IGA NEWS
Newsletter of the International Geothermal Association
Quarterly No. 106

IGA ACTIVITIES
Message from the President
Greetings to all members of IGA and those that arereading this newsletter.
I have recently taken up the position of President of
IGA for the 2016-2019 board term. The Board of IGA
is elected every three years for a three years-term amongits members, while the President is then elected by the
incoming board members. I am therefore quite gratefulfor the trust given to me to fill this position over the
next three years.
I will follow in the position of President distinguishedpredecessors, like Juliet Newson (formerly with Contact
Energy, New Zealand, and now at the Iceland School ofEnergy), Roland Horne (Stanford University), Ladislaus
Rybach (ETH Zuerich) and many more. This is anincredible honor and responsibility and while I am verymuch looking forward, I also understand that I havesome large shoes to fill. I would like to thank my former
board colleagues for their contribution to the activities
of IGA.
With Marietta Sander, the Executive Director of IGA,
leaving the Secretariat at the end of the year, I would
like to thank her for her passion, dedication and hard
work on the daily struggle of running the secretariat andrepresenting the association in various international
events, initiatives and conferences. Together with mypredecessors, I wish her all the best for her next
professional appointment and hope to see her in thegeothermal sector again in the future.
Last year, we held the World Geothermal Congress in
Melbourne, Australia, and had the chance to see New
Zealand. I would like to thank the organizers and all
involved in making this event a successful event for theindustry, despite the challenges endured.
The next World Geothermal Congress will be held in2020 in Reykjavik, Iceland. The 2016-2019 term of theboard falls in between two World Congresses andprovides a good opportunity to reflect on our work as
an association, our cooperation with national
associations and an evaluation of our strategy for the
next challenging coming years.
The geothermal sector and its national and international
associations, underfunded as they are, play an important
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CONTENTS
IGA ACTIVITIES
Message from the President... 1
64th and 65th BoD Meetings and 27th AGM… 3
Current IGA Committees… 5
The IGA in Marrakech… 6
Next IREC to Be Held in Mexico City… 7
Good Bye to the IGA… 8
GRC 40th Annual Meeting Held in Sacramento… 8
GRC 40th Annual Meeting - The Geysers Field Trip… 9

AFRICA
Ethiopia… 10
Kenya… 10

AMERICAS
Canada… 14
Caribbean… 15
Chile… 16
Costa Rica… 16
Mexico… 17
United States… 19

ASIA / PACIFIC RIM
Armenia… 20
Indonesia… 20
Iran… 22
Japan… 22
Philippines… 23
South Korea... 24

EUROPEEGEC Statement… 25
Finland… 25
Germany… 26
Italy… 26
The Netherlands… 27
Serbia… 27
Turkey… 38

OCEANIA
Australia: Errata… 30
New Zealand… 30

OTHER
Technology… 32
Science… 35
Climate Change, 100% Renewable, Energy Savings… 36
Books… 40
Industry… 41
January-March 2017

IGA News No. 106
role for the sector, promoting, informing, but also
gathering support to help with the development ofgeothermal projects worldwide: for power generation,
direct use and combined heat and power plants. But
they also need the support of the sector and its
representatives.
During the past board term of the
IGA, I was heavily involved in
preparing and working on a future
strategy for IGA and worked with theSecretariat and other board members
on a new approach to branding of theassociation. This work continues and I
hope we can make a big push forward
involving also our membership. In all
the activities, I worked closely with andhave supported the Secretariat
throughout these activities.
IGA can build on the fantastic support
by the host of the IGA Secretariat in
Bochum, Germany. Compared to otherrenewable energy technologies, we arethough not as visible and are often nottaken that seriously. Therefore, I
believe that we need to strengthen efforts in the
promotion, development and representation ofgeothermal energy, this not only to the general public
but also national and multilateral organizations, such as
the World Bank, IRENA and related.
Representing industry interests and those of ourmember associations is only possible by strengthening
our activities and involvement with those entities andorganizations. This involves research activities, project
development, financing and risk mitigation tools andmuch more.
The pioneering research projects to tame supercritical
geothermal resources such as IDDP, Japan beyond the
Brittle Project, and others already involves industry,
government and research institutions to share costs andrisk for power production from supercritical geothermal
reservoirs. They represent the huge potential ofgeothermal and open the way to a stronger share ofgeothermal among the other renewable energy sources.
At the same time we need to put a focus on realistic
targets.
It is important that we find ways to engage industry
more strongly into our activities and thereby also
strengthen the fantastic research efforts of the industry
on an academic and industry level. This also includes
efforts on entrepreneurship and technologicaldevelopment and I see IGA in a possible facilitating role
going forward. With our strategy discussions in theboard, we have laid a good foundation for preparing
IGA for the future.
www.geothermal-energy.org

2
I am looking very much forward working with theBoard of IGA and would like to thank all of them fortheir input and commitment. I am looking particularly
forward working with the Chairs of the different
committees on the tasks ahead. If you wish to be
involved in any of the IGA Committees, please contact
the committee Chairs (listed in thisnewsletter and the IGA website).
It will further be important tostrengthen our efforts in supporting
developing countries that want todevelop their geothermal resources.
We can do so through interaction withinternationalorganizations
andagencies such as the Global
Geothermal Alliance, IRENA, Africa
Renewable Energy Initiative andvarious other initiatives.
Engaging with the national geothermal
associations, I hope to be able to meetwith many of them during the term of
2016-2019, but also meet with larger
players in the industry to see what
IGA could do for the industry while
engaging industry more in the support of the work of
IGA.
Another thing I really want to emphasize is how we canstrengthen the role of women in the geothermal energy
sector and thereby fully support the great work of all the
WINGs (Women in Geothermal). I hope to be working
closely together with all the WINGs and WINGmenover the coming years, not only on the board of IGA,
but also via ThinkGeoEnergy.
I plan to report regularly on IGA and its board on a
personal note via my personal blog, but also via
ThinkGeoEnergy.com. I am the Founder & Editor ofThinkGeoEnergy, and have been operating this news
platform for the geothermal energy sector since 2008.
We are now also running a Spanish version at
PiensaGeotermia.com and soon a Turkish version at
JeotermalHaberler.com. I am also working as Marketing& Communication Director for UK-headquartered
Green Energy Geothermal (GEG), a supplier ofmodular geothermal wellhead power plants. I am also a
Board Member of the Canadian Geothermal Energy
Association (CanGEA).
With all the planned activities and efforts, these will besome busy three years and if you want to help out with
our activities on IGA and spread the word aboutgeothermal energy, please be in touch. So for questions,comments, thoughts and more, email me at:
iga@thinkgeoenergy.com.
Alexander Richter, PresidentInternational Geothermal Association
January-March 2017

IGA News No. 106

364th & 65th BoD Meetings and27th AGM in Addis Ababa
Luis C.A. Gutiérrez-Negrín, Editor
The 64th meeting of the IGA’s Board of Directors(BoD) ended the 2013-2016 term and the 65th meeting
began the 2016-2019 term. Both meetings were held at
the United Nations Conference Centre (UNCC) in
Addis Ababa, Ethiopia, on October 31 and November
1, 2016, respectively, just before the ARGeo C6
Conference that ran from 2 through 4 November in thesame venue. All new and old members of the Board
were invited to participate in both meetings, as well as in
the 27th Annual General Meeting held on the evening of
October 31.
The IGA past Vice President Herman Ibrahim Darnel,
welcomed the IGA Board of Directors on behalf of thepast President, Juliet Newson, who was unable toattend. Herman called the 64th Board Meeting to orderat 8:30 am, and those present introduced themselves.
The old Board members at the meeting were: Albert
Genter, Alexander Richter, Árni Ragnarsson, Bjarni
Pálsson, Bruno Della Vedova, D. Chandrasekharam,
Fernando S. Peñarroyo, Herman Ibrahim Darnel,
Lúdvík S. Georgsson, Luis C.A. Gutiérrez-Negrín,
Meseret Teklemariam, Rolf Bracke, Toshihiro Uchida,
and Zhonghe Pang. Apologies were received from Beata
Kepinska, Juliet Newson, Paul Brophy, Sadiq Zarrouk
and Shigeto Yamada. Also participating were Horst
Rüter as Managing Director of the IGA Service
Company, Marietta Sander as Executive Director, andKarolina Andersson as IGA Assistant. In addition, thefollowing incoming Board members of the 2016-2019
BoD were present: Bjarni Bjarnasson, Colin Harvey,
Gábor Szita, Jane Brotheridge, Kristín V. Matthíasdóttir,
Massimo Verdoya, Peter Meier, Peter Omenda, Surya
Darma, and Valentina Svalova.
The agenda approved included the following points: 1.
Call to order; 2. Approval of the Minutes of the IGA
Board 63rd meeting; 3. Approval of the Agenda; 4.
Focused discussion on subsequent topics:
4a. Update on activities of R&R Committee and UNFC
collaboration; 4b. Update on bylaws change and namechange of the African Regional Branch; 4c. Update on
education grant approvals; 4d. Update on process forstandardized data collection; 4e. Update on logo; 5.
Update on WGC2020, MoU, preparations, timeline; 6.
Group photo; 7. Adjournment.
The main aspects and agreements of the meeting follow.
- The results of the IGA Officers election: The past
President, Juliet Newson, was the chair of the ad hoc
election committee in charge of supervising the election
process of new IGA officers. The results of the election
are as follows: President: Alexander Richter; Vice
President: Toshihiro Uchida; Treasurer: Colin Harvey;
Secretary: Bruno Della Vedova.
- Standardization of data collection: The establishment
was approved of a working group for data collection
among the IEA GIA Annex 10, the IGA and EGEC,
and other entities trying to capture and update
geothermal data and information.
- Membership Committee Report: A new fee structure

Old and new members of the BoD in the UNCC in Addis Ababa.
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January-March 2017

IGA News No. 106

4

was approved for student members. The student fee will
be introduced on a trust basis and the IGA Secretariat
will not need to ask for enrollment certificates from thestudents. The new student member fee for affiliatedorganizations are: Category U: US$ 3 (normal individual
member: US$ 12), Category A: US$ 1.5 (normal
individual member: US$ 6), Category B: US$ 1 (normal
individual member: US$ 3.5) (categories refer to theWorld Bank economies classification).

Peter Omenda, Peter Meier, Rolf Bracke, Surya Darma,
Toshihiro Uchida, and Valentina Svalova. Thus, thenumber of Board members present was 17, plus
Marietta Sander as Executive Director, Karolina
Andersson as IGA Assistant, and the following
members of the retiring 2013-2016 BoD: Bjarni Palsson,
Dornadula Chandrasekharam, Fernando S. Peñarroyo,
Herman Ibrahim Darnel, Luis C.A. Gutiérrez-Negrín,
Meseret Teklemariam, Zonghe Pang, Arni Rágnarsson.

Vice President Herman Darnel thanked the BoD andclosed the 64th meeting at 15:30 pm.

The approved Agenda included: 1. Call to order; 2.
Approval of the Agenda; 3. Discussion of hand-overdocuments of the Committee Chairs and Officers; 4.
Identification of Committee Chairs and formation ofcommittees; 5. Budget discussion 2017 – including
request of R&R Committee; 6. Proposal to standardize
national data collection and form a working groupbetween the IGA and IEA GIA –on the request for
travel funds; 7. Discussion on invitation letters forupcoming IGA Board meetings; 8. Adjournment.

In the evening of October 31, Vice President Herman
called the 27th Annual General Meeting to order at thesame venue. He welcomed everybody and opened themeeting. A total of 27 IGA members were present. The
meeting started with a review of the minutes for the 26 th
AGM held in Morelia, Mexico, on 18 October 2015,
and the agenda. No amendments were necessary, andboth were approved. Next the reports of the IGA
officers; the permanent, technical and ad hoc
committees; and the regional branches were approved,
as tabled, for Board meetings 63 and 64. Finally, the 27th
AGM was adjourned at 16:00 on 31 October 2016.

New IGA’s officers. From left: Toshi Uchida, Vice
President, Alex Richter, President, Colin Harvey,
Treasurer, and Bruno Della Vedova, Secretary.
The 65th BoD meeting started on the morning ofNovember 1st. The IGA President Alexander Richterwelcomed the IGA Board of Directors at the UNCC in
Addis Ababa and called the 65th Board Meeting to orderat 09:00 am. The following board members were present
at the meeting: Albert Genter, Alexander Richter, Bjarni
Bjarnasson, Bruno Della Vedova, Colin Harvey, Gábor
Szita, Horst Rüter, Jane Brotheridge, Kristín Vala
Matthíasdóttir, Ludvik S. Georgsson, Massimo Verdoya,www.geothermal-energy.org

The recently elected IGA President, Alexander Richter,
presented his vision for the future of the IGA. Heemphasized that the IGA and the geothermal industry
should be more present and visible. He encouraged the
IGA Board members and national associations to use
the news website, ThinkGeoEnergy and encouraged usingsocial media platforms more extensively for geothermal
promotion. As a mid-term goal, the value for IGA
members should be strengthened and the IGA should
continue building relationships with internationalorganizations.
The IGA Executive Director, Marietta Sander,
explained that the IGA Secretariat in Bochum is fundedby the federal state of North Rhine Westphalia and the
EU as an EU project lasting from 1 January 2016
through 31 December 2018. The office rental at the
Bochum University of Applied Sciences, officematerials, IT, salaries and travel costs of project
employees are covered by the EU/NRW project.
Current personnel at the Secretariat include the IGA
Executive Director Marietta Sander (until 31 December2016), the IGA Assistant Karolina Andersson, the IT
expert Gregor Rumberg and the Student Assistant Elisa
Spichalski.
The handover reports that the past Officers andCommittee Chairs of the IGA had prepared in advanceon their respective posts and committees, were
presented and the new committee chairs elected. Threeof the new chairs did not attend the meeting and theirelections need to be confirmed later. The current list ofcommittees is presented later, in a separate note.
There were discussions on specific issues, including the
IGA budget for 2017, the IGA regional branches, the
new IGA logo and the next Board meeting. In
particular, Meseret Teklemariam, Chair of the African
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IGA News No. 106
Regional Branch, discussed the issue of not having a
representative from the Africa Regional Branch in the
WGC2020 Steering Committee (SC). She informed thebranch members they were expecting an answer fromthe IGA on why none of them were chosen. The IGA
President will send a letter to the SC to identify aprocess, mechanisms and timeline on including regional
SC representatives as part of their work. The SC was
requested to report on this topic at the next IGA Board
meeting.
Finally, the President Alexander Richter thanked theBoard and closed the meeting.

Current IGA Committees
The Audit and Finance committees were still being
formed as this edition closed. The current compositionof the other IGA permanent and technical committees
is as follows.
- Bylaws
Chair: Jane Brotheridge (New Zealand). Members: Bjarni
Bjarnason (Iceland), Varun Chandrasekhar (India), Luis
C.A. Gutiérrez-Negrín (Mexico), Colin Harvey (New
Zealand), Beata Kepinska (Poland), Juliet Newson (New
Zealand), Fernando S. Peñarroyo (Philippines), Gábor
Szita (Hungary).

5
Chair: Surya Darma (Indonesia). Members: Dornadula
Chandrasekharam (India), Albert Genter (France), Li
Hongying (China), Abadi Poernomo (Indonesia),
Valentina Svalova (Russia), Árni Ragnarson (Iceland),Toshihiro Ushida (Japan), Meseret T. Zemedkun(Ethiopia).
- Nominating Committee
Chair: Albert Genter (France). Members: Jane Brotheridge(New Zealand), Dornadula Chandrasekharam (India),
Ludvik S. Georgsson (Iceland), Herman Darnel Ibrahim(Indonesia), Abadi Poernomo (Indonesia), Surya Darma(Indonesia), Shigeto Yamada (Japan), Sadiq Zarrouk(New Zealand).
- Program and Planning
Chair: Andy Blair (New Zealand). Members: Rolf Bracke(Germany), Varun Chandrasekhar (India), Bruno Della
Vedova (Italy), Luis Gutiérrez-Negrín (Mexico), José
Luis Henríquez (El Salvador), Kristín Vala
Matthíasdóttir (Iceland), Peter Meier (Switzerland),Peter Omenda (Kenya), Bjarni Pálsson (Iceland), Surya
Darma (Indonesia), Gábor Szita (Hungary), Marietta
Sander (Germany), Tingshan Tian (China), Toshihiro
Uchida (Japan), Shigeto Yamada (Japan).
- Recourses and Reserves- Education
Chair: Ludvik S. Georgsson (Iceland). Members: Rolf Bracke(Germany), Dornadula Chandrasekharam (India), Bruno
Della Vedova (Italy), Tuna Eren (Turkey), Beata
Kepinska (Poland), Kewen Li (China), Diego Morata(Chile), Juliet Newson (New Zealand), Peter Omenda(Kenya), Zhonghe Pang (China), Árni Ragnarsson(Iceland), Horst Rüter (Germany), Benedikt
Steingrímsson (Iceland), Valentina Svalova (Russia),
Toshihiro Uchida (Japan) Massimo Verdoya (Italy),
Sadiq Zarrouk (New Zealand), Meseret T. Zemedkun(Ethiopia).
- Information
Chair: Peter Meier (Switzerland). Members: Rolf Bracke(Germany), Varun Chandrasekhar (India), Albert Genter(France), Ludvik S. Georgsson (Iceland), Luis C.A.
Gutiérrez-Negrín (Mexico), 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 (Ethiopia).
- Membershipwww.geothermal-energy.org

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IGA News No. 106
Chair: Graeme Beardsmore (Australia). Members: Miklos
Antics (France), Roy Baria (UK), Larry Bayrante(Philippines), Paul Brophy (USA), Varun Chandrasekhar(India), Dornadula Chandrasekharam (India), Paolo
Conti (Italy), Gioia Falcone (UK), Geoffrey Giudetti(Italy), Malcolm Grant (New Zealand), Luis Carlos
Gutiérrez-Negrín (Mexico), Marek Hajto (Poland),Colin Harvey (New Zealand), Manfred Hochstein (New
Zealand), Rob Hogarth (Australia), Egill Juliusson(Iceland), Horst Kreuter (Germany), Jim Lawless (New
Zealand), Harmen Mijnlieff (Netherlands), Inga Moeck(Germany), Annamaria Nádor (Hungary), Hugo
Fernando Navas (Kenya), Juliet Newson (Iceland), Peter
Omenda (Kenya), Zhonghe Pang (China), Fernando S.
Peñarroyo (Philippines), Horst Rüter (Germany), Ladsi
Rybach (Switzerland), Marietta Sander (Germany),
Benedikt Steingrímsson (Iceland), Surya Darma(Indonesia), Suryantini(Indonesia), Janos Szanyi(Hungary), , Alison Thompson (Canada), Gregory
Ussher (New Zealand), Colin Williams (USA), Kasumi
Yasukawa (Japan), Katherine Young (USA), Sadiq
Zarrouk (New Zealand), Meseret Teklemariam
Zemedkun (Ethiopia).

