Quarterly No. 68

April - June 2007

IGA
NEWS
Newsletter of the International Geothermal Association
IGA ACTIVITIES
Message from the President

IGA ACTIVITIESJohn W. Lund, President

Message from the PresidentElection of IGA Board of Directors (2007-2010)
100% renewable energy mix for Africa and Asia

The IGA Steering Committee (SC) for the World
Geothermal Congress 2010 (WGC2010) scheduled for
Bali, Indonesia, met with the Indonesian Organizing
Committee (IOC) in Bali on February 18-21, 2007. The
meeting was jointly convened by SC Chair, Dr. Gordon
Bloomquist, and IOC Chairman Dr. Herman Darnel
Ibrahim and Secretary General Dr. Surya Darma. In
addition to Dr. Bloomquist, the SC committee, representing the interests of IGA and responsible for the technicalprogram and short courses, consists of Jim Lawless of
New Zealand, Beata Kepinska of Poland, Roland Horne of
the USA, Mahmut Parlaktuna of Turkey, James Koenig of
the USA, and Eduardo Iglesias of Mexico. Your President
will be serving as an honorary member of the OC.
Planning for the meeting is well along, and the Indonesian
hosts have met the obligations of the Memorandum ofUnderstanding (MOU) between the IGA and INAGA(Indonesian Geothermal Association) and appear to bewell along with raising funds for the congress.
The WGC2010 is now set for 25-29 April, 2010 withfield trips and short courses either preceding or following the conference. The theme has been selected as:“Geothermal: the Energy to Change the World” with a
sub theme of: “Accelerating Geothermal Development
to Respond to the Energy Crisis.” The Congress will beheld at The Westin Resort on the Nusa Dua Peninsula on
the southern tip of the Island of Bali. The Resort has an
excellent conference center where up to eight simultan­
eous sessions can be held at one time, along with roomfor exhibits, posters and other functions. There are also
numerous excellent hotels on the peninsula within walking distance of the Westin. Security is excellent, both
entering the Nusa Dua Peninsula and at each of the hotels
on the peninsula. I am satisfied that security at the congress will be more than adequate.

1
2
2

EUROPE
Germany/Best practice project Unterhaching,
Germany – Risk management andconcept of geological risk insurance.

4

Poland/Atlases of geothermal resources in the
Polish Lowlands – The compendium ofknowledge for specialists and future
investors
6

Iceland/ Geothermal symposium and BoD
meeting in Reykjavik

8/The First International Conference
on Geothermal Energy in the East
African Rift Region (ARGeo-C1)

8

AFRICA
Ethiopia

ASIA/PACIFIC RIM/ Western Pacific Regional Branchof IGA
Australia

11/ Peninsula Hot Springs – A developers
story
11

UPCOMING EVENTS
Geothermal meetings 

15

The first circular announcing the Congress, with a preliminary questionnaire on field trips and short courses to
IGA News, April - June 2007be responded to by interested participants, will be issued shortly. Important dates are call for abstracts by June 30th,
2008; abstract deadline of January 31, 2009; notification of acceptance of abstract by March 31, 2009; draft papers due
May 31, 2009; and final papers due October 30, 2009. For more information see the website www.wgc2010.org.
The IGA Board of Directors held their 42nd meeting in Manila, Philippines on 5-6 March, 2007. Items discussed
were the approval of the grant from the World Bank that will be implemented by IGA by this summer, the approvalof the nomination list for the new Board of Directors election, the approval of affiliate contracts with the geothermal
associations of Mexico (MGA), China (GCES), Poland (PGS) and Switzerland (SVG-SSG), a report by Jim Lawless on
the first meeting of the Western Pacific Regional Branch in Auckland, New Zealand, a report on the WGC2010 meeting in Bali, and a discussion paper on definition of geothermal reserves. Board members also attended the Philippine
Geothermal Association Annual meeting and the PNOC Annual Geothermal Conference. Your President presented
a paper at each meeting on “Utilization of Geothermal Energy Worldwide – Its Contribution to Energy Security” and“Examples of Combined Heat and Power Plants Using Geothermal Energy.” A field trip to the Mak-Ban geothermal
power plant was hosted by Chevron Corporation. We appreciated the excellent hospitality provided by our hosts in
the Philippines.
Dr. Gordon Bloomquist represented the IGA at a renewable energy side event at the United Nations in New Yorkhosted by the International Renewable Energy Alliance (IREA) which IGA joined recently. His report appears­elsewhere in the IGA News.
Your President attended the International Energy Agency (IEA) meeting in Nice, France from 21-23 March as amember of the Geothermal subcommittee, was an advisor at a meeting at the University of Mexico in Mexico City
from 16-19 April concerning a research project on the desalination of brackish water with geothermal energy, andpresented a paper as an invited guest at the Italian National Congress of Geologists in Matera, Italy from 9-11 May on“Characteristics, Development and Utilization of Geothermal Resources”.
The ballots for the 2007 IGA Board of Directors election will be sent out in late May for members serving from 2007
to 2010. Eligible IGA voters will select 30 members from a list of 42 candidates. A unique password will be provided
to each member so that they can vote by Internet. Mail-in ballots will also be accepted. The newly-elected board
members will have their first board meeting in Reykjavik, Iceland on October 11, 2007, following the last meeting of
the outgoing board on October 10, along with the Annual General Meeting.

Election of IGA Board of Directors (2007-2010)
The term of office of the current BoD expires in October 2007, so it is time to launch the election of a new BoD
for the next term. This article will give members an idea of how the balloting will be carried out and also a list of
IGA News No. 68


candidates for you to review. Ballots will be mailed out shortly and voting will be completed by July 15, 2007. You
may vote for a maximum of 30 candidates. A personal IGA password will be provided for access to the website for theelection. In addition to providing access to the IGA election page, the personal password can be used to access areas
on the IGA website that will be reserved for members only in the future. Therefore, it is important that the password
be preserved for future use. The following voting alternatives will be available:
1.
Go to the IGA website: www.geothermal-energy.org, and choose the link to the election page. There you can
use your personal password enclosed with the election package to access the ballot, mark your vote and submit itthrough the internet. This method is preferred for all those who have access to the internet.
2.
Mark your vote on the ballot paper enclosed with the package, fold it and insert it in an envelope (not enclosed).
Write your name and address on the envelope as sender and mail it to: IGA Secretariat/Samorka, Sudurlandsbraut 48,
108 Reykjavik, Iceland. The vote will be treated as invalid if you do not write your name and address on the envelope.
If you prefer, you can also send your ballot by fax or e-mail. In this case, you must also give your name.
Name

