuccessful in 2014,
after wasting Rwf 22 billion (US$26.6 million) fromgovernment resources. The project was stalled in July
2014 following evidence indicating the lack ofgeothermal potential in the Kalisimbi area. Exploratory
activities in Kalisimbi included two exploration wells, awater supply system to the drilling sites
and access roads.
The CEO of the country’s energy body,the Rwanda Energy Group (REG), in
charge of energy utility in Rwanda, Jean
Bosco Mugiraneza, said that the power
generation
projectof“Kalisimbi
geothermal reserves was abandoned
forever but the exploration studies areunderway at other sites.”

Meseret Zemedkun witnesses the signing of the agreement by Maria
Erla Marlesdóttir and Erik Solheim.
UN Environment, through the Africa Rift Geothermal
Development Facility Project, continues to provide
technical support to African countries to build theirgeothermal exploration and development capacities.
Sources: http://www.unep.org/africa/news/unenvironment-partners-iceland-boost-geothermaldevelopment-africa, http://www.thestar.co.ke/news/2017/05/30/major-geothermal-hubin-nakuru-to-be-african-model_c1569884

Rwanda: Concluded, FourYears of Geothermal
Exploration Surveys
Rwanda is concluding a four year research project thatwill lead to exploring new geothermal zones. Two
feasibility studies launched in 2013 at a cost of US$
300,000 each are expected to lead to drilling geothermalenergy in the Western province.
In early May, Uwera Rutagarama, geothermal
development manager at Energy Development
Corporation Limited (EDCL), said “We haveundertaken surface exploration studies of the Bugarama
and Gisenyi sites in the Western Province.” The surveys
included geological, hot springs and geophysical studies
to learn if underground hot waters can be used for
power generation.
Two months before the results were to be released,
EDCL officials cannot yet confirm the outcome.
www.geothermal-energy.org

Source:http://ktpress.rw/2017/05/rwanda-torelease-new-results-on-geothermalenergy-potential/

Tanzania: The
Government to Define a
National Strategy for Develop
Geothermal Resources
Global law firm Norton Rose Fulbright has been
appointed by the Government of Tanzania, through the
Tanzania Geothermal Development Company (TGDC),
a subsidiary of the state-owned electricity supplier,
TANESCO, to formulate a strategy for thedevelopment of geothermal energy resources in
Tanzania. The initiative is funded by a grant from theStrategic Climate Fund, which is administered by theAfrican Development Bank.
The appointment entails working with the government
and its relevant institutions as well as other stakeholders
in Tanzania over the next six months (April to
September 2017) to reach a recommended legal,
institutional and regulatory framework which will bestenable the country to develop its geothermal resources.
A Government representative commented: “We see
unlocking Tanzania’s potential in geothermal energy as
key to providing a stable and renewable energy source
to power Tanzania for generations to come. As part of adiverse energy mix, it will assist Tanzania in reaching its
electrification target rate of 75% by 2035. We lookforward to working with Norton Rose Fulbright and theother consultants to make our bold ambitions for the
future of Tanzania a reality.”
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IGA News No. 108
The project team working with Norton Rose Fulbrightto develop the framework includes: Carbon Counts, a
UK energy and climate change consultancy;
GeothermEx Inc., a specialized US geothermal
consultancy; Economic Consulting Associates, a UK
economic and regulatory advisory firm; and Neema
Siwingwa, a Tanzanian development finance specialist.

8
U.S. Ambassador to Zambia, Eric Schultz, signed the
grant, on behalf of USTDA, at a ceremony at the U.S.
Embassy in Lusaka, along with Peter Vivian-Neal, CEO
of Kalahari GeoEnergy.

Source:http://www.nortonrosefulbright.com/news/147560/no
rton-rose-fulbright-advises-on-tanzania-strategy-forgeothermal-energy
It was unveiled that the government plans to start thedevelopment of geothermal resources in a zone locatedat Lake Ngozi in Mbeya in the next fiscal year. The
manager of planning and projects for TGDC, Shakiru
Kajungus, said the feasibility studies in Songwe, Mbaka
Kiejo and Ngozi had been completed. According tohim, 200 MW of geothermal energy are expected to begenerated by 2025. It is thought that the country has 50
geothermal zones with a combined geothermal potentialof 5000 MW. Kajungus said the government wasworking with foreign development partners to get more
project funding.
Source:http://allafrica.com/stories/201704120481.html

Zambia: USTDA Finances aGeothermal Feasibility Study
By mid-June, the U.S. Trade and Development Agency(USTDA) signed a grant with Kalahari GeoEnergy
Limited, a Zambian geothermal development company,
for a feasibility study supporting the development of a
10-20 MW geothermal power plant. Kalahari
GeoEnergy selected California-based Geologica
Geothermal Group to carry out the study, which will
provide technical and environmental analyses needed toadvance the project. The plant, which is expected to be
the first geothermal generation facility in Zambia, will
add new renewable energy capacity to the Zambian grid
and will expand access to reliable electricity.
“This grant is an endorsement of the work Kalahari
GeoEnergy has conducted to date, and of the Bwengwa
River geothermal resource, which we can now validate
as a source of stable sustainable power,” said Peter
Vivian-Neal, CEO of Kalahari GeoEnergy. “This typeof power source is essential for economic
development.”“USTDA is excited to support this new project, which
will expand access to reliable electricity in Zambia,” said
Lida Fitts, USTDA’s Regional Director for Sub-SaharanAfrica. “This project represents an excellent opportunityfor U.S. businesses to export technologies and services
in support of Zambia’s infrastructure goals.”
www.geothermal-energy.org

Chinyunyu Thermal Spring (Photo by Kalahari
GeoEnergy:
http://www.kalaharigeoenergy.com/media.htm#gallery)
The USTDA helps companies create U.S. jobs throughthe export of U.S. goods and services for priority
development projects in emerging economies. USTDA
links U.S. businesses to export opportunities by funding
project planning activities, pilot projects, and reverse
trade missions while creating sustainable infrastructureand economic growth in partner countries.
Source: https://www.ustda.gov/news/pressreleases/2017/ustda-creates-opportunities-us-energyindustry-zambia-1

AMERICAS
Bolivia: Approved, Credit to
Build the Laguna Colorada
Geothermal Plant
The Bolivian Parliament passed a law in early May
approving a US$542.9 million credit from Japan to build
the Laguna Colorada geothermal plant in thesoutheastern region of the country, near the border with
Chile. The Senate, controlled by the government party,
issued the regulation that must now be enacted byPresident Evo Morales.
This plant will initially generate 50 MW and later double
this amount. The project will be in charge of stateowned Empresa Nacional de Electricidad (Ende).
Technically, this will be the first power station in the
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IGA News No. 108
world to use geothermal sources at an altitude exceeding
4800 meters above sea level.
The project is part of President Evo Morales’
Administration plan to increase the country’s installed
electrical capacity and allow the beginning of exporting
energy to neighboring countries. Bolivia generates a
total 1900 MW from diverse energy sources to meetdomestic demand, but is considering raising this amountto 8000-10,000 MW in order to export energy.
Source: http://www.energia16.com/bolivia-approves542-9-million-credit-to-build-geothermalplant/?lang=en

Chile: World Bank Grant toDevelop Geothermal
Resources
The World Bank Board of Executive Directors
approved a US$1.78 million Clean Technology Fund
(CTF) Grant to “strengthen the Chilean Ministry ofEnergy’s capacity to further develop the country’s
geothermal sector and improve its energy security.” The
World Bank announced “… the grant will contribute to
Chile’s Energy Agenda (Agenda de Energía. Un Desafío
País, Progreso para Todos) and the Energy Policy 2050-aimed to boost the use of non-conventional renewableenergy (NCRE) and reduce electricity costs. Chile’s
abundant geothermal potential provides a good
renewable energy option to further diversify thecountry’s power generation mix and reduce pricevolatility.”

9
that was owned by Goldcorp’s indirect, wholly owned
subsidiary, Geotermia Oriental de Guatemala, SA(GOG). Thus, Bluestone has acquired all of the issued
and outstanding shares of Entre Mares and a 100%interest in the Cerro Blanco Project and all of the issued
and outstanding shares of Goldcorp NRG Limited(which owns GOG) and, consequently, a 100% interestin the Mita Geothermal Project.
Pursuant to the terms of the transaction, Goldcorp
received approximately US$20 million in cash (which
includes the US$2 million non-refundable deposit for
the Marlin assets), a 1% net smelter return royalty on
production, the right to receive 3,099,160 commonshares of Bluestone (which will represent 4.9% ofBluestone’s issued and outstanding common shares),and 258,805 common share purchase warrants.
Goldcorp will also receive an additional US$15 million
in cash within 6 months of the commencement ofcommercial production at Cerro Blanco.
The Mita geothermal system is located approximately 80
km east of Guatemala City, less than 10 km from theborder with El Salvador. It is a moderate temperaturegeothermal system discovered in 1997 during gold
exploration in southeastern Guatemala. This system isassociated with bimodal basalt-rhyolite volcanism, andoccurs alongside (and overlapping with) the Cerro
Blanco epithermal gold deposit. Fluids at temperatures
up to 180°C were encountered in 150-400 m deep gold
exploration wells.

Among other elements that justify this grant, the WorldBank stated “the Government of Chile has made aconcerted effort to develop its nascent geothermalenergy industry.” The bank added that “despite what
appeared to be a promising start, a number of issues
have stymied exploration investments.”
Source: http://www.energia16.com/wb-approves-1-78million-grant-to-help-develop-geothermal-energy-inchile/?lang=en

Guatemala: The Mita
Geothermal Project, Acquiredby Bluestone Resources
Vancouver-based Bluestone Resources Inc. hasannounced that the acquisition is closed of the Cerro
Blanco Project and the Mita Geothermal Project locatedin Guatemala from Goldcorp Inc., effective May 31,
2017. The Canadian firm acquired 100% of the Cerro
Blanco gold project located in Guatemala, which was
owned by Goldcorp’s indirect, wholly owned subsidiary
Entre Mares de Guatemala, SA, and 100% the Mita
Geothermal project located adjacently to Cerro Blancowww.geothermal-energy.org

Tectonic setting of the Mita Geothermal System insouthern Guatemala (after Monterroso andKulhánek, 2003).
Geothermometry on hot springs and well fluids
indicated most fluids were derived from the shallow
180°C reservoir, but that deep temperatures were atleast 220°C. The shallow reservoir appears to be a
July-September 2017

IGA News No. 108
localized outflow from a deeper hotter system. A
comprehensive MT resistivity survey suggested that the
deeper reservoir was to the northeast of Cerro Blanco,and gravity surveys indicated some very strong
structural control on deep permeability. Four, 10001500 m deep slim wells were drilled in 2008-2009 to
confirm the nature of the deep reservoir. It is planned todevelop the geothermal system to provide geothermal
power for the proposed gold mine and surplus power
for the Guatemalan national grid.
Sources: https://www.geothermalenergy.org/pdf/IGAstandard/WGC/2010/1119.pdf,
https://globenewswire.com/newsrelease/2017/05/31/1005004/0/en/BluestoneCompletes-Acquisition-of-the-Cerro-Blanco-Gold-andMita-Geothermal-Projects-from-Goldcorp.html

Latin America: 25 Geothermal
EoI Submitted to the GDF
Jens Wirth, Senior Project Manager at KfW, sharedresults of the first call of the Geothermal Development
Facility (GDF) in his panel called “Participating in Risk
Mitigation” at the GEOLAC conference held in Mexico
City in late April. The GDF was set up as the first multidonor climate initiative to promote geothermal energyin Latin America. With the first call for proposals
concluded, the facility is now operational.

10- Honduras: 2 projects (1 for surface studies, 1 for
exploratory drilling)- Nicaragua: 1 project for surface studies- Peru: 4 projects (2 for surface studies, 2 for
exploratory drilling)
The GDF program will share more details at a special
workshop in late April and hopes to report on themlater.
Source: http://newenergyevents.com/chile-guatemalaand-peru-lead-the/Mexico: In Memoriam of
Héctor Alonso-Espinosa
Luis C.A. Gutiérrez-Negrín & Marcelo J.
Lippmann, IGA Information
Committee.
Héctor Alonso-Espinosa passed away on May 19 inMorelia, Michoacán, Mexico. He was one of thegeothermal energy pioneers in Mexico, the first head of
the geothermal division of Mexico’s Comisión Federal
de Electricidad (CFE), and one of eight members of theInternational Working Group that founded the IGA, as
well as a member of its first Board of Directors.

Wirth also shared details of the expressions of interest
received, which are being evaluated. Qualified technicalproposals will then be invited. The program received 25
expressions of interest (projects) from nine of the 10participating countries. These are Bolivia, Chile,
Colombia, Costa Rica, Ecuador, El Salvador,
Guatemala, Honduras, Nicaragua and Peru. El Salvador
expressed no interest in the initial round.
Entities seeking support are 22 private sector players(88%), seven public companies and one public-private
project. About 56%, or 14 projects, have sought funding
for surface studies and 44% (or 11 projects) have sought
funding for exploratory drilling.
Here is the list by country:- Bolivia: 2 projects (one each for surface studies andexploratory drilling)- Chile: 8 projects (5 for surface studies and 3 for
exploratory drilling)- Colombia: 2 projects for surface studies- Costa Rica: 1 project for surface studies- Ecuador: 1 project for surface studies- Guatemala: 4 projects (2 for surface studies, 2 for
exploratory drilling)www.geothermal-energy.org

Héctor was born in the Mexican city of Puebla in June
1936. He received a Geology Degree from UNAM’s
Engineering School in 1959, and he completed
geothermal courses in Larderello, Italy, and Wairakei,
New Zealand in 1965. He joined CFE in 1958 as a field
geologist and was a consultant to the former
July-September 2017

IGA News No. 108
Geothermal Energy Commission of Mexico between
1958 and 1960. In 1964-1965 he was in charge of
exploratory studies at the Cerro Prieto geothermal field,
and between 1968 and1976 was a geothermal consultant
to CFE, as well as an officer (1969-1974) and TechnicalSub-director (1968-1976) of the then CETENAL(Commission to Study Mexico’s Territory; currently the
INEGI: the National Institute for Geography andStatistics).
In 1977, Héctor was appointed CFE’s Executive
Coordinator for Cerro Prieto, which at that time was the
only geothermal field in operation in Mexico, with an
installed capacity of 75 MW. Between 1982 and 1989, he
was the first head of the newly created Gerencia de
Proyectos Geotermoeléctricos (GPP) of CFE, thedivision in charge of geothermal-electric development in
Mexico. Under his executive direction, Units 3, 4 and 5of CP-I (105 MW), CP-II and CP-III (220 MW each) at
Cerro Prieto, and Units 6 (5 MW) and 7 (50 MW) at theLos Azufres geothermal field were designed andinstalled, totaling 600 MW, representing more than 60%of the current geothermal-electric installed capacity inthe country (Units 3 and 4 of CP-I have been
dismantled).
During his GPG tenure, the regional geothermal
exploration of almost all Mexican territory, as well as
several earth-science surveys in promising zones, werecarried out. In addition, several exploration-production
wells were drilled at Los Humeros, Cerritos Colorados,
Las Tres Vírgenes and other geothermal fields andzones.
Between 1989 and 1996, after his retirementfrom CFE, Héctor was a consultant for the
Mexican EPN Group, assessing possible
geothermal
developments
in several
countries of Central and South America. He
became a partner of the consulting company
Geocónsul, SA de CV; since 1998 he waspresident of the company. He was also a
consultant for the geothermal division of
CFE between 2003 and 2006, and for thecompany Energy Forever during 2015.
In 1973-1974, Héctor Alonso was the Vice
President of the Sociedad Geológica
Mexicana (SGM, the Mexican GeologicalSociety) and in 1975-1976, Vice President of
the Unión Mexicana de Asociaciones deIngeniería (UMAI, Mexican Union ofEngineering Associations). In 1982, he received thePremio Nacional de Ingeniería Geológica (theGeological Engineering National Award). In 1983, he
was president of the sixth national convention of theSGM. Since 1984 he was member of the Academia
Mexicana de Ingeniería (Mexican Academy ofEngineering). He was also member of IGA’s first Board
www.geothermal-energy.org

11of Directors (1989-1992) and member of the 1987-1990
Board of the Directors of the Geothermal Resources
Council. He received in 2005 the Premio Pathé of theAsociación Geotérmica Mexicana (AGM, the Mexican
Geothermal Association), and he received a special
recognition award for being “one of the eight promotersand first founders of the IGA” from the IGA during an
event held at the 2015 World Geothermal Congress.
Héctor Alonso is survived by his wife, Griselda, his sonsand daughters Héctor, Fabiola, Mónica, Erika andCésar, and his grandchildren. He will be missed not only
by his family, but also by the geothermal community in
Mexico and by his many friends and colleagues,
worldwide.

