Geothermal Energy The Indigenous, Renewable, Green Option Dr. Silas M. Simiyu Geothermal Development Kenya Electricity Generating Company LTD P.O Box 785, Naivasha Kenya Presentation outline Introduction Geothermal Development Process Principles of Operation Status and development potential in Africa Stages in Geothermal Development Barriers to Geothermal development in Kenya Conclusions 2 World Wide Location Geothermal power plants In the middle of crops In forested recreation areas In fragile deserts In tropical forests In game parks with fragile ecosystems In high population areas 3 Benefits of Geothermal Energy Provides clean and safe energy using little land Is renewable and sustainable Generates continuous, reliable “baseload” power Conserves fossil fuels and contributes to diversity in energy sources Avoids importing and benefits local economies Offers modular, incremental development and village power to remote sites 4 Geothermal and the Environment Geothermal energy is clean energy and renewable Geothermal power stations emit less greenhouse gases compared to other sources of energy Geo Gas 0 Gas Geo 0 Oil 500 Coal 5 Oil 10 CO2 1000 Coal SO2 Emissions (kg/MWhr). From Reed and Renner, 1995 5 WHAT IS GEOTHERMAL • Geothermal Energy heat from the Earth Transmitted: i) Conduction ii) Convection • fluids via fractures and pores in the rocks 6 Geothermal Fields of the World 7 Rift Based Geothermal Model 8 Manifestations Geysers Hot Springs Fumaroles 9 Hot Ground Sulfur Geothermal Development Process: Kenya’s Examples Geothermal Development process Stage I: Exploration Objective: Determine the viability of the resource i) Heat Source –Energy source ii) Fluid Recharge and pathways –Transport media iii) Reservoir conditions -Permeability, density and heat capacity -fluid chemistry, phase and gases iii) Baseline EIA Make Decision: GO or NO-GO Drill 3 Exploration wells to confirm results (-3,000) -Carry out well testing -Review results Make Decision: GO or NO-GO 11 Geothermal Development process 2 Stage II: Sizing of the resource Appraisal Drilling of 6 wells ( depth 2,000 m to 3,000m) Objective: Determine the size of the resource 12 -(minimum) extent of resource confirmed -more accurate hydrological model -Volume, geometry, boundary conditions of resource -Pressure, Temperature and Overall fluid Chemistry Feasibility study to determine viability of the project & Overall Economics: Plant size, type, funding and Tariffs Complete Environmental Impact assessment Including public disclosure. Environment Friendly Power Plant design Make Decision: GO or NO-GO Geothermal Development process 3 Stage III: Production drilling and Plant Construction Drilling of 16 wells ( depth 2,000 m to 3,000m) Construction of steam gathering system and power plant Put in Place Field and Environmental Management Procedures -Make–up wells (Size, timing and location) -Reservoir monitoring (Pressure, temperature and fluid chemistry) -Re-injection. (Maintain reservoir pressure and water mass) -Rehabilitation. (Return the area close to what it was originally) Use collected data to carry out the following -Optimization of the first plant for efficiency and productivity -Remedial action if needed in response to reservoir effects -Decision whether to increase capacity to second stage 13 Principles of Operation: Power Generation Schematic Diagram of Geothermal system Generator Cooling Towers Separators Production Well Water and Steam 15 Injection Well Water Type of Plants 1: Condensing Dry Steam Power Plant Steam Turbine Generator Electricity Steam 16 Condensed Steam (Water) Turbine Generator Electricity Steam entry Coiled wire cylinder Turbine blades Steam outlet to condenser 17 Magnetic field Types of Plant 2: Condensing Flash Steam Power Plant Flash Tank Hot Water 18 Steam Turbine Generator Electricity Condensed Steam (Water) Condensing Flash Steam Plant (Olkaria I & II) POWER TRANSMISSION (TO NATIONAL GRID) COOLING TOWERS STEAM FROM OTHER WELLS MAIN STEAM GAS EXTRACTOR STATION TRANSFORMER STEAM GENERATED ELECTRICITY SEPARATOR TURBINE WATER COOLED CCONDENSATE PUMP GENERATOR GASES HOT CONDENSATE CONDENSER CHF PUMP Surface Rock Cold Surface Water CHF CHF Intermediate Temperature Surface Rock Surface Rock Cold Surface Water Cold Surface Water High Temperature Reservoir Intermediate Temperature Intermediate