Country

Name

Romania

Orhan Mertoglu *Godfrey Bahati &UgandaFrancisco E. Montalvo L.#

El Salvador

Rosa Maria Barragán R.*

MexicoMartin N. Mwangi &Kenya

Lauro F. Bayrante #Philippines

Ramon Allan V. Oca @Philippines

Graeme Beardsmore &Australia

Manuel S. Ogena * #Philippines

Ruggero Bertani * #Italy

Sanja Popovska V.#

Macedonia

Christian Boissavy &FranceKonstantin O. Povarov #RussiaPaul Brophy * #USA

Horst Rüter #Germany

Surya Darma #Indonesia

Ladislaus Rybach &Switzerland

Alimin Ginting * #Indonesia

Yoonho Song &S. Korea

Gestur Gíslason *Iceland

Benedikt Steingrímsson #IcelandLuis C. A. Gutiérrez-Negrín #MexicoGábor Szita #Hungary

Marek Hajto #PolandKoichi Tagomori #Japan

Tamás Hámor #Hungary

Tingshan Tian #China

Colin Harvey #New ZealandToshihiro Uchida *JapanPaul Hirtz #USAFrancois-David Vuataz * #Switzerland

Roland N. Horne #USA

Shigeto Yamada *Japan

Beata Kepinska *PolandKasumi Yasukawa #Japan

Mikhail D. Khutorskoy &RussiaKeyan Zheng *China

Horst Kreuter #Germany

Feliksas Zinevicius #Lithuania

Jim Lawless * #New Zealand

Vladimir Zui &Belarus

Miklos A. Antics#

Country
Turkey#* Current member of the Board re-nominated by the Nominating Committee# Nominated by an affiliated organization@ Candidate by petition& Candidate from Nominating Committee
IGA News, April - June 2007

100% Renewable Energy Mix for Africa and Asia
R. Gordon Bloomquist, Ph, D. Chair IGA Finance Committee
The United Nations convened the 15th session of the Commission on Sustainable Development (CSD-15) in early May
2007. This year’s session had an emphasis on energy sustainability and provided a venue for the first session convened andpresented by the International Renewable Energy Alliance (IREA) of which IGA became a member in the fall of 2006.
The focus of the special Side Event was how to achieve the goal of a 100% renewable energy mix for Africa and Asia.
The session was chaired by IREA Chairman, the Honorable Peter Rae, and consisted of presentations by Robert Dixon,
chair of the International Energy Agency on bioenergy options, Richard Taylor of the International Hydro Associationon the hydro potential in Africa, Yogi Goswami representing the University of Florida on advances in solar technology,
Brent Kopperson representing the World Wind Energy Association on recent break throughs in wind development and
R. Gordon Bloomquist representing the IGA who stressed the potential for geothermal development in the African rift
zone and highlighted the World Bank ARGeo program designed to accelerate geothermal developments in east Africa.
The session was well attended and generated a number of questions and dialogue relative to the need for government
incentives, political will and the impact that a non-renewable approach to meeting the needs of emerging economies
would have on the environment and global climate.
A secondary but extremely important side benefit was the opportunity for all of the members of IREA to come together
with a common voice for a renewable energy future.

EUROPE
Germany

Best practice project Unterhaching, Germany - Risk management and concept ofgeological risk insurance
Ch. Schönwiesner-Bozkurt, K. Imolauer, Rödl & Partner GbR, Germany
Deep-seated Hydrothermal Project Unterhaching
In Bavaria, Southern Germany, geothermal energy projects are developed in the area of the geological formation of theMolasse Basin. The geothermal project of Unterhaching, near Munich, can presently be considered as the largest andground breaking project of Germany. It is the first project that was designed from the beginning with the aim of power
generation from low-enthalpy resources integrating innovative technology and risk mitigation concepts.
Project Facts• realization of two deep drillings to a depth of approximately 3,500 m for ayield of 150 l/s thermal water (production and reinjection well)• installation of a deep seated pump working at temperatures of more than
120°C and a production flow rate of 150 l/s (new development)• heat supply for the community with a newly-built district heating network;
length about 20 km• power generation plant using “Kalina” technology with a gross capacity of
3.4 MWel• project status: both wells highly productive at slightly higher temperatures
than expected; heat supply started commissioning in May; power plant will
be commissioned in August 2007
(For detailed information about the project, please see : www.geothermalprojects.com)
Special Requirements of Project and Risk Management
The organization of this project was far more difficult than first expected.
First of all it has to be pointed out that the investing party is the communityof Unterhaching. In consequence great efforts were undertaken to minimize

IGA News No. 68

in general the project related risks, and therefore it was of utmost
importance to find a solution for the geological risk (especiallyexploration risk) related to the first production well - bearing in
mind that there had been no geothermal deep drilling of suchdimension realized before.
The concept was developed by the overall project managementof Rödl & Partner. The approach was new and ground-breaking,because until this time a private insurance solution for covering
the risk of temperature and flowrate did not exist. The key question of the concept was: at which point does a project have to beconsidered to be unsuccessful?
The approach in Unterhaching was the definition of specificminimum requirements of the ROI of the project depending on
flowrate and temperature with the integration of a non-technical and non-geological parameter.
As the project´s output - heat and electric power - depend strongly on the parameters temperature and yield of thethermal fluid, the definition of the minimum yield for e.g. heat supply was influenced by the planned distribution network. In a similar way the minimum size of a power plant could be calculated. Even the case of a heat-only plant wasconsidered. The definition of different yields on the base of economic evaluations created three basic steps for decision:
1) power generation and heat supply still possible2) only heat supply possible3) no project possible at all (rebuilding of wells; insured event)
A further aspect was the integration of stimulation measures into the insurance contract, as the probability of ­successis also influenced by the efforts undertaken to reach the yield. The question was: which measures would have to be undertaken to achieve the minimum requirements?
On the base of this concept the first European private insurance contract was signed. Based on the results of thisfirst contract and the further strong geothermal development in Germany, there are available now several options forsuch insurance solutions. The successful drilling in Unterhaching and the concept for a private enterprise insurance in­combination with the increased feed-in tariff led to an unexpected development. By May 2007, about 80 exploration
claims were confirmed by the Bavarian mining authorities, which consequently will lead to several geothermal projects
for heat and power production.
The further development in risk management of geothermal projects led to the question as to how far the technicalrisks of drillings can also be covered by private enterprise insurance solutions to reach a minimum risk for investing
parties. Solutions have been developed together with Rödl & Partner based on the experiences of Unterhaching and arepresently available on the market.
The next step will be to transfer the concepts to other countries. Presently first efforts are undertaken in Eastern
Europe which will support hopefully the further development of geothermal projects.