Mexico: Three New
Geothermal Exploration
Permits, and Meeting of
GEMex Project
SENER Grants Three New Exploration Permits Mexico’s Ministry of Energy (SENER) has issued three
exploration permits to ENGIE, a global energy
company, and Reykjavik Geothermal, an Icelandic
geothermal development company. These permits
authorize their holders to spend three years exploring
geothermal resources located in three zones, eachmeasuring 150 km2, at Sangangüey (in the state ofNayarit) and at Cerro Pinto and Las Derrumbadas (inthe state of Puebla).
Location of the three areas granted.

This major step forward in the development ofgeothermal energy in Mexico follows the signature of acooperation agreement on December 2015 (between
ENGIE, through its wholly owned subsidiary Storengy,
and Reykjavik Geothermal) geared towards obtaining
and jointly developing Mexico’s concessions andgeothermal exploration permits.
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IGA News No. 108

12

Both efficient and economical, geothermal energy is arenewable, non-intermittent and eco-friendly source ofenergy that uses heat from deep underground forheating, power generation and even air-conditioning
systems. It is the main activity of Reykjavik Geothermaland one of the components of the energy transition inwhich ENGIE intends to become a world leader.
ENGIE is a leading producer and supplier in Europe ofgeothermal energy for the heating and cooling ofresidential or commercial facilities, using various
geothermal sources.
The Mexican Energy Reform has effectively opened up
the electricity market and is encouraging private
investors to participate in power generation. SENER,
the Mexican Development Bank Nacional Financiera(NAFIN), and the Inter-American Development Bank
(IDB) jointly backed the development of a program
designed to curb the risks of exploration. This has
played a key role in attracting private developers and will
be a key element in helping the various actors to
overcome the barrier to exploration in the domain ofgeothermal development.
“We are very confident regarding the potential of thoseareas, in order to develop carbon-free projects at theheart of our strategy,” stated Cécile Prévieu, CEO ofStorengy.
“With these three licenses granted, Reykjavik
Geothermal reinforces its position in the Mexican
geothermal market,” said Reykjavik Geothermal CEO,
Gudmundur Thoroddsson.
Efraín Villanueva Arcos, General Director of Clean
Energies of SENER, said, “Granting these exploration
permits to a partnership between France and Icelandmarks a major step in the implementation of geothermalenergy reform—they are the first, 100% foreigncapitalized companies to invest in the Mexican
geothermal industry.”Thankstotheircomplementary knowhow, ENGIE, throughits subsidiary Storengy,
andReykjavik
Geothermal will jointly
continuetheexploration
programfor each of the threepermitted projects.

First Technical Meeting of the GEMex
Consortium, and Installation of its BoD - On 2nd
May 2017, the technical leaders and those responsible
for the Work Packages (WP) and the main tasks of
Project GEMex’s Mexican consortium gathered inMorelia, Mexico, for their first meeting at Michoacán
University’s Cultural Center.
The event was officially inaugurated by the thenscientific research coordinator of Michoacán University(UMSNH), Dr. Raúl Cárdenas-Navarro, who was
accompanied by the Technical Leader of the project in
Mexico, Dr. Aída López-Hernández, and the director of
the UMSNH Civil Engineering Faculty, M.A. Wilfrido
Martínez-Molina, among others. Aída López welcomed
the participants and explained the objectives andexpected outcomes of the meeting, Wilfrido Martínez
stressed the relevance of the project for the Universityof Michoacán, and Raúl Navarro declared the meeting
officially open on behalf of the Rector of UMSNH, Dr.
Medardo Serna-González. Later on, the Rector
informally welcomed and greeted the participants.
The project’s Mexican consortium is composed of three
distinct units of the National University: theGeophysical Institute headquartered in Mexico City, theGeosciences Center of Juriquilla located in Querétaro,
and the National School of High Studies, Morelia
campus. Other partners are the scientific research andhigh education center of Ensenada (CICESE), theNational Institute for Electricity and Clean Energy(INEEL), headquartered in Cuernavaca, two privatecompanies (Geominco, based in Querétaro, and JL
Energía, based in Morelia) and UMSNH, which is theleader. The project is funded by the feral government
through the Energetic Sustainability Fund (FSE).
The administrative procedures of the FSE require that
the UMSNH negotiate and sign a specific agreementwith each one of the consortium partners; theseView of the first meeting of the GEMex’s Mexican Board (Photo by UMSNH)

Source:http://www.engie.com/en/journalists/pressreleases/mexicanministry-energygeothermalexploration-permits/
www.geothermal-energy.org

July-September 2017

IGA News No. 108
agreements include the specific activities anddeliverables for each of the stages of the project as wellas the economic resources broken down into humanresources, trip expenses, operation expenses, external
services, intellectual property related expenses,
equipment, and scholarship fees.
Since the original budget of each of the WPs and thetasks for the Mexican parts of the project had to be rearranged to include a stimulation test in one of the
exploration wells drilled by CFE at the Acoculco
geothermal zone some time ago, the re-negotiation andsigning of the specific agreements has experienced asignificant delay. That was explained in detail by Aída
López at the first meeting of the Board of Directors(BoD) held after the technical meeting during theevening of May 2nd.
The GEMex BoD of the Mexican consortium iscomposed of Aída López, President; Julio VargasMedina (WP2); Luis C.A. Gutiérrez-Negrín (WP3);
Víctor Hugo Garduño-Monroy (WP4); Claudia ArangoGalván (WP5); Alfonso Aragón-Aguilar (WP6); Abel
Hernández-Ochoa (WP7); Eduardo González-Partida(WP8); Zayre González-Acevedo (WP9); and José
Manuel Romo-Jones (CeMIE-Geo). All but the latterparticipated in this first meeting.
The BoD approved re-structuring the WP4 into ninetasks, and Aída López confirmed that the starting dateof the Mexican side of the project is 31 st January 2017.
Thus all expenses after that date can be reimbursed
when the funds are distributed (Note prepared by Luis
C.A. Gutiérrez Negrín).

Nicaragua: Seven Potential
Geothermal Areas Ready for
Exploratory DrillingWith large private and public investments and the
support of the World Bank and the Inter American
Development Bank (IDB), Nicaragua is ready to takeadvantage of its high renewable energy potential. With apotential of more than 2000 MW, Nicaragua is one of
the most attractive countries in Central America when it
comes to investment into geothermal energy
development.
In 2014, the Law for the Exploration and Exploitation of
Geothermal Resources (Law 443) was approved, one of themost modern in the region. An attractive policy of
incentives and tax exemptions for the introduction ofequipment and implementation of new projects in the
renewable energy sector is being implemented.
The President of the Nicaraguan Electricity Company(ENEL), Ernesto Martínez Tiffer, said in mid-April that
there are currently two geothermal plants operating andwww.geothermal-energy.org

13
progress is being made in the study and drilling forseven new projects in the western part of the country.
The Geothermal Master Plan of Nicaragua has
identified twelve areas of geothermal interest locatedalong the Pacific Volcanic Range: Cosigüina Volcano,Casita-San Cristóbal Volcano, Mombacho, Apoyo
Caldera, Masaya Caldera, Managua-Chiltepe, Telica
Volcano-El Ñajo, San Jacinto-Tizate, El Hoyo-Monte
Galán, Momotombo Volcano, Tipitapa and Isla deOmetepe.
“Geothermal energy continues in Nicaragua. We have
two geothermal fields in operation: Momotombo and
San Jacinto Tizate, seven ready to be explored(beginning of drilling): Cosigüina, Casitas-San Cristobal,
El Hoyo-Monte Galán, Caldera de Masaya, Caldera deApoyo, Mombacho and Península de Chiltepe,”Martínez Tiffer added.
Source: http://newenergyevents.com/nicaragua/

United States: Deep Changes
in Climate Policy, and a Large
PPA Geothermal Contract
Obama’s Climate Policies to Be Dismantled - Late
March, President Trump signed an executive orderdirecting his administration to begin undoing several
more of the Obama administration’s climate change
policies. The order’s most prominent target is the Clean
Power Plan, which required states to meet individualcarbon emission reduction goals and is a key policy in
the U.S. effort to meet its obligations under the 2015
Paris Climate Agreement. “My administration is putting
an end to the war on coal,” said Trump at the signing of
the order at EPA (Environmental Protection Agency)
headquarters. The order instructs federal regulators tostop using the “social cost of carbon” in their economic
analyses of future environmental rules. Trump’s
signature also lifted a ban on coal leasing on federal
lands, halted rules limiting methane leaks from oil andgas facilities, and rescinded multiple presidential memos
meant to integrate climate action across numerous
federal agencies. The EPA’s underlying endangerment
finding naming greenhouse gas emissions a threat to
public health and U.S. involvement in the Paris
Agreement both went unaddressed in the order, but are
viewed as major targets by the administration.
Source: Geothermal Energy Association Weekly No. 56.
EPA Pulls Plug on Effluent Limitations Rule - The
U.S. top environmental official Scott Pruitt has issued
an administrative stay to delay compliance deadlines
limiting effluence from steam electric power generation.
The EPA will review and reconsider revisions on
effluent limitations made under the Clean Water Act
July-September 2017

IGA News No. 108

14

under the Obama administration in 2015, according toan EPA press release.

rule?utm_medium=eNL&utm_campaign=PG_NEWS&utm_content=214475&utm_source=2017_04_18

The rule was the first federal limit on the levels of
metals in wastewater discharge from steam-electrical
power plants. Plants had been expected to comply withthe regulations between 2018 and 2023 as the owners
renew Clean Water Act permits.

Changes in the DOE Website - The Energy
Department has changed its website to cut down on
Obama-era language touting renewable energy sources
as a climate-friendly replacement for fossil fuels.
Whereas the site formerly touted technologies such as
wind, solar and geothermal energy as a replacement forsources such as coal, oil and natural gas, thedepartment’s website now focuses on renewableenergy’s potential to create jobs.

The statement issued by the EPA on April 13 said therule has been estimated to cost US$480 million per year
and has a reported average cost of US$1.2 billion peryear in the first five years of compliance.
EPA Administrator Scott Pruitt stated, “This action isanother example of the EPA implementation of
President Trump’s vision of being good stewards of our
natural resources, while not developing regulations thathurt our economy and kill jobs.”
The release said the administrative stay will last as longas litigation is ongoing.
The Utility Water Group had petitioned the agency
through court to reconsider the rule. The ad hoc groupof 163 energy companies claims the rule would cause
job loss due to the excessive cost of compliance.

With the Trump administration deemphasizing climatechange and looking to promote climate-friendly andcarbon-intensive energy sources —an agenda thatcoincides with a broad attempt to eliminate regulations
on fossil fuels and particularly on coal— the priorities
outlined on these Web pages have been shifting since
the inauguration. Together, the changes collectively
downplay the climate benefits of each form oftechnology and distance the agency from the idea thatthey might be used to reduce dependence on fossil
fuels—emphasizing instead their economic advantages.
It’s a move that’s well in line with the Trumpadministration’s
generally dismissive
attitude toward theissueofclimatechange.