The IGA in Marrakech
The 22nd Conference of the Parties (COP22) was held in
Marrakech, Morocco the past November. One of theseveral side events was convened by the International
Renewable Energy Alliance, or REN Alliance, of which
the International Geothermal Association (IGA) is afounding member. The REN Alliance was formed in
2004 during the first International Renewable Energy
Conference in Bonn, Germany. It is a coalition of five6
renewable industry organizations that works towards aworld where our energy needs are met primarily by
renewable sources. The REN Alliance mission is todemonstrate how renewables can work together indifferent local, national and regional contexts to meet
the world’s energy needs. Besides the IGA, the alliancepartners are the International Solar Energy Society(ISES), the World Wind Energy Association (WWEA),
the International Hydropower Association (IHA), and
the World Bioenergy Association (WBA). A new
website was recently launched: www.ren-alliance.org.
Since its formation, the REN Alliance has promoted
and reported on how renewable energy technologies canwork together to meet global energy security, economic,
and environmental challenges. In this side event of the
COP22, the specific objective was to demonstrate how
renewable technologies working together can meetenergy needs at the island, rural, city, national andregional levels.
Among the most significant challenges facing society
today is the impact global climate change can have on
our economies, livelihoods, and lifestyles. The COP21
Agreement, from Paris in 2015, calls for all countries towork together towards greenhouse gas reduction
commitments that ultimately will result in no more than2°C, and ideally 1.5°C, warming above preindustrial
levels by the end of this century.
This is the goal the Intergovernmental Panel on Climate
Change (IPCC) has established to avoid catastrophic
impacts from climate change. However, the current
Intended Nationally Determined Contributions(INDC’s) forming a part of this agreement create animportant, yet insufficient, step to be taken by national
governments to achieve this goal.
During the COP22 side event the REN Alliancepartners confirmed that renewable energy technologies
are ready to deliver on the Paris Agreement at all levelsof deployment. This was proven through thepresentation of case studies and best practices being
undertaken by localities, regions, and communities
throughout the world. The REN-Alliance demonstrates
that renewables working together can result in a
decarbonized energy system, based on a global 100%
renewable energy well before the end of this century,
leading to the mitigation of the major environmental
challenge of our time. You can watch the live stream ofthe event here.
The COP22 side event follows a side event held at
COP21 in Paris. The previous event lead a discussion
how technology solutions are in place for a 100%
renewable future. You can read about the outcomes ofthe previous side event here.
The REN Alliance underlines that a renewable energy
supply is not only good for the climate, but offers

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January-March 2017

IGA News No. 106
manifold economic and social benefits, for developing
and industrialized countries, alike. Renewable energy
technologies are today’s cheapest options whencomparing new investment – as confirmed byindependent organizations, like IRENA. The global
transition to a renewable energy future no longer afinancial burden; it will enhance economic growth andprosperity, plus mitigate climate change.
Marietta Sander, executive director of the IGA, said:“The regional geothermal development approachthrough the African Rift Geothermal Facility, theAfrican Regional Geothermal Association and a regional
technical assistance project through UNEP works reallywell in the East African countries.”
Stefan Gsänger, secretary general of the World Wind
Energy Association (WWEA), said: “Communities inrural areas especially can benefit tremendously from theglobal shift towards 100% renewable energy: They may
not only cover their own energy needs from local
renewable resources, but also become suppliers of urban
areas, hence creating new income opportunities forthemselves. This will boost rural areas in industrialized
and in particular in the so-called developing countries.”
Dr David Renné, president of the International Solar
Energy Society (ISES), said: “Renewables working
together in island settings can achieve complete energy
independence and security for these communities by
eliminating the need for expensive imported diesel fuel.”
Remigijus Lapinskas, president of the World Bioenergy
Association (WBA), said: “Bioenergy enables us tocreate jobs in rural areas, improve the ecologicalsituation in the cities, strengthen the security of supply,
national energy independence and could be developedin the regional level leading to cooperation in science,technology and business.”
Richard Taylor, chief executive of the International
Hydropower Association (IHA), said: “The information
presented at today's event demonstrates the power ofrenewable technologies working together. Dependingon the available renewable resources, we need to
combine the positive characteristics of each technology
to deliver robust and reliable systems, including

7
renewable storage. Governments, investors and lenders
need to take a systems approach to increase the rate ofprogress.”
Sources:
http://www.energycentral.com/c/cp/renewables-thenlook-ren-alliance?utm_source=2016-1123&utm_medium=eNL&utm_campaign=CP_WEEKL
Y&utm_content=214475, https://www.geothermalenergy.org/publications_and_services/news/article/press-release-cop22-renewable-energy-technologies-readyto-deliver.html

Next IREC to Be Held in
Mexico City
The Government of Mexico announced that it has
teamed up with REN21 –the Renewable Energy Policy
Network for the 21st Century– to organize the next
International Renewable Energy Conference (IREC) in
Mexico City from 11-13 September 2017, within theframework of the Strategic Dialogues on the Future of
Energy.
Dedicated exclusively to the renewable energy sector,
IREC is a high-level political conference series hosted
by a national government every two years and convened
by REN21. Each IREC acts as a common platform forgovernment, private sector and civil society leaders tojointly address the goal of advancing renewable energy
and has provided the impetuses for several momentous
initiatives over the past decade. IREC 2017 in Mexico
will continue to build upon the successes and outcomesof the previous conferences held in South Africa (2015),
Abu Dhabi (2013), Delhi (2010), Washington D.C.
(2008), Beijing (2005) and Bonn (2004).
On the announcement, the Secretary of Energy of
Mexico, Pedro Joaquín Coldwell, commented: “Latin
America has an opportunity to showcase its rapidly
growing renewable energy industry and gain from thebest practice as adopted in countries at the forefront of
renewable energy deployment. Mexico, after having
successfully completed its energy market reform, is wellplaced to host such an event and we are honored topartner with REN21 in this endeavor.”

Logos of some of the past IRECs.
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IGA News No. 106

8

Arthouros Zervos, Chair of REN21, added: “REN21 ispleased that Mexico will be the next IREC host. We areconvinced that MEXIREC will further boost Latin
America’s emerging renewable energy industry andprovide a global platform showcasing how renewableenergy sources provide a significant opportunity to
improve energy security, mitigate greenhouse gas
emissions, ensure sustainable development andsignificantly improve socio-economic development.”
Further
informationwww.ren21.net/irec.

will

be

available

atSource: REN21 Press Release.

Good bye to the IGA
Marietta Sander

The 40th Annual Meeting of the Geothermal Resources
Council (GRC) was held in Sacramento, California,
from the 23rd to the 26th of October 2016. Associatedwith it was the 2016 GEA (Geothermal Energy
Association) GeoExpo+.
Attendance was slightly higher than last year’s event—
about 1,250 people from around the world. This year
714 people from 32 countries (including 73! students)
registered for the GRC meeting and about 550 for the
GEA Expo+.
Before the start of the meeting there were workshops
on “Conceptual models of geothermal systems”,“Reservoir simulation” and “Best practices in O&M”, aswell as a field trip to The Geysers featuring injection (seenote below) and one to the headquarters of the
California Independent System Operator (CAISO) in
Sacramento. On Thursday, October 27, following themeeting, there was a second field trip to The Geysers
featuring EGS.
The GRC meeting included technical sessions on
Geology, Geochemistry, Geophysics, Drilling, Reservoir
Modelling, Field Operations, Power Plants, EGS,
Environmental/Regulations, “International Updates”,
The Geysers, Case Studies, Direct Use, Desalination,
Business and Country Updates, Tools andInstrumentation, “Geovision” and “GEO 101”. In
addition to the oral presentations, posters weredisplayed on the topics just mentioned and on
Exploration and Emerging/Production Technologies
for the entire meeting.

I wish to express a big word of thanks to all IGA
members and IGA Board members of the terms 2010 2016 for the excellent collaboration, inspiring
discussions, continuous support and great local insights.
It was a privilege and honor for me working as IGA
Executive Director over the last six years. I particularly
enjoyed seeing the IGA outreach (and tasks) grow andimprove since the set-up of the IGA Secretariat in
Bochum, Germany in early 2011.
I wish you all the very best and hope for great upcoming
accomplishments in the geothermal energy sector.

GRC 40th Annual Meeting Heldin Sacramento
Marcelo J. Lippmann, IGA Information
Committee
www.geothermal-energy.org

Some of the highlights of the meeting were the Opening
Session, Monday’s International Luncheon, Monday
evening’s “GRC Mixer”, Wednesday’s Award
Luncheon, the workshops and field trips. During theInternational Luncheon, which was sold out before thestart of the conference, talks were given on “Mexico International Cooperation” and on “Mexico - Resource
Expansion”.
At the Awards Luncheon, seven outstanding GRC
members were honored. The Joseph W. Aidlin Award
was presented to Anna Carter; the Geothermal Pioneer
Award to Wilfred Elders; the Henry J. Ramey, Jr.
Geothermal Reservoir Engineering Award to John
Pritchett; the Ben Holt Geothermal Plant Award to Dan
Hoyer; and the Geothermal Special Achievement
Awards to Aroha Campbell, Dale Merrick and Paul
Spielman.
A more detailed summary of the GRC Annual Meetingand the GEA GeoExpo+ is included in theNovember/December 2016 issue of the GRC Bulletin;
there will be additional coverage of the meeting in theJanuary/February 2017 issue. Over 500 photographsfrom the event are available on the GRC Flicker website
atJanuary-March 2017

IGA News No. 106
https://www.flickr.com/photos/geothermalresourcesc
ouncil/.

GRC 40th Annual Meeting –The Geysers Field Trip
Susan Fox Hodgson, IGA Information
Committee

9
the water pumps at the base of the Santa Rosa Geysers
Recharge Project where some reclaimed water begins its
journey up to the field. The second project, east of the
field, is called the Southeast Geysers Effluent Pipeline Project.
The many, continuous geophysical records kept at The
Geysers include ones for injection wells and seismic
events. “There are very encouraging signs from ourcurrent injection efforts,” Calpine Senior Geophysicist
Craig Hartline said. “The rates of seismicity are
significantly declining—we are very near a massbalance.”
He noted that at the end of October 2016, Calpine
operations at The Geysers included 13 geothermal
plants, about 325 active steam production wells, andabout 53 active water injection wells producing about
720 MW—about 18 percent of California’s renewable
power.
“I feel the trip was highly successful,” Mark Walters toldme, “mostly because there was sufficient time to visit
the extent of the steam field and visually grasp thisrugged area of more than 30 square miles. There areabout 80 miles of steam pipelines and 69 miles of waterinjection lines. The exhibits at the Calpine Visitor
Center we saw after the field tour allowed everyone thechance to encapsulate their experiences into acomprehensive, ‘big picture’ view of the field.”This is the first power plant ever built at The Geysers
Geothermal Field—a famous misnomer, of course, as
the field has no geysers. The tiny power plant wenton line on January 13, 1923, generating 35 kilowattsof electricity. Note that the small wooden building
was constructed next to a tall tree, quitted ofbranches and bark to support the transmission lines.
This was the first geothermal power plant in theWestern Hemisphere. From a GRC photo; watercolor
by Susan Fox Hodgson.
Before the 2016 Annual Meeting in October, the GRC
sponsored a trip to The Geysers Geothermal Field
featuring the importance of treated wastewater for
generating electrical power at the field (it’s critical).
Eight people including myself—all IGA and GRC
members—signed up for the tour led by Mark Walters,
Senior Geologist for Calpine Corporation. We learned
how The Geysers reservoir is not recharged fromgroundwater but needs injected water to generateenough steam to make the field operations possible.
For this reason, two projects in surrounding
communities pipe a daily total of 18 million gallons(68.13 million liters) of reclaimed injection water up to
the field’s two operating companies: Calpine
Corporation and the Northern California Power
Agency. Our group is pictured here standing in front of
www.geothermal-energy.org

The group includes three members from Iceland,
three from Kenya, and one from Taiwan. Top row,left to right: Maurice Nduranu, Jóna Bjarnadóttir,and Mike Sherman, Geysers Operation and
Maintenance Coordinator, City of Santa Rosa. Secondrow, left to right: Caroline Wanjiru Karugu, Margrét
Edda Ragnarsdóttir, Tai Rong Guo, Mark Walters,
Gershom Otachi Bw’Omanwa, and Ásgerdur Kristrún
Sigurdardóttir. Photo by S. Hodgson.
January-March 2017

IGA News No. 106

AFRICA
Ethiopia: New Developmentsin Geothermal Energy
Plans to Harness 5,000 MW of Geothermal Energy– The Ethiopian Ministry of Mines, Petrol and NaturalGas has made public the country’s plan to harness 5,000
MW of geothermal energy by 2037. The newly
appointed Minister, Motuma Mekassa, said Ethiopia is
working intensively to developing renewable energy
sources like geothermal energy and to expand its
partnership with other African countries, while
addressing the opening of the 6th African Rift
Geothermal Conference (ARGeo-C6) held at the United
Nations Economic Commission for Africa ConferenceCenter (UNCC) in Addis Ababa in early November.
The ARGeo-C6’s theme was Geothermal Energy
Solution for Africa’s Energy Needs and the conference
ended on 6 November 2016.

According to Motuma, Ethiopia has identified 22
geothermal prospective sites. He said that the country
has already started developing Aluto-Langano andTendaho geothermal fields. It was noted that the twosites, respectively, will generate 70 MW and 100 MW ofenergy when they become fully operational.
The UNEP and ARGeo program has successfullycompleted an integrated geo-scientific study of Tendaho(Dubti-Ayrobera).
Motuma underscored that Ethiopia is highly interested
to work cooperatively with other African countries so as
to integrate regional infrastructure, networking, building,advice on policies and win-win relationships.
Lack of finance and well trained human power inscience and technology are mentioned as the twin
challenges that have hurt the African continent in its bid
to harness more energy sources.
Ethiopia has the potential to produce 45,000 MW fromhydropower, 1350 GW from wind, 7,000 MW fromgeothermal, and 5 kWh/day from solar energy.
Source:http://www.waltainfo.com/index.php/news/detail/254
98
www.geothermal-energy.org

10Technical Support from Kenya - Ethiopia is keen tofurther develop its geothermal potential by drawing
lessons from neighboring Kenya, which is further along
in using its geothermal potential, the Geological Surveyof Ethiopia (GSE) disclosed. Kenya possesses advanced
technologies needed to develop geothermal energy andthe country is willing to share its technological capability
with Ethiopia.
Cornel Ofwona, Acting General Manager-Drilling andInfrastructure at Geothermal Development CompanyKenya (GDC) said, “We are partnering very well withfellow countries in the region, especially with Ethiopia.
We collaborate in terms of sharing expertise, sharing
equipment, and also helping each other in organizations
by organizing workshops …. We are going to assist ourbrothers here in Ethiopia to develop this resource. In
the past year, we have assisted with a drilling a project
for the Aluto Langano Geothermal Power Plant. Our
company, GDC, sends teams of experts andequipment.”
Ethiopia can learn a lot from
Kenya’s success developing its
untapped geothermal potential,
Ofwona said, indicating thepossibility that Ethiopia can get
drilling rigs from Kenya and use
them to develop its huge
geothermal
resource.
Chief
Geologist, Hundie Melka from
Geological Survey of Ethiopia, said
the country is drawing lessons from Kenya by paying
visits to its geothermal sites and offering training topersonnel in the sector. At 660 MW, Kenya is currently
a leading nation in developing geothermal energy in theregion, while the country is also leading Africa in thedevelopment of geothermal energy.
Ethiopia will also benefit from the Africa Geothermal
Centre of Excellence (AGCE) to be established in
Kenya for building capacity in geothermal technology,
according to the Chief Geologist. Over 22 sites in the
Ethiopian Rift Valley have been identified by GSE for
having good quality geothermal resources—with anestimated electric potential of over 10,000 MW, Hundie
said.
Source:http://www.ena.gov.et/en/index.php/economy/item/
2212-ethiopia-desirous-to-build-up-geothermal-potential

Kenya: Drilling, Menengai,
Exploration, Auctions, Eburru,
Geothermal Side-effects,
Olkaria V
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IGA News No. 106
Chinese Company to Drill Directional Wells in
Menengai - The government’s Geothermal
Development Company (GDC) has contracted with theGreat Wall Drilling Company Ltd. to drill directional
geothermal wells in the Menengai geothermal field.
Menengai is a major Quaternary caldera volcano and is
one of 14 geothermal sites in Kenya. It is located inside
the axis of the central segment of the Kenya Rift, about
60 km north of the Olkaria geothermal field.
Geothermal drilling in Menengai started in 2011.
In early October, a brief signing ceremony was held for
the GDC Managing Director & CEO, Johnson P. Ole
Nchoe, and the Great Wall’s director, Mr. Wei Yong
Chen. “GDC is pleased to once again partner with
Great Wall; under this contract Great Wall will drill 16
directional wells in Menengai,” noted Ole Nchoe, who
was appointed as GDC chief in April 2016.
In 2009/2010, Great Wall worked with GDC in drilling
several GDC wells in Olkaria under a contractual
arrangement. Directional drilling will supplement
vertical drilling, which predominatese in the Menengai
field. With this technique, it will be possible to drill
several wells on one well pad, thus saving money andtime.
Source: http://www.oilnewskenya.com/gdc-contractsgreat-wall-for-directional-drilling/

11
Keter said GDC has already consumed a whopping
Sh40 billion (US$395 million) of taxpayers’ money todrill 35 steam wells at Menengai Crater. He said because
the new wells have the capacity to produce 137 MW,
GDC has already fulfilled all conditions in thecontractual agreements in the IPPs.
The producers, who include Quantum East Africa and
OrPower 22, were supposed to set up their power
plants by December last year. The investors, who wereselected through competitive bidding in 2013, aremandated to build and operate three geothermal plants
in Menengai, each generating 35 MW. Construction was
supposed to have started in October 2013 and becompleted by the end of last year.
Source:http://www.standardmedia.co.ke/article/2000219962/c
s-charles-keter-puts-power-producers-on-30-daynotice/?pageNo=1
GDC Ready to Provide Steam in Menengai According to GDC Corporate Communications
Manager Ruth Musembi, the field is now ripe forelectricity production. GDC projects to generate Sh1.7
billion (US$16.7 million) from sale of steam to operate
the three power plants. “All the paperwork is completed
and GDC has already signed a project-implementationand steam-supply agreement with the power producers,”
she stated. Musembi said that by 2018, Menengai fields
are expected to generate at least 105 MW under phase
one of the multibillion dollar project.
Apart from Menengai, Musembi revealed that plans
were at an advanced stage to launch the Baringo-Silale
project where phase one is targeted to generate 200
MW. “Drilling the fields is expected to begin in early2017 and GDC has already acquired an environmental
and social impact assessment license, allowing for the
exploitation of the massive resources,” she said. The
first phase is funded by the government anddevelopment partners who have provided a loan of Sh8
billion (US$78.7 million). GDC says a 70 km accessroad has been completed while the water supply anddrilling services contracts were being awarded.