PolandAtlases of geothermal resources in the Polish Lowlands – The compendium ofknowledge for specialists and future investors Wojciech Gorecki, Marek Hajto,
Joanna Ci-gło
During recent years a considerable increase in interest in renewable energy sources, including geothermal energy, hasbeen observed. It is the role of scientific circles engaged in problems of geothermal energy utilization to carry out research
work as well as to spread knowledge based upon solid scientific foundations.
One of ways to this end is represented by the “Atlases of Geothermal Resources in the Polish Lowlands” that haverecently appeared. It has been published in two parts, Mesozoic formations (the 1st part) and Palaeozoic formations (the2nd part) (Fig 2), with more than 720 pages altogether. In December 2006, the AGH-University of Science and Technology
in Krakow, Poland, published (in A3 format and 1000 copies) this newest, detailed study concerning ­ problems of
IGA News, April - June 2007e­ xploration, production and utilization of geothermal waters in the Polish Lowlands. The study area covers more than 87
percent of the territory of Poland (Fig 1). The Atlases were commissioned by the Ministry of the Environment and paid
through the National Fund for Environmental Protection and Water Management.

Fig 1. Extent of study area in the background of distribution of unit
accessible resources of geothermal energy in the Polish Lowlands.

Fig 2. Cover pages of the Atlases

The research team appointed to carry out the undertaking was composed of 38 persons representing the biggest
Polish Universities (the AGH-University of Science and Technology, Warsaw University and the Warsaw University ofTechnology), scientific institutions (Mineral and Energy Economy Research Institute - Polish Academy of Sciences, thePolish Geological Institute), the Association of Communes: Polish Network “Energie Cites”, private companies (e.g. EkoInvest S.A. – Geotermia Stargard) and practitioners in the spheres related to geothermal energy.
The Atlases are the result of co-operation between specialists in geology, hydrogeology, geophysics, geochemistry, geothermics, drilling engineering, reservoir engineering, heat engineering, computer science, automatics, economics and law.
The core of the team was formed by the consortium of the AGH-University of Science and Technology and the Polish
Geological Institute in Warsaw. The whole research team was managed by Professor Wojciech Gorecki, head of the
Department of Fossil Fuels at the Faculty of Geology, Geophysics and Environment Protection at the AGH-Universityof Science and Technology, who was also the scientific editor of the Atlases. The team work was coordinated by Marek
Hajto.
The team from AGH-UST has been carrying out researches into geothermal waters and energy since the 1980s. The
work has been reflected by numerous publications, unpublished reports and conference materials. The summary of thesestudies was published in the “Atlas of Geothermal Waters in the Polish Lowlands” (Gorecki et al. 1990) and the “Atlas ofGeothermal Resources in the Polish Lowlands” (Gorecki et al. 1995) which characterized the Lower Jurassic and Lower
Cretaceous aquifers. Research workers of the Department of Fossil Fuels were also co-authors of the “Atlas of Geothermal
Resources in European Communities” published in 2002 by the European Commission.
The “new” Atlases of geothermal resources of the Mesozoic and Paleozoic formations in the Polish Lowlands are
results of long-term studies on utilization of geothermal waters and energy accumulated in the Lower Cretaceous, Upper
Jurassic, Middle Jurassic, Lower Jurassic, Upper Triassic and Lower Triassic aquifers of the Mesozoic formations, and in
the Lower Permian, Carboniferous and Devonian aquifers of the Palaeozoic formations. Description of these aquifers
is an essential supplement to the knowledge of domestic resources of geothermal energy in the Polish Lowlands. The
Atlases were elaborated with application of the newest techniques of digital processing of geological data and digital­mapping, as well as software resources, among others the special software from the Landmark Graphics Corp.
At the same time, the work represents a compendium of knowledge in the sphere of technical issues related to exploration, development and exploitation of geothermal waters. The information can be useful first of all for those who deal professionally with geothermal energy utilization, but also for those who seek fundamental information on geothermal energy.
The publication presents, among others, characteristics of geothermal systems, ways of using the geothermal waters