Multipleclimaterelated
reports
disappeared from theState
Department
website in January
2017. And in thesamemonth,
employees of theEnvironmental
Protection
Agency(EPA) indicated that
the
Trump
administration
wasplanning to remove
certain sections on
climate change from
Cartoon by David Horsey, ©Los Angeles Times, Digital Version, June 7, 2017.
the agency’s website,
althoughthe“Some of our nation’s largest job producers haveadministration later backed away from those plans.
objected to this rule, saying the requirements set by the
Source:Obama administration are not economically or
https://www.washingtonpost.com/news/energytechnologically feasible within the proscribed timeenvironment/wp/2017/04/21/the-energy-departmentframe,” said Pruitt. “It is in the public’s best interest to
is-changing-its-website-to-reflect-trumps-climatereconsider the rule and assess the wide-ranging andagenda/sweeping objections that the agency received.”
Source: http://www.energycentral.com/news/epapulls-plug-effluent-limitationswww.geothermal-energy.org

Highly Reduced Budget Request for GeothermalTechnologies - The President’s Budget for Fiscal Year
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IGA News No. 108

15(FY) 2018 requests US$28.0 billion for the Departmentof Energy (DOE) to make key investments in scienceand technology innovation that support its missions in
nuclear security, basic scientific research, energy
innovation and security, and environmental cleanup.
This request is only $1.6 billion (5.4%) less than the FY
2016 enacted level of US$29.6 billion.
However, the FY 2018 request provides US$2.2 billion
for energy and related programs, which is US$2.4 billion
below the FY 2016 enacted level, i.e. a cut by more than
50%. Within these programs is the Energy Efficiency
and Renewable Energy (EERE) program, whose
resources are requested to be cut by 68% as the budget
request targets US$636 million—i.e. US$1.4 billion
below the FY 2016 enacted level. EERE focuses on
early stage R&D to support American energy
independence and domestic job-growth.
The Geothermal Technologies Office (GTO) is part of
the EERE program. The budget provides only US$12.5
million in FY 2018 for the GTO, which is US$58.5
million below the FY 2016 enacted level—representing
an astonishing slash of 82%. The main GTO activity is
the Enhanced Geothermal Systems (EGS) collaborative
effort, bringing together National Laboratory-led teams,
academia, and industry to conduct early-stage R&D to
explore the fundamental relationships between
seismicity, stress state, and permeability to validate andverify models and to provide feedback to incorporate
into the next stage of EGS research. A comparison of
the authorized budget for FY 2016 and the requested
budget for FY 2018 is presented in the following table:
Program
EGS
Hydrothermal
Low Temperature& Co-produced
System Analysis
NREL Site
Total GTOFY 2016
Enacted
45.0
13.8
8.0
3.7
0.5
71.0

FY 2018
Request
5.4
6.1
0
1.0
0
12.5

severely limit the ability to make meaningful geothermalenergy advancements in the United States.”
Source: Statement by the Geothermal Energy Association on the
Release of the FY18 DOE Budget, by Karl Gawell.
Trump Withdraws the U.S. from the Paris Climate
Agreement – As expected, on 1st June President
Donald Trump announced the U.S. will withdraw fromthe Paris Accord, so fulfilling his “solemn duty toprotect America and its citizens”. He characterized theParis agreement as a deal that aimed to hobble,
disadvantage and impoverish the U.S., and that it would
cost the country US$3 trillion in lost GDP and 6.5
million jobs, while rival economies like China and India
were treated more favorably. “We don’t want otherleaders and other countries laughing at us anymore –and
they won’t be”, he added amid the applause of thepeople gathered in the White House. But the “otherleaders”, like Emmanuel Macron (France), Angela
Merkel (Germany), Paolo Gentiloni (Italy), Jean-Claude
Junker (European Commission), Antonio Guterres(UN), Narendra Modi (India) Taro Aso (Japan), Justin
Trudeau (Canada), and even Vladimir Putin (Russia,
who said that the U.S. should not abandon the Paris
accord, but he wouldn’t judge Trump), were notlaughing at the U.S. but regretting the decision and its
probable consequences: the UN World MeteorologicalOrganization estimated that, in the worst scenario, theU.S. pullout could add 0.3°C to global temperatures by
the end of the century.
The formal withdrawal of the U.S. will take time. Under
the agreement, a nation seeking to leave the pact can
only give notice three years after the agreement fromthe date it entered into force. The process of leaving
then takes another year, meaning it would not becomplete until just weeks after the U.S. presidential
election in 2020.
Source: http://www.bbc.com/news/world-us-canada40128431?ocid=global_bbccom_email_01062017_top+
news+stories

Figures in US$ million.
Source: https://energy.gov/cfo/downloads/fy-2018budget-justification
The Geothermal Energy Association (GEA) stated,“The information on DOE’s proposed FY18 budget for
geothermal research paints a bleak picture and it cuts
the DOE geothermal research program to the bone…
The DOE GTP has established a thoughtful andbalanced R&D program that targets specific near-termand long-term opportunities for geothermal tocontribute to our national energy security and economic
growth. In contrast, the proposed budget would
www.geothermal-energy.org

150-MW PPA Contract at US$75.50 per MWh in
California - Ormat Technologies Inc. has signed the
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IGA News No. 108

16biggest electricity contract in its history. The contract islikely to amount US$95 million a year, if fully exercised.

ASIA/PACIFIC RIM

The sale of electricity to the Southern California PublicPower Authority (SCPPA) under terms of the contract
will begin in the fourth quarter of this year, and theentire portfolio is slated to be connected to the grid by
the end of 2022. SCPPA will sell the entire output to theLos Angeles Department of Water and Power.

Indonesia: Movements in the
Geothermal Sector

The volume of the contract is 150 MW, with aminimum of 135 MW and a maximum potential of 185
MW. The contract is for 26 years and will expire at theend of 2043. The contract bears a fixed tariff of
US$75.50 per megawatt-hour.
“We are excited to receive final approval for the firstcontract of its kind for a portfolio of assets with aunique structure, which supports our long-term growthplans for expanding our geothermal business in the US,”said Ormat CEO, Isaac Angel. “This contract will
enable us to both construct several new projects
simultaneously and ensure stable activity for several
existing geothermal power stations. We are delighted tohave been selected by the SCPPA for the third time, andwe very much appreciate their confidence in Ormat.”

Pertamina Ready to Take over the Ciremai
Geothermal Area - The Managing Director of
Pertamina Geothermal Energy (PGE), Irfan Zainuddin,
said in mid-April his company is ready to manage thegeothermal working area of Ciremai in Kuningan
Regency, which has been returned by Chevron to thecentral government.
PGE had prepared a series of work programs to manage
the natural resources located in forest conservation
areas. “We’ve done some early research for geothermal
development at Ciremai. Nevertheless, work will have to
be extended. The point is that we are ready to take overthe project,” Irfan said.
Existing studies indicate a geothermal power generation
capacity of 55 MW that could fuel the electricity
demand of about 110,000 households. “But that’s only
an early indication, the resource could present a larger
or smaller potential,” he said.
Planned development would ensure the protection of
the forest conservation area by only requiring an area of
26 hectares at an early stage. When operating, it would
only take about 5×6 meters for the placement of thewellhead. Development of a geothermal project would
require a protection of the surroundings that could bemade “greener than before utilization.”
According to Irfan, geothermal activities could also help
develop tourism, such as visits to the Kamojang crateror the Ulu-ulu area, Lampung—currently a pilot projectof Pertamina in cooperation with Indonesia’s Ministryof Tourism. With its experience in social development,
Pertamina could solve some of the challenges faced by
the government and Chevron.

Isaac Angel, Ormat CEO. Photo: Eyal Izhar, Ormat.

Source: http://www.thinkgeoenergy.com/pertaminaready-to-take-over-development-of-ciremai-geothermalproject-indonesia/

Los Angeles Mayor Eric Garcetti sent an implicitly
critical message to the White House, following President
Donald Trump’s decision to withdraw from the Paris
Agreement to combat global warming. Garcetti said, “I
promised Angelenos we would kick L.A.’s dependence
on coal, and projects like this are exactly how we’ll doit… Washington may be burying its head in the sand -but by embracing geothermal energy and otherrenewables, we’re showing that cities can, and will,continue to lead the fight against climate change.”

PGE Completes Geothermal Units in Lampung – It
was also unveiled that PGE has completed thedevelopment of Units 3 and 4 of the Ulubelu
geothermal power plant in Lampung, with a total
capacity of 2 x 55 MW. Unit 3 started commercial
operations in July 2016 and Unit 4 in March 2017. The
new units have a total investment value of US$397
million.

Source: http://www.globes.co.il/en/article-ormatawarded-95m-per-year-california-deal-1001191105
www.geothermal-energy.org

Meanwhile, Units 1 and 2 of the Ulubelu power plant,
operated by the state-owned electricity firm PLN, have a
total capacity of 2 x 55 MW. PGE only supplies thegeothermal energy to fuel these units.
July-September 2017

IGA News No. 108“In total, the Ulubelu plant now generates 220 MW ofelectricity, or 25 percent of the electrical demand in
Lampung,” said PGE’s general manager for the Ulubelu
region, Dirgo Rahayu.
At present, PGE contributes around 35 percent of theenergy produced by all existing geothermal power plants
in Indonesia, which have a combined capacity of 1698.5
MW.
By the end of 2017, the government has targeted anincrease in total capacity of 1858.5 MW with thecompletion of three other facilities: the Sarulla Unit II
plant (110 MW) and the Sorik Merapi Modular Unit I
plant (20 MW) in North Sumatra, and the Karaha Bodas
plant (30 MW) in West Java. Indonesia aims to produce
7200 MW from geothermal power plants by 2025, or 3.8
percent of the targeted 23 percent of the national energy
mix from renewable energy sources.
Source:http://www.thejakartapost.com/news/2017/0
6/16/pertamina-completes-us397-milliongeothermal-units-in-lampung.html

17
Business Agreement with the U.S. - Indonesia andthe U.S. signed nine business agreements following thevisit by U.S. Vice President Mike Pence to the country
from April 19 through 21. One agreement regards
cooperation between PLN and Halliburton for thedevelopment of the geothermal power plant in Tulehu,
Ambon, and long-term strategy for the development ofgeothermal energy. An additional announcement had
been made regarding the cooperation between PLN and
Ormat Technologies for the conclusion of the 3 x 110
MW PLTP (geothermal plant) Sarulla with aninvestment of around US$1.7 billion, out of which
US$260 million would come from Ormat. PLTP Sarulla
Unit I has been operated commercially since March2016. It will be the biggest in the world and the mostefficient in Indonesia.
Source:http://www.antaranews.com/en/news/110567/ri-ussign-nine-business-agreements

Acquisition of Chevron’s Indonesia
Geothermal Assets Is Completed - A
consortium led by Star Energy, a utility
subsidiary of Indonesia’s largest petrochemicalgroup, Barito Pacific, has completed the US$2.3
billion acquisition of two geothermal power
plants from Chevron. The transaction is part ofa US$3 billion takeover of three Chevron
geothermal assets in Indonesia and thePhilippines.
Chevron closed the deal for its Indonesian
assets on March 31. For the acquisition, Star
Chevron operators. Photo by Agung Pambudhy, taken from Detik
Energy teamed up with AC Energy Holdings,
Finance.
Inc. —a unit of Philippine banking andproperty conglomerate Ayala Group— and Thailand’s
New Regulation for Geothermal Financing - The
Electricity Generating Public Company (EGCO). The
Finance Ministry recently issued a new ministerial
joint venture company is Star Energy Geothermal
decree regulating the management of funds for the(Salak-Darajat) B.V., from which Star Energy has 68.31
geothermal sector by the state-owned infrastructure
percent stake, with AC Energy controlling 19.8 percent
financing company, PT Sarana Multi Infrastruktur
and EGCO 11.89 percent.
(SMI). The new decree stipulates SMI will be able to
The consortium and Chevron signed a share sale andpurchase agreement for the deal on December 22, 2016.
The geothermal power plants sold to Star Energy
Geothermal consortium are a 370 MW power plant inMount Salak in Bogor, West Java, and a 240 MW power
plant in Darajat in Garut, West Java, both in Indonesia.

supply funds to be used for loans, capital or exploration
activities to compile data.

The consortium will also buy from Chevron a 40
percent stake in 326 MW Tiwi Makban geothermal plantin the Philippines. The closing is expected to take placeby the end of 2017.

“For loans or capital, SMI will supply the funds basedon a business corporation scheme with SMI. Meanwhile,[funds] for geothermal data and information will bebased on assignments by the Finance Ministry,” a press
statement said. SMI’s funding is expected to help
minimize the risks that come with the large investments
needed during the exploratory stage, which has led to alack of eagerness from prospective investors.

Source: http://jakartaglobe.id/business/star-energycloses-deal-chevrons-salak-darajat-geothermal-plants/

The government hopes the funds will help with new
discoveries, which will eventually increase the use ofwww.geothermal-energy.org

July-September 2017

IGA News No. 108
geothermal for electricity generation. Indonesia isestimated to have 29 gigawatts of geothermal potential.
However, it still operates geothermal power plants withan installed capacity of 1698.5 MW, but aims to increase
it to 1858.5 MW by the end of the year.
Source:http://www.thejakartapost.com/news/2017/05/31/ne
w-regulation-opens-way-for-geothermal-sectorsinfrastructure-financing.html
PLN Re-starts Tulehu Project - Indonesian state
power utility PLN has launched the work on the Tulehu
geothermal power project, located in Suli and Tulehu in
the Central Maluku Regency in Maluku Province. It is
expected that the plant will be operational andcommence commercial operation in 2019, with acapacity of 20 MW in two 10 MW units.
The resources in the Tulehu geothermal working area
are estimated at 60 MW. The number of geothermal
wells to be drilled consists of four wells –three
production wells and one injection well. Engineering
Drilling and Supervision Drilling is conducted by
WestJec-Connusa Energindo Consultant, while thedrilling of the wells is conducted by PT Halliburton
LoggingServices
Indonesia in the form
of
Full
IPM
(Integrated
Project
Management)
contract. The cost forthedrillingisestimated at US$31
million and is fundedby PLN and JICA.
The
project
was
initially launched in
2010, but is only
kicking off now due
to lack of funding orloans since then. Landacquisition issues werealso a problem.

18
Tawau Green Energy Sdn Bhd (TGE) has announced
that the company is on track to develop Malaysia’s firstgeothermal power plant project in Tawau, Sabah, in
2019. TGE has received all requisite approvals todevelop, construct, operate and maintain a geothermal
power plant, exporting 30MW to the Sabah Grid, undera 21-year renewable energy power purchase agreementwith Sabah Electricity Sdn Bhd at a feed-in tariff of RM
0.45 per kWh (around US$0.10/kWh).
The approvals included land lease agreements with the
Sabah Forestry Department and Sabah Parks, the lands
in which the project areas are located, said Andrew
Amaladoss of TGE project development. TGE has
undertaken extensive subsurface studies, including
geology, geophysics, geochemistry and LiDAR (lightdetection and ranging) surveys. “The outcomes from allthese surveys were integrated and analyzed by reputable
geothermal consultants to indicate that sevenproduction wells and four injection wells would be
required to support the export capacity of 30MW…
There is also an indication that the overall potential of
the Apas Kiri geothermal reservoir could exceed 70
MW,” he said.
Amaladoss addedthat the project
cost was estimatedat RM670 million(US$152 million)
with an expected
payback period ofeight to nine years.
He
said
the
challenges faced byTGEindeveloping
theproject included
the stakeholders
not
being
conversantwiththe development
processofgeothermal energy,
highupfront
capital outlay andrisk, and difficultyinobtainingfinancingfromlocal lenders.

Source:http://www.thinkgeo
View of one wellpad in Tawau, on 24 October 2016 (Photo takenenergy.com/plnfrom:launcheshttp://www.tgepower.com/gallery_exploratory_well_testing.html)
construction-on-20mw-tulehugeothermal-project-in-central-maluku-indonesia/
The
project,
expected to be completed in 2019, will provide green
energy to Sabah’s East Coast, which currently is about
Malaysia: Works Continue to
70% diesel-based. “The project will also be a catalyst forDevelop the First Geothermal
economic activities in the Tawau district,” Amaladoss
concluded.
Plant
www.geothermal-energy.org

July-September 2017

IGA News No. 108
Source: http://www.thinkgeoenergy.com/30-mw-apaskiri-geothermal-project-in-malaysia-on-track-to-operatein-2019/19
by 10 MW and a decrease in steam consumption by nine
percent,” Tantoco said. He added that the retrofit ofboth units will be completed by the third quarter of
2017.

