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Category Archives: Geothermal

DOE Launches Geothermal Research Initiative

Monday, October 5, 2009

A new U.S. Department of Energy (DOE) collaboration is looking to generate electricity from a geothermal sources stemming from oilfield operations.

DOE’s Office of Fossil Energy (FE) and the Office of Energy Efficiency and Renewable Energy’s (EERE) Geothermal Technologies Program will merge and leverage research capabilities to demonstrate low temperature geothermal electric power generation systems using co-produced water from oilfield operations at FE’s Rocky Mountain Oilfield Testing Center (RMOTC).

EERE is providing funding for the purchase of a geothermal electricity producing unit from Ormat Technologies Inc. RMOTC will serve as an optimal testing facility for geothermal technologies, while enhancing knowledge sharing between the geothermal and petroleum industries.

The system will turn otherwise discarded water into an energy resource. With an estimated ten barrels of hot water co-produced along with each barrel of oil in the United States, there is significant resource potential for this technology. The electricity produced will be used to power field production equipment.

Operational and performance data for various climate and system configurations will be collected and made available to industry and the public, highlighting the potential of geothermal renewable energy from co-produced water.   (link)

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Energy Company Calls Halt to Drilling Project

Thursday, September 3, 2009

A $17 million energy project in California that was supposed to demonstrate the feasibility of extracting vast amounts of heat from the earth’s bedrock has been suspended indefinitely after the drilling essentially snagged on surface rock formations.

The project, run by AltaRock Energy, represents the Obama administration’s first major test of geothermal energy as a significant alternative to fossil fuels. But since drilling began in June, the project has encountered earthquake fears and scheduling delays.

Last month, federal scientists said that the company had fallen far behind schedule because a huge rig hired to drill down about 12,000 feet, or more than two miles, on federal land had not been able to pierce surface formations called caprock. On Wednesday, the Bureau of Land Management approved a request by AltaRock to halt the drilling operation temporarily, said a bureau spokeswoman, Jan Bedrosian.

“They need to come back to us with their future plans, and they have not done that,” Ms. Bedrosian said.

In a statement, the company confirmed the suspension but gave few additional details. Several industry officials said it was virtually certain that AltaRock would dismantle and remove the enormously expensive rig from the site, which is known as the Geysers.

The federal scientists had said that after nearly two months of drilling, the project had reached depths of less than 4,000 feet. Technical problems are not uncommon in drilling operations, but some scientists said they were surprised at the severity of AltaRock’s difficulties given that the drilling essentially started at 3,200 feet, at the bottom of an older well, called E-7.

AltaRock was awarded $6.25 million in financing by the Energy Department late last year to be on the vanguard of an effort to produce renewable energy by fracturing rock at the bottom of a deep hole and then circulating water through the cracks to generate steam — a technique called an engineered or enhanced geothermal system. The company has also raised some $30 million in venture capital from firms including Google and Kleiner Perkins Caufield & Byers.

But after an article in The New York Times raised questions about whether AltaRock had been forthcoming about a similar project in Switzerland that produced earthquakes, the Energy Department and the land bureau said the company would not be allowed to fracture rock until a new review determined whether the project is safe. That review is still pending.

If the review allowed it to proceed, AltaRock had planned to drill a second well after the first was completed. Now it is unknown whether the company will try to restart drilling at the first well, move on to the second one or drop the project entirely.

In its statement on Wednesday, AltaRock said that the company “had encountered a number of physical difficulties in the drilling of well E-7,” adding that the difficulties resulted from “geologic anomalies particular to the formation underlying this well location.”

“As a result, we have suspended the drilling of this well as part of the Geysers demonstration project,” the statement said.

The company said it was exploring alternate well locations at the Geysers and elsewhere.

During a visit to the site in May, James T. Turner, the company’s senior vice president for operations, said that the project would cost $17 million to $18 million and that “the vast majority of that is on the two wells.”

A spokeswoman for the Energy Department, Stephanie Mueller, said the department and the land bureau were working “to look into the problems that AltaRock has experienced to determine whether and how they can be remedied.”