IGA News No. 68

and energy (e.g. heat engineering, electricity production, heat pumps, recreation, therapy) in Poland and in the world,
degree of the waters and energy utilization, description of the geothermal installations and plants operating in Poland,
and the classification and estimation methodology of different types of geothermal energy resources. Taking up moredetailed issues of this discipline, the authors describe technical and technological conditions of exploitation, transmission
and injection of geothermal waters and heat perception (e.g. technique and technology of drilling geothermal wells, theirdesign, surface infrastructure of heating systems, etc.).
Problems arising from corrosion of construction materials and precipitation of solids in geothermal water transmission systems are also described. Methods for reduction of unfavourable phenomena related to production and ­utilizationof geothermal waters, e.g. using proper steel in the installations, monitoring of changes in chemical composition of­geothermal water etc., are indicated.
The authors did not confined themselves to the strictly technical approach. They also gave their attention to otheraspects relevant to recovery of resources coming under geological concessions and the geological and mining law.
Legal conditions of exploration and exploitation of geothermal waters and energy are discussed, as well as barriersfor ­development of business initiatives based upon geothermal energy, factors affecting the profitability of geothermalv­entures, relevant investment costs, sources of funds for geothermal projects in Poland and other EU countries. The costeffectiveness of utilization of heat from waters of particular aquifers for heating purposes is also evaluated.
The separate geothermal aquifers are characterized, among others, from the point of view of their geological setting(lithology, stratigraphy and tectonics), extent and depth of the aquifers, their thickness, temperature, water ­mineralization,discharge of water intakes and calculated reserves.
To construct maps of 11 structural surfaces, 5030 wells from the Polish Lowlands were used, data of which were takenfrom archives of the Polish Geological Institute and Polish Oil and Gas Company S.A. and from the database of the
Department of Fossil Fuels. 2831 wells were selected as best documenting the geothermal aquifers. Results of analyses
are illustrated with a number of appendices: more than 150 maps and approximately 30 geological and hydrogeologicalcross-sections.
In order to diversify forms of the information transfer and facilitate its reception by “common” readers, who sometimes are not involved professionally in the problems discussed in the Atlases, the text is enriched with approximately
90 figures, schemes (e.g. of geothermal installations) and photographs and roughly 30 tables. Each chapter is written in
Polish and in English. This bilingual character is an additional advantage in the context of the interest in utilization ofPolish resources of geothermal waters and energy among institutions, businessmen, foreign banks etc.
The Atlases are intended principally for representatives of the state administration, local authorities, and institutions
or private firms interested in geothermal heat energy recovery or other ways of geothermal water utilization. They constitute a source of information on distribution of the geothermal aquifers, their parameters and water and energy resourcesin particular areas of the Polish Lowlands.
The knowledge derived from the Atlases can make decisions much easier for local authorities and/or private investors
in planning geothermal ventures, their localization and the matching of technical parameters of a project to the needs ofa local heat market. Necessary knowledge can be acquired also by university staff and students of various specializations:renewable energy sources, unconventional power engineering, environment protection and others.
Owing to such studies we have a broader and broader view of geothermal resources in Poland. The informationassembled in the Atlases may contribute to rational and economically justified utilization of geothermal resources and theauthors are hopeful that it will be instrumental in increasing the share of renewable, environmentally-friendly geothermalenergy in the energy balance of Poland.
1) Gorecki W. (Eds.), 1990 - Atlas of geothermal waters in the Polish Lowlands. Institute of Fossil Fuels, AGH-University of Mining and Metallurgy in Krakow,2) Gorecki W. (Eds.), 1995 - Atlas of geothermal resources in the Polish Lowlands. Department of Fossil Fuels, AGH-University of Science and Technology in
Krakow.
3) Hurter, S., Haenel, R. (Eds.), 2002 - Atlas of Geothermal Resources in European Communities: Publication no. EUR 17811 of the European Communities,
Luxembourg.

Iceland

Geothermal symposium and BoD meeting in Reykjavik
The Geothermal Association of Iceland will organize a symposium in association with IGA BoD meetings in Reykjavik,
Iceland in October 2007. The symposium will be held October 9 and deals with international geothermal development in
the near future with emphasis on questions like the financing of geothermal projects, new opportunities for conventional
geothermal fields and green energy as the driving force for geothermal development.
IGA News, April - June 2007



AFRICA
Ethiopia

The First International Conference on Geothermal Energy in the East African Rift
Region (ARGeo-C1)
Meseret Teklemariam ( Geological Survey of Ethiopia)
INTRODUCTION
ARGeo is a project for the development of the geothermal resources of the East African Rift region. It has been underpreparation since February 2003. A large number of attractive resource areas have been identified and project guidelines
prepared by the subscribing countries with the assistance of the United Nations Environment Program. The subscribedcountries are: Djibouti, Eritrea, Ethiopia, Kenya, Tanzania and Uganda. Other countries of the region are also expected tosubscribe to the project over time. It is envisaged that project implementation will commence during 2008 with UNEP
and the World Bank acting as co-implementing agencies.
The fact that geothermal energy is a clean, renewable and economically competitive energy resource with high­developmental potential in the countries of the East African Rift region encouraged the initiation of the project as ameans for addressing constraints regarding: (a) awareness including the availability and potential benefits of the resource,and (b) awareness of the technical capacities in the region, and the insufficient availability of the required investment
resources for resource development.
It is expected that, through this project, countries in the East African Rift region will be able to develop their­geothermal resources. In some cases this would be their sole indigenous energy resource. In other cases, where otherenergy resources are also utilized, it would be a means to supplement their energy supply and to improve the energysupply mix.
It is envisaged that the institutional, infrastructural and human resource capacities already existing in the region will
be networked to: (a) facilitate regional cooperation, mutual assistance, exchange of information and experience, training,
pooling of appropriate capacities, and (b) serve as means for sourcing international technical and economic support andparticipation in geothermal resource development and utilization.
One of the means proposed for furthering regional cooperation and exchanges is the holding of periodic conferenceson the development and utilization of geothermal resources in the ARGeo region, with international participation, toserve as fora for the exchange of information, experiences and case histories, as well as for staying abreast of new developments at the international level, and coupled with appropriate training programs that address specific issues of particular
relevance to the region.
On the occasion of the “ARGeo Steering Committee” meeting held in Nairobi in April 2004, during the preparatory
stage of ARGeo, it was decided that the Geological Survey of Ethiopia (GSE) should convene the first such international
conference. The conference was designated “ARGeo-C1” to indicate (a) its context as being the ARGeo Project, and (b)to term it “C1” to reflect that it would be the first of GSE's intended series of similar conferences that may be followed bysequels that could be organized by other ARGeo-subscribing countries.
THE CONFERENCE (ARGeo-C1)
The ARGeo-C1 was organized by GSE in collaboration with the Ethiopian Electric Power Corporation (EEPCO),
Ethiopian Electric Agency (EEA), Ethiopian Environmental Protection Authority (EPA), Ethiopian Rural Energy
Promotion and Development Center (EREPDC), Ethiopian Geoscience and Mineral Engineering Association (EGMEA)
and International Geothermal Association (IGA). It was held at the United Nations Conference Center in Addis Ababa,
Ethiopia from November 24 to December 2, 2006. The theme of the conference was “Geothermal Energy: An Indigenous,
Environmentally Benign and Renewable Energy Resource”.
The objective of the conference was to share and exchange ideas and experiences on how to overcome the barriers andconstraints that hinder the exploration, development and utilization of geothermal energy resources in the East African
region. During the conference, all technical issues concerning the resource from initial exploration to ­ development
and utilization, including case histories, as well as the key elements related to environmental, social, legal, institutional,­economic and financing issues, private sector participation, and other direct resource utilization schemes and ­possibilities
were discussed in detail.
Given the worldwide recognition of the magnitude and quality of the geothermal resource base of the East African Rift