Philippines: Activities to
Improve the Efficiency ofPower Plants in some
Geothermal Fields
Commissioned Restored Binary Power Plant in
MakBan – In late April, Aboitiz Power Renewables,
Inc. (APRI), the renewable power unit of Aboitiz Power
Corp., launched the newly restored, 6MW binary plantat the Makiling-Banahaw (MakBan) geothermal projectin Sto. Tomas, Batangas.
In July 2016, APRI completed the restoration of Binary
Plant 1, which uses excess heat from spent brine togenerate clean energy for the Luzon grid. The plant
restoration cost P107 million (US$2.1 million), lower
than the initial budget of P130.7 million (US$2.6
million). “It took us more than a year to complete therestoration, but we were able to add 6MW of installedcapacity in renewable energy to our facility, using heatfrom geothermal byproducts and idle equipment,” said
APRI President and Chief Operating Officer, Felino
Bernardo.
By the end of 2016, the additional renewable capacity
was added to the Luzon grid.
The plant is one of three binary-cycle power plants in
the MakBan Geothermal Project complex that thecompany acquired in 2009, and the only one found fit
for rehabilitation. Prior to the restoration, the plant hadcommercial issues until it was shut down in 2004 when
it was operated by the National Power Corp.
Source:http://www.bworldonline.com/content.php?section=C
orporate&title=aboitizpower-restores-6-mw-binaryplant&id=144419
EDC to Continue its Geothermal Rehabilitation
Program - The Energy Development Corporation(EDC) will spend P7 billion (US$137.4 million) in thelast part of its rehabilitation program for its aging plants,
with the aim of improve reliability and generating
capacities by 2018. More than 40% of the capital
expenditure this year will be allotted for the
rehabilitation of the 112.5 MW Tongonan geothermal
plant in Leyte, EDC president and COO Richard
Tantoco said.
“The two units of the Tongonan plant will be shut
down for 110 consecutive days when there will bechanges in the whole turbines, some of the foundations,
everything. So our future drilling costs and our workover costs will lessen. There will be an increased output
www.geothermal-energy.org

Retrofitting of Unit 1 of Tongonan. Source: EDC.
EDC will also optimize its 125MW, Upper Mahiao
geothermal plant this year, with a budget between P400
and 500 million (US$8 to 10 million). In this case, theturbines will be replaced with new metallurgy. The first
turbine has been refurbished, the second is being
refurbished and the third and fourth will arrive in
October and in March 2018. Turbines will have morechrome and some titanium in their alloys.
EDC is convinced that efficiently run geothermal energy
is still commercially viable, despite the lack of incentives
on the horizon. The government has indicated that it
does not favor a third round of renewable energy Feedin-Tariffs (FIT), preferring instead to focus on keeping
prices down for consumers and industry.
Geothermal energy, which makes up 1169 MW of
EDC’s total installed capacity of 1457.8 MW, is not on
the FIT list along with solar, wind, and biomass energy
sources. “I don’t think the absence of incentives means
it’s the end, but we really need to do things differently in
geothermal,” said Richard Tantoco. He noted that themost critical point is reducing operational costs, which
EDC has been doing for the past few years.
Source:http://powerphilippines.com/2017/05/09/edc-spendp7-billion-plant-rehabilitation/

EUROPEGEOTHERMICA’s Call to Action
GEOTHERMICA is a new consortium of 16
geothermal energy research and innovation program
July-September 2017

IGA News No. 108

20

owners and managers from 13 European countries andtheir regions. Its objective is to combine the financial
resources and know-how of its partners. Together withfinancial support from the European Commission,
GEOTHERMICA will launch joint projects that
demonstrate and validate novel concepts of geothermalenergy deployment within the energy system, which canidentify paths to commercial large-scale implementation.

million (US$35.7 million), of which national andregional funding organizations contribute about €24
million and the EC about €8 million. The project is led
by the Icelandic Orkustofnun and is composed ofanother 17 institutions, governmental agencies andresearch centers from Belgium, Denmark, France,
Germany, Ireland, Italy, Portugal, Romania, Slovenia,
Spain, Switzerland, Turkey and The Netherlands.

Europe aims to increase the share of renewable energy
for direct heating and cooling, industrial processes,
power generation and energy storage. Geothermalenergy today is only utilized in choice market sectors
and in few regions. It is an under-utilized widelydistributed, clean, low-carbon footprint and acontinuously available energy resource. Thus geothermal
is uniquely positioned to substantially contribute to asafe and secure energy supply for Europe’s Energy
Union.

GEOTHERMICA has published its Call Text andGuideline for Applicants for the first transnational call.
All pre-proposals and full proposals shall be submitted
via the electronic submission system (ESS) of the Call
Secretariat, which opened in 1 June 2017. Pre-proposalmaterials (Stage 1) must be submitted before 10 July
2017. The invitation to enter the second stage for preproposals that pass Stage will be issued on 11
September 2017. The full proposal must be submitted
before Friday, 24 November 2017. Notification will besent on 1 March 2018. The signing of new contracts is
on 1 May 2018. Project completions are due 1 May
2021.

GEOTHERMICA
iscallingforinnovative
demonstration projects and technology development
projects that accelerate geothermal energy deployment.
Projects will deliver outcomes by 2021. Joint projects
will have strong industry participation. Project proposals
will meet both GEOTHERMICA and national/regional
funding rules.
This joint effort by EU Member States and AssociatedCountries will complement Europe’s research andinnovation community and industry sector efforts. It
will reinforce the sector’s contribution to the goals of
the European Energy Union and the implementation of
the SET Plan.
The total budget of GEOTHERMICA is about €32

Project proposals have to be from European consortia
with several partners from several participating
countries. Details can be found in the
GEOTHERMICA Joint Call text rules. Participants
have to meet the specifications of GEOTHERMICA in
addition to the funding rules and regulations of theirhome countries or regions.
Source: http://www.geothermica.eu/call-to-action/DARLINGe - Danube Region
Leading Geothermal Energy
Fifteen partners—representing geological surveys,
universities, industries, regional energy anddevelopment
agencies,
ministries
andmunicipalities, assisted by seven AssociatedStrategic Partners from Hungary, Slovenia, Croatia,
Serbia, Bosnia and Herzegovina and Romania—will
work together with the objective of improving
energy security and efficiency in the Danube
Region by promoting sustainable use of theexisting, but still largely untapped, deep geothermal
resources in the heating sector.

GEOTHERMICA: Thematic areas and aims of each one.
www.geothermal-energy.org

This is the DARLINGe project, developed under
the umbrella of Interreg, the EU’s Danube
Transnational Programme. The project area covers
the central and southeastern part of the Danube
Region, encompassing southern Hungary (southern
Transdanubia and the southern part of the Great
Plain), northeastern Slovenia (Pomurska andPodravska), northern Croatia (Slavonia), thenorthern parts of Bosnia and Herzegovina,
northern Serbia (Vojvodina) and western Romania(Crisana and Banat), altogether about 95,000 km2.
July-September 2017

IGA News No. 108
The specific objectives follow:- Increase the use of geothermal energy and help the
penetration of energy-efficient cascade systems (whereusers are sequentially linked according to theirdecreasing heat demands) in heat markets.
- Establish a market-replicable tool box consisting of
three complementary modules for sustainable
management of geothermal resources: an independent
indicator-based benchmark evaluation of current uses; adecision tree to help developers; and a geological risk
mitigation scheme to maximize the success rate of a firstgeothermal well reaching the expected yield andtemperature.
- Advance stakeholder cooperation (establishing a
Transnational Stakeholder Forum) to foster geothermal
development and create a strong geothermal-value
chain.
As a main result, the intensity of cooperation will
increase and contribute to energy security and energy
efficiency by increasing the use of geothermal energy inthe heating sector, which will make the Danube Region
less dependent on imported fossil fuels while respecting
the environment.

The project outputs include various training materials,
the Danube Regional Geothermal Information Platform(interactive web portal), a Transnational Geothermal
Strategy and Action Plans, and a tool-box tested at threecross-border pilot areas. The project began on 1 January
2017 and the completion date is 30 June 2019. The total
budget is over €2.5 million.
Source: http://www.interreg-danube.eu/approvedprojects/darlinge

Geothermal Energy Needs
Regulatory Certainty inEurope, According to EGEC
Last May, the European Geothermal Energy Council(EGEC) published the sixth edition of its annual study
evaluating the development of the European geothermal
sector. In conjunction with the release of the report, theEGEC has also unveiled its new logo and website.
The report demonstrates that over the last five years(2012-2016), the use of geothermal energy, particularly
for heat, has slowly but steadily increased acrossEurope.
www.geothermal-energy.org

21
In Europe, there exist more than 100 geothermal power
plants, with an installed capacity of around 2.5 GWe in2016 (of which 1 GWe is in the EU), producing some
15 TWh of electrical power every year. It is believed thatthe installed capacity on the continent will grow toaround 3 GWe in 2020—a major increase linked to therapid growth of the Turkish market.
District heating and cooling is a success story for
geothermal in Europe, one appearing ready for rapidand dynamic expansion in coming years. Between 2012
and 2016, 51 new plants have entered into operation (allin the EU), which represents an average annual growthof 10%. The total installed capacity in Europe is now
approximately 4.9 GWth, with the main markets for
future years being France, Netherlands, Germany andHungary.
The shallow geothermal market is the largest market byfar. Yet the installation growth rate is declining; acapacity of more than 20 GWth was achieved at the endof 2015 in more than 1.7 million European installations.
“While geothermal energy is on its way to becoming a
key player in Europe, there is a need for long-term
financial and regulatory stability”, said EGEC President
Ruggero Bertani. “The EU legislative proposals
currently on the table in Brussels do not provide
sufficiently strong incentives to increase the share of themost efficient renewable heating and coolingtechnologies and to develop the next generation offlexible renewable electricity,” he added. The EGEC
encourages the European Parliament and the Council to
improve the Commission’s proposals and put theEuropean Union back on track towards its commitment
to becoming the world number one in renewableenergy.
Since its first edition in December 2011, the EGEC
Geothermal Market Report has come to be seen as theauthoritative overview of the entire geothermal sector in
Europe. Every edition offers an in-depth review ofdifferent geothermal technologies: the focus of the 2016
edition will be the market as regards equipment andoperation and maintenance costs. This year, for the firsttime, the report also includes a global market overview.
The key findings can be downloaded at: www.egec.org.
Source:https://www.egec.org/mediapublications/e
uropeangeothermalenergy-needsregulatorycertainty-tosustain-itssteady-growth/
July-September 2017

IGA News No. 108

22

Belgium: Insurance Scheme
for Geothermal Exploration

solutions, and has started to provide consultant services
in China, where geothermal heating solutions are
becoming more common.

Flanders’ energy minister hopes to boost the geothermal
sector with a guarantee scheme for companies thatinvest in deep geothermal energy projects. Drilling fordeep geothermal energy requires major investment, withsignificant risk that it will generate less energy thanhoped for, as there is still a lack of detailed knowledge
about the subsurface. “With the guarantee scheme, we
hope to convince companies to invest and to facilitate abreakthrough of deep geothermal energy in Flanders,”
said Energy Minister, Bart Tommelein.

Robit Oyj is an international company selling andservicing drilling consumables. Geothermal wells haveformed an important and growing segment of thecompany’s business. The manufacturing units arelocated in Finland, South Korea, Australia, UK and theU.S.

Companies that want to deep drill can submit a dossier
to the government. If it turns out after drilling that theestimated energy production is not achieved, thegovernment will pay back certain costs. The companies
contribute to the scheme by paying a premium.
Until now, only the Flemish Institute for TechnologicalResearch (Vito) has carried out a trial project on deep
geothermal energy in Flanders, one with promising
results (see IGA News 107, p. 24). The Kempen region,
north of Antwerp and Limburg, is the most attractive
area for drilling because there the hardest layers of rocklie deeper than elsewhere.
Source:http://www.flanderstoday.eu/innovation/companiesencouraged-explore-geothermal-energy

Finland: Agreement toDevelop Geothermal Projects
in the Scandinavian Peninsula
In May, two Finish firms, Rototec Oy and Robit Oyj,
signed a comprehensive cooperation and delivery
agreement, with the aim of advancing the use ofgeothermal energy in Finland andScandinavia. The agreement contains
cooperative
product-development
plans to meet the industry’s
development trends, such asincreasingly deeper geothermal bore
holes.

Source: http://globenewswire.com/newsrelease/2017/05/16/985385/0/en/ROTOTEC-OYAND-ROBIT-OYJ-DEEPEN-THEIR-COOPERATION.html?f=22&fvtc=5&fvtv=35850855

Germany: Drilling
Developments in the Area ofMunichAlternative Risk Transfer Applied in Drilling
Contract - Daldrup & Söhne AG, a German drilling
contractor and energy company, announced in April a
new integrated risk insurance model for drilling. In thegeothermal project Geretsried, located in southern
Munich, the drilling company is using the alternativerisk transfer (ART) structure as a new drilling contractor
in Germany for the first time.
The Enex Geothermieprojekt Geretsried Nord GmbH& Co. KG awarded the contract for drilling two
geothermal wells at the Geretsried site to Daldrup &Söhne, using an integrated insurance model, which has
been successfully tested in the Netherlands. It has beenused in Germany to hedge the risk of discovery risks
developed by Daldrup & Söhne AG. The ART structure
is an integrated backup model that enables geothermal
drilling and energy projects within a reinsurance
structure financed through debt at an early project stage.

The agreement extends existing
company cooperation by being morecomprehensive. Now, geothermalenergy solutions have expanded fromprivate buildings to apartmentbuildings, large business centers andwarehouses. The solutions include
cooling technologies, as well.
Rototec Oy is the largest European
provider of geothermal energy
www.geothermal-energy.org

Graph taken from http://www.sueddeutsche.de/muenchen/erdwaermefuer-muenchen-schatzsuche-per-schall-1.2719650-2
July-September 2017

IGA News No. 108
In addition to hedging liquidity risks, the capitalrequirements of the clients are significantly reduced
during the search phase. Enex finances the energy
project with the involvement of an international bank.
In cooperation with the BMWi research project‘Dolomitkluft’, the 6186 meter deep well, which hasreached a temperature of 160°C but has not foundsufficient depth of groundwater, is to be used
economically in Geretsried. For this purpose, thegeothermal reservoir of the Oberjura is to be connectedby means of a sidetrack from the existing main borehole
via a modified drilling path. A second well is to open thereservoir at a depth of 4900 m. These plans are based on
preliminary geological and seismic investigations and on
knowledge gained from the well drilled in the year 2013.
The results show structures that allow the assumptionof sufficient water quantities. If such a finding is given,
Enex plans to install a geothermal power plant.
Source: http://www.thinkgeoenergy.com/germandrilling-firm-daldrup-offering-an-integrated-riskinsurance-model/
Two Deep Doublets to Be Drilled for District
Heating - The mentioned drilling company, Daldrup &Söhne AG, received a major order from the Munichbased energy provider Stadtwerke München GmbH
(SWM) to drill two geothermal doublets (four deep
drillings) for the production of geothermal energy. Witha value in the range of double-digit millions, the order is
one of the largest in the company’s history. The wells
will go into a depth of more than 4000 meters withwork to start later this year. The wells are part of SWM’svision for district heating, which calls for Munich to beGermany’s first major city whose district heating will be
generated entirely through renewable energies by 2040.
Geothermal energy from hot thermal water is key to the
production of this heating: Munich is located on top ofvast supplies of this environmentally friendly energy,
which is contained in easily permeable layers oflimestone that are part of the geological layers
underneath the city.
Josef Daldrup, CEO of Daldrup & Söhne AG, said,“We are excited to support SWM in implementing their
100 percent renewable energy strategy, and to establish
geothermal energy as a climate-friendly local heat
supplier on an industrial scale for Munich, with its morethan one million inhabitants.”
Source:http://www.dgap.de/dgap/News/corporate/daldrupsoehne-receives-major-order-for-four-geothermaldrillings-from-stadtwerkemuenchen/?newsID=1002249

Hungary: Agreement on
Project Financing for the First
www.geothermal-energy.org

23

Geothermal Power Plant in
Turawell
Turawell Kft a project company owned 51% by KS
Orka Renewables Pte Ltd of Singapore (KS ORKA) and
49% by the Hungarian entrepreneurs Miszori Laszlo
and Szanto Laszlo, has signed an agreement with Erste
Bank Hungary on a project financing for the its firstgeothermal power plant in Hungary.
The Power Plant is a combined heat and power plant(CHPP) that produces 3 MWe of electricity and 7
MWth of geothermal heat for heating homes. All thegeothermal fluids will be returned to the ground after
the heat is used.