Delay in Plants Commissioning in Menengai - In
mid-October 2016, the government gave three
Independent Power Producers (IPPs) 30 days to start
producing electricity in the Menengai geothermal fieldor have their contracts terminated. Energy andPetroleum Cabinet Secretary Charles Keter said there isenough steam at the Menengai Crater to add 105 MW ofelectricity to the national grid. He said the continued
delay by the three IPPs was hurting GDC’s operations.
There has been controversy over the amount of steam
available at the site and its sustainability, with the IPPs
claiming there is not enough for power generation.
www.geothermal-energy.org

The state corporation is also exploring the prospect ofdeveloping an initial 150 MW at the Suswa Field. The
site has an estimated potential of 750 MW when fully
developed. “We have already completed the scientificstudies and infrastructural designs and GDC is awaitinga go ahead from the government to commence drilling
activities at Suswa,” said Ms Musembi.
Source: Geothermal Energy Association Weekly, No. 42
Deal Between GDC and the Forests Regulator –Another pending issue in Menengai seemed to be theuse of the land. In late November, GDC agreed to pay
Sh114.9 million (US$1.13 million) per year to the forest
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IGA News No. 106
regulator, the Kenya Forest Service. KFS owns theMenengai geothermal site where GDC drilled the wells
and the private companies will construct the power
plants.
“We have now concluded the lease agreement and have
paid. Now we are issuing sub-leases to the power
producers,” said Johnson Ole Nchoe, chief executive at
GDC.
GDC has already signed a deal with Ormat
Technologies, Quantum Power and Sosian Energy tosupply the steam at a cost of US¢3.5 (Sh3.05) per
kilowatt hour. “They could not close funding without
the land leases,” Mr Nchoe said in an interview.
The state-owned steam developer has leased 4,591
hectares (11,492 acres) from KFS and will pay “aconservation fee” of Sh10,000 (US$ 98) per acre per
year, as provided for in the Forest Act.
Mr Nchoe said the power firms will pay sub-lease only
for the land where they construct their plants, with thelargest piece being four acres, translating into a yearly
fee of Sh40,000 (US$392). The managing director said
the firm had settled pending payments totaling Sh500
million owed to the engineering firm H Young, which isconstructing the steam-gathering system.
GDC has in the recent past been steaming withheadwinds such as tendering irregularities and fraud,
which have slowed down projects and scared away
multilateral financiers. Construction of the electricity
plants is now rescheduled to start in February 2017 andis expected to take about 18 months.
Source:http://www.nation.co.ke/lifestyle/smartcompany/Three-steam-power-plants-built-Geothermal-strikesSh115m-deal/1226-3467864-ihgjqiz/index.html
Promotion of Geothermal Exploration - Kenya isseeking to promote private investment into thegeothermal energy sector through a review of policies.
The Principal Secretary for Energy and Petroleum,
Joseph Njoroge, said on early October that under the
new regulations, private sector will be given land
concessions to explore for geothermal steam. “The aim
is to enable the private sector to complement
governmental exploration efforts so as to increase theamount of geothermal electrical production in the
country,” Njoroge added.
According to the Ministry of Energy, over 90 percent of
Kenya’s electricity production comes from renewablesources. “Geothermal is now a significant source ofenergy. About 50 percent of all electricity produced
from renewable energy comes from geothermal
sources,” Njoroge said. He said also that Kenya has
exploited less than five percent of its geothermal
resources, partly due to “…a deficit in financing
www.geothermal-energy.org

12

UPCOMING EVENTS
42nd Stanford Geothermal Workshop
13-14 February 2017, Stanford, California, U.S.
Latin American Geothermal Symposium
14-15 February 2017, Offenburg, Germany
GeoTHERM 2017 Expo & Congress
15-16 February 2017, Offenburg, Germany
8th European Geothermal PhD Days
1-3 March 2016, International Geothermal
Center (GZB), Bochum, Germany
24th Annual Congress of the Mexican
Geothermal Association
29-31 March 2017, Morelia, Mich., Mexico
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.
Note: Please check the IGA website for more
events.
geothermal projects.” The government plans tocooperate with the private sector to ensure more
electrical generation from geothermal energy, the official
said.
Source: http://www.coastweek.com/3941-Kenya-seeksinvestment-for-geothermal-energy-sector.htm
For his part, Alberto Mugo, MD of the Kenya
Electricity Generating Company (KenGen), said thecompany has begun a geothermal development study
with a view to producing more power. He added that
Kenya has the potential to produce 10,000 MW ofgeothermal energy from 23 sites, but added that “…sofar we have only tapped the cost of geothermal
exploration. This has for years remained the biggest
impediment,” he said, “but despite the challenge, wehave seen the number of geothermal wells rise from twoin the 1970s to 218 currently”.
Source: http://www.thestar.co.ke/news/2016/10/12/kengen-startsgeothermal-study-to-produce-more-untappedpower_c1436099
Competitive Auctions to Replace the Current Feedin Tariff System – Kenya’s Energy Regulatory
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IGA News No. 106
Commission (ERC) is reported to be in the process ofdrafting new regulations that are expected to be
implemented by the end of March 2017. The new
regulations are expected to introduce competitive
auctions for awarding renewable energy projects in
Kenya, shifting from the current feed-in tariff regime
under the Feed-in Tariff Policy 2012 that offers tariffs
for small renewable projects up to 10 MW and for large
renewable projects above 10 MW.

130226259/kengen-reveals-plan-to-upgrade-eburru-plantcapacity-tenfold

Currently the feed-in tariff system offers developers andinvestors pre-determined rates for wind, geothermal,
solar, biogas, hydro and biomass energy power projects
without any requirement for tendering. As is typical inrenewable-energy programs in other developing
markets, the feed-in tariff system offers developers
reliability, transparency and equality.
The main argument to move away from feed-in tariffs
and adopt a competitive auction system is to introduce
competition amongst project developers and investors
in order to achieve lower pricing. The ERC believes that
this new approach will encourage project developers
and investors to reduce tariffs. This will ultimately
benefit the end consumers.
Source:http://www.lexology.com/library/detail.aspx?g=98237
d4e-0abe-46b0-90a7-2bba88e73459
Eburru Geothermal Wellhead Plant to Be
Expanded to 25 MW - KenGen has announced aproject to renovate the Eburru power station andincrease its production tenfold in the next two years.
According to the company, plans are underway toincrease the current power production from 2.4 MW
plant to 25 MW between 2018 and 2019. KenGen’s
Geothermal Resources Development Manager, Peketsa
Mangi, said geo-scientific studies were already under
way in Eburru. He said the company will drill morewells in the area to reach the targeted power capacity in
two years. The original modular 2.4 MW geothermal
wellhead plant was commissioned in 2102. Geothermal
Development Associates (GDA), of Reno, Nevada,USA, designed the plant and the steamfield and supplied
all of the major equipment. This was a major milestone
for KenGen, as it was their first geothermal wellhead
power plant in commercial operation.

The wellhead plant. Photo by Geothermal
Developers Associates(http://www.gdareno.com/power/projects/eburru-kenya-2-4-mw-geothermal-wellhead-powerplant/
Geothermal, More than Power Production - In
Africa it is very common for people to walk long
distances to fetch water for domestic use. At the
Menengai Geothermal project in Kenya, this haschanged. Once, community members had to walk up to
12 kilometers in search of clean water. As part of its
corporate social responsibility (CSR) program, theGeothermal Development Company (GDC) has drilled
10 large wells, one of which is dedicated to thecommunity.
Water from the borehole is pumped into a four millionliter tank, and distributed to neighboring households
through a water kiosk. About 3,000 families and aschool are benefitting from the water, as well as
livestock. The CSR activity is one of the key, indirect
benefits of the project. The main impact is that ofboosting the energy supply.

Mangi also noted that currently geothermal contributed
to 51 percent of power used in the country, adding thisis one of the main reasons that the cost of electricity hascome down. “We have seen the cost of electricity in the
country drop by over 20 percent in the last one year andthis is due to the move to increase in geothermal power
and reduction in thermal power.”

Launched in 2012, the Menengai Geothermal
Development Project seeks to develop a geothermal
steam field meant to produce enough energy to generate
400 MW of power generation facilities built by theprivate sector and/or in partnership with theGovernment. It aims at addressing Kenya’s increasing
demand for power and, at the same time, diversifying
sources of the power supply by developing the country’s
huge geothermal potential. The addition is equivalent to26 percent of the country’s total installed generation
capacity.

Source:https://www.standardmedia.co.ke/business/article/200

The project also provides employment opportunities forthe younger generation in the region—between 30 and

www.geothermal-energy.org

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IGA News No. 106

14

60 youths have gained monthly employment, according
to the GDC.

extraction project,” KenGen said in its tender
documents.

The company has embarked on a pilot project for direct
use of geothermal energy. The aim is to demonstrate theother benefits of using geothermal, apart from power
generation. The pilot is in four areas: geothermallyheated aquaculture ponds, greenhouses, dairy units, andlaundry facilities.

KenGen said brine from its Olkaria fields contains
about 600-800 milligrams of silica per kilogram of fluidand between 1.5 and 2 mg of lithium per kg of fluid.
Silica, which clogs tanks and pipes during geothermal
generation, is used in the pharmaceutical and glassindustry, as well as for making a range of resins. Lithium
is mostly used in making batteries, toys, in medicine to
make pacemakers and combined with aluminum toform an alloy that is used in making high-speed railcars
and planes. The mineral is currently trading at about
US$ 7,475 per ton in the global markets.

Source: http://www.thinkgeoenergy.com/afdbgeothermal-plays-an-important-role-for-africa-beyondelectricity/
KenGen to Sale Valuable Minerals in Geothermal
Fluids - KenGen is eyeing the sale of valuable minerals,
like silica and lithium found in geothermal fluids, as a
strategy to diversify its revenue base. The State-owned
power generator is seeking a consultant to assess thefeasibility of extracting minerals from the hot brines.
KenGen managing director, Albert Mugo, said the firm
is turning to innovation to exploit the minerals found in
geothermal fluids. “We want an expert to establish thetechnical and financial viability of this project,” Mugo
said in early December. He declined to offer any
timelines or capital commitments, saying it is still “veryearly” in the project cycle. “If it is found feasible, we’ll
go ahead,” he said.

Albert Mugo. Photo by Salaton Njau.
The new venture of using geothermal by-products will
potentially cut KenGen’s reliance on electricity sales tothe national grid, which accounts for 94 percent its
income. Total revenue hit Sh38.6 billion (US$ 378
million) in the year up to June 2016, with net profit
nearly halving to Sh6.7 billion (US$66 million)—hurt bya lack of tax credit enjoyed in the previous year, surging
finance costs, and higher expenses.
“The consultant will carry out field testing and otherstudies necessary of the geothermal fluids in Olkaria
Geothermal Field to establish the actual available
quantity of the minerals and viability of the mineralwww.geothermal-energy.org

Source: http://www.energycentral.com/news/kengeneyes-sale-valuable-minerals-geothermalfluids?utm_source=2016_12_06&utm_medium=eNL&
utm_content=214475&utm_campaign=GENERATION
KenGen Secures Loan for Olkaria V - The Japan
International Cooperation Agency (JICA) has lent
KenGen ¥45.7 billion (US$401.3 million, Sh40.9 billion)
for the Olkaria V project, which involves putting up two
geothermal power plants of 70 MW each. Albert Mugo,
Managing Director, said the drilling has been completed
and the company will start the construction soon. The
first plant will be ready to begin generating electricity in
24 months (at the end of 2018) and the second unit will
be completed six months later, according to KenGen.
Part of the project will be financed using KenGen’s cash
reserves, including proceeds from the recently
concluded rights issue which raised Sh6.35 billion(US$62.3 million) from minority shareholders. The total
cost of the project is estimated at US$555 million—at
US$3.96 million per megawatt.
The Kenyan Treasury, which controls 70 percent of
KenGen, participated in the cash call by converting into
equity Sh20.15 billion (US$197.5 million) of loans
advanced to the power producer. Albert Mugo said
Olkaria V is the only new project the State-owned
power producer will build this fiscal year that ends inJune 2017.
Source:http://www.businessdailyafrica.com/CorporateNews/KenGen-to-build-new-Olkaria-plant-/5395503470668-is5okrz/index.html

AMERICAS
Canada: Saskatchewan andKitselas Geothermal Projects
Saskatchewan Project to Start Drilling in February
2017 - With its project in Saskatchewan, Deep Earth
Energy Production (DEEP) has been trying to get an
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IGA News No. 106
important pilot project up and running. The company
plans to start drilling in February 2017 as part of a US$8
million feasibility study. The investment is coming fromRegina-Saskatchewan based MPM Construction
Services, which is investing in the company for equity.
The working plan and the project final reporting will be
conducted by GeothermEx.
Kirsten Marcia, DEEP CEO, says the project will
require a total investment of US$45 million. Preliminary
results on the project site are promising and suggest it isa utility-scale project that will be economically andtechnically viable. For the state utility, SaskPower, it isan interesting first step to acquire baseload renewableenergy power. A term sheet for a potential PPA iscurrently being discussed.
Marcia says DEEP aims to produce the first baseload
power in 2.5 years due to the long lead time on turbines.
The project currently anticipates 5 MW net power
capacity from a 10 MW plant. Half of the power will be
consumed driving the system—which could double if
the study shows it is the best option.
Sources:
http://www.albertaoilmagazine.com/2016/10/saskatch
ewan-unsung-hero-green-energy/,
http://www.thinkgeoenergy.com/saskatchewangeothermal-project-to-start-drilling-in-february-2017/
Kitselas Geothermal Project in BC - The Kitselas
Geothermal Power Generation Project is a project of
LL Geothermal Inc., a company formed by Kitselas
Development Corporation and Borealis Geopower. It is
positioned to be one of Canada’s first geothermal power
plants. The plant would have a capacity of 15 MW ofelectricity and the potential to provide another 135 MWof thermal energy as a main heat source for local
businesses. The project is located in the Lakelse area,
about 10 kilometers south of Terrace in northwest B.C.,
within the Kulspai Indian Reserve No.6 own by the
Kitselas First Nation.

15
Canadian corporation specializing in advice about thegeothermal energy industry. The Kitselas Development
Corporation is the economic arm of Kitselas First
Nation.
Chief Joseph Bevan, of the Kitselas First Nation, said,“Clean geothermal energy is a key priority for KitselasFirst Nation. The funding provided by the Province will
help us garner the necessary financial assistance tosupport the completion of this project that will bringmany benefits to our community. This includes longterm energy security and powerful economic benefits
through power purchasing agreements.”
Source:https://news.gov.bc.ca/releases/2016ARR0055-002333

Caribbean: US$15 Million
Available for Dominica’s
Project
In December 2012, the Dominica Government signed a
US$18.1 million contract with the Iceland Drilling
Company for geothermal exploration. The three test
wells constructed in Trafalgar, Wotten Waven andMorne Prosper were followed by four flow tests todetermine the generation capacity of the wells.
Now, US$15 million has been set aside to develop theWith support from B.C.’s First Nations Clean Energy
Business Fund, Kitselas First Nation is pursuing private
power purchase agreement partnerships with major
project proponents. These partnerships will support the
exploratory drilling stage for the proposed Kitselas
Project. The Kitselas First Nation will receive CAD
10,000 (US$ 7480) in capacity funding to support
negotiations with major project proponents to establish
private power purchase agreements for the sale ofelectricity from the proposed plant. Kitselas will alsoseek a private power purchase agreement with a local
buyer for thermal energy produced by the plant.
In 2013, Kitselas First Nation received CAD 40,000 in
capacity funding from the Province to support thegeothermal permit proposal and the formation of LL
Geothermal Inc. The private Borealis Geopower is a
www.geothermal-energy.org

Geothermal well in Roseau Valley. Photo by
DaVibes, The Caribbean’s News Portal.
January-March 2017

IGA News No. 106
island’s geothermal resource in Dominica. In October,Prime Minister Roosevelt Skerrit stated, “We had madean initial commitment of US$10 million as thegovernment’s cash injection into the construction of the
production plant and we have since increased theamount to US$15 million that the government will be
putting in.”Since 2014, the Government of New Zealand has been
providing the Government of Dominica with Technical
Assistance for the development of Dominica’s
geothermal resources. In September 2016, bothgovernments expanded their cooperation in geothermalenergy development with the signing of a 4 million EC
dollars partnership agreement to support theconstruction of a 7 MW geothermal power plant in
Dominica.
Apart from New Zealand, Skerrit informed that his
government has received “…a very firm commitment
from the government of the United Kingdom which
will be providing us with between US$9 and 10 million
toward the geothermal plant”.
In addition, a geothermal resources development bill –acritical piece of legislation to facilitate investment in
geothermal energy– was tabled in Parliament in October
2016. The bill has been extensively reviewed by regional
and international partners.
The Government plans to, once the geothermal plant is
operational, offer shares to the Dominican public.
According to Mr. Skerrit, the Government plans todispose of as much as 40 to 50 percent of its ownershipin the geothermal plant.
Source: http://www.dominicavibes.dm/featured213414/

Chile: Grant to Boost Chilean
Geothermal Market
The World Bank Board has approved a US$1.8 million
Clean Technology Fund grant to strengthen the Chilean
Ministry of Energy’s capacity to further develop thecountry’s geothermal sector and improve energy
security. The grant will contribute to Chile’s Energy
Agenda and Energy Policy 2050, which aim to boost theuse of non-conventional renewable energy (NCRE) andreduce the cost of electricity.
The World Bank said in mid-October that theGovernment of Chile has made a concerted effort todevelop its nascent geothermal energy industry. Despitewhat appeared to be a promising start, a number ofissues have stymied exploration investments. The goalof the new funding is to resolve those issues andimprove the geothermal energy-market conditions.
“Developing geothermal technology allows Chile tomeet its growing energy demand, provide energy
www.geothermal-energy.org

16
security in an environmentally sustainable manner,
boost the country’s economic competitiveness, andpromote investments in remote rural areas where
poverty is more concentrated,” said Alberto Rodríguez,
World Bank director for Bolivia, Chile, Ecuador, Peru
and Venezuela.