Temperature High Temperature Reservoir PRODUCTION WELL High Temperature Reservoir RE-INJECTION WELL RE-INJECTION WELL FLOW DIAGRAM 19 Type of Plant 3: Non Condensing Flash Steam Plant SEPARATOR PRODUCTION WELL CONTROL VALVE (GOVERNOR) REINJECTION WELL 20 G BACK PRESSURE STEAM TURBINE ATMOSPHERIC DISCHARGE Types of Plant 4: Binary Cycle Power Plant Binary Vapor Turbine Generator Electricity Binary Liquid Heat Exchanger Hot Water 21 Cooled Water Binary Cycle Power Plant: Heat Exchanger Binary vapor out to turbine Hot geothermal water in from production well 22 Binary liquid in from condenser Geothermal water out to injection well Binary Cycle Power Plant: Aluto Langano –Ethiopia (8MW) & Olkaria III – Kenya (13MW) Steam and water PRODUCTION Isopentane BINARY TURBINE HEAT EXCHANGER COOLING WATER / AIR INJECTION 23 Mini-Geothermal Binary Cycle Power Plants: Kapisya – Zambia & Oserian Kenya Kapisya –Zumbu National park, Zambia (160kW) Binary plant owned by Zesco Shallow drilled wells of 150-200m Built in 1987 and not commissioned Planed to use water at 90oC Plant being upgraded by KenGen. Oserian Dev Company Kenya (2 MW) Binary plant owned by Oserian Flower Farm Commissioned July 2004 Using steam and re-injecting water Steam leased from KenGen from 1 well. Using only one well KenGen is putting up a 2.5 MW Mini-Geothermal binary plant at Eburru Use both steam and water from 1 well. Condense steam to water for community 24 Lake Baringo Borehole blowout 25 Principles of Operation: Direct Uses Heating Heat Exchanger Cold clean water in to be heated Geothermal water out to injection well 27 Hot water out to buildings Hot geothermal water in from production well Heat Pump in Winter Heat is collected from underground & transferred to the building 28 District Heating Injection Well 29 Production Wells Geothermal Energy Utilization: Direct Use –Oserian Green houses (Kenya) i) Cut Roses Green house Heating ~100 hectares, ii) Refrigeration of cut flowers storage and processing stores, iii) Injection of CO2 to aid in photosynthesis, iv) Fumigation of soils and sterilization Sterilization of liquid recycled plant fertilizers 30 Geothermal Energy Utilization: Direct Use II Fish Farming Crocodile Farming 31 Hot bath/spa Swimming Pool Geothermal Use: Status and Potential in Africa Geothermal Resources in Africa Potential in the great African Rift > 7,000 MW. Kenya’s geothermal potential is in excess of 3,000 MW Currently only Kenya (130 MW), Ethiopia (8 MW) and Zambia (0.2 MW) have power stations. There are plans to install another 1,000 MW in Eastern Africa over the next 10 years Geothermal energy in North African countries is mainly for greenhouse heating and irrigation 33 Kenya’s Geothermal Potential Kenya’s geothermal power potential is estimated at over 3,000 MW. Most of Kenya's Geothermal potential areas (>20 fields) occur within the Kenya Rift. Current installed geothermal power: KenGen 115 MW and IPP’s 15 MW. From above values, only a small fraction of the estimated resource has been harnessed. 34 Kenya‘s Planned Capacity Expansion Kenya’s Geothermal Potential CAPACITY (MWe) 3000 2500 IMPORTS 2000 THERMAL 1500 GEOTHERMAL WIND 1000 500 HYDRO 2019 2017 2015 2013 2011 2009 2007 2005 2003 0 YEARS Geothermal can meet all Kenya’s capacity expansion requirements for the next 15 years 35 Why slow exploitation of Geothermal ? Barriers to geothermal development Large up-front investment in exploration, appraisal and production drilling Funding Constraints: Long financial closure Technological Constraints: Manpower (development and retention) & Equipment Environmental & Social issue: Pollution, Land Commercial & Legislative Framework Risks: Country, Market, Corruption, Level Playing Field etc 36 Overcoming Barriers: Financing Geothermal Projects Kenya’s Experience Development requirements It is all about MONEY!! Projects are only worth developing if they create adequate net through life benefit for the developer, whether government or private This requires a guaranteed revenue stream and manageable risks in resource supply 38 Financing Geothermal Development-1 Resource Exploration: Geo-scientific surface studies and exploratory drilling. In Kenya it’s usually the responsibility of the government Resource Assessment: Drilling of appraisal wells and well testing Both the Government & to