Turawell project

KS Orka is a joint venture between Hugar Orka ehf, an
Icelandic company, and Zhejiang Kaishan Compressor
Co., Ltd (Kaishan). The Kaishan Group is the largest
manufacturer of hammer drills in the global market, as
well as the largest drilling equipment manufacturer in
the PRC market. In addition, Kaishan is the
manufacturer of the Kaishan Screw Turbines based on
the design of the R&D Center in Seattle, U.S. The
company KS Orka combines Hugar Orka’s geothermal
and project development expertise with Kaishan’spower plant technology and manufacturing expertise toform Asia’s only vertically integrated, geothermal- andwaste-energy company.
Eirikur Bragason, KS Orka’s CEO, said the company“…is prioritizing investments in geothermal power
plants in Asia and in Europe and aims to build up
further 400 MW of combined heat and power plants in
Europe over the next three years.”
Richard Szabados, Head of Corporate Division of Erste
Bank Hungary, emphasizes the bank “…aims to support
the growth of renewable energy investments in Hungary
with its Energy Efficiency and Renewables Financing
July-September 2017

IGA News No. 108
Programme. The main focuses of the Financing
Programme are renewable energy (geothermal and solar)
and energy-efficient investments.”
Source: http://ksorka.com/first-geothermal-powerplant-hungary/

Iceland: Testbed Project,
Submarine Geothermal,
Agreement in Mexico, andGeothermal for Drilling

24
aviation system, the project’s security is a priority,” said
Hjalti Pall Ingolfsson, head of the GEORG project. “Itis quite secure. We have reached magma before...
Nothing indicated that we could cause an eruption,” hesaid.
Source:https://www.usnews.com/news/news/articles/201704-10/iceland-magma-drilling-project-may-revive-giantuk-power-cable-link
Seabed Geothermal Research Allowed - An Icelandic
exploration company is looking into tapping an
enormous new source of green renewable energy in
Iceland: submarine geothermal energy. The company
envisions using the energy to generate electricity inoffshore geothermal power plants on platforms notunlike those used in offshore oil drilling. The Icelandic
National Energy Authority has granted the company,
North Tech Energy, a permit to search for geothermalenergy on two exploration areas on the Icelandic
continental shelf. At this stage, the goal is to gather dataand search for areas that could be used to generate

The Krafla Magma Testbed Project - Scientists will
study the possibility of producing geothermal energy
from magma for the first time in a US$100 million
project in Iceland. If the project is successful, it could
produce up to 10 times more energy than aconventional well. The project, called Krafla Magma
Testbed, is coordinated by Iceland’s Geothermal
Research Group (GEORG) and the British Geological
Survey, with the participation of 38 institutes andcompanies from 11 countries including the UnitedStates, Canada and Russia.
Producing geothermal energy from magma would
enable Iceland to export more energy and could also
revive a plan to build a power cable from Iceland to
Britain to provide power to British homes. This
would be the world’s longest power interconnector.
Iceland is a volcanic island that produces all its
electricity from geothermal energy and hydropower.
The country agreed with Britain last year to study
building the 1000-km long IceLink cable, which
could power 1.6 million British homes.
Those plans were delayed due to Britain’s vote toleave the European Union and concern in Icelandthat exports would increase power prices at homeand reduce the island’s attractiveness to energyintensive industries such as data centers.
The magma project will involve drilling a hole 2.1
kilometers deep directly into a magma chamber
below the Krafla volcano in northern Iceland. The
first phase of the project is planned to start by 2020
and will cost US$30 million, the British Geological
Survey said in a statement on mid-April—noting thestudy will also explore the mechanism of eruptions
to protect communities from volcanic disasters andthat it was confident of securing the financing as anumber of countries and companies had expressedinterest in contributing. No details were provided.
“A magmatic geothermal well can produce 5 to 10
times more energy compared to a conventionalwell,” said Sigordur Markusson, a project manager
The two exploration areas. Top: Reykjanes ridge, bottom:
for Icelandic utility Landsvirkjun, which will develop
the area off the coast of N. Iceland. Photo/National Energy
the site. “In a country like Iceland with frequentvolcanic eruptions capable of disrupting Europe’s
Authority (taken from the first source).
www.geothermal-energy.org

July-September 2017

IGA News No. 108

25

geothermal energy.
The first part of the project is the search for suitableareas for heat exploration, but the license given North
Tech Energy also gives the company priority for being
granted a license to harvest the energy for electricity
production, if the initial tests are successful. The
research licenses last for three years and work is
expected to start in June 2018.
The size and energy of offshore geothermal fields havenot been studied. Previous studies have shown that theareas are extremely active geothermally, generating
immense quantities of energy which is currently simply
bleeding into the ocean.
The two exploration areas are vast. One stretches along
the Reykjanes ridge, and the other covers most of theseabed off the coast of Northern Iceland. Both areas areon the North Atlantic ridge, the fault line where theEuropean and North American continental plates drift
apart and magma rises up from the earth’s mantle. The
ridge is extremely geologically active, with frequent
submarine eruptions and high levels of geothermal
activity.
Source: http://icelandmag.visir.is/article/unexploredsource-green-energy-submarine-geothermal-power-beharnessed-shore,
http://icelandreview.com/news/2017/04/24/groundbreaking-seabed-geothermal-research-allowed
Icelandic Cluster and the Mexican CICESE Signs
Cooperation Agreement - Within the framework of
the Geothermal Conference for Latin America and the
Caribbean (GEOLAC 2017), held in Mexico City on 2526 April, the representatives of the Iceland Geothermal
Cluster, Vidar Helgason, and the Mexican CICESE(Center for Scientific Research and High Education of
Ensenada), Luis Alonso Gallardo, signed a cooperationagreement. CICESE is the lead institution of the
Mexican Center for Innovation in Geothermal Energy(CeMIE-Geo).

The Mexican and Icelandic governments are currently
discussing specific trade agreements that include
geothermal. So this agreement between both geothermalenergy bodies is timely. The cooperation is aimed at
helping to promote geothermal energy as part of the
future energy mix of both countries.
Source: http://www.thinkgeoenergy.com/geothermalclusters-of-iceland-and-mexico-sign-cooperationagreement/

The agreement aims to encourage the creation ofscientific consortiums and collaboration in the scientific,
research, educational and exploration aspects ofgeothermal projects. “The agreement between theclusters marks the beginning of a fruitful cooperation
between Mexican and Icelandic geothermal companies,”
said Vidar Helgason, manager of the Iceland
Geothermal Cluster.

Source: http://www.thinkgeoenergy.com/7-additionalwells-to-be-drilled-at-hellisheidi-geothermal-plant-iniceland/www.geothermal-energy.org

10 Wells to Be Drilled Using Geothermal Electricity- Icelandic energy companies ON (Reykjavik Energy)
and Iceland Drilling (Jardboranir) have agreed to drill
seven wells in the Hengil area in the coming years. An
additional three wells can be added to the contract, if
necessary.
The power from the ON power plants will be used to
power the drilling rigs for the project, saving more than
one million liters of oil used in conventional methods.
The drilling contract was tendered in the European
Economic Area earlier this year. Iceland Drilling won
the tender with its lowest bid for the seven wells at ISK
2.6 billion (around US$27 million, or around US$3.8
million per well). Drilling is expected to start thissummer.
The agreement assumes all of the wells will be drilledwith electricity from the ON power plants—not diesel
usually used for drilling activities of that kind. It takes
about a month to drill one hole and the powerfuldrilling rig needs about 4500 liters of oil per day. For the
up to ten holes planned, this will save about 1.3 million
gallons (almost 5 million liters) of diesel and 50,000 tonsof carbon dioxide emissions. Using electricity for
drilling geothermal wells is one of the components ofthe climate objectives of ON. In addition, financial
savings include using local electricity instead ofimported oil.
The wells to be drilled are for steam production andreinjection. The water produced from the wells for
power production is returned to the geothermal
reservoir to promote sustainable utilization of thegeothermal resource. At the Hellisheidi Power Plant,
carbon dioxide and hydrogen sulfide from thegeothermal gas are mixed with the processing water,which then is returned to the reservoir via thereinjection holes. The geothermal gas flows into the
bedrock where it is bound for the future.

The Netherlands: New
Geothermal Heating Projectnear The Hague
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IGA News No. 108
Drilling of a new deep geothermal well started in early
May in the Westland greenhouse growing region, near
The Hague. The well, programmed to reach 4 km in
depth, is expected to be completed by September. By
December, it will start to provide hot water at 140°C
serving the vast flower and vegetable growing
greenhouses in the area. This pilot project is developedby Trias Westland at a cost of €50 million (US$57.2
million). Once completed, the geothermal heating plant
will be twice the size of other geothermal heating plants
in the Netherlands. Trias Westland director, Marco van
Soerland, said geothermal projects are much more
expensive than solar panels as a heat source. It remains
uncertain whether the project will succeed, Van
Soerland said. The Westland auction and 43 growers
have committed to buying the geothermal heat which, if
successful, is expected to provide between 10% and
20% of annual heating needs. Van Soerland said thatgreen energy is increasingly important: “Growers,
whether in flowers or vegetables, have clients who
demand sustainable products.”
Source:http://www.dutchnews.nl/news/archives/2017/05/geothermal-heat-for-westland-greenhouse-region-near-thehague/

Spain: Two Direct-use
Geothermal Projects to be
Developed
Geothermal District Heating Project in Galicia - A
geothermal district heating system in Spain’s Galicia
province has been given the go-ahead with the signingof a partnership framework agreement. The council inthe city of Ourense aims to collaborate with theInstitute for Energy Diversification and Saving (IDAE),
a government agency, to develop pilot geothermal

www.geothermal-energy.org

26
heating projects in the city.
The first project is now in the planning phase after
Ourense’s mayor, Jesús Vázquez, and Álvaro Nadal,
Spain’s minister for energy, tourism and the digital
agenda, signed the partnership agreement.
The project will be located in the city’s fifth district andwill serve a population of about 28,000 as well as anumber of public buildings. Once completed, it would
be the first geothermal district heating system in Spain.
Galicia is rich in geothermal resources and studies by
Spain’s Geological Survey have shown temperatures of
50°C to 90°C at depths of 500 to 1500 meters.
Ourense is a historical hot springs town, known to the
Romans as Aquis Auriensis. It is now a member of theEuropean Historical Thermal Towns Association(EHTTA).
Source: http://www.decentralizedenergy.com/articles/2017/04/spanish-geothermaldistrict-heating-project-gets-green-light.html
Hot Water for Greenhouses in Níjar - The company
Cardial has reported the discovery of a geothermal
resource 490 meters deep in the fields of Níjar, in the
Spanish province of Almeria. The firm, which is
promoting a project for greenhouse air-conditioning in
Níjar using geothermal energy, has reported in a notethat the reservoir has an average temperature of 41.8°C,
an increasing gradient of 8.9°C per 100 meters, and an
average flow of 22.72 liters per second.
The data, certified by a company collaborating with the
public administration, will allow for the first geothermal
plant to start being built in Almeria next August. The
company in charge of extraction will be Sacyr Industrial.
Cardial’s first module will make it possible to meet an
initial demand of about 24 hectares, but with a second
survey, this capacity could double almost without having
to expand the facilities. The
initialdevelopment
plans
foresee the construction of
three plants in just two years,
and a much faster developmentfrom that point onwards,
depending on the success of thefirst models.
The model proposed by Cardial,
to which numerous producers
have already signed up (withsufficient energy needs to cover
the first three plants), consists
in extracting hot water from the
Níjar reservoir, re-circulating it
through a network that willtransport it to the greenhouses
and return it again to thereservoir, creating a closed
July-September 2017

IGA News No. 108

27

circuit that makes the resource renewable. These waters,
which stay at such high temperatures (about 100°C at
the 1000 meters depth they intend to reach), are notsuitable for irrigation because of the enormous
concentration of salt and other elements that make it
unviable in that field, but, which make them
exceptionally suitable to power a more ecological energy
model that can be applied to Almeria’s horticultural
production, competing in price with other energy
sources such as gas, biomass and other fuels.
Source:http://www.hortidaily.com/article/35114/SpainGeothermal-deposit-for-greenhouse-air-conditioningdiscovered

Switzerland: Energy Strategy
and New Geothermal Projectin Lavey-les-Bains
Referendum Approved New Energy Strategy - The
Swiss government decided to stepwise phase out nuclear
power after the Fukushima event in 2011. Both Swisschambers adopted the new energy law in September
2016. The strategy focuses on the reduction of theenergy consumption, the enhancement of the energy
efficiency and the increased deployment of renewableenergies to substitute for the use of nuclear power. The
Swiss population voted with a majority of 58.2 percent
in favor of the new energy strategy in a referendum on
21 May 2017. Only four of Switzerland’s 26 cantons
voted against the overhaul to renewables.
Switzerland’s so-called Energy Strategy 2050,
spearheaded by Energy Minister Doris Leuthard, who isalso the current Swiss president, involves
decommissioning Switzerland’s five reactors as theyreach the end of their safe operational lifespan.
Currently, they produce around a third of the country’s
electricity. Although the plan does not lay down a clear
timetable for phasing out the plants, it envisages
increasing reliance on hydraulic power and solar, wind,geothermal and biomass energy sources, as well as
reducing energy consumption and improving energy
efficiency. Its targets are ambitious, with the aim being

to cut the average energy consumption per person peryear by 43 percent by 2035 as compared with levels in
2000.
For geothermal energy, the strategy targets at 4400
GWh/yr of geothermal power produced in 2050. Other
measures related to geothermal include, as informed
before (see IGA News 107, pp. 29-30), the following:- Different Feed-in Tariffs (FiT) for hydrothermal and
EGS projects. Hydrothermal projects (using naturally
occurring hot water) currently receive a FiT of 0.227 to
0.4 CHF (practically equal in US$) per kilowatt-hourdepending on the plant size. Now, EGS projects(without natural fluids) would receive 7.5 additionalcents to reach 0.302 to 0.475 CHF per kilowatt-hour,depending on the plant size (see table below):