Temp. ≥ 160°C
Main active volcanoes

Temp. ≥ 200°C

Temp. ≥ 160°C
Main active volcanoes
Temp. < 160°C

Geothermal zones and active volcanoes en Chile.
Total potential is estimated at 3350 MW.
The Ministry of Energy will be the lead implementing
agency for the project, with support from theInternational Cooperation Agency of Chile within the
Ministry of Foreign Relations. The grant has a four-year
implementation period, the World Bank said.
Source:http://www.renewableenergyworld.com/articles/2016/
10/world-bank-approves-1-8-million-grant-to-boostchilean-geothermal-market.html

Costa Rica: Plant for Las
Pailas II, Almost 100%
Renewable Electricity
Mitsubishi to Provide Las Pailas II Power Plant –The Costa Rican state utility, the Instituto Costarricensede Electricidad (ICE), secured a 55 MW steam turbine
for the Las Pailas II geothermal power plant in the
Guanacaste Province of Costa Rica. Mitsubishi Hitachi
January-March 2017

IGA News No. 106
Power Systems (MHPS) will supply the turbine for the
project. Costa Rica ranks eleventh, worldwide, in termsof geothermal power-generation capacity. In recent
years, the demand for electric power has been increasing
in step with the country’s steady economic growth. In
response, ICE is focusing on building new geothermal
plants and expanding the output of existing facilities.
MHPS has delivered equipment to two of Costa Rica’s
Miravalles geothermal plants, with a combined output
of 32 MW. INITEC Energía, S.A., a Spanish
engineering firm, will be in charge of engineering,procurement and construction management (EPC) forthe project, according to MHPS. In addition, MHPS will
provide engineers at the site for technical support
installing and commissioning activities. A generator,
manufactured by Mitsubishi Electric Corp., will be
supplied for the project.
Source:http://www.renewableenergyworld.com/articles/2016/
11/costa-rican-utility-secures-turbine-for-las-pailas-iigeothermal-plant.html
Geothermal Provided 13% of Electricity in 2016 – By
mid-December 2016, ICE reported most of theelectricity for the year had come from renewablesources (98 percent). The agency said the country
surpassed 250 days using only renewable power sources.

17
During the dry season, the National Electric Systemtakes advantage of the greater availability of wind andbiomass to guarantee sustainable renewable generation.
ICE Executive President, Carlos Obregón, said that theinstitute expects electricity generation using renewablesources to remain stable through 2017. “We will open
four new wind plants next year and we expect favorable
meteorological conditions in the river basins that feed
our hydroelectric plants,” he said. The country ended
with figures similar to those recorded in 2015 whengeneration based on renewable sources reached 99
percent.
In 2015, Costa Rica made headlines worldwide with
two, long, clean-energy streaks. In March, the country
ended 75 days of running the grid on 100 percent
renewable sources (see IGA News 99, p. 9), and in
August it broke that record by running 94 days on
purely renewables (see IGA News 101, p. 8).
Source:http://www.ticotimes.net/2016/12/16/renewableelectricity-costa-rica

Mexico: Kick-off Meeting of
the GEMex Project
Luis C.A. Gutiérrez-Negrín, Editor
On 15-17 November 2016, the initial general meeting of
the GEMex project was held in Morelia, capital city of
the State of Michoacán, Mexico. The GEMex project iscomposed of two consortia, one from Europe and one
from Mexico. The European consortium was formed
from the EERA joint program of geothermal energy
and is funded through the International Cooperation
Programme within the framework of Horizon 2020.
The IGA Service Company is one of the several partiesof this consortium. The Mexican consortium is mainlycomposed of the CeMIE-Geo (the Mexican Center for
Innovation in Geothermal Energy) led by Michoacán
University (UMSNH). It is funded by the Mexican
Government under a specific fund managed by the
Energy Secretary (SENER) and Conacyt (the Mexican
National Council for Science and Technology).

Electricity in 2016 came mostly from hydroelectric
plants (74 percent), with geothermal plants producing
almost 13 percent of the total. Costa Rica uses fiverenewable sources to produce electricity: hydro,
geothermal, wind, biomass and solar. Fossil fuels
represent only 1.9 percent of the total, since ICE
considers them a backup energy-generation source.
www.geothermal-energy.org

The GEMex project aims to assess the resources of two
unconventional geothermal sites in Mexico: the EGS
development at Acoculco and the super-hot resource at
Los Humeros. To do so, the project starts byunderstanding the tectonic evolution, the fracture
distribution and the hydrogeology in the respective
regions to predict in-situ stresses and temperatures at
depth. The project includes reservoir characterization
using techniques and approaches developed atconventional geothermal sites, and high-pressure/hightemperature laboratory experiments to deriveparameters for rock samples from Mexico or equivalentJanuary-March 2017

IGA News No. 106
materials. All existing and newly collected information
will be applied to define drill-paths and investigate
optimum stimulation and operation procedures for safeand economic exploitation, controlling undesired sideeffects (see IGA News No. 105, pp. 28-29).
On November 15th, around 25 researchers and officials
from the universities and agencies part of the European
consortium met with their Mexican counterparts to start
the meeting. The representatives for both sides, David
Brunh from GFZ and Aída López-Hernández fromUMSNH, greeted the participants and presented the
responsibilities for each of the three Sub-projects (SP)and eight Working Packages (WP) constituting the
project. Officers Susanna Galloni and Petre Petrov
explained the policy context and the contractual
obligations and communications within the European
consortium before the first two working packages were
presented. WP-1 is Project Management, including
decision making, communications and organizational
mechanisms. It was presented by Aída López andEgbert Jolie. WP-2 includes the dissemination andoutreach policies and procedures for both parties. These
were presented by Julio Vargas and Eugenio Trumpy.

18
Eduardo González-Partida. That evening the UMSNH
offered a dinner to all the participants.
On 17 November, the European parties discussed andadopted several immediate agreements, including theofficial project logo; the on-line platform for reporting
technical progress; and the places and dates of the semiannual European meeting (March 2017 in The
Netherlands) and the second general meeting (October
2017 in Iceland). After that, the Mexican and European
participants of all WPs discussed how to avoid
duplicating activities, organize common field campaigns,
and define general interaction between themselves.
It is worth mentioning that both sites, Acoculco for
EGS and Los Humeros for super-hot resources, areowned and managed by the geothermal division of CFE.
CFE has a geothermal exploration permit for Acoculco,and a geothermal exploitation concession for Los
Humeros geothermal field, as well as a huge amount oftechnical information and data on the areas. We learned
that a framework agreement between the Mexican
consortium and CFE was almost in force, and that allcommunications with CFE will be made through the
Mexican person responsible, Aída López. She will
receive and manage all the technical and non-technicalrequests from the WP’s.

The official opening was held on the morning ofNovember 16th, with a formal ceremony including thePrincipal of Michoacán University and the EU
Outside of the official agenda, on the afternoon ofAmbassador to Mexico, as well as representatives from
November 16th, most of the European researchers went
SENER, Conacyt, CFE (Comisión Federal de
to Los Humeros and Acoculco on a short field trip
Electricidad) and the Michoacán Government. Each of
conducted by Aída López, Gerardo Carrasco andthe six technical Working Packages were explained by
Eduardo González. In Los Humeros, which is athose responsible. WP-3 (Regional resource models) was
geothermal field with an operating capacity of 68 MW,
presented by Luis Gutiérrez-Negrín and Damien Bonté;
the visitors were hosted by CFE personnel headed by
WP-4 (Tectonic control on fluid flow) by Domenico
Heber Diez.
Liotta who also spoke on behalf of his counterpart
GEMex (Cooperation in Geothermal energy research
Víctor Hugo Garduño; WP-5 (Detection of deep
Europe-Mexico for development of Enhanced
structures) by Claudia Arango and Sæunn
Hallsdorsdóttir; WP-6
(Reservoir characterization and conceptualmodels) by AlfonsoAragón and Paromita
Deb on behalf ofChristopher Clauser;
WP-7 (Concepts forthe development andutilization of EGS) by
Abel Hernández and
Jan Diederik van
Wees; and WP-8
(Concepts for thedevelopment
andutilization of superhot resources) by
Ernst Huenges who
An additional official ceremony on the launching of the GEMex project was held in Mexico
also spoke on behalf
City on November 17th. Photo by SENER.
of his counterpart
www.geothermal-energy.org

January-March 2017

IGA News No. 106
Geothermal Systems and Superhot Geothermal
Systems) is one of the 11 geothermal projects under theEuropean Union’s Horizon 2020 research andinnovation program. The other 10 projects are, inalphabetical order: Cheap-GSHPs (Cheap and efficient
application of reliable ground source heat exchangers
and pumps), CHPM 2030 (Combined Heat Power andMetal Extraction), DEEPEGS (Deployment of Deep
Enhanced Geothermal Systems for sustainable energy
business), DESCRAMBLE (Drilling in dEep, SuperCRitical AMBient of continentaL Europe), DESTRESS(Demonstration of soft stimulation treatments ofgeothermal reservoirs), GEOTeCH (GeothermalTechnology for Economic Cooling and Heating),
GeoWell (Innovative materials and designs for long-lifehigh-temperature geothermal wells), MATChING(Material innovations for the optimization of cooling in
power plants), SURE (Novel Productivity Enhancement
Concept for a Sustainable Utilization of a Geothermal
Resource), and ThermoDrill (Fast track innovative
drilling system for deep geothermal challenges in
Europe) (see IGA News No. 105, pp. 26-31). An
additional official ceremony launching the GEMex
project was held in Mexico City on November 17 th.

United States: DDU
Technologies & GeothermalHydro Hybrid Power Plant
Deep, Direct-use (DDU) Technologies, Promoted
by DOE – Deep, direct-use (DDU) systems are an
emerging technology area in the geothermal sector thatdraw on lower-temperature geothermal resources thatcan be tapped to provide heating and cooling to bothresidential and commercial buildings, manufacturing
processes, greenhouses and aquaculture ponds. Deeper
than geothermal heat pumps and other conventional
direct-use systems, DDU is deployable at a similar
temperature range—between 100°F (38°C) and 300°F(149°C)—but on a much larger scale. DDU maximizes
system efficiencies and returns on investments. Thisnew technology could result in large-scale, lowtemperature geothermal applications that create greater
opportunities for geothermal resource development

19
throughout the United States.
The US Energy Department (DOE) is providing up to
US$4 million for research and development projects led
by the private sector, universities and national labs to
pursue the feasibility studies for large-scale DDU
systems.
As highly efficient systems, geothermal DDU
operations extract the most energy possible from thelocal geothermal resource. Rather than using geothermalheat to produce electricity, DDU uses hot undergroundfluids to directly heat and cool facilities. Directly using
geothermal energy in homes and commercial operations
can be much less expensive over the long run than
traditional energy sources because it reduces electricaldemand and replaces the need for electrically driven
heating and cooling appliances.
Although direct-use is the oldest, most versatile andmost prevalent form of geothermal energy, deep directuse systems have not been developed in the UnitedStates because technical, cost and institutional barriers
remain. The Energy Department’s new funding
opportunity could help unlock these lower-temperaturegeothermal applications for near-term deployment andsupport the goals of improving energy efficiency inmanufacturing and reducing the energy bills of
businesses and institutions nationwide.
Source: http://energy.gov/eere/articles/heat-beneathground-working-advance-deep-direct-use-geothermalFirst Commercial Geothermal-Hydro Hybrid
Power Plant - Enel Green Power North America, Inc.
(EGPNA), has started operations at the world’s first
integrated, commercial-scale, geothermal hydro-power
plant at its Cove Fort site in Utah. At Cove Fort,
EGPNA added a fully submersible, down-hole
generator to a geothermal injection well, combining
geothermal and hydroelectric power at one site.
Findings from the initial testing phase, between July and
September 2016, reveal that the addition of the hydrogenerator to the geothermal injection well resulted in an
overall increase in output of 1008 MWh for this period,
offsetting the energy consumption of the Cove Fort
plant by 8.8 percent, therefore improving
the plant’s operational efficiency.
The innovative generator technology
captures the energy of the water flowing
back into the earth to generate additional
electricity while also better controlling thereturn flow of the brine into the ground.
The presence of the generator createspressure against the brine flow, which
reduces the flow’s turbulence into the well,hence minimizing the likelihood of any
potential damage to the well. The result iswww.geothermal-energy.org

January-March 2017

IGA News No. 106
a first-of-its-kind innovation that can reduce operationaland maintenance expenses, while also having thepotential to generate additional revenues.
Cove Fort is EGPNA’s second hybrid power plant tobegin operations in the United States. The company also
operates the award-winning Stillwater facility in Fallon,
Nevada, the world’s first power plant to combine
medium enthalpy, binary cycle geothermal, solar thermaland solar PV technologies at the same site.
With an installed capacity of 25 MW, Cove Fort began
operations in 2013 and generates up to 160 GWh ofpower each year, powering more than 13,000 US
households while avoiding the annual emission of about
115,000 tons of CO2 into the atmosphere.
Graph source:
https://cdn.arstechnica.net/wpcontent/uploads/2016/12/Screen-Shot2016-12-22-at-9.44.52-AM.png

20
Armenia, officially the Republic of Armenia, is asovereign state in the South Caucasus region of Eurasia.
Located in Western Asia, on the Armenian Highland, it
is bordered by Turkey to the west, Georgia to the north,the de facto independent Nagorno-Karabakh Republicand Azerbaijan to the east, and Iran and Azerbaijan’s
exclave of Nakhchivan to the south.
In late November, the Deputy Minister of Energy
Infrastructures and Natural Resources, Hayk
Harutyunyan, announced the construction of ageothermal power plant in southern Armenia near the
town of Sisian, with a capacity of 30 MW. He said the
project will cost about US$100 million and thatgeothermal exploration is underway.
“We have drilled the second well, reaching
the depth of 1675 meters, and we can saythat the well has a geothermal resource
where we can build the station, which will
use the underground hot springs”, said
Harutyunyan. He said when it is built it willbe the first geothermal power plant in theregion.
He stressed that the next step will be toprepare the feasibility study of the project
and announce a tender to choose theinvestor who would offer the lowest price.
The drilling near Sisisan (Karkar village)
was financed by a World Bank grant worth
US$8.55 million. According to preliminary
estimates, the geothermal power plant in
Karkar will have a capacity of 30-50 MW.
Source:http://arka.am/en/news/technology/som
e_100_million_to_be_invested_in_construction_of_geothermal_plant_in_southern_ar
menia/

Indonesia: Geothermal
Areas and Projects, FiT,
PGE, Sarulla Project
Source:https://www.enelgreenpower.com/en/media/press/d2
01612-enel-begins-operations-at-worlds-firstcommercial-geothermal-hydro-hybrid-power-plant-.html

ASIA/PACIFIC RIM
Armenia: Second Geothermal
Exploration Well Drilled at
Karkarwww.geothermal-energy.org

New Geothermal Areas to Be Offered Two geothermal working areas in Jambi and North
Maluku, worth a total of US$420 million, will be offeredby the Indonesian Government to help reach renewableenergy goals, a ministry representative said. The
government has established 33 projects for investors
after passing a geothermal law in 2014 that allows the
exploitation of forested areas to tap 29,000 MW ofgeothermal energy potential.
The latest two projects are the 110MW Graho Nyabu
power plant in Jambi, which covers an area of 109,000
hectares and has an estimated reserve of 200 MW; andJanuary-March 2017

IGA News No. 106
the 20MW Gunung Hamiding power plant in North
Maluku on 42,100 hectares, with an estimated reserve of
265 MW. Benchmark prices offered for Graho Nyabu
geothermal block are capped at 15 US$ cents/kWh and22.6 cents/kWh for Gunung Hamibing, according to
Yunus Saefulhak, director of geothermal services at the
Ministry of Energy and Mineral Resources.
Four more geothermal projects are being offered: the 10
MW Gunung Galunggung in West Java; the 20 MW
Gunung Wilis in East Java; the 20 MW Marana in South
Sulawes; and the 65 MW Gunung Talang-Bukit Kili inWest Sumatra. According to the ministry, 25 more
projects with a total capacity of about 1,500 MW will be
auctioned by 2018.
Source: Mia Messina, News from the World Geothermal
Energy Summit.
Inauguration of Three Power Plants - In late
December, President Joko Widodo (Jokowi)
inaugurated the geothermal power plants of Lahendong(Units 5 and 6) and Ulubelu (Unit 3), all owned andoperated by the state oil and gas company Pertamina.
The ceremony was also attended by Energy and Mineral
Resources Minister Ignatius Jonan, State-Owned
Enterprises Minister Rini Soemarno, President Directorof Pertamina Dwi Soetjipto, as well as State-owned
electricity firm Perusahaan Listrik Negaras President
Director Sofyan Basir. Lahendong’s Units 5 and 6 havean installed capacity of 20 MW each, while Ulubelu Unit
3 has a total capacity of 55 MW. The investment in thetwo geothermal projects has reached US$532 million.
With these plants, the geothermal installed capacity inIndonesia seems to be reached 1647 MW, according to
the Yakarta Globe. This source reported that Yunus
Saefulhak said “If everything goes to plan, our capacity
will soon reach 1,908 megawatts, higher than thePhilippines”, adding that “We will hopefully catch up
with the US in 2021”.