IGA News No. 68

and the interest to contribute to its development, a large number of specialists engaged in the exploration, ­development
and utilization of geothermal resources worldwide as well as representatives of bi- and multilateral institutions engaged
in geothermal project financing and implementation participated in the conference. In addition to ­ international­participation, a large number of participants, both from within the current ARGeo region and from other African­countries, attended the conference.
During the conference there were various relevant programs including: (i) a pre-conference field trip (November 24
to 26, 2006); (ii) technical meetings during the conference (November 27-29, 2006); and (iii) a post-conference field trip
(November 29-December 2, 2006).
(i) The Pre-Conference Field trip (November 24 to 26, 2006): The Finfine thermal well area and public bath inAddis Ababa were visited at the first stop. In Ethiopia, there is a long history of use of geothermal waters and steam
for bathing and curative purposes, often with attributes embedded in religious beliefs. In line with this tradition, Addis
Ababa was founded in 1887, at the initiative of Empress Tayitu, near the site of the Finfine thermal springs. One hundredand seventeen years later, in 2004, the thermal springs were commercially developed for a public bath. This visit was­followed by a travel along the highway to the northeast, part of the way into the northern sector of the Main Ethiopian
Rift (MER). The next day there was a visit to the Aluto volcanic center and the geothermal field including the fluid­gathering system, the pilot power plant, and wells nos. 3, 6, 8 and 4. On the third day, there was a visit to the large ­clusterof coalesced volcano-tectonic collapse structures that host the 256m deep Lake Shalla and the area of hydrothermal­activity on the western shore of the lake. There were about 40 local and foreign participants during this field trip.
(ii) The Technical Meetings during the Conference (November 27-29, 2006): The conference was held at the United
Nations Conference Center in Addis Ababa. There were 200 conference participants from more than 15 countries fromthe continents of Africa, Asia, Europe, North and South America. During the conference about 80 scientific papers were
presented in eleven technical sessions that included both oral and Poster presentations.
Session I: Opening Session: The chairperson of the Organizing Committee of the ARGeo-C1, Dr. Meseret
Teklemariam, delivered a welcome address. Then she invited His Excellency Ato Alemayehu Tegenu, the Minister ofMines and Energy to officially open the conference. During his speech, the Minister stressed that this first ­international
conference is aimed at furthering the purposes of the greater knowledge, development and utilization of the rich­geothermal resources of the East African Rift region. He also invited all participants to share their experience in thevision of enriching African life with increasing use of clean and affordable geothermal energy and to collaborate in­working toward geothermal energy assuming its proper role in that scheme.
Following the opening speech the Secretary of the Organizing Committee of the ARGeo-C1 and Master of theOpening Ceremony, Ato Solomon Kebede, announced the whole program of the technical session to the participants.
Then, three keynote speeches were given by international geothermal experts on various subjects: (i) History, Present
Utilization, and Future Prospects of Geothermal Energy Worldwide by John Lund ; (ii) Factors Critical to Economic
Feasibility by Gordon Bloomquist and (iii) Crustal Structural Setting of Geothermal Resources in Africa by Getahun
Demissie.
Session II: This session was chaired by His Excellency, Ato Alemayehu Tegenu, Minister of Mines and Energy.
Presentations were mainly focused on the Ethiopian Energy Scene. Ato Amenti Abraham, Chief Geologist of theGeological Survey of Ethiopia (GSE) gave a brief introduction on GSE and its activities. This was followed by various
presentations on Energy Policy, Energy Master Plan and status and trends of the rural electrification of Ethiopia.
Session III: In this session, several papers were presented by international experts on direct uses, economic benefitsof mineral extraction from geothermal brines, and geophysical exploration, drilling, well completion and testing of deep
aquifers in Sweden. Furthermore, experts from the Federal Institute for Geosciences and Natural Resources (BGR) of
Germany (GEOTHERM program) and from the United Nations University Geothermal Training Programme (UNUGTP) of Iceland discussed their activities and contribution to geothermal energy resource exploration and developmentin the East Africa Region.
Session IV: Presentations were focused on subjects of regional interest, mainly on the overview of geothermal
resource exploration, utilization and potential in the East Africa region and their challenges to develop the resource. In
these presentations, it was reported that most of the East African countries are dependent on traditional biomass fuel(70-90%) that causes deforestation and environmental degradation. Renewable energy sources (hydro, geothermal, solar)
represent a small portion of total energy production, averaging 2%.
Sessions V and VI: In these sessions, a number of Ethiopian geothermal experts presented more than ten scientific papers on the status of geothermal exploration and development in various geothermal prospect areas of Ethiopia.
Emphasis was given to the geoscientific and reservoir engineering studies of the two more advanced explored geothermal
fields of Ethiopia: Aluto-Langano and Tendaho geothermal fields. This was followed by geoscientific studies of Corbetti,
Dofan-Fantale, TuluMoye and Abaya Geothermal Prospect areas.