Capacity
(MW)
≤5
≤10
≤20
>20

FiT (CHF/kWh)Hydrothermal
EGS
0.400
0.475
0.360
0.435
0.280
0.355
0.227
0.302

- Deep exploration can be supported by up to 60
percent of eligible costs. The most important of these
eligible costs include access roads and well pads, drilling,
tests and stimulation of exploration wells.
- Geothermal energy guarantee for electricity projects
increases from 50 to 60 percent. If a well is not
successful, the Confederation can reimburse up to 60
percent of the eligible costs, among them: preparation,
construction and dismantling of the drilling site, drilling
costs including pipes, cementation and completion for
all planned production and injection wells, and well logs
and tests.
The guarantee and the exploration support scheme areboth funded via a maximum 0.1 Rappen (about thesame in US Cent) per kWh from voltage grid surcharge.
The annual Swiss electricity consumption is about 60
TWh and results in a fund of about 60 Million CHF per

GEOTHERMICS
International Journal of Geothermal Research and its
Applications
Write to JournalsCustomerServiceEMEA@elsevier.com
if you want a suscription at a special rate for IGA
members.
Content of the latest issues:
http://www.elsevier.com/locate/geothermics
www.geothermal-energy.org

July-September 2017

IGA News No. 108
year. For all measures, a cap of a maximum 2.3 Rappen
per kWh is defined. Both support schemes are available
until 2031.
- Direct geothermal heat utilization. For geothermal heatprojects, up to CHF 30 million can be spent annually on
exploration and development. The Federal Government
can accept up to 60 percent of the eligible costs, among
them: preparation, construction and dismantling of thedrilling site; drilling costs including pipes, cementationand completion for the planned exploration andproduction wells; and well stimulation and tests.
All applications from project developers will be assessedby an expert committee from the Swiss Federal Officeof Energy (SFOE). If the project is assessed positively,
the committee will recommend a specialist as a project
support for the entire project. This expert will report tothe expert committee.
Geothermal energy is now deemed of national interestin the country, which will also accelerate the planningand permitting of new geothermal projects.
Sources: http://www.thinkgeoenergy.com/swiss-votefor-nuclear-exit-and-several-incentives-for-geothermaldevelopment/, http://www.dw.com/en/swiss-vote-inin-favor-of-gradual-nuclear-phaseout/a-38921057
Heat and Power Geothermal Project in Lavey-lesBains – The project is located in Lavey-les-Bains, in the
Rhone valley, on one of the best known sites in
Switzerland in terms of geothermal energy. The
existence of a geothermal resource of importance in theregion has been known since the 19th century. These are
the hottest springs in Switzerland, causing thedevelopment of Lavey. Alpine Geothermal Power
Production (AGEPP) is moving forward following
completion of the feasibility study, finalization offinancing arrangements and formation of AGEPP SA.
The next step will be obtaining exploration andoperational authorization from Vaud Canton, after
which drilling can begin.
The project plans to extract water at 110 degrees Celsius
with a flow rate of 40 l/s, conditions that would allow
the project to operate year round. If successful, it isexpected that an ORC plant could provide up to 4.2
GWh gross electricity/year and about 15.5 GWhthermal to supply the Lavey Baths with thermal waterfor renewal the swimming pool water and thermalenergy for the heating of pools and buildings. In thelonger term, it is also looked at a possible upgrade towaste heat for other uses: remote heating, fish farms,
greenhouses, etc.
There have already two wells been drilled to a depth of
200 m and 550 meters in 1973 and 2000. Thanks togeothermal energy, the Baths at Lavey already benefit
from thermal water at an average temperature of 60
degrees Celsius.
www.geothermal-energy.org

28
Under the plans of the company, a single production (awell called a ‘singlet’) will raise water to the surface bydrilling down as deep as 3000 meters. AGEPP SA willpump geothermal water from highly permeable rocksubstrate that has naturally occurring cracks to produce
round-the-clock electricity for some 900 households. It
will also supply thermal energy and ground-heated water
to the Lavey thermal spa.
This is a highly innovative project as it contains plans togenerate power from a hydrothermal reservoir – which
would be a first in Switzerland. It also responds to the
Swiss Confederation’s Energy Strategy 2050.

Aerial view of the project area. Photo taken fromAGEPP website.
The project brings together private- and public-sector
shareholders, including several Western Swiss firms
operating in the renewable energy field: SI-REN SA,
Holdigaz SA, EOS Holding SA, Romande Energie
Holding SA and CESLA SA, as well as themunicipalities of Lavey-Morcles (Vaud) and SaintMaurice (Valais). The project is also financially
supported by the Swiss Federal Office of Energy(SFOE) and Vaud cantonal authorities.
Scientific and financial analysis for the project –including a thorough investigation of seismic activity
and potential environmental impacts– has been
completed. In addition, financing arrangements havebeen finalized. The authorization request, to besubmitted to Vaud Canton, will cover drilling as well as
the construction of surface installations to harness thegeothermal energy.
The public consultation is planned for early 2018, anddrilling is scheduled to start in 2019. Operations are due
to begin in 2020.
Source: http://www.thinkgeoenergy.com/geothermalpower-and-heat-project-launched-in-lavey-les-bainsswitzerland
July-September 2017

IGA News No. 108

Turkey: OrmaTurk Will
Manufacture Geothermal
Turbines in the Country
The newly-inaugurated (late May) OrmaTurk Company
in Turkey’s Aegean coastal city of Izmir will bring agreat deal of geothermal plant-equipment know-how to
the Turkish geothermal industry, the U.S.-based parent
company CEO said during the International
Geothermal Conference (IGC Turkey 2017). Isaac
Angel, CEO of the parent company, Ormat
Technologies, spoke about the new Turkish company’s
structure and its planned contribution to the country’s
geothermal energy sector.
“We are probably the biggest power plant
provider in Turkey over the last 10 years, with a
52 percent share of all operations in Turkey. We
will also support another 11 power plants during
2017 and 2018,” Angel said. He explained thatin Turkey, Ormat Technologies Inc. does notoperate power plants but provides technicalsupport and builds power plants for Turkish
developers.
“Yesterday (May 24) OrmaTurk started
operations as a Turkish company, one 100
percent owned by Ormat Technologies. The
employees are Turkish, including themanagement,” Angel said. He added that
because of the geothermal potential in the
Turkish market, the investment in the country
was made with strong confidence.
“The facility will not only supply customer products,
but, more importantly, Turkey will gain know-how on
how to build turbines from A to Z, ones that can belabeled ‘Made in Turkey’,” Angel said. “Local turbine
production labeled ‘Made in Turkey’ helps the company,
its partners and its customers obtain subsidies from theTurkish Government,” Angel explained.
The company’s presence in Turkey involves theconstruction of power plants for Turkish developers but
they refrain from functioning as operators. This decision
is based on the servicing of a very dense number ofcustomers, which Angel maintained Ormat would
compete against if the company also operates theseplants.
“That’s why we decided not to build our own facilities
in Turkey,” he said. Angel added that if the Turkish
market continues to grow as expected, the company
plans to enlarge its facilities in the coming years.
“We always look for opportunities in Turkey,” heconcluded.
Source:http://www.worldbulletin.net/haberler/189996/turkeyto-produce-made-in-turkey-geothermal-equipment
www.geothermal-energy.org

29

United Kingdom: Hot Dry Rock
Project in Cornwall
GeoScience Limited was founded in 1985 as a spin-off
from the Hot Dry Rock geothermal research project run
by Camborne School of Mines. That project, based at
Rosemanowes Quarry near Penryn, developed
techniques for the creation of artificial geothermal
reservoirs that have been applied around the world.
Now, twenty five years after work stopped at
Rosemanowes, the company is once again at theforefront of geothermal research in the UK. In
partnership with Geothermal Engineering Limited,
GeoScience is starting work on the United Downs Deep
Geothermal Power project in Cornwall.

The project has secured funding of £10.6 million(US$13.44 million) from the European Regional
Development Fund. An additional grant of £2.4 million(US$3.04 million) from Cornwall Council and private
investment of £5 million (US$6.34 million) will allow to
explore the geothermal resources at a depth of 4.5 km
and build a 1MW power plant to demonstrate thetechnical and commercial viability of supplying bothelectricity and heat. This will be the first geothermal
power project in the UK.
Two wells will be drilled into a target geologicalstructure within the granite beneath United Downs; one
to a depth of 2.5 km and the other to a depth of 4.5 km.
Water will be circulated through the fracture systemfrom the shallow injection well to the deep production
well, mining heat from the rocks. It will be pumped tosurface at a temperature of about 175°C where it will
supply the demonstration power plant to produce 1MWof clean renewable electricity.
During the second half of 2017 the site will be preparedfor drilling, project infrastructure will be put in place
and a micro-seismic monitoring network will be
installed. It is expected start the drilling of the injection
well in early 2018.
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IGA News No. 108
Throughout the three years of the project data,
information and knowledge will be disseminatedthrough public engagement events and an extensive
educational program for Primary, Secondary, Furtherand Higher Education Institutions. A parallel research
program at Plymouth University will investigate issues
around public perception and acceptance of geothermalenergy in Cornwall, which will be critical for us to gain asocial license to develop further sites if the United
Downs project concept proves successful.
Source: http://www.geoscience.co.uk/singlepost/2017/06/22/GeoScience-returns-to-itsgeothermal-roots-with-new-power-project

Oceania
New Zealand: Direct Use,
Geothermal Share to Power
Production, More Resources inSouthern Alps
Māori Trusts to Build Unique Geothermal Milk
Plant - Kawerau Dairy is made up of seven Māori
entities aiming to build the first geothermal-poweredplant in the country to process milk from goats, sheep
and cows. The groups involved are Te Manawa oTūhoe, Māori Investments, Putauaki Trust, Ngati
Makino, Rotoiti 15, Tataiwhetu Lands Trust andPoutama. The plant is expected to be making products
to sell by late 2018.
Poutama Trust project leader Richard Jones said it
would be the only plant in New Zealand using
geothermal energy to turn cow, goat and sheep
milk into powder, which will be used to makeprotein powder, vitamin-added powder, aged-careformula and baby formula.

30
The plant would be the second geothermal-poweredplant owned by Māori, the first being Miraka near
Taupō.
Putauaki Trust owns the land that the new plant will bebuilt on and its chairman, Tiaki Hunia, said Māori could
be huge players in this industry. Hunia, who is also thedeputy Māori Trustee at Te Tumu Paeroa, said using
renewable geothermal energy was a good move.
Jones said the Kawerau plant would cost about NZ$33
million (US$22.7 million) and the Māori groups
involved so far are paying half of it. “That is the whole
drive behind the project. Māori are involved all the way,in every key aspect of this project—from the farms, theland, the animals and the people to the processing
plant.”
Source: http://www.radionz.co.nz/news/te-manukorihi/328346/maori-trusts-to-build-uniquegeothermal-milk-plant
Strong Growth in Wind and Geothermal Electrical
Generation - Geothermal’s contribution to New
Zealand’s total renewable energy generation increased
from 11 percent in 2007 to 21 percent in 2015. Over thesame period, its value rose from NZ$1.3 billion(US$893.6 million) to NZ$2.9 billion (US$1.99 billion).
The value of all renewable energy resources used togenerate electricity increased 22 percent from $11.3
billion in 2007 to $13.8 billion in the year ending inMarch 2015. Renewable energy resources contributed
79 percent of the total electrical generation in the year to
March 2015.

“It seems a bit different because we are raised onjust knowing about dairy cows -- not dairy goats
and dairy sheep -- but in other parts of the world it
is pretty common,” he said.
Plans for the new plant have been in the pipeline
since 2012 but its feasibility study has just been
given the tick of approval. Jones said it was a win
for the seven Māori entities involved and a win for
local Māori farmers, who would also reap benefits.
“We do not need a large amount of cows with thisplant. I think it is up to a maximum of 7000 tostart off with. So amongst our immediate group,
we have got about 6000 cows all on Māori farms.”
A 750 kg drier for cow milk would be built as part of
the first stage, with another drier for goat and sheep
milk are scheduled for the second stage.
www.geothermal-energy.org“Wind power has emerged as a significant energy
asset,” statistical services manager Dan Oberhaus said.
“The increased use of wind and geothermal energy
July-September 2017

IGA News No. 108
resources is showing positive contributions to our
economy.”This information was released in late April in a Stats NZ
report, Asset value of water resources and other renewables forelectricity generation: 2007–15. Water remains the mostsignificant renewable energy resource in New Zealandand contributed over half the asset value for all
renewable: US$9.8 billion in 2015. It accounted for 56
percent of New Zealand’s electrical generation (23,728
of 42,362 gigawatt-hours).
Source:http://www.stats.govt.nz/browse_for_stats/environme
nt/environmental-economic-accounts/renewablesaccount-2007-15-media-rel.aspx
High Temperatures Discovered beneath theSouthern Alps - An international research team has
discovered ‘extreme’ geothermal conditions deep
beneath the Southern Alps, according to research
published in the Nature journal in May 2017.
Temperatures measured near the surface were similar to
those found in active volcanic zones such as Taupo –yet there are no volcanoes in Westland.
The surprise discovery could have economic
implications for the area, and it may give clues as to theconditions of a major fault prior to a significant rupture.
The research team was led by GNS Science, Victoria
University of Wellington and the University of Otago,
comprising more than 100 people from 12 countries.
They drilled a borehole nearly 900 meters deep at a sitenear Whataroa in Westland trying to establish theconditions of a major fault prior to a significant rupture.
The alpine fault is highly predictable, producing amagnitude-8 earthquake about every 300 years. The lastsuch earthquake was 300 years ago.
At 630 m deep, they measured water temperatures of
100°C, hot enough to boil. They expected temperaturesof less than 40°C. Drilling further, they determined thegeothermal gradient in the well, which was unlike any