21
November. “In future, the auction of geothermal work
areas will not be based on price anymore, but according
to the work program and exploration commitment,” hesaid.
The feed-in tariff policy obliges energy suppliers topurchase electricity produced from renewable energy atfixed costs. At present, the only off-taker available isstate-owned electricity company PLN.
“The draft regulation is already at the State Secretariat,
waiting to be signed by the President,” Rida Mulyana,
the energy and mineral resources director general for
Renewable Energy and Energy Conservation said on
November 8.
Source:http://www.thejakartapost.com/news/2016/11/07/fee
d-in-tariff-for-geothermal-energy-to-be-finalized-thismonth.html
PGE to Add up to 165 MW in 2017 – The President
Director of Pertamina Geothermal Energy (PGE), Irfan
Zainuddin, said current installed geothermal power
generation capacity of the company is 512 MW, but is
expected to reach 677 MW this year. The company
expects to add 35 MW with the Karaha geothermal unit,
55 MW with the Ulubelu Unit 4, 55 MW in Lumut
Balai, and 20 MW in Lahendong. “So with theadditional 165 MW expected to start operation next year(2017), we expect our total geothermal power
generation capacity to reach 677 MW in 2017,” said
Irfan. By late 2019/early 2020, PGE expects its
geothermal capacity to reach up to 900 MW in total.
Source: http://www.thinkgeoenergy.com/pge-aims-toadd-165-mw-in-geothermal-power-generation-capacityin-2017/
View of the Sarulla Project. Source: PEI.

Sources:
http://www.antaranews.com/en/news/108623/lahend
ong-ulubelu-geothermal-power-plant-absorb-thousandsof-workers-president-jokowi,
http://jakartaglobe.id/business/indonesia-set-becomeworlds-2nd-largest-geothermal-power-producer/
Feed-in Tariff for Geothermal Energy - Thegovernment is set to introduce a feed-in tariffmechanism this month to push down the huge costs
and limit the risks of geothermal exploration, in efforts
to reach the country’s target of generating 7000 MW ofelectricity from geothermal sources, a ministry official
said.
The new policy aims to provide security for investors as
geothermal exploration accounted for 60 percent of theinvestment costs, Yunus Saefulhak stated in earlywww.geothermal-energy.org

First Phase of Sarulla Geothermal Plant to Begin
Operations in January - Ormat Technologies expects
to begin commercial operations in January 2017 for the
first 110 MW phase of the Sarulla geothermal power
January-March 2017

IGA News No. 106

22plant in Tapanuli Utra, North Sumatra, Indonesia,
Ormat CEO Isaac Angel said in early November. He
said the project is in the commissioning and “finetuning” stage. Commercial operation has been delayedbriefly due to a work stoppage. Ormat, as part of anowner consortium with PT Medco Energi International,
Itochu and Kyushu Electric, is developing the Sarualla
project in three 110 MW phases. “For the second phase,engineering and procurement has been substantiallycompleted, site construction is in progress and all of theequipment to be supplied by Ormat was delivered,”Angel said. “For the third phase, engineering andprocurement is still in progress, construction work at
the site is in progress and manufacturing of equipment
to be supplied by Ormat is underway as planned.” He
added that drilling activities for the second and third
phases are still going on. “Based on the preliminary
estimate, the project has achieved to-date approximately
80 percent of the required production and injection
capacity,” Angel said. Operation of the second and third
phases is expected to commence within 18 months after
the commercial operation of the first phase.
Source:http://www.renewableenergyworld.com/articles/2016/
11/first-phase-of-sarulla-geothermal-plant-set-to-beginoperations-in-january-17.html

Iran: 55 MW Power Plant to
Be Installed in 2017
Hamid Chitchian, the Iranian Energy Minister, said inearly October the country’s first geothermal power plant
will be launched by September 2017. This is a 55 MW
plant to be located in Meshgin
Shahr, Ardebil Province, near
the Azerbaijan border in thenorthwest. It will be the firstgeothermal power station in the
Middle East.

to its famed hot springs, believed to have healthbenefits.
Chitchian also hopes the Meshgin Shahr geothermal
plant will help steam-related industries like greenhouses,
fish farming and tourism.
With huge hydrocarbon reserves, Iran has based its
power industry largely on oil and gas. According togovernment data, around 62,000 MW, or 80 percent of
Iran’s 75,000 MW output, is generated from thermal
plants burning fossil fuels. In addition, 12,000 MW
comes from hydroelectric plants and 1,000 MW fromthe sole nuclear powered plant in Bushehr. Solar andwind power account for 241 MW.
Source:https://financialtribune.com/articles/energy/51404/ira
ns-geothermal-power-plant-launch-slated-for-2017

Japan: Recent Activities of theJapan Young Geothermal
Network (JYG-Net)
Daisuke Oka (Geological Survey of
Hokkaido) and Hanae Saishu (AIST)The Japan Young Geothermal Network (JYG-Net),established in 2014 to facilitate the interaction among
young engineers and scientists, was approved as theTechnical Division of the Geothermal Research Societyof Japan (GRSJ) in April 2016. It has held two regionalseminars and the first annual meeting in Koriyama,
Fukushima Prefecture.

“Iran does not need foreign
knowhow, including any from
Iceland, New Zealand and thePhilippines, to drill wells forgeothermal energy,” Chitchiansaid, during a tour of the site of
the power station in early
October. “The plant’s turbine
and generator are purchasedfrom Italy and will be deliveredin two months,” the minister
noted.
The plant will be installed on theheights of the volcanic Sabalan
Mountain in the Ardebil region
that attracts millions of tourists
www.geothermal-energy.org

Listening to a lecture at the Matsukawa geothermal power plant. Photo by
the authors.
January-March 2017

IGA News No. 106
In the summer of 2016, the JYG-Net carried out its first
big event in two geothermal areas in Kyushu andTohoku, Japan. In Kyushu, 10 members participated ina field excursion to the Hatchobaru geothermal power
plant and Kuju geothermal power plant in Oita
Prefecture on August 29, and in a seminar at Nishijin
Plaza, Fukuoka City the next day. In the seminar, threepresentations were given on general information and theapplications of geothermal energy, including specificfields of information and research techniques.
In Tohoku, 15 participants attended a seminar at theOnsen Hotel Taikan, in Morioka, Iwate Prefecture, on
September 1. Five gave presentations on geothermal
power generation and shallow geothermal systems
related to using heat pumps. The next day, theparticipants traveled to the Matsukawa geothermal
power plant, which has been in operation since 1966.
They learned about the history of the first geothermal
power plant in Japan, from the early-stage exploration
to the inauguration of the operation, all of which took
place before any of the field trip participants were born.
This was the first time many participants had visited ageothermal power plant and attended a seminar withvarious themes. The events offered good opportunities
to discuss the other participants’ studies and work.
On October 19, a luncheon meeting, which included thefirst annual business meeting of JYG-Net and a series oflectures, was held at the Koriyama Central Community
Center in Fukushima Prefecture with 39 young GRSJ
members. It was a side meeting of the 2016 Annual
Meeting of GRSJ. In the business meeting, Dr. Hanae
Saishu from the National Institute of Advanced
Industrial Science and Technology (AIST) was elected
as the first chairperson of JYG-Net. Following theelection, there were two lectures. One was on the
Matsukawa geothermal power plant (the oldest
geothermal power plant in Japan), and the other was
about the latest developing area, the Wasabizawa

23
geothermal area.
The lecture on the Matsukawa power plant waspresented by Takurou Kanetsuki from Tohoku
Sustainable & Renewable Energy Co. Inc. He showed avideo of the early stage of its development andexplained its 50 year history. The Wasabizawa
geothermal area is now in the development phase, and apower plant is scheduled to operate in 2020. Hiroaki
Asai from Yuzawa Geothermal Power Co. Ltd. talked
about the progress of geothermal development and thefuture plan of the Wasabizawa power plant.
The JYG-Net expects to expand the network of young
geothermal researchers and experts in industry,
academics and government and to contribute to thedevelopment of geothermal science and technology inthe near future.
Contact: young.geothermal.j@gmail.com

Philippines: Starts theConstruction of Maibarara-2
Text & photo sent by Sylvia G. Ramos,
IGA Information Committee
Maibarara Geothermal Inc. (MGI) held a ceremonial
groundbreaking on October 26, 2016 for its 12 MW
Maibarara-2 Geothermal Power Facility (M2GPF) in
Sto. Tomas, Batangas, Philippines. The event was led by
Department of Energy (DOE) Assistant Secretaries
Atty. Richie Avigale R. Pilares and Atty. Jose M. Layug,
former DOE Undersecretary. It was also graced by local
government officials of Sto. Tomas led by Mayor Edna
P. Sanchez and by Mr. Katsutoshi Shoji from Fuji
Electric of Japan.
MGI is a joint-venture company owned by PetroGreen
Energy Corp. (65 percent), Trans-Asia Oil & Energy
Development Corp. (25 percent), and PNOCIn the photo: PNOC RC
External Relations Manager
Mr. Mario U. Tercero,
REMB Director Mario C.
Marasigan, Fuji Electric Japan
General Manager Katsutoshi
Shoji, PHINMA Energy Senior,Vice President Raymundo A.
Reyes, Jr., Former DOE Usec.
Atty. Jose M. Layug, Jr., MGI
President Francisco G. Delfin,Jr., DOE Asec. Atty. Richie
Avigale Pilares-Ramos, Sto.
Tomas Mayor Edna P.
Sanchez, and MGI Chair
Milagros V. Reyes.

www.geothermal-energy.org

January-March 2017

IGA News No. 106
Renewable Corporation (10 percent). PetroGreen
Energy Corp. (PGEC) is a subsidiary of PetroEnergy
Resources Corporation (PERC).
Maibarara-2 is currently the only new geothermal power
station being constructed in the Philippines. MGI Chair
and PGEC President Milagros V. Reyes declared, “Wetarget Maibarara-2 to be on-line by 4Q, 2017. Thus, we
expect MGI revenues to increase further by 2018 alongwith our royalty remittances and tax payments to ourhost, LGU. Just as important, Maibarara-2, whencommissioned, will be the fourth power station
completed by parent company PGEC in four years
following our 20MW Maibarara-1 in 2014, 36MW
Nabas-1 wind in 2015 and the 50MW (DC) Tarlac-1
solar facility in 2016.”
MGI President, F.G. Delfin Jr., said, “The 12 MW
Maibarara-2 (M2) project was based on the successful
drilling, completion and flow testing of wells MB-15D
and MB-16RD in 2014-2015. After California-based
Geothermal Science, Inc. (GSI) independently affirmed
the Maibarara reservoir has more than sufficient
reserves for the combined M1 and M2 power generationfor 25 years, the MGI Partners decided to increase theM2 investment from the original capacity of 10 MW
gross to 12 MW. This improved the project economics
and led to the signing of an off take agreement for M2
with PHINMA Energy Corp. and a ₱ 1.4B (US$28.2
million) project loan with Rizal Commercial Banking
Corp. (RCBC). We have again contracted with Fuji
Electric of Japan to supply the turbine-generator for M2
along with the other major plant equipment, just as they
have done for M1. Despite its modest size, Maibarara-2
combines the advantages of being base-loaded, not FiT
dependent, renewable and free of harmful greenhousegas emissions.”

24
is located in the Heunghae Basin in southeastern South
Korea, an area covered by Tertiary sedimentary rocks
and Quaternary alluvium. This stimulation is a part of
the DESTRESS project funded by the European Union,
the Swiss Confederation and the National Research
Foundation of Korea. DESTRESS stands for
Demonstration of Soft Stimulation Treatments ofGeothermal Reservoirs and is one of the projects underthe Horizon 2020 Research and Innovation Programme(see IGA News 105, p. 28), under grant agreement
No.691728 and a total funding amount of about EUR
25 million.
Following the first hydraulic stimulation in well PX-2 at
a depth of 4.35 km in early 2016, the second hydraulicstimulation in PX-1 at >4.2 km (total vertical depth) has
started. Because of a large, natural earthquake (ML 5.8)
about 40 km away from the site in September 2016, allconsortium members, especially those from GFZ and
GES, are making every effort to minimize seismic
hazards through the soft stimulation strategy. In the firsthalf of 2017, a complementary hydraulic stimulation of
PX-2, and the circulation test between PX-1 and PX-2
are planned with the eventual installation of an on-sitebinary power plant.
DESTRESS focuses on soft stimulation techniques that
aim to achieve enhanced reservoir performance while
minimizing environmental impacts, including induced
seismicity. It includes methods like cyclic or fatigue,
multi-stage, chemical and thermal stimulation.

Since 2014, Maibarara Geothermal Inc. has owned andoperated Maibarara-1, a 20MW integrated steam fieldand power plant. This plant was the first renewableenergy project declared commercial by the Philippine
Department of Energy within the Renewable Energy
law of 2008.
Source:https://www.google.com/url?hl=es&q=http://www.manilatimes.net/12-mw-maibarara2-geothermal-startrunning-q42017/293514/&source=gmail&ust=1477832653748000&usg=AFQjCNG-Q6OiXhi1I_yzNmHNIAB408eAyg

South Korea: Soft Stimulationof a Deep Geothermal Well in
PohangLate December saw the start of the soft stimulation of adeep geothermal well (PX-1) in Pohang, Korea. The sitewww.geothermal-energy.org

Pohang, South Korea (Photo taken fromhttp://www.destressh2020.eu/export/sites/destress/.galleries/destress/Pohang_Drill_web.jpg)
With its emphasis on soft stimulation, the primaryobjective of DESTRESS is to develop a comprehensive
compilation of good practices for successful geothermal
projects through demonstration and research. A strong
project cooperation between eight academic and eightindustrial partners from Europe and South Korea aims
to expand knowledge and provide solutions for a more
January-March 2017

IGA News No. 106
economical,
sustainable
andenvironmentally
responsible exploitation of underground heat.
Besides Pohang, DESTRESS involves other geothermalsites: Haute-Sorne in Switzerland, Soultz-sous-Forêts
and Rittershoffen in France, Klaipeda in Lithuania andWestland in the Netherlands. The techniques applied at
the DESTRESS demonstration sites are designed to betransferable to other geological settings, so that theconcepts can become the basis for a standardized
procedure in the development of EGS projects.
One aim of DESTRESS is to bring together social andeconomic challenges related to soft stimulation. An
initial step for this task is to investigate possible risks. A
preliminary list of the top 10 risks consists of blow outs,
fluid-fluid interactions (thermal brine and chemicals),
fluid-rock interactions, induced seismicity (with timedelay after injection), induced seismicity exceeding
threshold, lack of information, loss in hole (measuringtool), political instability, public acceptance andunwanted subsurface hydraulic connections. The risk
assessment results will be further evaluated and serve toprioritize the research efforts in the years to come.

25
support to new fossil-based heating equipment. The
European Geothermal Energy Coucil (EGEC) therefore
encourages the European Parliament and the Council tobuild on this package to put the European Union backon track towards its commitment to becoming theworld number one in renewable energy.
Source: http://egec.info/egec-reaction-to-the-cleanenergy-package/

Finland: Well Programed to7000 m Depth
By mid-November 2016, a large diameter geothermalwell, programed to reach a depth of 7000 meters, hadreached 4500 m in only two months of drilling. The well
was being constructed by Strada Energy International
Limited, part of a district-heating geothermal project
under development in Finland. Since the beginning, thewell has been drilled in granite, and the company has
used a patented, fluid-hammer technology for which it
has an exclusive operating license. This technology isespecially suited to hard-rock environments.

Sources: http://www.thinkgeoenergy.com/innovativesoft-geothermal-reservoir-stimulation-project-started-inpohang-korea/, http://www.destressh2020.eu/demonstration-sites/pohang/

EUROPEEGEC Gives a Tepid Welcome
to the EU Commission’s
Proposals for the Revision of
the EU Energy Framework
The European Commission unveiled the “Clean Energy
Package” including, amongst other things, the revisionof the directives on Renewable Energy (2009/28/EC),
the Energy Performance of Buildings (2010/31/EU),and Energy Efficiency (2012/27/EU), and of theElectricity Regulation and Directive.
The package is by no means a great leap forward. It
lacks ambition and deals serious blows to renewable
power, by withdrawing measures such as priority
dispatch (with exceptions for small PV projects).
Moreover, the current proposal suppresses the EU-wide
definition of “geothermal”, which is a negative step
backwards for the European market in geothermalrelated equipment and services.
The Commission states a strong support to increasing
the share of renewables in the building and the heating
and cooling sectors; yet it shies away from binding
measures for faster development. Even worse,
loopholes under energy efficiency legislation still allow
www.geothermal-energy.org

Drilling rig in Finland. Photo by Strada Energy.
Using drilling technology and methods developed inAustralia by founder and Chairman Warren Strange, on
occasion Strada Energy was able to drill more than 200
meters per day. The well has been drilled in sections
using internationally recognized standard drilling sizes.
It its website, Strada Energy writes it is developing a
500-ton, highly-mobile, super-double drill rig in
Germany that can be readied to drill in less than one
shift and transported in under 25 loads. This exclusive
Strada Energy product, called the ED500, is designed todrill wells up to 8,000 meters deep in the car parks ofexisting district heating systems in Northern Europe andJanuary-March 2017

IGA News No. 106
on small drill pads on the sides of volcanoes in locations
like South East Asia, South America and Central
America. The ED500 is able to drill wherever the ideal
location may be and to minimize the pipeline andproperty purchase costs associated with geothermal
projects. It is planning to commission the first new rig
in 2017 and leverage the advantages of the rig into
further lowering drilling costs.
Strada Energy plans to provide a fixed price per meter
drilled for district heating, desalination and electricitygeneration projects around the globe. The intention is touse its patented technology to drill geothermal wells andact to meet the growing demand for base-load green
energy by providing a cost-effective, fully integrated
drilling service.
Source: http://www.stradaenergy.com/news-andmedia/company-announcements/2016/46-stradaenergy-breaks-renewable-energy-hard-rock-drillingrecords

Germany: Patricius Medal2016 for Prof. Dr. Manfred
Hochstein
Mara Slawinski, Bundesverband
Geothermie e.V.

26
breaking scientific work exploring and evaluating
geothermal reservoirs. Prof. Dr. Manfred Hochsteindeveloped concepts for using geothermal reservoirs incountries, including New Zealand, Indonesia, China,
Tibet, East Africa and the Philippines. Prof. Dr. Ernst
Huenges, who spoke about the winner of the Patricius
Medal, highlighted the fact that the national award goesto a scientist who has studied and received a Ph.D. in
Germany. Prof. Dr. Manfred Hochstein presented his
profound knowledge about volcanoes in Indonesia andthe potential for the geothermal sector. He introduced
methods, challenges and findings of the projects andwork in that location.

