Activities of JOGMEC

Geothermal Resources Development Department

CONTENTS

・ JOGMEC Overview
・ JOGMEC Missions- Financial assistance- Potential Survey- Research and Development

1

JOGMEC Overview/ Corporation profile

2

Japan Oil, Gas and Metals National Corporation
Established
29 February, 2004
CapitalJPYen 921 Billion （Approx. US＄8.1B） (As of September, 2018)
Chairman&CEO Tetsuhiro Hosono
Employees
609 (As of 1 July, 2018)
Domestic Network (25 ) Tokyo Head Office, Technology & Research Center (Chiba), Kyushu Office
Mine Pollution Control Project and Geothermal development Support Offices (4)Mine Pollution Control Project Support Office(1)Site Management Offices (15) –Oil & Gas Stockpile
Metal Technology Center / Test Field Office
Overseas Offices (13) Beijing, Jakarta, Sydney, Washington D.C., Huston, Vancouver,Mexico, Lima, Santiago, Moscow, London, Abu Dhabi, Botswana

Head Office(Tokyo)Technology & Research Center(Chiba)Metals Technology Center(Akita)

Mission and Activities

3Mission

Secure constant and stable supplies of oil, natural gas and mineral
resources to support industries and citizens in Japan through various
activities relating these resources. In 2012 Geothermal function wasadded to the role of JOGMEC.
4 Divisions(July 2018~)Activities

Metals Strategy &Oil & Gas
Exploration, andUpstream
Technology
Investment andDevelopment
Research &Development

Stockpiling

Mine Pollution
Control

Coal Strategy &Exploration, andTechnologicalSupport

Geothermal
Resources
Development

Strategic Energy Plan in Japan

4

Ministry of Economy, Trade and Industry, METI, announced “Long-term Energy
Supply and Demand Outlook” pursuant to the policies of the Strategic Energy Plan,
which mentioned Geothermal energy would be increased to 1.0-1.1% of the power
supply by FY 2030.
Geothermal
0.3%

25

Geothermal
1～1.1%

100%
90%
80%
70%
60%
50%
40%
30%20%
10%0%

2015Hydro
Solar

10Renewable
Nuclear
Oil
LNG

2013

2030

CoalWind

5Baio0GeothermalGeothermal power plants in Japan
Main geothermal power plants inJapan

5

Installed Capacity & Electricity Generated
Decreasing gradually for the past dozen years
60（10MW）
50.4

Installed Capacity（10MW）

50

Electricity Generated（100GWh）

40
27.0
30

21.4
16.1

20
5.2

103.1
0

53.5 53.4（100GWh）
40
54.0
3530
25
20
15
10501970 1975 1980 1985 1990 1995 2000 2005 2010 2016
（Fiscal Year）
Source: TENPES,JOGMEC

Total Installed Capacity: 521MWCONTENTS

・ Geothermal Development in Japan・ JOGMEC Missions- Financial assistance- Potential Survey- Research and Development

6

JOGMEC’s Mission■Our Big Goal

7

Promote the activation of domestic geothermal development.

■ Action assignments

 Financial supports for cost issue
 Reduce exploration risk (Geological aspect)■ JOGMEC implements three approaches

 Financial supports(Subsidy, Equity Capital Finance, Liability Guarantees) Technology development
 Regional air-borne geophysical survey

CONTENTS

・ Geothermal Development in Japan・ JOGMEC Missions- Financial assistance- Potential Survey- Research and Development

8Outlines of Financial Assistance

9Potential Survey

Exploration

EIADevelopment- Geological Survey- Drilling ofInvestigation Well

- Environmental
ImpactAssessment- Drilling ofProduction Well &Reinjection Well

- GeophysicalExploration- Discharge Test

- Structural Boring- Construction, Start-up& Commissioning ofPower Plant

Operation- Commercial
Operation

Hatchobaru (Oita Pref.)Resource Risk
Development / Maintenance Cost

Financial Assistance provided by JOGMEC
Subsidy

Equity Capital- Up to 50% of equity capital- Up to 50%~100%* of(JOGMEC is not allowed tonecessary funds(* depends on terms and be the largest shareholder.)conditions)