Ms. Mueller added that “the department is taking these issues seriously as we weigh a final decision on the AltaRock project.” (link)

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U.S. Military Leads Green Charge

Wednesday, July 29, 2009

The U.S. military is not just setting standards in the areas of advanced weaponry. It’s also leading the renewable energy charge. It’s involved in solar, geothermal and wind projects and its stake in the field will continue to grow.

Consider the solar arena: If you thought the biggest solar array in the Americas was in the Southwestern United States, you’d be right. At 140 acres, the site’s 70,000 panels produce peak energy of 14 megawatts, or enough energy to supply 14,000 homes.

But what may not be widely known is that the solar site is at the Nellis Air Force Base in Nevada, providing about one-fourth of the base’s power, with the capability of selling renewable credits back to NV Energy. The site, completed in late 2007, can produce about 30.1 million kilowatt hours per year.

The photovoltaic plant provides electricity that can be used on base, although excess power can be fed into the electric grid. The Nellis solar plant provides clean energy, and the base saves $1 million annually in utility bills. The project, financed by private investors, cost $100 million and took six months to complete.

Another renewable energy resource, geothermal power, has been a mainstay at the China Lake Naval Air Weapons Station in California for more than two decades. Since the 1980s, the 270-MW plant has provided enough power to supply the entire base. The Navy receives revenues from geothermal power facilities. And it recently awarded a contract to build a 30-plus MW geothermal plant at Fallon Naval Air Station in Nevada. The Department of Defense (DOD) is looking at other opportunities for similar public/private ventures to tap renewable energy resources.

These aren’t just individual projects to take advantage of local resources, but an overall strategy to reduce energy use and revamp procurement. “The DOD is tailoring its installation energy strategy to address efficiency improvements to existing buildings, constructing highly efficient and sustainable new facilities, managing our energy costs through long-term power purchase agreements and contracts, and incorporating renewable energy and smart grid technologies to reduce installations’ risk of power outages, improve on-site resilience to grid power interruptions and create a measurable increase in energy security,” said Brian Lally, director, facilities energy, DOD.

“In some cases, large commercial-scale renewable power projects can be built that not only provide renewable power to a DOD installation, but also to the city or community that supports the installation through services and an organic workforce,” he continues. “This means that there could be potential that should be explored for other uses.”

Early Efforts

Increased renewable energy use and production by the military has been a priority since earlier this decade. One of the first efforts in the early 2000s was at Dyess Air Force Base in Texas, which became the first facility to be 100 percent renewable. Fairchild Air Force Base in Washington is also 100 percent renewable. The Air Force also operates a 2.4-MW wind farm on Ascension Island and a 1.3-MW wind farm at F.E. Warren Air Force Base in Wyoming. Other wind farms are under consideration elsewhere.

Since the DOD is the single largest energy user in the United States, any marginal increases in efficiency or the use of renewable sources could have significant impacts on civilian supply. According to DOD reports, the military consumes 1.2 percent of the energy required in the United States. While the vast majority of its more than 832 trillion BTUs are consumed by aircraft, vehicles and ships, at least 12 percent of its needs are met by electricity at its more than 5,300 sites.

The Energy Policy Act of 2005 mandated an increased share of renewable energy over the next decade, therefore causing more urgency in the removal of fossil fuels from some of the military’s uses. By 2013, the military must acquire 7.5 percent of its electricity from renewables.

In this era of environmental awareness, all sectors of American society will make greater attempts to go green. The Defense Department is no different and in fact, it will be taking a leadership role. (link)

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For Cheap Clean Energy, Go Geothermal NYU Stern Study Says

Thursday, July 16, 2009

An NYU Stern study says geothermal energy is the cheapest renewable energy out there, and could compete with coal with about $3.3 billion in government research funding.

Geothermal energy is the cheapest form of clean energy out there, with wind energy a close second - and both could become cheaper than fossil fuel-fired energy if governments will direct more research funding to them.