Italy: Merger in Chile and Saleof Stakes in the U.S. of Enel
S.p.A.
Enel S.p.A. announced that its subsidiaries, Enersis
Américas S.A., Endesa Américas S.A., and Chilectra
Américas S.A., have signed a document certifying thatthe conditions have been satisfied for the merger ofEndesa Américas and Chilectra Américas into Enersis
Américas. The merger took effect on December 1,
2016. On that date, Enersis Américas changed its nameto Enel Américas S.A. Taking into account thewithdrawals exercised by the shareholders of Enersis
Américas, Endesa Américas and Chilectra
Américas who did not approve the merger, as
well as the acceptances received in the publictender offer launched by Enersis Américas forthe free float of Endesa Américas, as a result of
the merger, Enel indirectly controls–throughsubsidiaries– 51.8 percent of the Enel Américas
share capital.
Source:https://www.enel.com/content/dam/enelcommon/press/en/1666470-1_PDF-1.pdf

In another press release, Enel S.p.A. said thatthrough its US-based renewables subsidiary, Enel
Green Power North America, Inc. (EGPNA),
the company has signed a letter of agreementwith GE Energy Financial Services. The twocompanies intend to sign a deal through which
EGPNA will sell a 1 percent stake in EGPNA
Renewable Energy Partners, LLC (EGPNA
Prize-ceremony: from left Dr. Erwin Knapek, Prof. Dr. Manfred
REP) to GE Energy Financial Services, at a price
Hochstein, Prof. Dr. Ernst Huenges, and Minister Johannes
to be fixed at a later date. Following thetransaction, EGPNA will reduce its stake inRemmel (photo by BVG).
EGPNA REP to 50 percent from the current 51
percent and GE Energy Financial Services will increase
Prof. Dr. Manfred Hochstein was awarded the Patricius
its stake to 50 percent from its current 49 percent. The
Medal during the opening session of the Germanth
two companies also intend to revise their partnership
Geothermal Congress 2016 in Essen from 29st
LLC (Limited Liability Company) agreement, converting
November to 1 December. He was honored by the
EGPNA REP into an equally owned joint venture.
German Geothermal Association (BVG) for his pathwww.geothermal-energy.org

January-March 2017

IGA News No. 106
The transaction, which is subject to all required
regulatory approvals, is expected to be closed in
December 2016, at which time funding will occur. The
new rules of corporate governance in the revised
partnership LLC agreement provide that EGPNA willcontinue to manage EGPNA REP assets. Uponcompletion of the transaction, the Enel Group will
deconsolidate EGPNA REP’s debt (about US$500
million) and capacity. The partnership in EGPNA REP
was launched in March 2015 as a mechanism to actively
manage the Group’s renewables portfolio in North
America. Currently EGPNA REP’s assets include 46
wind, geothermal, hydropower and solar plants witharound 1,200 MW of installed capacity.
Source: https://www.enel.com/content/dam/enelcommon/press/en/1666483-1_PDF-1.pdf

The Netherlands: New Direct
Use Geothermal Project
By means of a new risk insurance scheme, the German
geothermal firm Daldrup & Söhne AG will drill a well
for a geothermal heating project to provide heat forgreenhouse operations in the South Holland province of
the Netherlands.

27
and used by third parties to generate electricity. The
overall project has an above average efficiency due tothe in-depth specifications.
The well will be drilled at a depth of about 3000 meters.
In addition, Daldrup will set up the heating center andthe district heating distribution network. Nature’s Heat
is a group of ten greenhouse operators in the South
Holland region who are simultaneously heat consumers.
The drilling company, Daldrup & Söhne AG, has used
for the first time a new, integrated insurance model (thealternative risk transfer, ART, concept) that also
includes assurances as part of a reinsurance structure.
Such geothermal drilling and energy projects can befinanced through leverage at an early stage in the
project.
Source: http://www.thinkgeoenergy.com/drilling-tocommence-for-geothermal-heating-project-in-thenetherlands/

Serbia: Cooperation
Agreement for Geothermal
Development

NIS Gazprom, a Serbian energy company, and Betec
KS Orka, a geothermal-development firm in Belgrade,
The drilling company expects to tap hot thermal water
have signed a Cooperation Agreement to develop
in the Dutch drilling project named Nature’s Heat in thegeothermal energy in Serbia. The companies will jointly
municipality of Kwintsheul. According to Daldrup &develop geothermally active areas in northern Serbia by
Söhne, the capacity is at least 110 liters per second anddrilling new production wells and building power plants
the temperature of the thermal water is around 86°C.
based on the well head power-plant technology.
This value is well above the projected average value,
since experts had expected only 60 liters per second. In
Drilling is planned to begin in 2017 and the first power
the future, the operators will be able to use around 20
plant is planned to be commissioned within a year. The
MW of thermal energy instead of the calculated 12 MW
projects will include combined heat and power plants.
thermal for their greenhouses. With the large amount of
Kirill Kravchenko, NIS’s CEO, said, “NIS aims to leadthermal water, about a 1.2-fold volume of natural gas is
the growth of renewable energy in Serbia. For years, we
fed in parallel as a by-product. The gas will be separated
have developed a large number of energy efficiency
projects, especially cogeneration projects withelectricity produced from gas. In cooperation
with our partners, we will further develop our
projects to develop geothermal resources andcontribute to increasing energy production fromrenewable resources—also contributing to theenergy independence of Serbia.”
Kevin Cao, Kaishan’s CEO, noted, “KS Orka
aims to be the leading global developer andoperator of geothermal projects. KS Orka has
prioritized investments in emerging economies
and is targeting development of 500 MW ofpower generation capacity over the next five
years. The cooperation with NIS in Serbia is an
important step towards achieving this goal in the
Balkans.”
Drilling rig on site in the Netherlands (source: Daldrup & Söhne
Source: http://www.nis.eu/en/presscenter/nisAG).
betec-sign-co-operation-agreement-developing
www.geothermal-energy.org

January-March 2017

IGA News No. 106

Turkey: New Binary Plant,
EBRD and IBRD Financing for
Geothermal, Awarded
Turbines
New 24 MW Binary Plant to Be Constructed EXERGY, the Italian company owner of the Radial
Outflow Turbine technology, signed a new contract
with Bestepeler Enerji Üretim Ticaret A.s for the supply
of a 24 MW geothermal ORC power plant for ageothermal field located in Aydin region of theGermencik area. This contract follows a former contract
signed in 2015. EXERGY will provide the client with a
two-pressure level ORC system equipped with 2x Radial
Outflow Turbines, one for each pressure level, to
produce a total of 24 MW of electricity from a mediumenthalpy geothermal fluid. The large turbines continue
to show the suitability of the Radial Outflow
configuration for all sizes. The ORC cycle will employ
an air-cooled condensing system, avoiding the use ofwater.
Equipment for the ORC unit will be manufactured at
the EXERGY Turkish workshop in Izmir, allowing theclient to take advantage of an increased feed-in-tariffthat the Turkish Ministry assigns to Made-in-Turkey
technologies. The factory, which has been open for two
years, has already produced 20 turbines eligible for theincreased feed-in-tariff.
Source:http://www.pennenergy.com/articles/pennenergy/201
6/10/exergy-achieve-another-success-in-turkey-newcontract-signed-with-repeat-customer-bestepeler-enerjifor-a-24-mwe-geothermal-powerplant.html?eid=291021978&bid=1567129
EBRD Financing for Renewables - The European
Bank for Reconstruction and Development (EBRD) is
providing US$ 55 million in new funds to the Turkish
lender, Isbank, to finance private companies investing in
renewable energy and resource-efficiency projects in
Turkey.

28of the bank’s total portfolio in Turkey is in sustainableenergy. Since 2009, the EBRD has invested over €3billion (US$ 3.2 billion) in more than 75 such projects,
including two large wind farms –Bares and Rotor– andEfeler, the largest geothermal power plant in Turkey(and the second largest in Europe).
The EBRD is also working closely with the Turkish
Ministry of Energy and Natural Resources and hashelped develop the country’s first National Renewable
Energy Action Plan to attract more investment inrenewable energy projects. The Bank has also supported
the preparation of a National Energy Efficiency Action
Plan, which is expected to include a wide range ofsector-based resource efficiency measures aimed atachieving Turkey’s 2023 energy efficiency targets.
The EBRD started investing in Turkey in 2009 andcurrently operates from offices in Istanbul, Ankara andGaziantep. To date it has invested over €8 billion in the
country in infrastructure, energy, agribusiness, industry
and finance for more than 200 projects. It has also
mobilized nearly €20 billion for these ventures fromother sources of financing. Some 98 percent of thebank’s investments in Turkey are in the private sector.
Source: http://www.finchannel.com/business/60804new-ebrd-financing-for-turkish-renewable-energy-viaisbank
More Financing from the EBRD - The EBRD may
provide a senior loan of up to US$70 million for theconstruction of a 70 MW geothermal power facility inTurkey. The funds are to be used by Zorlu Dogal
Elektrik Uretimi AS to build unit 2 of the Kizildere III
geothermal power plant in West Anatolia. The extension
will increase the plant’s capacity from 100 MW to 165
MW. The Kizildere III unit 1 is currently underconstruction.

The EBRD funds are extended through an investment
in “A-” rated senior notes issued under Isbank’s
Diversified Payment Rights (DPR) securitization
program, an established market instrument used by
Turkish banks to raise long-term funding.
The financing –supported by a €1.9 million (US$2
million) grant from the European Union– will benefit
renewable energy and resource efficiency projects in
Turkey, including solar, hydropower, wind, geothermal,
waste-to-energy, energy efficiency and water saving andwaste minimization.
Investing in sustainable energy and resource efficiency isa strategic priority for the EBRD in Turkey. Almost halfwww.geothermal-energy.org

Somewhere Over The Rainbow: Kizildere Power
Plant. Photo by Erdinҫ Sentϋrk, GRC Photo Contest.
January-March 2017

IGA News No. 106

29

The bank said that Zorlu Dogal presented theenvironmental and social impact assessment (ESIA)
package for the project on December 8, 2016. The
company is a renewable, energy-focused unit of thepower producer Zorlu Enerji Elektrik Uretimi AS, partof the Turkish conglomerate Zorlu Holding Ai.

- Kubilay I, 24 MW unit for Bestepeler Enerji Üretim
Ticaret A.s.

After the ESIA disclosure, there will be a 60-day public
review and comment period, with the EBRD board
expected to decide on the loan on February 22, 2017.

- Sultanhisar I, 14 MW unit for Celikler Holding

Other participants in the project financing package ofup to US$270 million include Akbank, IsBank and
TSKB.
In September, the Japanese conglomerate Toshiba
Corp. announced an order for a 50.7 MW flash steam
turbine system and generator for unit 2 of the Kizildere
III plant. The project will also integrate an about 19.3
MW binary cycle power generation system that uses
flash turbine, exhaust steam.
Source: http://renewables.seenews.com/news/ebrdmulls-loan-for-70-mw-geothermal-project-inturkey-550198#- Mehmet Han, 25 MW unit for Kipaş Holding- Ken Kipas 3, 25 MW unit for Kipaş Holding- Umurlu II, 12 MW unit for Karadeniz Holding
Among the five units, EXERGY delivered a total of 10
Radial Outflow Turbines that have all received the Madein Turkey certificate and can provide the operators withan additional incentive over the standard Feed-in Tariff
rate. The five units will generate a total of 110 MW,
delivered as renewable energy to the Turkish grid.
In the same period, EXERGY has obtained the Made in
Turkey certificate for four Radial Outflow Turbines
delivered to Kemaliye Alaşehir 12 MW, units 1&2.
Source:http://www.altenergymag.com/news/2016/11/17/exer
gy-achieves-new-record-in-turkey/25103/

Financing for Geothermal from the IBRD In early November, the World Bank’s Board of
Directors approved an International Bank for
Reconstruction and Development (IBRD) loanof US$250 million and a Clean Technology
Fund Grant of US$39.8 million for ageothermal development project in Turkey
which will help to create renewable energy bytapping heat sources deep in the ground..
The geothermal development project aims toencourage private sector investment in
geothermal energy development in Turkey by
reducing risks for investors through a Risk
Sharing Mechanism (RSM) and by providing
access to long term financing.
The project includes: The establishment of a Risk
Sharing Mechanism for Resource Validation to support
the exploration and test drilling stages and a Loan
Facility for Resource Development to support thepower plant development phase.
Source: http://www.worldbank.org/en/news/pressrelease/2016/10/31/turkey-to-expand-renewablegeothermal-energy-generation-with-world-bank-support
ORC Turbines from EXERGY Get Government
Acceptance and Award – In late October, the Turkish
Ministry of Energy and Natural Resources declared thatthe following Organic Rankine Cycle (ORC) turbines,
designed and manufactured by the Italian firm
EXERGY with its Radial Outflow Turbine technology,
met the required performance targets and are eligible forthe national Feed-in Tariff starting from January 2017:www.geothermal-energy.org

View of the Denizli Tosunlar plant (Photo by EXERGY).
More recently, the company said that for the second
time in 2016, the Denizli Tosunlar ORC geothermal
power plant received an award in the Top Plant inRenewable energy project category assigned by Power
Magazine in the “Power Awards” competition.
The prize was announced and published in the
December issue. EXERGY conquered the stage for theleading-edge innovation represented by the world firstgeothermal power plant with 2-pressure-level cycle on asingle-disk turbine installed in Denizli Tosunlar, Turkey,
for the client Akca Enerji on June 2015. In February
2016 Exergy won first place in the European
Geothermal Innovation Award from the European
Geothermal Energy Council for the world’s firstinnovation demonstrated in this geothermal plant.
What sets the Tosunlar plant apart is that it uses a twopressure, ORC system with only one single-disk turbine.
January-March 2017

IGA News No. 106

30

Typical binary systems use one turbine per pressurelevel, with the working fluid entering the high-pressure
side after leaving the evaporator, before passing throughthe recuperator and the low-pressure evaporator (whichdraws heat from geothermal fluid after it leaves thehigh-pressure evaporator).
EXERGY has developed a different approach with aradial outflow turbine. Here the turbine uses a single
disk with multiple stages. The high-pressure fluid entersat the center of the disk while the low-pressure fluid
enters further out, toward the edge.
The single-disk configuration means substantially fewer
components are needed for the turbine system. This
lowers the overall costs and reduces operational andmaintenance demands because of the reduced amountof rotating equipment and associated auxiliaries. In
addition, because the radial outflow turbine is muchsmaller than a conventional two-stage turbine, the plantfootprint is smaller, meaning reduced construction
costs.
Compared to a single-pressure turbine of the same size,
EXERGY says the radial outflow turbine can achieve
up to 22 percent higher efficiencies—ideal for sites
where temperatures are lower, geothermal flows arelimited and conventional designs uneconomic.
A Jury composed of editors of Power Magazine chose
Exergy’s project from the many other submissions fromaround the world.
Sources: http://www.thinkgeoenergy.com/top-plantaward-for-tosunlar-geothermal-plant-delivered-byexergy/, http://www.powermag.com/tosunlar-1-akcaplant-saraykoy-denizli-turkey-2/

Oceania
Australia: Errata
In the previous IGA News 105, a note was published on
the EGS project of Habanero—closed in December
2015. The first version of the newsletter said that
“According to ARENA (Australian Renewable Energy
Agency), the total cost of the Habanero EGS project

was AU$144.22 million (US$ 198.26 million at thecurrent exchange rate), of which the federal government
provided 23 percent” (p. 38). While the cost inAustralian dollars is correct, the equivalence in US
dollars was wrong. As Graeme Beardsmore, director of
Hot Dry Rocks, pointed out, the correct figure is
US$109.6 million, taking into account the current
exchange rate of US$0.76 per 1 AUD. A new, correctedversion of the newsletter was uploaded on the IGA
website last October, including the corrected amount of
US dollars; we are pleased to publish this correction.

New Zealand: Construction of
New Power Plant, Silica
Extraction Plant, Lake Rotorua
Started Construction of New Power Plant - Last
October the drilling stage ended for the geothermal
power plant Te Ahi O Maui, located 2.3 km east ofKawerau, on land owned by Kawerau A8D Ahu
Whenua Trust. Project manager Ben Gibson said thedrill rig and associated equipment had been completely
demobilized from site, where they had been working
since May 2016.
The drilling process targeted known sources ofgeothermal fluid, which could be as hot as 200-300°C,
he said. “The drilling was successful. We located thehigh-temperature fluid that will ultimately fuel thegeothermal power plant, and the injection capacity
necessary to manage the cooler fluids that have passed
through geothermal power plant.”
Well pads were constructed on site and the Old CoachRd, near Kawerau, was upgraded in preparation for the
drilling rigs arriving in late April. Drilling began in May
following assembly, inspections, and karakia andblessings from local kaumatua. Gibson said there wereno major incidents or harm to any person or to theenvironment during the drilling process.
The project’s focus now shifts to the construction of thepower plant, transmission line and steam field. The Te
Ahi O Maui project has engaged Israeli company Ormat
for the next phase of the development. The project

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

January-March 2017

IGA News No. 106
consists of a 25 MW power plant, at a total cost of
US$120 million
Resource consent for the project allows for the
extraction of 625 tons per hour of geothermal fluid
from the Kawerau reservoir for 35 years, with the newplant on track to be operational in 2018.
Source: http://www.nzherald.co.nz/rotorua-dailypost/news/article.cfm?c_id=1503438&objectid=11719
418
New Silica Extraction Plant - New Zealand based
Environmetals Limited (EVM) is engineering the firstcommercial application of its technology to extract silica
from geothermal waste fluids. After its successful pilotplant operations producing colloidal silica at two
geothermal fields at Wairakei and Kawerau, both in NZ,
EVM is now preparing to build and install the first 5000
tons per day (tpd) commercial extraction plant at
Kawerau. The pilot plant installed here was not a subscale plant but rather a sub-module of the commercial
plant, so reaching the scale size involves adding
additional sub-modules.
EVM’s extraction and processing equipment removes
silica from the waste geothermal fluids (after thegeneration of electricity) and creates colloids in therange of 8 - 16 nanometers with a concentration of 30 40 percent silica by weight. Three provisional patents
have been filed covering all EVM developments overthe last five years, creating a robust Intellectual Property
platform.