31
known active fault in the world.
“Nobody on our team, or any of the scientists who
reviewed our plans, predicted that it would be so hot
down there,” said lead scientist Professor Rupert
Sutherland from Victoria University of Wellington. He
said they found some of the “most extreme
underground conditions on the planet”, which aresimilar to that of boreholes drilled directly into
volcanoes.
It was likely a mixture of two processes, he said. Rocksof about 550°C are uplifted from 30 kilometers deep
with such speed they do not cool down. Fractured rocks
allowed water to seep into the mountains beneathvalleys, further uplifting heat, before being flushed byrain and snow.
“This geothermal activity may sound alarming but it is awonderful scientific finding that could be commerciallyvery significant for New Zealand,” Sutherland said.
The next step would be to determine how extensive thegeothermal resource is and whether using it is viable. It
is necessary to do more scientific work and establish abusiness case for how to use the geothermal resource.
Development West Coast COO, Warren Gilbertson,
said it could be a great opportunity for a local industry.
“The location of geothermal activity and its possible
benefit and association to the dairy and tourism sectors
provide real opportunities from an economic
perspective,” he said.
Source:http://www.stuff.co.nz/environment/92669729/thesleeping-dragon-researchers-find-blazing-heat-beneaththe-southern-alps

Other
Technology: CO2-Powered
Compact and Highly Efficient
TurbineView of the Southern Alps. Photo by DAVID WALKER/FAIRFAX NZ.
www.geothermal-energy.org

The latest ‘ultra-supercritical’ steamgenerator systems have around 47.5
percent efficiency. But Douglas Hofer, anengineer at GE Global Researchheadquarters in Niskayuna, New York, isbuilding a compact but superefficientturbine that replaces steam with ultra-hot
and super-pressurized carbon dioxide. The
turbine can be used with any thermal
power plant. The technology wasdeveloped in partnership with Southwest
Research Institute as part of a research
project with the U.S. Department ofEnergy’s SunShot Initiative.
July-September 2017

IGA News No. 108
The combination of high heat and pressure is whatallowed Hofer to design a turbine that fits on aconference table but can generate 10MW. His team,partnered with Southwest Research Institute and Gas
Technology Institute, has submitted the design to the
U.S. Department of Energy and won an US$80 million
award to build a 10MW turbine. The turbine features arotor that is 4.5 feet long (1.4 m), 7 inches in diameter(~18 cm), and only weighs 150 pounds (68 kg). The
engineers are now completing a scaled-down, 1MW
version of the machine and will test it in July at theSouthwest Research Institute.
The idea of using CO2 to power a steam turbine has
been around for a while. “The industry has been reallyinterested in the potential benefits of using CO2 in placeof steam in advanced supercritical power plants,” Hofersays. By ‘supercritical’ Hofer means efficient power
stations using CO2 squeezed and heated so much that it
becomes a supercritical fluid, which behaves like a gas
and a liquid at the same time. The world’s most efficient
thermal power plant, RDK 8 in Germany, uses an ‘ultrasupercritical’ steam turbine operating at 600°C andpressure of 4000 pounds per square inch (2.8 million
kg/m2, or 272 atmospheres).
Hofer says that the steam power plant technology “hasbeen on a continuous march” to increase efficiency andsteam temperature, but once it tops 700°C, “the CO2
cycle becomes more efficient than the steam cycle.”
Hofer’s turbine and casing are made from a nickel-based
super-alloy because it can handle temperatures as highas 715°C and pressures approaching 3600 pounds per
square inch.
The high heat and pressure turn CO2 into a hot, dense
liquid, allowing Hofer to shrink the turbine’s size andpotentially increase its efficiency a few percentage points
above where state-of-the-art steam systems operate
today. “The pressure and fluid density at the exit of ourturbine is two orders of magnitude higher than in a32
steam turbine,” Hofer says. “Therefore, to push thesame mass through, you can have a much smaller
turbine because the flow at the exit end is muchdenser.”Hofer’s design uses a small amount of CO2 in a closed
loop. “It’s important to remember that this is not a CO2
capture or sequestration technology,” he says. Hofersays that the technology, which is being developed aspart of GE’s Ecomagination program, could one day
start replacing steam turbines.
Source: http://www.gereports.com/call-ecomaginationge-building-co2-powered-turbine-generates-10megawatts-fits-table/

Technology: Geothermal Risk
of Induced Seismicity
Diagnosis (GRID)
A new screening tool to assess the potential seismic
risks (earthquake activity) from deep geothermal energy
projects has been outlined in a recent study. The tool
provides categories of seismicity risk for projects, which
are dependent on factors including geological aspects, aswell as social concern and location in relation to urban
areas.
The study outlines a screening tool for geothermal
seismicity termed the Geothermal Risk of Induced
Seismicity Diagnosis (GRID), which estimates to what
extent induced seismicity is a concern for a project.
GRID is designed to be used during project planningand develops four categories for induced seismicity risk
from very low or no concern (Category 0) to a high levelof concern, where induced seismicity is likely (Category
III). The framework was tested on three geothermal
projects in Switzerland (Basel, St. Gallen, and Riehen) as
well as a hypothetical Basel-type project located in a
low-risk area with high social concern.

The turbine is made from a nickel-based super-alloy. Photo takenfrom GE Reports (see source)
www.geothermal-energy.org

As the level of seismic risk is notdefinitively known when GRID is carriedout, the framework instead reflects levelof concern. A higher GRID score means
more measures are required to govern therisk. Seismic concern is assessed using
several indicators such as the depth of thegeothermal system; rock type; the volumeof rock affected; level of fluid injected or
extracted and fluid injection pressureduring operation; and distance fromknown active underground fault lines. It
also considers the exposed local
population, industrial and commercial
activity and buildings, and infrastructurein the vicinity of the project. The datarequired for GRID can be obtained from
July-September 2017

IGA News No. 108

33

regional statistics or estimated by experts at an earlystage of project development. The researchers
recommended that the project operator, licensing or
regulating authority, and independent experts all be
involved in the assessment.
GRID also comprises a framework for tailored risk
governance of a project. The framework covers hazard
and risk assessment, seismic monitoring, insurance fordamage caused by induced seismicity, structural
retrofitting of vulnerable building and infrastructure,traffic light systems to manage the risk of seismicity,
information and outreach, and public and stakeholder
engagement.
For the four projects where GRID was tested, the Baseland St. Gallen projects were rated as Category III,
which the researchers describe as a reasonable scorebecause both projects led to induced seismicity and arelocated close to large cities. The Riehen project wasgiven a Category II, because, despite the fact that it was
located close to a densely populated area with natural
seismicity, the shallow depth, rock type and smaller scaleof the project means that induced seismicity is unlikely.
Similarly, the Basel type project would be a Category II
if it were located in a lower risk area.
The researchers say the framework is the first developed
for geothermal energy projects. They acknowledge that
the GRID scores and indicators, as an emerging field of
risk, will need updating as new evidence becomes
available. However, they say thestrength of GRID is in its simplicity,
enabling
fast,
transparent,
reproducible assessments that can beadapted to other regions or geoenergy applications.

site for the drilling. The research group, including
researchers from Japan, the United States and theEurope, plans to intensively investigate the undergroundstructure of the area to find a suitable spot for drilling.
JAMSTEC and its partners aim to realize the excavationof the mantle in the early 2020s —at the earliest— using
Japan’s deep-sea scientific drilling vessel Chikyu.
The mantle is located beneath the crust, which covers
the surface of the earth. About 80 percent of theplanet’s volume is composed of the mantle. It is formedof rock and moves slowly, affecting the drift ofcontinents, plate movements —which cause
earthquakes— and volcanic activity. Direct observationof the mantle is expected to reveal things such as its
hardness and how much water it contains, which could
pave the way to better understanding of the platemovements and unveil how the planet was formed.
The preliminary study will be conducted for about two
weeks from mid-September in waters northeast of the
Hawaiian Islands, using JAMSTEC’s deep-sea research
vessel Kairei. The research group will study the
thicknesses and temperatures of the crust throughsound waves to find a place suitable for drilling andobservation.
The international team has chosen waters off Hawaii,
Mexico and Costa Rica as candidate sites for drilling.
The depth of the area in the waters off Hawaii is aboutfour kilometers, slightly deeper than the other candidate
sites. However, the temperature of thearea around the boundary between thecrust and mantle is relatively low —estimated to be about 150°C—
making it easier to conduct
observation activities.

Source:http://ec.europa.eu/environment/int
egration/research/newsalert/pdf/screening_tool_developed_seismic_risks_geothermal_energy_projects_490na4_
en.pdfDevelopment of a light, sturdy pipe todrill six kilometers into the sea floor
has been a longstanding issue.
However, drilling has now become
technically possible partly due to theuse of newly developed materials,
JAMSTEC said.

Science:
Preparations to Drill
Down to the Mantle
Aiming for the world’s first-everdirect excavation of the earth’s
mantle, an international researchgroup led by the Japan Agency for
Marine-Earth Science and Technology(JAMSTEC)
will
conductapreliminary study in the waters off
Hawaii in September. The area isconsidered to be a leading candidate
www.geothermal-energy.org

Graph by The Yomiuri Shimbun,
taken from the source.

Another problem is cost —theresearch group estimates a total of ¥60
billion (US$550 million) is needed.
“There are still issues to be resolved,
particularly the cost,” said Susumu
Umino, a professor at Kanazawa
University
who
specializesinpetrology. “However the preliminary
study will be a big step forward forthis project to enter a new stage,”
Umino said.
Source: http://the-japanJuly-September 2017

IGA News No. 108
news.com/news/article/0003619423

Science: Earthquake Potential
Score for Mega-cities
Scientists have developed snapshots of the likelihood ofmajor earthquakes occurring in mega-cities around theworld using a new statistical approach for estimating
earthquake risk. The work was presented on May 22 at
the joint meeting of the Japan Geoscience Union and
the American Geophysical Union in Chiba, Japan (JohnB. Rundle, Molly Luginbuhl, Alexis Giguerre, andDonald L Turcotte, 2017. Nowcasting Global
Earthquakes. JpGU-AGU Joint Meeting 2017, 20-25 May,
Chiba, Japan. Paper SSS 08-02).
In the abstract, the authors explain that, “The term
‘nowcasting’ refers to the estimation of the current
uncertain state of a dynamical system, whereas‘forecasting’ is a calculation of probabilities of futurestate(s). Nowcasting is a term that originated ineconomics and finance, referring to the process ofdetermining the uncertain state of the economy ormarkets at the current time by indirect means. We haveapplied this idea to seismically active regions, where thegoal is to determine the current state of a system offaults, and its current level of progress through theearthquake cycle.”

34
Earthquake Potential Score, or EPS. The EPS provides
a snapshot of the current risk of a major earthquake
occurring in a region and gives scientists, city planners
and others a thermometer to see where a city is in a
major earthquake cycle.
Using the new technique, scientists have determinedthat the EPS for Lima is about 70 percent; Manila,
Taipei and Tokyo have an EPS of about 90 percent; Los
Angeles and San Francisco have an EPS of about 50
percent, and Ankara has an EPS of about 30 percent.
This means Los Angeles is about half-way through its
cycle for 6.5-magnitude or greater earthquakes, while
Tokyo is about 90 percent of the way through its cycle.
A region’s EPS can be seen as a way of estimating how
much tectonic stress has built up in the earth’s crust
since the last large earthquake –a notoriously difficult
question for seismologists to answer. The new method
does not provide an estimate of when in the future alarge earthquake might occur.
“EPS is the thermometer,” said John Rundle, aseismologist at the University of California, Davis, who
presented the new research at the JpGU-AGU joint
meeting. “It’s meant to be for city planners to see where
they are in the cycle of major earthquake within adefined geographic region.”
The nowcasting method uses the number of small
earthquakes that have occurred in a region since
the last large earthquake to statistically work out
progress through the regional earthquake cycle.
The trick, says Rundle, is to first look at the pastearthquake data for a larger region, then apply it
to a smaller area within that region.
For example, seismological records of a large
region, like all of California and Nevada, show arange of earthquakes of various sizes, withsmaller quakes being more common. This
information is compared to the number of small
earthquakes that have occurred since the last big
earthquake in smaller regions, as, for example,
within 100 kilometers (62 miles) around Los
Angeles. Applying the earthquake distribution forthe larger region to the smaller region gives
scientists an idea of how far along the region is in
its cycle of smaller quakes relative to large
earthquakes.

Example of EPS value (77.5%) obtained for California on 19 May
2016 (Graph taken from the abstract).
Thus, the new technique, called seismic nowcasting,estimates the progress of a defined seismically-active
geographic region through its repetitive cycle of major
earthquakes. Applied to cities, the method assigns an
www.geothermal-energy.org

Rundle stresses that the new technique is not amodel, only an interpretation of current data toprovide the current earthquake status of a region.
It does not forecast when a future major
earthquake might occur.

Sources:
http://blogs.ucdavis.edu/egghead/2017/05/22/newtechnique-provides-earthquake-risk-major-citiesJuly-September 2017

IGA News No. 108

35

worldwide/,
https://confit.atlas.jp/guide/event/jpguagu2017/subjec
t/SSS08-02/class?cryptoId

Climate Change: The Large
Crack in the Lasen C Ice Shelf
The shape of the world is hanging by a thread –or
rather, according to experts, by a 110 mile-long (177km)
rift. That’s the extent of a rapidly expanding crack in anenormous ice shelf in Antarctica. When the Larsen C
shelf finally splits away, the largest iceberg ever recorded(bigger than the U.S. state of Rhode Island and a third
the size of Wales) will snap off into the ocean. Widening
each day by 3 feet (1 m), the groaning cleft is on theverge of dramatically redrawing the southern-mostcartography of our planet and is likely to lead,climatologists predict, to an acceleration in the global
rise of sea levels.
An aerial photo of the frigid fissure, taken late last year
when it was discovered that the pace of the icy tear was
quickening, was suddenly back in the news in early May
with the announcement that a second rift in the shelf
had been detected. The fracture leads our eye along a
zig-zagging path –from the backward gaze of the plane’s
right engines to the pristine polar blue of the horizon in
the distance (see photo). The jaggedness of the cleft,
which takes our vision on a journey whose ultimate
destination is unfathomable, seems at once monumental
and terrifyingly fragile. The photo intensifies ourhelplessness in the face of cataclysmic change. It freezes
the potential destruction in the blink of a camera’s
shutter, while at the same time hinting at a catastrophethat we can witness unfolding but are utterly powerlessto stop.