a lesser extent private sector Power Plant Development: Drilling of production wells, steam pipelines and Power Plant construction Shouldered by the Government and Private sector 39 Current/Future Policy on Funding Options: Resource Exploration and Assessment Research and Development fund set aside by GoK Retention of the differential in interest on on-lent funds from GoK Contracts, consultancies and steam sales Grants from research programs through individual staff’s proposal writing efforts. Carbon Credit mechanism. Risk Guarantee Fund (GEF?) Utilization of the fuel levy fund. 40 Future Funding Options: Power Plant Construction stage - 1 Offering competitive bidding to private and public institutions – local & international. Strategic alliances e.g. KenGen does all the field development work and sells steam to IPPs. Carbon credit earned from displacing fossil fuels Early Generating units to provide cash stream Demonstrated capacity to generate a portion of the funds required for the investment; typically 25% Government offloading shares to the public 41 Overcoming Barriers: Human Capacity Development Kenya’s Experience Geothermal Training in Africa Geothermal technology -specialized field. Development of a Geothermist takes many years; On-job and focused need based training In the world, training facilities have been offered at: Inst. for Geothermal Res., Pisa, Italy Kyushu, Japan Diploma Course, Auckland University. UNU-GTP Iceland Short Course Training in Kenya, KenGen/UNU 43 Trained v Installed MW 3500 3000 2500 2000 Trained MW 1500 1000 500 0 Asia 44 L. America Europe Africa UNU Fellows from Africa by 2006 45 Country No. Trained Retired Available Algeria Burundi Djibouti Egypt Eritrea Ethiopia Kenya Tanzania Tunisia Uganda Totals 3 1 1 3 3 22 41 1 6 6 86 3 1 1 0 1 10 5 1 0 2 24 0 0 0 3 0 11(8 MW) 36(130 MW) 0 6 (Low Temp) 3 59 Kenyans Trained at UNU-GTP 46 41 people trained 7 Geophysics 5 Reservoir Engineering 6 Geochemistry 5 Geology 3 Geothermal utilization 4 Drilling 5 Environment 3 Power Plant 36 Still active in geothermal 4 teaching at Universities 2 Out of the Country 3 Not active KenGen’s Geothermal Training Programme (Since 1982) Progressive Graduate Technical staff training 1 year geothermal course -New Zealand (Theory) After 2 years on job, -6 months practical training course–Iceland. 3 months specialized courses at Kyushu -Japan and Pisa -Italy Long specialized courses in USA and Japan (PhD) All contracts/consultancies have a training component Encourages advanced training in Geothermal Technology Staff retention through Keeping them busy when back Out of 26 graduate technical staff on the project, there are 4 PhD and 15 Msc holders 47 KenGen’s Geothermal Training Programme (Since 1982) KenGen training policy -1 course per staff per year. KenGen Geothermal Training School established 1988 Catering for KenGens internal training needs (esp. technicians) Recently affiliated to United Nations University (Iceland) where joint short courses are offered to ARGeo members Training centre -linked to other International Centres in USA and support by the Global Environment facility of GEF. The East African Rift Countries Tanzania, Djibouti, Kenya, Eritrea, Uganda and Ethiopia formed ARGeo; a regional network of geothermal agents Pool resources, including manpower & Equipment Create partnering required so that trained Africans can train others through the training centre in Kenya 48 KenGen- UNU Geothermal Training Centre First course held in November 2005 Potential contribution of geothermal to national energy needs Geothermal project management Focused on decision makers (PS’s, CEO’s etc) Second course to be held November 2006 Geothermal resource exploration and appraisal Participants from: Rwanda, Zambia, Burundi, Tanzania, Djibouti, Kenya, Eritrea, Uganda and Ethiopia Facilitators: KenGen, UNU-GTP, ArGeo and GEF 49 Overcoming Barriers: Lab and equipment Pool Development Kenya’s Experience Introduction I The ability to carry out exploration and development depends on; Appropriate equipment that are easily accessible The total cost for an optimum equipment pool exclusive of labs is about US $ 4,249,000 This cost of equipment was beyond our means without a revenue stream Need for long term plan to ensure continued acquisition and availability through maintenance