31
colloidal silica. The processed colloidal silica will be soldby EVM on the international markets, where there isconsiderable and increasing demand.
Source: http://www.thinkgeoenergy.com/nz-firmworking-on-first-commercial-geothermal-silicaextraction-plant/
Hydrothermal Eruption and Survey on Lake
Rotorua - The spectacular eruption of a geyser near the
shores of Lake Rotorua in late November came as
scientists were discovering stunning new insights into
the city’s famous geothermal backdrop. Scientists saythere isn’t any evidence to link the eruption –which sentwater gushing up to 30m near Rotorua’s Ohinemutu
village—with the earthquake activity registered in
November.
GNS Science volcanologist Brad Scott said it was also
too early to draw any connection with the gradual returnof surface features within the Rotorua Geothermal Field
that has followed the closure of boreholes in the 1980s.
But it occurred at a time when researchers are making
fresh observations of the lively natural systems thatcreate Rotorua’s bubbling landscape.
Over the past two months, geologists have teamed up
with the New Zealand Defense Force for a bathymetricand magnetic survey of Lake Rotorua. The study has
yielded significant evidence of hydrothermal activity
throughout the lake. These include pockmarks on thelake floor, which indicated that gas was being discharged
through the lake floor —and hydrothermal vents thatindicate the release of gas and hot water.
“Examples of hydrothermal activity seen on the lake
floor include smaller hydrothermal eruption craters thatare likely expelling hot water, and pockmarks or circularfeatures that are several meters in diameter and areformed as a result of gas being discharged through thelake floor,” GNS marine geologist Cornel de Rondesaid. “Many of them appear in a linear pattern,suggesting they may be related to underlying faults.”

Samples of colloidal silica produced byEnvironmetals process (Source:
http://www.environmetals.co.nz/wairakei).
Geothermal electricity generation is predicted to grow asa renewable energy resource, but the presence ofdissolved silica in geothermal fluids can be a limiting
and costly issue for the power plant. EVM’s provenproprietary extraction technology can assist operators,
providing them with lower capex and opex throughreduced silica scaling in the plant and reinjection wells—
and the potential for additional electricity generation.
EVM’s business model has geothermal electricity
generators buying extraction plants and supplying thesilica concentrate that Environmetals then uses to create
www.geothermal-energy.org

The survey, which has so far covered 40 percent of thelake floor but not the site of the late November
eruption, will ultimately provide a base map showing thelocations of all underwater hydrothermal eruption
craters and areas hazardous to vessels and sailors. It isalso the first step in a series of surveys to determine
how much heat is being discharged through the lake
floor from an underlying magma source.
The Rotorua Geothermal Field, believed to have been
active for tens of thousands of years, underlies much of
the city and the southern fringe of Lake Rotorua, whichitself was formed within the caldera of a large volcanothat erupted 240,000 years ago. The field is part of thewider Taupo Volcanic Zone, whose stretched andfractured crust has been permeated with magma that, inJanuary-March 2017

IGA News No. 106
some places, has brought temperatures of at least 350°C
at depths of less than 5km.

32

Other
Technology: New Geothermal
Power System Tested in Japan
A team of researchers from the Kyoto University
Graduate School of Engineering and the Japan New
Energy Corporation (J-NEC), recently carried out
successfully a demonstration of the J-NEC Method
New Geothermal Power System, the first technology ofits kind in the world.
The J-NEC Method New Geothermal Power System
was conceived as a method for fundamentally resolving
some of the obstacles experienced by geothermal power
generators in the past. This new technology was bornfrom the concept of ‘generating electricity by absorbing
geothermal heat without using hot spring water’.
It is a closed-cycle system, which injects and circulates
water from above ground rather than using hot springwater. This solves problems of scaling and avoids theneed to drill reinjection wells. The key component of
this closed-cycle system is a dual-pipe heat exchanger,
which is buried 1450 meters in the ground (apparently
within a geothermal well), into which cold water fromthe surface is injected under pressure and heated bygeothermal heat, and then extracted in its liquid form
when it has reached a high enough temperature. Oncethe liquid is above ground, it is decompressed andinstantly transformed into steam, turning the turbinesand generating electricity.

Rotorua geothermal field. Source: Rotorua Daily Post.
While one of the largest in recent times, lastNovember’s geyser eruption was consistent with what
had happened in the area before. Rotorua Lakes Council
geothermal inspector, Peter Brownbridge, saidhydrothermal upwelling beneath the lake had created ageyser that was noisy and spectacular, but there is little
reason for locals to be worried.
Hydrothermal eruptions happened “reasonably
regularly” in that part of the lake edge –but more often
than not they only resulted in the bubbling up of waterand mud from the lake bottom. “We don’t see many
bigger ones these days, although eruptions like this werequite common about eight years ago,” he said.
Source: http://www.nzherald.co.nz/rotorua-dailypost/news/article.cfm?c_id=1503438&objectid=11757
083
www.geothermal-energy.org

In addition to the existing advantages of geothermal
power generation, in terms of not emitting CO2 during
power generation and the ability to consistently generate
power 24 hours a day, this new system adds elements
effective for business development. It shortensdevelopment time, cuts running costs and is not subject
to the Japanese Hot Springs Act since it doesn’t use hotwater—only underground heat. Thus it can make amajor contribution to the rapid advancement of thegeothermal power business.
Source: http://www.kyotou.ac.jp/en/research/events_news/department/kougaku/news/2016/161021_1.html

Technology: Supercritical
Carbon Dioxide Pilot Plant
Test Facility to Be Build
The U.S. Department of Energy (DOE) has awarded up
to US$80 million for a six-year project to design, build,and operate a 10 MW supercritical carbon dioxide(sCO2) pilot plant test facility in San Antonio, Texas.
The project will be managed by a team led by the Gas
Technology Institute (GTI), Southwest Research
January-March 2017

IGA News No. 106
Institute® (SwRI®), and General Electric Global
Research (GE-GR).
The new facility will support the futurecommercialization of sCO2 Brayton cycle energy
conversion systems by testing and demonstrating thepotential energy efficiency and cost benefits of thistechnology. Today the average efficiency of the steam
used in Rankine cycle power plants in the U.S. is in thelower 30 percent range. This new facility has thepotential to demonstrate greater than 50 percent cycle
efficiency. If successfully developed, the supercritical
CO2 power cycles could provide significant efficiency
gains in geothermal, coal, nuclear and solar thermal
power production.
Currently no commercially-feasible sCO2 facility exists
for high temperature and high-efficiency system testing.
The 10 MW test facility developed under the selected
project will serve as an opportunity for industry andgovernment to work together to develop and mature thesCO2 power cycles at the pilot-scale, bringing it one step
closer to commercialization.
Supercritical CO2 is carbon dioxide above its criticaltemperature and pressure so that it is in a fluid state,
enabling a power plant to generate the same amount ofelectricity from less fuel when compared to traditional
steam and water (Rankine cycle) systems commonlyused today. This, in turn, decreases CO2 emissions andoperating costs. Furthermore, because sCO2 has a highfluid density relative to steam, sCO2 power plants may
be fitted with compact turbo-machinery, which would
help to reduce capital costs.

33
demonstrations in the future. While sCO2 technology
has been proven in a lab setting, this pilot project will
provide important data on potential challenges ofoperating it on a larger scale. It will also provide an
opportunity to test the performance of the system’s
components when operated on a continuous and fully
integrated basis.
Source: http://energy.gov/under-secretary-science-andenergy/articles/doe-announces-80-million-investmentbuild-supercritical

Technology: France’s First
Marine Geothermal Power
StationFrench utility Engie Cofely inaugurated on October 17 th
the France’s first marine geothermal power station in
Marseille. Thassalia, as the project is named, has been
designed specifically to meet the needs of Marseille's
Euroméditerranée eco-city business centre.
The investment came in at EUR 35 million (US$ 38.5
million) for an overall heating/cooling capacity of 19
MW. Besides Engie, the project was financially backed
by France’s Environment and Energy Management
Agency (ADEME) with EUR 3.4 million and theEuropean fund for economic and regional development(FEDER) with EUR 1.6 million. Another EUR 2
million came from regional and city funds.
Built at the Marseille-Fos Port, Thassalia will tap thesea’s thermal energy to generate space heating, water
heating and air conditioning services for around 500,000
square meters of buildings in the city ofMarseille. The use of sea water heating andcooling is expected to reduce greenhouseemissions by 70 percent as well as cut water
usage on site by 65 percent.
Marine geothermal exploits the differences intemperature between the warmer surface waters
and the colder waters found at greater depths. In
Marseille, for example, the water temperature isusually 14°C in winter and 22°C in summer.
Water is pumped from the sea through pipelines
as long as 1 km to coastal facilities where heatexchangers and heat pumps are used to meetheating or cooling needs. The heated or cooled
water is then piped to individual buildings.

Engie’s first project of this kind was brought tolife through its subsidiaries, Engie Cofely forthermal matters, and Climespace for district
Image from: http://www.energy.gov/under-secretary-sciencecooling. All the technical elements of the power
and-energy/supercritical-co2-tech-teamstation were created by the company’s teams.
Ineo and Cofely handled electricity, Axima and
Cofely covered internal networks, and Axima provided
The information generated through this project has thehalf of refrigeration units.
potential to inform scale-ups for larger scalewww.geothermal-energy.org

January-March 2017

IGA News No. 106
Engie has announced plans to develop a larger
geothermal marine project on the island of La Réunion,
where the communities of St-Denis and Ste-Marie will
be air-conditioned using water piped from 1100 meters
below the sea from 6 km offshore.
The EUR-150-million project is expected to meet the
air-conditioning needs of around 50 large-scale publicand private-sector buildings, including the airport,
hospital and university.
With nearly 40 percent of the global population or 2.4
billion people living at less than 100 km from the sea,
the potential for marine geothermal technology ispractically unlimited, Engie Cofely said in a statement.
Source: http://renewables.seenews.com/news/engiecuts-ribbon-on-frances-first-marine-geothermal-powerstation-543545

34
unusual quality. Unlike most materials, it expands whencooled, rather like water when it turns to ice.
An engine developed by Exergyn uses those quirky
properties of nitinol. Inside the device, a bundle ofmeter-long nitinol wires are attached to a piston. Hot
and cold water is alternately flushed over the wires every
10 seconds, which causes them to rapidly expand andcontract by 4 centimeters, driving the piston up anddown. A hydraulic system converts that forceful linear
motion into rotary motion, which in turn drives agenerator. The core of the technology is an elegantly
simple device. The drive is based around a solid-state
reciprocating technology which is thermally cycled todeliver rotary motion, and then converted to electricity.
The engine produces 10 kilowatts of electricity fromaround 200 kW of thermal energy in the waste hotwater.

Technology: Curie Point Depth
Mapping Pilot Study in Canada
Geoscience BC is pleased to announce the release of apilot study which demonstrates the use of publicly
available, regional airborne-magnetic data as ageothermal exploration prospecting tool for British
Columbia.
Geoscience BC Report 2016-14 includes a Curie point
depth mapping pilot study over a small area ofnorthwestern British Columbia. Curie point depth
mapping uses regional-scale magnetic survey data to
map the depth in the earth’s crust where magnetization
disappears. When used in combination with other data
(e.g. heat flow) it can be used as a regional-scale
geothermal prospecting tool.
In the report, results are compared with the BC heatflow map, known volcanism, hot springs and regional
geology. Based on the results, the authors recommend
using the Curie point depth mapping technique across
BC to help guide geothermal exploration programs.
Source:http://www.geosciencebc.com/s/NewsReleases.asp?Re
portID=767860&_Type=&_Title=New-GeothermalExploration-Prospecting-Tool-for-BC-Curie-PointDepth-Mappin

Technology: Energy-efficient
Engine Turns Hot Water into
Electricity
There is an alloy of nickel and titanium, called nitinol.
Although nitinol can be bent, when it is heated, it
undergoes a phase transition and reverts to its original
crystalline lattice structure. Nitinol also has anotherwww.geothermal-energy.org

Exergyn (https://www.exergyn.com/) is a firm based in
Dublin, Ireland, which plans to run the first industrial
trials of its technology next year. The company has
spent three years perfecting the design and modifying
the material so that it will keep working for millions ofcycles. It was awarded 2.5 million euros from theEuropean Commission’s Horizon 2020 fund last year tohelp bring the technology to market and is now
planning three industrial tests in 2017—at Dublin
Airport and two landfill sites. In all three cases, theExergyn technology will use warm water at 90°C or less– from a gas engine at the airport and from biogas
generators at the landfill sites – to produce electricity
on-site.
In addition to harnessing waste heat from industry, thecompany hopes that the engine could expand thegeothermal energy market. Exergyn’s technology makes
a broader range of geothermal sites viable, as it works
with water at a lower temperature and flow rate.
January-March 2017

IGA News No. 106
Source:https://www.newscientist.com/article/2113109-energyefficient-engine-turns-waste-hot-water-into-electricity/

Science: Scientists Study RockFracturing to Accelerate
Advances in Energy
Production and Waste Storage
Technologies
About a mile (1.6 km) beneath the earth’s surface in an
old gold mine, Lawrence Berkeley National Laboratory(LBNL) scientists have built an observatory to study
how rocks fracture. The knowledge they gain could
ultimately help reduce greenhouse gas emissions andaccelerate deployment of clean energy technologies.
The observatory is part of a U.S. Department of Energy(DOE) initiative that seeks to address challenges
associated with the use of the subsurface for energy
extraction and waste storage. Dubbed SubTER—or
Subsurface Technology and Engineering Research,
Development and Demonstration Crosscut—the
initiative recognizes that the United States currently
relies on the subsurface for more than 80 percent of its
energy needs and that adaptive control of subsurface
fractures and fluid flow is a crosscutting challenge thathas the potential to transform energy production andwaste storage strategies.
“As important as the subsurface is for U.S. energy
strategy, our understanding of how the subsurface
responds to common perturbations, such as thosecaused by pulling fluids out or pushing fluids in, is quite

View of kISMET, a rock observatory a mile undergroundat the Sanford Underground Research Facility in South
Dakota. (Photo: Matthew Kapust, Sanford
Underground Research Facility.)www.geothermal-energy.org

35
crude,” said Susan Hubbard, an Associate Director ofBerkeley Lab, who helps lead the SubTER National
Laboratory team.
Scientists at several of the Department of Energy’s
national labs are contributing to SubTER, which waslaunched last year after Energy Secretary Ernest Moniz
identified adaptive control of the subsurface as one of
the DOE’s “grand challenges.”
One key to gaining subsurface control is to understandhow rocks fracture. “We’re concerned with the ability of
fluids to move through cracks and pores,” said LBNL
geologist Patrick Dobson. “For some applications, suchas engineered geothermal systems, you want fluids tomove in order to mine the heat from the subsurface, so
you want to create fractures. In others, such as carbon
capture and sequestration, we’re more interested in
making sure fractures don’t grow.”
To gain a predictive understanding of fracture control,
LBNL is leading a SubTER project to develop anunderground observatory and to conduct integrated
experiments and geophysical imaging. The undergroundobservatory is located at the Sanford UndergroundResearch Facility (SURF) in South Dakota, the site of aformer gold mine that is now primarily a research lab
for particle physics. The Berkeley Lab team chose onepart of the facility at 4850 feet (1460 m) below groundto set up their observatory, dubbed kISMET, forpermeability [k] and Induced Seismicity Management forEnergy Technologies.
Co-led by Dobson and LBNL geologist Curt
Oldenburg, the kISMET team has drilled and coredfour 50-meter-deep monitoring boreholes and a 100meter-deep experimental borehole. “We are essentiallytrying to understand the relationship between the stressfield, the rock fabric, and fracturing,” Oldenburg said.
The scientists injected small amounts of water into therock at very high pressures until the rock fractured. “We
are looking at the pressure which creates a new fracture,and the flow rate and volume of water that goes into thefracture to estimate its size,” Oldenburg said. “Then wego back with borehole logging tools to determine theorientation of the fracture. At the same time, we arecarrying out some detailed monitoring of the fracturing
process. In particular, we are measuring the rockelectrical resistivity in near-real time and the rockseismic properties. We are also measuring microseismicity associated with the fracturing.”
The kISMET experiments are most relevant forEnhanced Geothermal Systems (EGS), a clean energy
technology where underground fractures are engineeredin hot rocks in the subsurface in order to inject waterand extract heat.
The rock at the Sanford Lab is similar to the deep
crystalline rock found in many geothermal systems.
January-March 2017

IGA News No. 106“One of the key challenges is understanding the state ofstress of the rock, which is likely to govern the directionin which the rock is likely to break and where it will doso,” Dobson said.
Source:http://newscenter.lbl.gov/2016/10/19/berkeley-labdigs-deep-clean-energy-solutions/

Climate Change: The Paris
Agreement Enters into Force36
major step in the right direction, but it falls a long way
short of the giant leap needed to tackle climate change.
Far tougher action is needed to rapidly slash emissions.”
Greenpeace said that while the deal needed
strengthening, it was a “momentous occasion” that it
had come into force.
Patricia Espinosa, the UN’s climate chief, andSalaheddine Mezouar, foreign minister of Morocco, said
in a joint statement: “Humanity will look back on 4
November 2016 as the day that countries of the world
shut the door on inevitable climate disaster and set off
with determination towards a sustainable future… The
Paris agreement is undoubtedly a turning point in thehistory of common human endeavor, capturing the
combined political, economic and social will ofgovernments, cities, regions and businesses andinvestors to overcome the existential threat ofunchecked climate change.”
Source:https://www.theguardian.com/environment/2016/nov/04/paris-climate-change-agreement-enters-into-force

The Paris agreement on climate change entered into
force on 4 November 2016, marking the first time thatgovernments have agreed legally binding limits to global
temperature rises. The passage of the accord –the fruitof more than two decades of often tortuous
international negotiations on combating climatechange– was hailed by nations and observers around theworld.
Under the agreement, all governments that have ratified
the accord, which includes the US, China, India and theEU, now carry an obligation to hold global warming to
no more than 2°C above pre-industrial levels. That iswhat scientists regard as the limit of safety, beyond
which climate change is likely to become catastrophic
and irreversible. The agreement commits world leaders
to keeping global warming below 2°C, and pursuing a
tougher target of 1.5°C. The carbon emission curbs put
forward by countries under Paris are not legally-binding
but the framework of the accord, which includes amechanism for periodically cranking those pledges up, isbinding. The agreement also has a long-term goal fornet zero emissions which would effectively phase out
fossil fuels.
Countries have put forward commitments on curbing
carbon emissions under the agreement, but a reportfound those pledges would see temperature rises
significantly overshoot the threshold, with 3°C ofwarming. Environmental groups urged governments to
do more.
Asad Rehman, international climate campaigner at
Friends of the Earth, said: “The Paris agreement is a
www.geothermal-energy.org

Climate Change: Main
Outcomes of COP22
Billed as a meeting of action and implementation, theConference of the Parties number 22 (COP22), held in
Marrakech in past November, fast became two weeks ofdamage limitation in the wake of Donald Trump’s
election victory. On the opening session, delegates from
196 countries celebrated the Paris Agreement’s entry
into force: 11 months after that historic night in the
French capital it was now international law. Little over48 hours later Trump’s shadow fell over the desert
venue, marking the start of a new era in global climatechange politics. Here are the main outcomes from two
weeks of discussing how to put the Paris Agreement
into practice.
Call for Nations - On the penultimately scheduled day,the conference adopted a call for all nations to honor
promises made in Paris and renew their attempts tostave off disaster. The one-page document contained
little new information. But it was absolutely necessary,
said observers, for the conference to make a politicalstatement of resolve after the election of a climate
skeptic to the US presidency.
Ratifications galore - During the conference, 11
governments ratified the Paris climate agreement. Since
the beginning of September 88 nations have joined theparty, and the number of nations joined by the end of
the COP22 was 111.
Carbon cuts - The Paris Agreement acknowledges thatvoluntary national emissions targets are not enough tomeet its global warming goals. But the focus in
Marrakech has been on initiatives to reinforce existing
January-March 2017

IGA News No. 106
plans, with some countries promising to review
ambition by 2020. Notably the Climate Vulnerable
Forum, a 47-strong coalition of developing countries,
declared it “will strive to lead” the green transition –ultimately going 100% renewable.
2050 roadmaps - The US, Canada, Mexico andGermany published strategies for radically cutting theirgreenhouse gas emissions by mid-century at UN talks,meeting a requirement of the Paris Agreement.
Germany’s targets an 80-95 percent cut from 1990 levels
in line with EU ambitions, while the US and Canada’splans aim for 80 percent reduction in emissions from2005 levels by 2050. Peru, Ethiopia and
Norway were among 22 countries
backing the “2050 pathways platform”.
Fifteen cities and nearly 200 businesses
are also on board.