IGA News, April - June 2007

10

Session VII and VIII: A number of Kenyan researchers from the Kenyan Electric Power Generating Company(KENGEN) shared their experiences and knowledge by presenting papers on the Kenyan geothermal prospect areas that
include Olkaria, Bogoria, and Eburu. Furthermore, experts from Ormat international Company shared their ­experiencesof technology transfer of Olkaria III geothermal power plant facility.
Session IX: Presentations were mostly focused on other ARGeo countries. Experts from Djibouti, Tanzania andUganda presented papers on the status of geothermal resource exploration in their respective countries. The chemistryof fluid and well testing of the Assal geothermal field, Djibouti, were discussed in detail by experts from Djibouti and
Iceland.
Session X: Various international experts from Iceland, Mexico, Yemen and Hungary shared their knowledge andexperiences by giving presentations on their respective countries.
Poster Sessions: About 15 poster presentations were displayed and explanations were given by various researchers
from different parts of the world.
Closing Ceremony: The conference was officially closed on November 29, 2006 at 4:00 PM by the General Managerof the Ethiopian Electric Power Corporation (EEPCo) - Ato Mihret Debebe. During his closing speech, he mentionedthat Ethiopia is committed to developing geothermal energy as an alternative energy resource mainly to augment energy
supply from hydropower plants and to improve the generation mix. He also stressed that experts from Ethiopia andother African countries were able to gain knowledge and experience from the pre-conference field trip and the discussion
and presentations held during the last three days of the conference.
Following the closing speech a senior expert from the Geological Survey of Uganda (GSU), Mr. Godfrey Bahati,
declared that the GSU will host the second international conference on Geothermal Energy in the East Africa Region(ARGeo-C2) in Kampala, Uganda, in the year 2008.
Round-Table Discussions by the Financiers: Following the Closing Ceremony, a round table discussion was held on
the status and the way forward for the African Rift Development Facility Project (ARGeo-C1). Representatives from the
Executive and implementing agents of the project, from the World Bank and UNEP, led the discussion. These included:
Mr. E. Fernstrom (ARGeo Task Manager, World Bank), Mr. B. Jamet (Project Manager, United Nations Environmental
Protection), and Mr. K. Shimazaki (GeoFund, World Bank).
Post Conference Field Trip (November 30-December 2, 2006)
It was regretted that the post-conference field trip to the Tendaho geothermal field had to be cancelled due tounforeseen logistical problems that arose. However, a special truncated post conference field trip was then arranged foreight participants including the Project Manager of ARGeo from UNEP, BGR experts from Germany and other experts
from USA, Iceland and France.
During this special trip, the Tendaho geothermal field (including discharging wells) and surface manifestations in thesurrounding area were visited. Experts also saw the various equipment available in the Tendaho geothermal camp site
including the Massarenti deep drilling rig and its accessories.
After their visit to the Tendaho geothermal field and camp site, detailed discussions were held on the current activity
and plan for the future of the Tendaho geothermal field.

ASIA/PACIFIC RIM
Western Pacific Regional Branch of IGA
Jim Lawless, President WPRBThe second Regional Branch of the IGA has now been established to cover the Western Pacific Region. This will complement the existing European Forum.
The intention of a Regional Branch of IGA is to provide a close regional focus for members with common interests
not only geographically but also in terms of similar types of geothermal resources and technical applications. In the caseof the Western Pacific Branch there will be a strong focus on electricity generation and higher enthalpy resources.
The founding members of the Western Pacific Regional Branch for IGA are those members of the affiliated national
Geothermal Associations of Indonesia, Japan, the Philippines, China and New Zealand who opt to join the Regional
Branch, plus other member of IGA living or working within the geographical area defined who wish to join.
Current membership exceeds 400.

IGA News No. 68

11The geographical coverageof the Western Pacific Regional
Branch is the area outlined byjoining the national boundaries
of: Thailand, China, Mongolia,
Japan, Samoa, New Zealand,
Australia and Indonesia, andall other countries within that
area.
There is a strong traditionof co-operation between severalof the countries in the region
for geothermal development.
For example during the periodof rapid geothermal development in the 1980’s and 1990’s,
there was a high degree of participation by New Zealand andJapan in geothermal researchand development in Indonesia
and the Philippines. With thematuring of the geothermal
industries in those countries it
is now much more of a partnership role, but strong linkages
remain.
Meetings
All of the five core countries
concerned currently individually hold at least annual geothermal conferences or seminars. Under the aegis of the Regional Branch, one of those conference will be named as theRegional Branch Conference for that year, on a rotating basis. That will foster closer relationships and give a boost tointernational participation in the conferences. In 2006 year the Geothermal Workshop in Auckland was designated as
the first of the Regional Conferences, and in 2007 it was the Annual PNOC-EDC meeting in Manila. In 2008 it will be
the Indonesian Geothermal Association Annul Meeting, in Bali. The date of that is yet to be finalised but will be between
late March and the end of May. Watch this space for details.
Officers and Committee Members
The WPRB is governed by a Forum for 2006-2007 consisting of:
Jim Lawless			
New Zealand Chairman
Alimin Ginting		Indonesia
Glen Golla			Philippines
Toshi Uchida		
Japan
Tingshan Tian		
China
Kevin Brown		
New Zealand Treasurer
Graeme Beardsmore		Australia
The following standing committees have been established:• Nominating (Election) Committee: Toshihiro Uchida, Bill Wood, Larry Bayrante• Finance Committee: Alimin Ginting, Murray Stanley• Audit Committee: Tingshian Tian, Mike Glucina
Elections for the Forum 2007-2010 will be held in late 2007 after the IGA Board elections.
How do you join the Regional Branch ?
If you are in one of the five core founding countries, that have affiliated Geothermal Organisations, you can expect tobe contacted by your appointed representative, or send an Email to the following::
IGA News, April - June 2007

12
China: Dr. Tingshan Tian: tiants@mail.cigem.gov.cn
New Zealand: Jim Lawless: jlawless@skm.co.nz
Japan: Toshihiro Uchida : uchida-toshihiro@aist.go.jp
Indonesia: Alimin Ginting: aliming@unocal.com
Philippines: Glenn Golla: glenn.golla@chevron.com.
If you are an IGA member who lives or works within the Western Pacific region, but who is not within one of theabove five countries, or have any questions, please send an Email directly to Jim Lawless at the address above.
A small annual membership fee is charged over and above the local association fee or annual IGA membership fee

Australia
Peninsula Hot Springs – A developers story
Charles Davidson
Peninsula Hot Springs, Victoria, Australia­

Main Pool.

INTRODUCTION
In the gold rush state of Victoria, there’s a new rare find: ­ liquid gold. It’s pretty much a given that you’ll find hot
mineral springs in relatively young lands of vaulting geological upheaval like New Zealand, Alaska, and Japan. But inthe ancient, stable rock strata of the Great Southern Land, it is thought a rare find,­ truly liquid gold. The Australian stateof Victoria was the destination for waves of gold miners in the 1850’s, Californians, British, Irish and Chinese among
them seeking their fortunes with pick and shovel. In February 2002, Victoria’s ground again yielded excitement, when
Melbourne television news stations captured the moment that hot mineral water gushed from a 2,090 feet (637m) bore
at Rye on the Mornington Peninsula, about one hour’s drive south of Melbourne. The sight of the 122°F (50°C) geyser
was a hugely satisfying waypoint on a fascinating journey for Charles Davidson and his brother Richard. The brothers
still meet with incredulous hydrologists and geologists from younger lands ­ amazed that they have tapped a natural hot
water spring in a country where ‘mountains’ are more akin to the old weathered molars of some ancient, tired beast. In
fact, Japanese hydrology experts went so far as to say ‘no way’ to Charles when he first began to investigate spa culture
and bathing, with dreams of returning from his job in Japan to build a natural hot spring center at home. Opening on
28 June, 2006 with brothers Norm and Bruce Cleland joining the Davidson brothers, Peninsula Hot Springs is a facility
employing 75 people by tapping 122°F(50°C) geothermal waters from an aquifer 2,090 feet (637m) below the 42 acre
(17 hectare) Mornington Peninsula property. It is the first hot spring bathing facility in Victoria, and the only one inAustralia to integrate therapeutic spa, bathing, accommodation, food and beverages. The facility includes public andprivate hot spring baths, a massage spa center, relaxation rooms, café and juice bar, gift shop and a booking office foractivities and accommodation.
IGA News No. 68