That’s according to a new report from New York University Stern, which calls for governments to start putting more money into geothermal and wind power research to yield faster and more dramatic improvements than money put into solar research.

Geothermal energy was singled out as the cheapest renewable energy source out there, and could become competitive with coal and gas-fired power with about $3.3 billion in research and development spending, the report said.

The United States got about 2800 megawatts of geothermal energy in 2006, or 0.3 percent of the total. But it only costs 4 to 6 cents per kilowatt hour to make on average, according to DOE’s Energy Efficiency and Renewable Energy division - close to the ultra-cheap price of energy made from coal, but without coal power’s massive carbon emissions.

Specifically, research into “hot, dry rock” geothermal technology could yield big increases in geothermal energy’s potential, the report stated.

Most geothermal energy today comes from capturing hot water and steam already underground. Hot dry rock systems, also known as enhanced geothermal systems, seek to inject water from aboveground into wells that reach deep hot, dry rock formations to make steam to drive a turbine and generate power.

That’s an area that Google and General Electric have agreed to work on together (see Google and GE Gang Up For Green Energy).

Google.org has put money into geothermal company Potter Drilling, and it and Kleiner Perking Caufield and Byers have invested in AltaRock Energy, which promises breakthroughs in hot rock technology (see AltaRock Breaks New Ground With Geothermal Power).

Geothermal energy hasn’t gotten a lot of attention from venture capital investors to date, given that it’s seen as a limited market with very high entry costs. And geothermal companies have long complained that they don’t get the government support they deserve (see Money Remains the Barrier to Geothermal Power).

That may be changing. The Department of Energy, after years of spending little on geothermal, has aimed $400 million in stimulus funding at the technology (see Green Light post).

Geothermal players such as Ormat Technologies and SPX have been moving ahead with projects despite the complaints (see Ormat Technologies Seeks $1.5B and SPX Makes $100M Geothermal Deal). (link)

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Treasury, Energy Announce More Than $3 Billion in Recovery Act Funds for Renewable Energy Projects

Monday, July 13, 2009

As part of an innovative partnership aimed at increasing economic development in urban and rural areas while setting our nation on the path to energy independence, the U.S. Department of the Treasury and the U.S. Department of Energy recently announced an estimated $3 billion for the development of renewable energy projects around the country and made available the guidance businesses will need to submit a successful application. Funded through the American Recovery and Reinvestment Act (Recovery Act), the program will provide direct payments in lieu of tax credits in support of an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009. Previously, these companies could file for a tax credit to cover a portion of the renewable energy project’s cost; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program allows for an immediate stimulus in local economies.

In previous years, the tax credit has been widely used. It is considered a successful incentive for encouraging the development of renewable energy. In 2006, approximately $550 million in tax credits were provided to 450 businesses. The rate of new renewable energy installations has fallen since the economic and financial downturns began, as projects had a harder time obtaining financing. The Departments of Treasury and Energy expect a fast acceleration of businesses applying for the energy funds in lieu of the tax credit.

To expedite implementation of the program, Treasury and Energy are today making available the terms and conditions, guidance, and a sample application so that companies can prepare successful applications in advance of the launch of the web based application in the coming weeks - yet another tool designed to facilitate the timely flow of program funds to eligible businesses. (link)

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Administration: The West Will Have Its Renewable Energy

Monday, June 15, 2009

Cabinet leaders in the Obama administration promised Monday to help Western states develop a robust system for delivering renewable energy.

Interior Secretary Ken Salazar said the West has vast untapped potential for harnessing wind, the sun and geothermal energy to create electricity. But “it doesn’t do any good to generate energy if you can’t get it to market,” Salazar said during the annual meeting of the Western Governors’ Association.

That’s long been the concern of Western governors eager to develop renewable energy projects but frustrated by limitations in the transmission system and sluggish bureaucracies.

Salazar and Agriculture Secretary Tom Vilsack vowed to make renewable energy a priority and find ways to streamline permitting.