Liability Guarantees- Up to 80% of loan
provided by financial institutions

Adopted Projects from FY2012 to FY201710

As of end of Mar, 2018

CONTENTS

・ Geothermal Development in Japan・ JOGMEC Missions- Financial assistance- Potential Survey- Research and Development12Regional Potential Survey

13

JOGMEC conducts air-borne geophysical survey which aims to acquire basic data
for the evaluation of geothermal resources. From 2017, in order to accelerate
the geothermal development furthermore, JOGMEC has started the heat flow
drilling survey based on the outcome of air-borne geophysical survey. Thestructure and the temperature of underground is acquired through the heat flow
drilling survey.
Time Domain
Electromagnetic Survey(HTEM)Heat Flow Drilling survey

Survey Area

Air-borne Gravity Gradiometer(AGG)- Air- borne geophysical survey: 18- Heat flow drilling survey: 4

CONTENTS

・ Geothermal Development in Japan・ JOGMEC Missions- Financial assistance- Potential Survey- Research and Development

14

Reduction of Exploration Risks

Evaluation & Management ofGeothermal Reservoirs

Exploration Techniques forGeothermal Reservoirs
Uncertainty of ReservoirPrediction- Missed geothermal Reservoirs- Inappropriate geological model

15

Reduction ofExploration Risks

Inappropriate Managementof Reservoirs- Vaporization- Cooling- Acidification

 Proper Understandingof Reservoir Conditions
 Optimizing Reservoir
Utilization

 Improvement of
Subsurface Imaging
 Proper Understandingof Reservoir Architecture（http://www.chikaikyo.com/chinetsu/）

16

Research & Development Technology for Exploration of Geothermal Reservoirs-3D seismic, SQUITEM※, Borehole exploration techniques
Improvement of exploration accuracy will be expected by applying those method toimage the geothermal reservoir structure.
※SQUID：Superconducting Quantum Interface Device
TEM: Time domain transient electromagnetic
SQUITEM

3D seismic

MT

SQUITEM

Borehole exploration techniques

Research & Development

17

 Drilling Technology- PDC bit development
Development of the PDC* bit cutter and body for
geothermal well drilling and conduct verification test inorder to reduce a drilling cost.
- Lost Circulation Techniques- Small sized High Power Rig Development

 Evaluation
Reservoir&Managementof*PDC : Polycrystalline Diamond CompactGeothermal- Artificial recharge by river water(EGS technology)
The research and development to stabilize the geothermal
production by improving evaluation accuracy of fluid flow,and optimizing artificial recharge techniqueThis project is carried out under a collaborative researchwith EPRI (Electric Power Research Institute in USA)
- Permeability Improvement Technology(Fracturing..)- Equipment Utilization Improvement Technology- Acid Reservoir Utilization Technology

Yanaizu-nishiyama power plantProjects schedule18International relation /Promote public acceptance

MOU with GNS Science (NZ)

Promotion poster

19

JOGMEC-GNS 2ndWorkshop Information Exchange at the Geysers, USA

Promotional conference

Special class for schools

Source: JOGMECConclusion

20Japanese Government has been trying to expand the developableareas, reduce investment risk and raise public awareness towards
geothermal development.
Problem to be solvedSolution

1. Exploration & Production Businesses(1)Feed-in Tariff(1)High risks in subsurface(2)Long lead-time from initial survey tooperation(3)Continuous investment for geothermal
resource development(4)Power lines to transmit Electricity(2)Subsidy(★)(3)Equity Capital Finance(★)(4)Liability Guarantees(★)(5)Technology & ResearchDevelopment(★)

2. Volcanic Region Location(6)Deregulation, permission for theconstruction in the National Parks(1)In the National Parks(7)Raising public awareness and(2)Near the Hot Spring Resorts
acceptance of geothermal resource･･･Harmonizing with local communities anddevelopment(★)
the environment(★)JOGMEC’s support programThank you for your attention!