Requirements for the development of EGS Session: How to improve exploitation and cost-effectiveness of geothermal energy and manage environmental and social impacts? Content: 1. Status: what we know/need 2. Identification of Obstacles 3. R+D Requirements Dr. Th. Mégel GEOWATT AG, CH-Zürich ENGINE Launching Conference, 13-15 th February 06, F-Orléans Status: what we know/need EGS-PMDA Handbook developed under IEA-GIA, Annex III Chapters: Project planning Generic project Index of Suppliers • Principal milestones • Data Matrix: Data requirement • Task Matrix: First point of data need (EXCEL) Register of suppliers (EXCEL) Sources of Know-how http://www.iea-gia.org/ Collected Experiences Databases (ACCESS) Information to project documents and data • Fenton Hill • Rosemanowes • Soultz-sous-Forêts Bibliography EGS literature database (EndNote) Identification of Obstacles Fact 1: R+D activities for EGS since over 35 years. Fact 2: Still no commercial EGS power plant worldwide. Will we have commercial EGS power plants in 35 years? Obstacles: 1. Financially not attractive ?! 2. Too risky with regard to environmental and social impacts ?! R+D Requirements Identification of Obstacles The economical rules are simple...: Costs Production Production costs MWh / year € / MWh + < Market (Politics) Investment costs + Operating costs € / year Minimising + Maximising R+D Requirements Minimised until < € / MWh Maximised until Identification of Obstacles Phases of an EGS life cycle Concept Exploration Development Production Abandonment ? General regional planning: • technical • political • financial • environmental • Pilot borehole • Stimulation tests • Production modelling • Inj./Prod boreholes • Intensive stimulation • Production tests • Surface installations • Power/Heat production: • Maintenance If no re-investment for this site: Deconstruction Milestones Site selected Feasibility of EGS at site demonstrated Installations and reservoir ready for production Production lifetime reached Identification of Obstacles Concept phase Exploration phase Data matrix (EGS-PMDA): Information and data required for each project phase Development/Production/Aban. phase Identification of Obstacles C Exp D Production A R+D required for... 14 Investment Investement Minimising 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Production Production Year Maximising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Year Site selected Feasibility evaluated Identification of Obstacles C Exp D Production A Feasibility evaluated 14 GO - NO GO ? Investment Investement 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Year High risk phase Principal obstacle: High risk money is expensive The GO - NO GO decision must be taken as early as possible ! Low risk phase R+D required to minimise costs by ... 1. shortening of the high risk phase 2. reduction of the high risk investment 3. limiting impacts (social/ environ.) Identification of Obstacles Exp D Production A Production C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Year Feasibility evaluated GO - NO GO ? Principal need: Production must be stable on a sufficient level to cover all investments and operating costs Return of investment R+D required to... 1. maximise production 2. guarantee production R+D Requirements • Technical productivity enhancement • Technical permeability enhancement Key task: ! Major problem so far: near-borehole domain + reservoir domain At all EGS R+D projects the success was always coupled on an expected productivity for future production. Hence the systematic development of stimulation techniques was difficult. But this is what is needed! Extended, systematic stimulation/enhancement R + D programme for different techiques: • mechanical • chemical • others...new... ! R+D Requirements Extended, systematic stimulation/enhancement R + D programme Tasks: Methods: A Identification of physical/chemical processes of permeability enhancement I Stimulation R+D tests in existing boreholes, not necessarily deep! B Identification of leading parameters for each stimulation method II Stimulation R+D tests in new boreholes, not necessarily deep! C Productivity as a function of leading parameters III Laboratory test • • • • • different rock types different stress regimes different methods (mechanical, chemical) different fracture fillings sites with no limits for massive tests ! IV Professionally managed, firmly concerted D What combination of subsurface parameters do we find in Europe? E Which combination of parameters exclude successful enhancement? F Are there limits of permeability enhancement for given subsurface conditions? G Can a limited seismic magnitude be guaranteed for given conditions? H ... V ... Conclusions If EGS power plants shall become commercial, then...: • Production must cover all capital costs • Either the production is such that an extended exploration phase - including a lot of failures - can be financed, or the production can be predicted early in a projects life cycle • Production must become predictable for conditions at a given site • Production is based on stimulation/enhancement techniques • Therefore: Enhanced permeability for given conditions and technique used must become predictable Extended, systematic stimulation/enhancement R + D programme