13
THE LEARNING EXPERIENCE
The inspiration for the project began when Charles visited several hot springs while in Japan in 1992, working for
Mitsubishi Corporation. This sparked off several years of touring and studying hot springs around the world. In May
1997, Charles heard a rumor that hot geothermal water had been discovered on the Mornington Peninsula in 1979, anda search of Department of Minerals and Energy records substantiated it.
Melbourne is a wonderfully multi-cultural city, having the benefit of various waves of immigration throughout its
history. Similarly, Peninsula Hot Springs could be said to reflect a multi-cultural bathing experience­ with the benefit ofCharles Davidson’s worldwide research into hot springs and spas. In his research, Charles visited spas in Japan, China,
Europe, Yemen, Egypt and Turkey. He talked with spa experts in Russia, the United States and Canada. In Japan, at avisit to Daimaru Hot Springs, he met Professor Sato, Chairman of the Organization for the Preservation of Japanese Hot
Springs, who taught him the sustainable nature of the business.
For 1500 years the Sato family had been operating the Daimaru Hot Springs Inn, where they provided rest, food, shelter, and a hot bath to travellers before they set out on the trek through the high, snow covered mountain pass from Kyoto
to Tokyo. The modern day concept of needing to continually grow and expand had been surpassed by the desire to serveand to exist in harmony with the environment. A harmony with nature seemed to be their key to longevity. Based on an
introduction by John Lund after a visit to his home in Klamath Falls, Charles met with Dr. Vladimir Adilov, Principal of
the Russian Mineral Authority, who in turn introduced him to several geothermal experts, including Nikolai Strozhenko,
Vice Minister of Tourism in Russian and President of the Russian Spa Federation. Mr. Strozhenko had a photo on his
office wall with him and Boris Yeltsin arm in arm at a health retreat at the Black Sea, confirming their belief in the healing powers of bath in Russia. Charles also undertook a two week spa education course in Karlovy Vary (Karlsbad) in
Czechoslovakia (1998) ­ now the Czech Republic, coordinated by Dr. John Paul De Vierville, the Education Director of
the International Spa Association (ISPA).
The link between the medical profession and the spa industry was almost total, as in then-Czechoslovakia all medical
doctors were required to study balneology (the use of water in health and healing) as an element of their undergraduate
training. Spa programs were prepared and coordinated by medical doctors. As in much of Europe, the spa is integral tonational health programs and plays a vital role in the health and wellbeing of its citizens. Charles’ next stop was to Yemen,
as he wanted to prove a theory that all cultures with hot springs would have bathing as an element of their living ritual,no matter their economic state. As it turned out, the Arabic way of the bath in this, one of the world’s poorest countries,
proved like the culture itself to be incredibly developed and sophisticated. In Sanah, the capital of Yemen, there were 17
public baths, one of which was 2,200 years old and still operating. While none of the city baths were fed by hot springs,
he was able to visit three natural hot springs within a few hours’ drive from the capital. The Arabian bathing culture saw
women and men allocated separate times to bath and at all times bathing costumes were worn.
Later in 1998, Charles visited “New World” baths in Canada and the United States, as the day spa boom was starting togain momentum in these countries. Major cosmetic companies and their branded retail muds, oils, creams, and lotions
were part of this growing economy. The conclusions of his observations were that hot spring spas could be categorized
into three types: (1) the European medical spas, (2) the Asian nature-based relaxation spas, and (3) the American beauty
spas. Medical spas provide programs that follow a prescribed health routine including elements of outdoor exercise anddrinking the waters for their mineral benefits. Relaxation spas draw people out into the environment where contemplation, reflection and calm are to be found.
Beauty spas tickle and pamper the mind, body and spirit while driving home a branded retail product sales pitch.
THE PLANNING
After traveling to 45 countries and researching spas in 15, Charles has seen the diversity and possibilities of bathlife. The simplicity of the bathing experience in thermal water and the relaxing sound of “aaaaaahhhhhh!” as you
immerse yourself into the warm water was the central experience. Back in Australia, Richard worked on the land
and the planning application. Through 1998 and 1999 Richard oversaw the planting of 7,000 indigenous trees on theMornington Peninsula property. The number has since grown to more than 20,000 plantings. Having a Masters Degree
in Environmental Science, Richard shared Charlie’s vision of a center that worked with its local environment, ­ enhancing
but not dominating it. The brothers felt that a bath in nature, at Peninsula Hot Springs, would have to be one in thenature of their Mornington Peninsula land and one that shares with their customers the peaceful and gentle world
knowledge of the bath. The brothers wanted time in the outdoor baths to be a ‘timeless zone’ where birds come to visit,
and at night inquisitive possums would walk through the trees above the bath under the southern stars. They envisionedan ­experience that would transform people from their busy world into a place where a connection with nature can befound. “The realization that we are part of the universe and not separated from it will provide a sense of connection
and self. Visitors to this place will not know the passage of time and will almost forget to leave,” Charles wrote for a spa
association paper before the center was completed.
IGA News, April - June 2007

14

THE CONSTRUCTION
Award winning Australian architects, Gregory Burgess Architects, brought their extensive experience with theAustralian environment and in particular indigenous Aboriginal connections translating to the project a living culturalexperience. They worked closely with Taylor Cullity and Lethlean, Landscape Architects to design the building, poolsand surrounding landscape. Hot, warm and cold baths, steam rooms and saunas along with indoor and outdoor mineralbaths in both private and public configurations were made available. This, coupled with features gleaned from overseas,
provided a diversity of cultural bathing experiences with quiet spaces and tranquil places for discovery and creativity.