37
Africa - It was billed as the “Africa COP” and Africancountries walked in with clear demands. In order tomeet their Paris commitments they need more money toadapt to climate change, and more support to develop
their infrastructure on many fronts, including datacollection, climate diplomacy and research. As so manytimes before, the donations left them disappointed.
However, many leaders supported the ambitious Africa
Renewable Energy Initiative (AREI), which plans toachieve 10GW of additional generation capacity by 2020
and 300GW by 2030 – appealing to private investors
not just public donors.

Transparency - On the rulebook formonitoring greenhouse gas emissions,politicized decisions on the balance
between national sovereignty and global
uniformity were put off until anotherday. Still, observers and negotiators
seemed broadly satisfied with thetimetable agreed.
Route to 2018 - Countries agreed that2018 will be the next major meeting oftalks under the Paris Agreement, andthat they’ll try and get the rulebook for it ready thatyear. Governments agreed to more consultations but
there will be no new or extra meetings.
Climate finance - Aside from a few strategic funds,
this was not a COP for new financial pledges. Donors
including the U.S., UK and Germany will put up US$50
million to improve carbon accounting in developing
countries; there was US$23 million for a center to shareclean technology expertise. While important, those are adrop in the ocean of the US$100 billion that richcountries have promised to mobilize by 2020.
Adaptation - Perhaps surprisingly, one of the last-day
controversies was whether the Adaptation Fund, started
under the Kyoto Protocol, had a future with the Paris
Agreement. Handling tiny cash flows compared to theflagship climate finance initiative for Paris, it is favoredby recipients because of its readiness to support small
projects. But a major source of revenue, the Clean
Development Mechanism, is drying up, with talks on its
future postponed for another six months.
Loss and damage - The sticky question of how toapproach recompense for the damages caused byclimate change was carefully punted down theconcourse of the Bab Ighli center. There was a
discussion that agreed to a framework that will provide
the basis for the next five years of talks.
www.geothermal-energy.org

Source: Excerpts from texts by Megan Darby, Karl
Mathiesen, Ed King and Lou Del Bello, available at:
http://www.climatechangenews.com/2016/11/18/cop
22-headlines-what-did-marrakech-climate-summitdeliver/

Climate Change: An Arsonist
in Charge of Fighting Fires in
the U.S.
With his choice of administrator for the Environmental
Protection Agency, Donald Trump shattered any hopethat he would moderate his stance on climate change.
Michael Brune, executive director of the Sierra Club,
said in a statement that putting Pruitt in charge of the
EPA would be like “putting an arsonist in charge offighting fires”.
Scott Pruitt, the Oklahoma attorney general, has spent
six years waging war against the EPA’s climate and clean
air initiatives. He’s often done so in close coordination
with the fossil fuel industry, which has given him nearly$300,000 in campaign contributions during his politicalcareer. And like Trump, Pruitt has dismissed the world’s
most daunting environmental challenge, rejecting theoverwhelming scientific consensus that human beings
are heating the planet by burning coal, oil and naturalgas.
January-March 2017

IGA News No. 106
Trump has long insisted climate change is a hoax, but hehad seemed willing to soften his views over the first few
weeks after the election. He acknowledged there is“some connectivity” between human activity and risingtemperatures, and he indicated he might not pull out of
the international Paris climate deal, as he’d promised to
do during the campaign. He even met with former Vice
President Al Gore, a vocal climate advocate.
Now, with his selection of Pruitt, the president-elect has
made clear what kind of policy his administration will
pursue.
Pruitt has fought President Barack Obama’s climate andclean air regulations, usually decrying them as federal
overreach and too costly to businesses and energy
consumers. He unsuccessfully sued the EPA over a2011 rule to limit emissions of mercury and other toxic
pollutants from power plants, which the agency
estimates will save up to 11,000 lives and prevent 4700
heart attacks and 130,000 asthma attacks per year. Morerecently, he sued the EPA over a regulation designed toreduce the amount of smog-forming, lung-damaging
ozone in the air. That case is pending.
On climate change, Pruitt has helped lead the charge
against Obama’s EPA. He’s one of 27 state attorneys
general suing the agency over Obama’s signature climate
initiative, the Clean Power Plan, which would reduce
planet-warming greenhouse gas emissions from coalplants and other sources. The Supreme Court has
blocked the plan while a lower court hears the case.
Pruitt also recently joined a lawsuit against a separate
EPA rule to slash emissions of methane, a short-lived
but powerful climate pollutant released by oil and gas
facilities.
Pruitt’s actions have been informed by a fundamentally
incorrect view of climate science. He wrote earlier thisyear that the debate over global warming is “far fromsettled,” even though virtually all scientists actively
researching the issue agree that human-caused emissions
are heating the planet. The consequences of climatechange, which are already being felt around the world,
have included deadlier heat waves, fast-risingseas, more extreme droughts and wildfires,bigger food shortages in the developingworld and the spread of diseases to newgeographic areas.

38
campaigns against federal regulation. The New YorkTimes reported in 2014 he sent the Obamaadministration letters drafted by oil and gas lobbyists,
copying the text onto state stationary and adding his
signature.
Source: Excerpts from the Geothermal Energy Association
Weekly, No. 48, 2016.

Climate Change: The Lowest
Energy-related CO2 Emissions
in the U.S. Since 1991
According to the U.S. Energy Information Agency, theenergy-related carbon dioxide (CO2) emissions in the
country totaled 2530 million metric tons in the first six
months of 2016. This was the lowest emissions level forthe first six months of the year since 1991, as mild
weather and changes in the fuels used to generate
electricity contributed to the decline in energy-related
emissions. EIA’s Short-Term Energy Outlook projects
that energy-associated CO2 emissions will fall to 5179
million metric tons in 2016, the lowest annual level since
1992.
In the first six months of 2016, the United States had
the fewest heating degree days (an indicator of heating
demand) since at least 1949, the earliest year for which
EIA has monthly data for all 50 states. Warmer weather
during winter months reduces demand for heating fuelssuch as natural gas, distillate heating oil, and electricity.
Overall, total primary energy consumption was 2
percent lower compared with the first six months of2015. The decrease was most notable in the residentialand electric power sectors, where primary energy
consumption decreased 9 percent and 3 percent,respectively.
Coal and natural gas consumption each decreased
compared to the first six months of 2015. However, thedecrease was greater for coal, which generates morecarbon emissions when burned than natural gas. Coal
consumption fell 18 percent, while natural gas
consumption fell 1 percent. These declines more thanEnvironmentalists have slammed Pruitt’s ties
to the fossil fuel industry. Since 2002, when
he was serving in the Oklahoma Senate, he
has received $271,000 in campaign
contributions from the oil and gas industry
and $25,000 from the coal industry,
according to the National Institute on
Money in State Politics. He has also worked
closely with fossil fuel companies in his
www.geothermal-energy.org

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IGA News No. 106
offset a 1 percent increase in total petroleum
consumption, which rose in that period as a result of
low gasoline prices.
Consumption of renewable fuels that do not produce
carbon dioxide increased 9 percent during the first six
months of 2016 compared with the same period in
2015. Wind energy, which saw the largest electricity
generating capacity additions of any fuel in 2015,
accounted for nearly half the increase. Hydroelectric
power, which has increased with the easing of drought
conditions on the West Coast, accounted for 35 percentof the increase in consumption of renewable energy.
Solar energy accounted for 13 percent of the increase
and is expected to see the largest capacity additions ofany fuel in 2016.
Source:http://www.pennenergy.com/articles/pennenergy/201
6/10/energy-related-co2-emissions-for-first-sixmonths-of-2016-are-lowest-since1991.html?eid=291021978&bid=1555971

100% Renewable: Stanford
University Confirms a 100
Percent Renewable World is
Possible by 2050
A comprehensive energy study of 139 countries
undertaken by Stanford University, in California,
concludes that by 2050 it is perfectly feasible to have aworld that obtains 100 percent of its energy needs fromrenewables. The study details a vast plan to transformcurrent energy infrastructures (electricity, transport,
heating, temperature control, industry, agriculture,
forestry and fishing) in 139 countries into systems solely
powered by the wind, water and sun. The road map
forecasts an 80 percent conversion of theseinfrastructures by 2030 and 100 percent by 2050.
The study compares the energy consumption of theentire supply system required by fossil fuels andrenewables. For fossil fuels, extraction, transport andthe transformation of coal, gas, oil and uranium into
heat, electricity and fuel involve a huge amount ofenergy consumption, from the supply source to reachthe final consumer.
Renewables also have transport costs however theyneed no extraction or transformation to make them

39
usable, thereby bringing down their costs. Researchers
have converted these costs into GW and haveconcluded that the current global energy mix,
predominantly fossil fuel-based, would require 20,600
GW in 2050 to cover supply, compared with 12,100
GW in 2012. The study concludes however that the
100% renewable scenario would require 11,800 GW in
2050, a 42 percent saving on the world’s energy
consumption.
The study considers a host of data, especially therenewables potential of the 139 countries in relation to
the surface area of each national territory required tocover its energy needs; the jobs created; benefits interms of the effects of pollution on the health ofresidents and even the benefits that could be obtainedby developing renewable energy within each of thecountries analyzed.
Source: http://futurenergyweb.es/stanford-universityconfirms-that-a-100-renewable-world-is-possible-by2050/?lang=en

Energy Savings: EU Aims to
Cut Energy Use by 30 Percent
in 2030
The European Commission has unveiled its big powerplan, aiming to slash energy use in the bloc by 30
percent by 2030.
Cutting waste, better integrating renewables and phasingout subsidies for coal-fired electricity generation are allpart of the vision. But wind and solar energy producers
will no longer have priority for selling to the grid, inplaces where renewables already have a large share.
Campaigners have been warning against that, claiming it
risks slowing progress. They have also called for more
ambitious energy efficiency targets. The EU is aiming to
cut greenhouse gas emissions by 40 percent compared
to 1990 levels. It wants renewables to make up at least
27 percent of the power mix by 2030.
As part of the plan, regional centers are proposed to
improve cooperation among grid operators. But all of
this still needs to be approved by member states and theEuropean Parliament.
Source: http://videomp4.euronews.com/mp4/EN/EU/BX/en/161130_E
UBX_170A0-180208_E.mp4

Books: About Financing andClimate Change
A new book by Dr. Hilmar Þór Hilmarsson, Professor
at the School of Business and Science University of
Akureyri, Iceland, has been published in the fall of 2016
in New York. The book is entitled: International
www.geothermal-energy.org

January-March 2017

IGA News No. 106

40

Financial Institutions, Climate Change and the Urgency
to Facilitate Clean Energy Investment in Developingand Emerging Market Economies.

Developments andInnovation, 1st Edition

The book discusses how international financial
institutions (e.g. the World Bank Group and regional
development banks) can facilitate increased investment
in clean energy projects in developing and emerging
market countries. In the coming years and decades,
most of the increase in demand for energy is likely to bein those countries. Clean energy sources are mostly
located in developing and emerging economies.
Investment in clean energy is often capital intensive,
including for geothermal and hydropower projects, andwith long repayment periods. Risk in developing andemerging countries, including political risk, is often highand international financial institutions can promoteincreased investment in cooperation with the private
and the public sector with loans and grants, but more
effectively with insurance and guarantee instruments,that they have been hesitant to utilize. In spite of thethreat of climate change, energy challenges andenvironmental degradation, international financial
institutions have so far done little to invest in clean
energy projects. In this book Hilmar explains how
international financial institutions can use their financial
instruments to multiply the number of clean energy
projects in the coming years and decades. Hilmar wrote
the book mostly while he was a Visiting Professor atCornell University in the fall of 2015.

Geothermal Power Generation: Developments and Innovation
provides an update to the advanced energy technologies
that are urgently required to meet the challenges of
economic development, climate change mitigation, andenergy security.

The book includes the following chapters: Introduction.
Clean Energy, Environmental Degradation and Climate
Change – the Global Challenge. Chapter 1. The Global
Cross Border Investment Regime and the Lack of anInternational
Investment
Organization. Chapter 2. The
World Bank Group: Loans
vs. Guarantees? Chapter 3.
International
Financial
Institutions
andRisk
Mitigation. Chapter 4. How
International
Financial
Institutions Can Support
Cross Border Clean Energy
Projects. Chapter 5. The
World Bank Group and the
Effectiveness of its Risk
Mitigation Instruments.

The book is edited by Ronald DiPippo, Chancellor
Professor Emeritus of Mechanical Engineering and theformer Associate Dean of Engineering, University of
Massachusetts Dartmouth (UMD), Massachusetts, U.S.,
who is a highly respected expert and world authority on
geothermal power plants. It provides a comprehensive
overview of the major aspects of geothermal power
production. The book is composed of 26 chapters,grouped into four parts, contributed by specialists intheir respective areas. They cover resource discovery,
resource characterization, energy conversion systems,
and design and economic considerations. Besides Ron
DiPippo, among the authors of the first 18 chapters are
L.Y. Bronicki, L.E. Capuano Jr., A. Chiasson, W.
Cumming, A.C. de Jesus, W.A. Elders, J.R. Haizlip, W.
Harvey, R.N. Horne, G. Mines, J.N. Moore, M.C.
Moore, J.P. O’Sullivan, M.J. O’Sullivan, K. Phair, I.K.
Smith, P. von Hirtz and K. Wallace.
The final section provides a range of fascinating casestudies from across the world, presented in eightchapters, including Larderello (by R. Parri & F. Lazzeri,
prologue by R. Cataldi), The Geysers (by S.K. Sanyal &S.L. Enedy), Indonesia (by S. Darma), New Zealand (byI.A. Thain & P. Brown), Central and South America (byMore info:
www.novapublishers.com.

Books:
Geothermal
Power
Generation:
www.geothermal-energy.org

January-March 2017

IGA News No. 106
P. Moya Rojas), Los Azufres (by L.C.A. Gutiérrez
Negrín & M.J. Lippmann), EGS (by E. Huenges) andinternational environmental laws (by E. Rodríguez
Arias).
Users will find this to be an essential text for researchand development professionals and engineers in thegeothermal energy industry, as well as postgraduate
researchers in academia who are working on geothermalenergy.
It was published 20 June, 2016 by Woodhead
Publishing. 854 Pages. ISBN: 9780081003374.
Source: http://store.elsevier.com/Geothermal-PowerGeneration/isbn-9780081003374/

Industry: Chevron Announces
Sale of Geothermal
Operations
On 23 December, 2016, Chevron Corporation
announced that its wholly-owned subsidiaries haveentered into a sales and purchase agreement with Star
Energy Consortium to sell Chevron’s Indonesian andPhilippines Geothermal assets.
Chevron Corporation is one of the world’s leading
integrated energy companies, based in San Ramon,
California. In Indonesia, Chevron subsidiaries operate
the Darajat and Salak geothermal fields in West Java. In
the Philippines, company subsidiaries have a 40% equity
interest in the Philippine Geothermal Production
Company, Inc., which operates the Tiwi and Mak-Ban
geothermal power plants in Southern Luzon.
The Indonesia consortium who will acquire the
Chevron’s assets consists of AC Energy –with a 19.8%
economic stake--, Star Energy Group Holdings Pte.
Ltd., Star Energy Geothermal Pte. Ltd., and Electricity
Generating Public Co. Ltd. The acquisition will be madethrough their joint venture company, Star Energy
Geothermal (Salak-Darajat) B.V.
In the Philippines, the consortium consists of AC
Energy and Star Energy Group Holdings Pte. Ltd. The
acquisition will be made through their joint venturecompany, ACEHI-STAR Holdings, Inc.
As of closing this edition, it has not disclosed the figuresof the operation, but the Chevron’s assets have been
estimated at US$3 billion.
Source: http://www.chevron.com/investors/pressreleases
Do you have some drawings, sketches, or small
paintings geothermal-related? So, why not include
them to illustrate your contributions to the IGA News?
Next time you send an article or short note, just send
your drawing attached as a *jpg or *png file.
www.geothermal-energy.org

41

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.
January-March 2017

IGA News No. 106

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January-March 2017