and upgrade From the Beginning KenGen determined What were the priority equipment Which ones were available in other accessible organizations How much can the owner charge for the service What are the maintenance and running costs if we buy 51 How equipment have been acquired by KenGen before Started by use of limited internal resources to buy equipment in a 52 prioritized stepwise manner (Over 5 years). A number of agencies, assisted KenGen to buy equipment. Some acquisition were tied to project funding/contracts/research Equipment is handed over after the project Equipment is abandoned after the project Lead to a wide array of working and non working equipment. Depending on the contract, some issues were overlooked Equipment Compatibility with existing ones Equipment maintenance and spare availability Environmental working conditions of the equipment Data sharing, processing and interpretation KenGen ended up with many un-serviceable equipment Low availability of equipment: Identified Causes Lack of proper maintenance and Service caused by Poorly trained maintenance staff No budget for equipment maintenance Lack of accountability by equipment custodian Lack of planning for equipment upgrade Under-utilization of many of such equipment Projects occur once in a while Lack of coordination of activities in the country/region Lack of knowledge of existence of potential users 53 Our Experience Developed service, maintenance and upgrade schedules Did proper recruitment of trainable staff & allowed them to make mistakes Trained our technicians in instrument maintenance and Service Every equipment was amortized, had a budget and was ensured that it made money Insisted on accountability by equipment custodian Tried to get more users of our services in the country Buy equipment as a business Increased utilization of equipment –More money 54 Overcoming Barriers: Environmental Issues Kenya’s Experience Environmental Issues I Carry out Baseline Environmental conditions assessment at Stage I -Determine the in-situ condition -High-light and assess the sensitivity of the area to possible development -Cost the possible environment impact and mitigation measures -Determine the potential Social Economic Impacts of the project -Gather data on the potential Volcano Seismic hazards of the area -Use the data as a basis for a GO or NO GO decision making Carry out a full EIA with disclosure at Stage II -Use it as a basis for planning monitoring and management -Requirement for licensing of the project -Part of the feasibility study 56 Environmental Issues II Put in Place and Enforce Sound Field and Environmental Management Procedures -Community based Corporate Social Responsibility (CSR) program (1% of net Profit) Water for grazing, health and school facilities, -Reservoir monitoring Pressure and temperature Fluid chemistry Mass changes using gravimetry Re-use condensed steam for cooling -Re-injection. Maintain reservoir pressure and fluid mass recharge Avoid contamination of ground water & Subsidence -Rehabilitation of disturbed areas during construction Return the area close to its natural beauty -Ecological monitoring and friendly designs of all works. 57 Overcoming Barriers: Commercial and Legislative Kenya’s Experience Development Strategy KPLC PRIVATE 1 PRIVATE 2 Power Purchase Agreement KENGEN or IPPs Steam Supply Agreement Geothermal Prospects A B $ C $ $ $ Geothermal Resource Assessment & Development Geothermal Development Company Local & Foreign Sources of Financing 59 D E $ GEOTHERMAL RESOURCE DEVELOPER • Exploration Drilling • Appraisal Drilling • Production Drilling • Steam Gathering Facilities • Reservoir Management Conclusions Geothermal Energy will play a leading role in provision of Africa’s energy needs and governments should provide; Adequate human capacity through focused specialized training Carefully prioritized Equipment and other resources required. Funds for initial high risk investment stages of geothermal development There is need to pool together in order to optimize use of resources and accelerate development of Geothermal Energy Incentives such as tax holidays and an enabling Legal environment will go a long way in attracting and retaining private investors in the Geothermal power industry. Encourage public-private partnership participation. 60 THANK YOU 61