Source: http://www.bbc.com/culture/story/20170505the-crack-thats-redrawing-the-worlds-map

Finances: Is Geothermal
Competitive?
Following is a note written by Kevin Wallace, from POWEREngineers, and published by New Energy Events in the eve of the
GEOLAC 2017 event, held in Mexico City in April 2017.
News on power purchase rates of 40-50 US$/MWh for
new solar-PV plants begs the question – can geothermal
be competitive with prices challenging for any but thelargest of geothermal projects? We feel geothermal still
has a valuable role in the energy portfolio if the wider
benefits are considered.
The value to the grid of stable, baseload power withsome ramping capability is generally not considered in
auctions that are judged merely on costs per MWh. As
system operators experience higher penetrations ofintermittent resources, like solar (resulting in theinfamous “duck curve”), simplistic pricing methods
cause distortions in the true cost of grid operations.
When pricing shifts to accurately reflect system
integration costs, the value of having geothermal in theenergy mix will be increased.
Geothermal resources can be used for broader benefits
in ways that intermittent solar and wind cannot. In
regions reliant on imported fuels or scarce biomass forheating, such as in Europe or the Andes, combined heatand power plants can provide communities with moreenergy independence. Reliable geothermal projects canprovide multiple benefit streams over decades: power,
district heating, aquaculture, balneology, or thermal uses
for industry clustered in ‘resource parks’. Baseload
geothermal power can also be coupled withenergy-intensive
products
suchasdesalinization, battery storage or fuelsynthesis to produce multiple productstreams, with production increased at offpeak times.
The continued competitivenessofgeothermal will depend on a more accurate
accounting for the values baseload plants
bring to the grid, and require continued
creativity in order to comprehensively
integrate
geothermal
benefits
into
communities.
Source: http://newenergyevents.com/isgeothermal-competitive-in-an-era-of-lowcost-renewables/(Photo: NASA/John Sonntag)
As a visual statement, the aerial photo of the Larsen C
crack is, by definition, incomparable; never before has
the world marked the glacial advance of such a sublime
and fearsome fracture in its very fabric.
www.geothermal-energy.org

Finances: The True Costs ofElectricity
July-September 2017

IGA News No. 108
The price we all pay for electricity generally does notreflect the ‘true cost’ of producing it. Generating
electricity creates harmful pollution, damaging theenvironment and public health. This comes with a cost,
but it is not necessarily paid for by those generating thepollution or purchasing the electricity. These types ofcosts are known as ‘external costs.’
For example, a coal-fired power plant releases pollution
into the atmosphere, which adversely affects the healthof residents in nearby communities. This pollution is an
example of an external cost because it causes healthproblems that neither the plant owners nor the electricusers pay for (unless they live near the plant and pay thecost through their health bills).
From coal mining and energy production, to distributing
and using that energy, to disposing of waste products,
electricity has many external costs. By examining them,
we can better understand the true cost of electricity andhow it varies depending on the technology or fuel used
to generate it.
Upstream operations take place before electricity is
generated. For fossil-fuel and nuclear generators, thelargest upstream external costs are associated withproducing, processing, and transporting fuel. For solar
and wind, the main upstream impacts are associatedwith manufacturing and transporting materials required
for the solar panels and wind turbines.
The external costs associated with upstream operations
can be significant. Natural gas, for example, burns
cleaner than other fossil fuels such as coal. However,methane, the primary component of natural gas, is avery potent greenhouse gas – up to 84 times more
powerful than CO2 in the first 20 years it is released into
the atmosphere. Leaks and intentional releases of thisdamaging pollutant during the production, delivery, anduse of natural gas, if not addressed, have the potential tonegate the environmental benefits of natural gas over
coal.

36
pollutants power plants can release, including particulatematter (PM), sulfur dioxide (SO2), and oxides ofnitrogen (NOx). Emissions of SO2 and NOx are also
regulated under various cap-and-trade programs. Whilethese programs have substantially reduced SO2 and NOx
pollution, the remaining emissions from fossil-fuelgenerators still have adverse health impacts, includingpremature death and asthma.
For example, a 2005 National Research Council study
found that these health impacting pollutants from coaland gas-fired power plants cost society US$0.032 andUS$0.016 per generated kWh, respectively. With anaverage U.S. household using about 11,000 kWh each,the health cost associated with that electricity
consumption would be about US$350 per year if it allcame from a coal plant.
In addition to the types of pollution described above,fossil-fuel power plants also release greenhouse gases
like CO2 into the atmosphere, the main culprit ofclimate change. The carbon intensity of electricity
generation varies significantly by fuel and technology,
with coal and oil generation producing the most CO 2,
while certain renewable energy, like solar and wind,producing none. However, as mentioned earlier, theserenewables do produce CO2 in upstream operations.
The following graph shows the total lifecycle carbon
emissions for each technology, including upstream anddownstream emissions.

The potential dangers of methane from natural gas
operations can be most starkly seen in a massive
methane leak at a natural gas storage facility in Aliso
Canyon, California. After a well in the facility failed, it
leaked a total of 97,000 tons of methane before the gas
company was able to plug the leak. This is the shortterm climate equivalent of burning almost a billion
gallons (3785 million liters) of gasoline.
Downstream operations take place during thegeneration of electricity and its subsequent transmission
and distribution to customers.
Pollution from fossil-fuel power plants makes up asignificant portion of the downstream external costs
associated with electricity generation. The U.S. Clean
Air Act regulates and limits the amount of common
www.geothermal-energy.org

A coal-fired plant emits about one ton of carbon foreach 1000 kWh of electricity it generates over its
lifecycle. In 2013, the U.S. Government updated its
estimate of the cost to society of each ton of carbon
emitted (also known as the ‘social cost of carbon’) andvalued it at approximately US$40 per ton. Based on that
July-September 2017

IGA News No. 108
estimate, on average the climate-related damages fromcoal plants equal US$0.04 per kWh. However, US$40
per ton is an underestimate because not all climate
damages are considered in this figure.
Overall, the electric power sector contributes
significantly to the nation’s carbon emissions – equaling
almost 40% of total U.S. emissions in 2015. Based on
the social cost of carbon, climate-related damages fromthe power sector were nearly US$80 billion in a single
year. That cost is mostly borne by current and future
generations through increased frequency of extreme
weather events like flooding, drought, storms, etc.
Certain power plants need large amounts of water tooperate, reducing water quality and intensifying drought
in some areas. For example, these plants occasionallyrelease chemical pollutants into nearby lakes or rivers.
Even when these instances are limited and regulated,
there are still occasional, accidental releases like the 2014
Dan River coal ash spill in North Carolina. Importantly,
solar and wind require no water to produce electricity,
making them a less costly choice in terms of water
impacts.
So what should we do with these external costs now
that we know more about them? Incorporating thehealth and environmental costs of electricity into theprice we pay for it is one solution for which theEnvironmental Defense Fund is advocating. Doing so
will help reduce pollution and ensure a level playing
field for clean energy in our electricity markets, creating
a cleaner system for everyone.
Source:http://blogs.edf.org/energyexchange/2016/04/28/thetrue-cost-of-electricity-what-were-not-paying-forthrough-our-utility-bills/

Debate: Can the U.S. Grid
Work With 100%
Renewables?

37
Jacobson and his vision of a world fueled 100 percent
by renewable solar, wind, and hydroelectric energy. The
criticism of his ‘wind, water, and sun’ solution and an
unapologetic rebuttal from Jacobson and three Stanford
colleagues appeared in the past June’s issue ofProceedings of the National Academy of Sciences(PNAS).
The critics enumerate what they view as invalid
modeling tools, modeling errors, and “implausible andinadequately supported assumptions” in a projection of
the midcentury U.S. energy supply that Jacobson and his
coauthors published in PNAS in 2015. “The scenariosof [that paper] can, at best, be described as a poorly
executed exploration of an interesting hypothesis,” write
the experts, led by Christopher Clack, CEO of powergrid-modeling firm Vibrant Clean Energy.
Clack says their primary goal is accurate science, thebetter to equip policymakers for critical decisions:“We’re trying to be scientific about the process andhonest about how difficult it could be to move
forward.”
The text and statements by Clack’s coauthors question
Jacobson’s evaluation of competing energy technologies,
and specifically his rejection of two nonrenewableenergy options: fossil fuel power plants equipped tocapture their own carbon dioxide pollution, and nuclear
reactors.
In fact, while both sides claim to be objectively weighing
the energy options, the arguments and backgrounds ofthe protagonists belie well-informed affinities forvarious energy sources (and informed biases against
others). As sociologists of science would say, theirchoice of data and their reading of it reflects hunches,
values, and priorities.
The weakest point in Jacobson’s 2015 paper identified
by his critics is a heavy reliance on hydropower plants,
which serve as his simulated power grid’s backstop
energy supply during long periods of weak sun andbecalmed winds. This jumps out in the graph [below],which simulates total continental U.S. heat and power
generation over four days in January 2055. Hydro

A battle between competing visions for the future ofenergyblew
open on the
pages
of
a
venerablescience journal.
The conflict pits
21 climate andpower-system
experts against
Stanford
University civilandFour Days in 2055: Dynamic heat and power supplies in the wind, water, and sunlight-fueled
environmental
continental U.S., simulated by Mark Jacobson. Illustration: Arizona State University/PNAS
engineer Markwww.geothermal-energy.org

July-September 2017

IGA News No. 108
turbines ramp up heavily each day after the sun sets,
delivering as much as 1,300 gigawatts at their peak—alevel that implies a 15-fold expansion in hydropower
generating capacity.
However, no such expansion is documented in the 2015
paper. Critic-in-chief Christopher Clack argues that it isa modeling error because, according his analysis, adding
the required turbines at existing dams is not physicallypossible. And even if it were, he says, discharging thehydropower as described would impose unacceptable
impacts on aquatic ecosystems and downstream water
users. Invalidating that option, says Clack, means
Jacobson’s scheme will cause blackouts: “The wholesystem breaks down.”
Jacobson admits the 2015 paper was “vague” on thehydropower upgrade but stands by its technical andeconomic viability. The environmental impacts, he says,reflect a cost that policymakers pursuing his road map
would need to consider. All clean energy solutions will
require trade-offs, says Jacobson, noting that the lowcarbon grid projection that made Clack’s reputation, a2016 report in Nature Climate Change, calls for a muchlarger build-out of unpopular powerlines.
What is certain, from the darkening findings of climate
science, is that climate change calls for a bold remake ofthe global energy system of the sort that both Clack andJacobson have championed.
The U.S. power sector is bracing for the release of apower grid study ordered by President Trump onwhether renewable energy installations degrade gridreliability by undermining continuously operated‘baseload’ nuclear and coal power plants. U.S. Energy
Secretary Rick Perry’s memo commissioning the study
states as fact that “baseload power is necessary to a wellfunctioning electric grid.”
The Rocky Mountain Institute’s Mark Dyson andAmory Lovins called out that “curious claim,” which
they say, “has been thoroughly disproven by a diverse
community of utilities, system operators, economists,and other experts that moved on from this topic years
ago.” What the grid needs, they write, is flexibility, notbaseload power plants.
Dyson and Lovins’ prescription for the power gridcommunity, meanwhile, is unity: “The grid needs asymphony, not a shouting match.”
Source:http://spectrum.ieee.org/energywise/energy/renewables/can-the-us-grid-work-with-100renewables?utm_source=Tech+Alert&utm_medium=E
mail&utm_campaign=TechAlert_06-2217&bt_ee=POEiYqZilcPjuAdHZbYVOR6GT1mbwd
Ec2XIBxHap2WblSmTEKKa3f2tIz57Y5H5r&bt_ts=1
498151676220
www.geothermal-energy.org

38

IGA News
IGA News is published quarterly by the International
Geothermal Association. IGA News disseminates
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:
Peter Meier, Switzerland (Chairman)
Rolf Bracke, Germany
Varun Chandrasekhar, India
Albert Genter, France
Lúdvík S. Georgsson, Iceland
Luis C.A. Gutiérrez-Negrín, México
Susan F. Hodgson, USA
Herman Darnel Ibrahim, Indonesia
Liu Jirong, China
Kristín Vala Matthíasdóttir, Iceland
Georgina Izquierdo-Montalvo, Mexico
Marcelo J. Lippmann, USA
Diego Morata, Chile
Fernando S. Peñarroyo, Philippines
Horst Rüter, Germany
Ka Noel Salonga, Philippines
Marietta Sander, Germany
Surya Darma, Indonesia
Massimo Verdoya, Italy
Shigeto Yamada, Japan
Meseret T. Zemedkun, Ethiopía
The members of this group submit geothermal news
from their parts of the world, or their areas of
specialization. If you have some news, a report, or anarticle for IGA News, you can send it to any of theabove individuals, the Editor or directly to the IGA
Secretariat. Please help us to become essential
reading for anyone seeking the latest information on
geothermal worldwide.
While the editorial team makes every effort to ensure
accuracy, the opinions expressed in contributed
articles remain those of the authors and are notnecessarily those of the IGA. The editorial team does
not assume any liability for external content takenfrom public sources and websites, or endorse theproducts or services mentioned.
Send IGA News contributions to the editor(l.g.negrin@gmail.com) and/or:International Geothermal Association (IGA)
c/o Bochum University of Applied Sciences,E-mail: iga@hs-bochum.de
This issue of IGA News was edited by Luis C.A.
Gutiérrez-Negrín. Susan Hodgson proofread thearticles. Distributed by the IGA Secretariat. Design
layout by François Vuataz.
July-September 2017

IGA News No. 108

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Representatives of Corporate and Institutional members:
Contact person _________________________________
Second person __________________________________
Third person ___________________________________
Payment
There are three ways to make payment to IGA:
1. Credit card
 Master Card American Express
 VisaCard # __________________________________________
Expiration date ___________________________________
Signature ________________________________________

www.geothermal-energy.org

39
Date of signature _________________________________
2. Bank draft.
3. International Wire Transfer in USD to the International
Geothermal Association
Please notify the Secretariat by fax or e-mail when you wirefunds.
Bank: Helaba
Address: Friedrichstr. 74
40217 Duesseldorf, Germany
Account # 1007100413
SWIFT: WELADEDD
IBAN: DE77 3005 0000 1007 1004 13
2016 dues USD ___________________________________
2017 dues USD ___________________________________
2018 dues USD ___________________________________
Contribution USD ________________________________TOTAL USD ____________________________________
These financial data will not be stored on a database, and will
not be recorded in any electronic form.
Rates for advertising in IGA NewsSpace/Format
Size mm
Number of Issues
1
4 (per issue)
Full Page
185 x 245 USD 450
USD 350
Half Page
185 x 120 USD 310
USD 215(horizontal)
Half Page
90 x 245
USD 310
USD 215(vertical)
Quarter Page
120 x 90
USD 195
USD 155(horizontal)
Quarter Page
90 x 120
USD 195
USD 155(vertical)
REDUCED SUBSCRIPTION RATES FOR Geothermics
Elsvier is pleased to offer members of the IGA a preferential
subscription rate to the journal Geothermics. It is published six
times a year, with a normal institutional suscription rate of
USD 2,085 per year (printed version), or USD 1,042.80 per
year (eJournal) (2016 prices).
IGA members, are eligible for a special yearly rate of USD
285. If you want the special rate, please contact
JournalsCustomerServiceEMEA@elsevier.com. Upon request,
they will send a proforma invoice to your e-mail ID. You canmake your payment via bank transfer, fax your card details orcall them with the information provided in your invoice.
Elsevier (https://www.elsevier.com/) provides web-based,
digital solutions —among them ScienceDirect, Scopus, Elsevier
Research Intelligence and ClinicalKey— and publishes over 2,000
journals, including The Lancet and Cell, and more than 33,000
book titles. Elsevier is part of RELX Group, a world-leading
provider of information and analytics for professional andbusiness customers across industries.

July-September 2017