Salazar said four Western states _ Arizona, California, Nevada and Wyoming _ will get federal renewable energy planning offices to help make sure projects don’t get stalled.

In a report released Monday, the association _ which represents the governors of 19 Western states and American Samoa, Guam and the Northern Mariana Islands _ identified 54 areas with renewable energy potential across the Western U.S. and Canada. (link)

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Secretary Chu Announces Nearly $50 Million to Accelerate Deployment of Geothermal Heat Pumps

Thursday, June 4, 2009

U.S. Energy Secretary Steven Chu recently announced nearly $50 million from the American Reinvestment and Recovery Act to advance commercial deployment of the renewable heating and cooling systems, which use energy from below the Earth’s surface to move heat either into or away from the home or building. The DOE says expanded manufacturing and installation of geothermal heat pumps (GHPs) could aid in the creation of new jobs while reducing the use of fossil fuels.

“The heat from the Earth represents a significant energy resource that can be tapped to reduce emissions contributing to climate change.” said Secretary Chu. “Expanded use of GHPs in the United States will create new jobs for engineers, manufacturers and technicians while at the same broadening our nation’s clean and renewable energy portfolio.”

According to DOE, geothermal heat pumps, also called ground-source heat pumps, can be more efficient than the air-source heat pumps more commonly found in commercial and residential applications today. GHPs can substantially reduce building-related electricity demand while providing lower utility bills and lower maintenance costs to users.

DOE announced opportunities for geothermal heat pump projects in three areas: (link)

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Geothermal and Solar Get More Than $467 Million in Stimulus Funds

Thursday, May 28, 2009

President Obama recently announced over $467 million from the American Reinvestment and Recovery Act to expand and accelerate the development, deployment, and use of geothermal and solar energy throughout the United States. The funding represents a substantial down payment that will help the solar and geothermal industries overcome technical barriers, demonstrate new technologies, and provide support for clean energy jobs for years to come. The announcement supports the Obama Administration’s strategy to increase American economic competiveness, while supporting jobs and moving toward a clean energy economy. (link)

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Obama promotes clean energy, stimulus in Nevada

Wednesday, May 27, 2009

In a Western trip devoted mainly to raising political money, President Barack Obama is highlighting two favorite issues: clean energy and his economic stimulus plan.

The president planned to tour the “photovoltaic array” at Nellis Air Force Base, near Las Vegas, on Wednesday. The solar-powered cells provide a quarter of the base’s power needs, White House officials said.

Obama also cited progress from his $787 billion stimulus package, which Congress passed three months ago. The money is paying for thousands of projects in construction and other fields throughout the country.

He said more than $467 million in stimulus money will be used “to expand and accelerate the development, deployment and use of geothermal and solar energy throughout the United States.” (link)

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Chu Promises Speedier Funding for Renewable Energy Projects

Thursday, April 30, 2009

Secretary of Energy Stephen Chu announced $93 million in funding for American wind energy research and development on Wednesday, part of the American Recovery and Reinvestment Act.

“The goal is to set America on a course for a secure and sustainable energy future,” Mr. Chu said to a crowd assembled at the National Renewable Energy Laboratory in Golden, Colo. The secretary restated President Obama’s target of generating 10 percent (PDF) of the nation’s electricity from renewables by 2012.

According to energy department statistics, in 2008, wind energy accounted for 42 percent of all new energy generation capacity in the United States.

Of nearly $100 billion in stimulus funds for energy, $26 billion have been authorized for clean energy projects since mid-February, Mr. Chu said. The Department of Energy’s goal is to award 70 percent of this total by Labor Day.

In addition to increased funding, the secretary also pledged to speed up the the energy department’s loan-making process. He said in the past it was not unusual for loan approvals to take four years. “This is a very sick economy,” said Mr. Chu. “If it takes four years to get a new set of loans out, either the patient will have recovered by himself — or he will have died.”

 

The secretary said the new loan approval system will cut that time to a matter of months, and drastically reduce the amount of paperwork. “We want to launch projects quickly and logically that will provide enduring value,” said Mr. Chu. (link)

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