Small soaking pool.					Small soaking pool.

In addition the buildings are heated with the geothermal waters, and a greenhouse and fish farm will also be
developed to provide a living example of what is possible with geothermal waters. These will be complemented with aCenter for “Geothermal and Environmental Demonstration and Education” that will share the knowledge gained withmany people with an interest in what the Peninsula Hot Springs trio have learned along the way. With the Mornington
Peninsula recently receiving UNESCO accreditation as the world’s first “Urban Biosphere”, education on the possibilities
of a sustainable future is more than a responsible activity, it is a community expectation. The thermal waters flowfrom Selwyn Fault and out into Bass Strait. Ten thousand years ago, when it was possible to walk from the present day
Mornington Peninsula to Tasmania, one was greeted with the joy of natural hot spring pools along the way. With therising of the waters the natural springs are now found under the ocean where they form their own micro climates ofwarm, fresh water zones. The only way to reach the thermal waters was to bore down. The drilling program started inlate 1998, and after several failures, was completed in 2002. The final bore was drilled to a depth of 2,090 feet (637m)
through a variety of sands, limestone, marls, brown and black coal, and finally to a basalt basin. The bore has a capacityof (872 gpm (55 l/s)) producing 122°F (50°C) geothermal waters. The water has a total dissolved solids (TDS) content
of 3200 mg/l (ppm) and a pH of 7.09. It is classified as sodium chloride bicarbonate water and also contains 95 mg/l
magnesium, 81 mg/l potassium and a wide variety of other minerals and trace elements. The water rises under its own
pressure to a depth of 29 feet (9m) from the bore head, which is approximately 60 feet (18m) above sea level.
Future plans will see an expansion of the pools and spa center, construction of 180 rooms of accommodation, awellness center spa, as well as a wellness school, and a variety of satellite spas with country themes including Maorifrom New Zealand, Japanese, Arabic and Indian. The facility seeks to be fully sustainable with an underpinning belief oftreading lightly. It has an egalitarian philosophy offering an experience that is available to and welcomes everyone.
REFERENCES
Davidson, Charles, 2003. Peninsula Hot Springs ­ Biography of an Australian Hot Springs, presented at the United
National World Health Organization, 1st FEMTEC, Asia Hot Springs Conference, Taiwan, December 13-19, 2003.

IGA News No. 68

15

UPCOMING EVENTSENGINE Workshop 4. Drilling costs effectiveness andfeasibility of high-temperature drilling, Reykjavik, Iceland, June 28-29, 2007. http://conferences-engine.brgm.fr
ENGINE Workshop 6. Increasing policy makers awareness and the public acceptance, Athens, Greece, September 13-14, 2007. http://conferences-engine.brgm.fr/
GRC 2007 Annual Meeting, Sparks, Nevada, USA,
September 30 - October 3, 2007. www.geothermal.org
International Geothermal Development in the near
Future, Reykjavík, Iceland October 9. 2007. www.sam­orka.is/iga.
First European Geothermal Review, Mainz, Germany,
October 21-31, 2007. Contact: review@bestec-for-nature.
com
ENGINE Workshop 7. Risk analysis for development ofgeothermal energy, Utrecht, The Netherlands, November
8-9, 2007. http://conferences-engine.brgm.fr/
20th World Energy Congress, Rome, Italy, November
11-15, 2007. www.rome2007.it/home/home.asp

IGA News
IGA News is published quarterly by the International
Geothermal Association. The function of IGA Newsis to disseminate timely information about geothermal activities throughout the world. To this end, agroup of correspondents has agreed to supply news foreach issue. The core of this group consists of the IGA
Information Committee:
Eduardo Iglesias, Mexico (Chairman)
Nilgun Bakir, Turkey
Werner Bussmann, Germany
John Garnish, United Kingdom
Alimin Ginting, Indonesia
Gestur Gíslason, Iceland
Luis Gutiérrez-Negrín, Mexico
Roland Horne, USA
Beata Kepinska, Poland
Jim Lawless, New ZealandMarcelo Lippmann, USA
Zbigniew Malolepszy, Poland
Adele Manzella, Italy
Rosa María Prol-Ledesma, Mexico
Sylvia Ramos, Philippines
Colin Randall, Australia
Tingshan Tian, China
Joaquin Torres-Rodriguez, Mexico
François-David Vuataz, Switzerland
Kasumi Yasukawa, Japan

Mineral extraction from geothermal brines, Rotorua,
New Zealand, November 22-23. Contact: Dr. Kevin Brown
kevin@geokem.co.nz

The members of this group submit geothermal news
from their parts of the world, or relevant to their areasof specialization. If you have some news, a report, or
an article for IGA News, you can send it to any of theabove individuals, or directly to the IGA Secretariat,
whatever is most convenient. Please help us to become
essential reading for anyone seeking the latest information on geothermal worldwide.

33rd Stanford Workshop on Geothermal Reservoir
Engineering, Stanford, CA, USA, January 28-30, 2008.
http://pangea.stanford.edu/ERE/research/geoth/conference/workshop.html

While the editorial team make every effort to ensure
accuracy, the opinions expressed in contributed articles remain those of the authors and are not necessarily those of the IGA.

29th New Zealand Geothermal Workshop, Auckland,
New Zealand, November 11-15, 2007. www.nzgw07.auckland.ac.nz

ENGINE Final Conference, Vilius, Lithuania, February 13-14, 2008. http://conferences-engine.brgm.fr/
33rd International Geological Congress, Oslo, Norway,
August 6-14, 2008. www.33igc.org

Send IGA News contributions to:
IGA Secretariat, c/o Samorka
Sudurlandsbraut 48, 108 Reykjavík, Iceland
fax: +354-588-4431
e-mail: iga@samorka.is
Contributions to the next issue of IGA News must be
received by 8 August 2007.
This issue of IGA News was edited by Eduardo Iglesias.
John Garnish proofread the articles. Produced by Gestur
Gíslason for the IGA Secretariat. Layout and printing byGutenberg, www.gutenberg.is
IGA News, April - June 2007

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